By: Phakeme Mnguni
KZN Premier Thami Ntuli says the Prudential Authority (PA) has gone too far by moving to liquidate Ithala SOC Limited, commonly known as Ithala Bank.
The PA and Ithala are locked in a legal battle over the institution’s financial position and operations. The Authority approached the courts in January, seeking the bank’s provisional liquidation.
According to the PA, Ithala continued to accept deposits after its exemption to operate without a banking licence expired in December 2023. It claims the institution has been unable to repay some of these deposits and is commercially insolvent. This formed the basis for freezing certain accounts linked to the dispute, a step the PA says was taken to protect depositors.
Ntuli, speaking at the Premier’s Office in Durban, criticised the regulator’s handling of the matter, suggesting that its approach may destabilise the province’s efforts to build an inclusive financial ecosystem.
The legal process is ongoing.
