Hundreds of Ithala Bank employees in KwaZulu-Natal face financial hardship and the risk of defaulting on monthly payments after Repayment Administrator (RA) Johannes Kruger, who was appointed by the Prudential Authority (PA) to oversee the bank’s affairs, failed to pay their salaries.
Kruger assumed control pending an application in the Pietermaritzburg High Court to have the historic KwaZulu-Natal bank provisionally liquidated. His takeover effectively granted him sole authority over all transactions, leaving account holders unable to make deposits or withdrawals.
This decision has also affected employees, who were due to receive their salaries on January 20th. However, nine days later, they remain unpaid, causing significant distress among the staff.
Today, the National Education Health and Allied Workers’ Union (NEHAWU) picketed outside the South African Reserve Bank (SARB) in Durban, demanding that salaries be paid and the bank be rescued.
“To date all these workers have not received their salaries for January 2025 which was due which was supposed to be paid on the 20th. While we understand that the liquidation matter is before the court, we also want to state categorically that the national union is vehemently opposed to any move or action that seeks to bury Ithala SOC Limited to the dustbin of history,” NEHAWU stated in its memorandum delivered to SARB.
The union further emphasised that the livelihoods of over 400 Ithala employees should be protected while the case is being heard in court.
“We find it inhumane that in these harsh socio-economic realities, our members have been condemned to poverty and made to join millions of fellow South Africans who go to bed hungry everyday as a result of having no income,” the union added.
Meanwhile, the Pietermaritzburg High Court case regarding the PA’s application to liquidate Ithala will no longer proceed as scheduled on 30 January 2025. This follows a meeting between KwaZulu-Natal Judge President Thoba Portia Poyo-Dlwati and the legal teams of all parties involved. A new court date will be announced in due course.
Earlier today, the Registrar of the High Court in Pietermaritzburg issued a notice removing the liquidation application from the Unopposed Motion Roll and and new directives with timelines were set.
In the new timelines, ABSA, which previously allowed Ithala to use its systems for transactions, is required to file its papers by 4 February 2025, while Ithala SOC must submit its replying affidavit by 7 February 2025.
Ithala SOC’s heads of argument are due by 13 February 2025, while the Prudential Authority (PA) and the Repayment Administrator (RA) must submit theirs by 20 February 2025. On that day, the Deputy Judge President (DJP) will meet with the legal teams to finalise a hearing date.
Meanwhile, the South African Social Security Agency (SASSA) has advised the 65,000 social grant recipients previously paid through Ithala to visit the First National Bank (FNB) between 28 January and 4 February 2025 to open new bank accounts for future grant payments.
Beneficiaries must present their IDs to activate their new FNB accounts and ensure they receive their grants in the next payment cycle.
