The 429 page long court papers of the Prudential Authority (PA), which is seeking to liquidate Ithala Bank, has dismissed claims made in public by the latter that it is solvent.  In an affidavit filed by the CEO of the PA, Nomfundo Tshazibana for the Pietermaritzburg High Court, she said in October 2024, Ithala Bank was directed to cease taking deposits from customers and repay all the money it holds.  That would have meant that the bank had to pay…

The Association of Mineworkers and Construction Union (AMCU) has thrown its weight behind the embattled Ithala Bank as the Prudential Authority (PA) presses on with its Pietermaritzburg High Court application to have the historic KwaZulu-Natal financial institution liquidated. In a statement, AMCU President, Joseph Mathunjwa said it looks like underlying political and commercial interests are driving the legal action, potentially threatening the livelihoods of thousands and further destabilising the province. He added that AMCU is committed to safeguarding this essential…

The Special Investigating Unit (SIU) has been quietly authorised to probe allegations of wrongdoing at Ithala Development Finance Corporation and its wholly owned subsidiary, Ithala (SOC) Limited (Ithala Bank). This is outlined in Proclamation 243 of 2025 which was signed by President Cyril Ramaphosa on Friday, setting the investigation in motion immediately. Ithala Bank is already on the brink of closure after the Prudential Authority (PA), a division of the South African Reserve Bank tasked with monitoring banks, applied to…

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.…

Finance Minister Enock Godongwana has asked South Africa’s big banks to open accounts for social grant recipients who are currently banking with Ithala Bank so they could continue to get paid while the historic KwaZulu-Natal state owned institution tries to fend off a liquidation application by the Prudential Authority (PA).  This is according to Godongwana’s letter to Mary Vilakazi, the chairperson of the Banking Association South Africa, dated 17 January 2025 and seen by African Times. The letter was written…

Ithala SOC Limited (Ithala Bank), the historic financial institution founded by the KwaZulu homeland government to fund black entrepreneurs during the apartheid era, has slammed the Prudential Authority (PA) ‘s application to have it under provisional liquidation.  The PA is a division of the South African Reserve Bank (SARB) that oversees the operations and compliance matters of banks and insurance companies in the country. In a statement on Thursday (January 16), the PA said its application in the Pietermaritzburg High…