Ntuli says R1.685bn in Ithala depositor payments processed

Staff Reporter

The KwaZulu-Natal government said it was reconfiguring Ithala’s board and investigating management after processing 64,801 customer payments worth R1.685 billion, as it sought to stabilise the troubled state-owned financial institution.

The province said the stabilisation effort had so far covered 32% of Ithala’s customer base and 81% of total deposit value, with individual depositors, businesses and stokvels continuing to access to their funds.

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The Prudential Authority withdrew its liquidation application earlier this year, giving the administration room to pursue a restructuring of Ithala Development Finance Corporation and its subsidiary, Ithala SOC Limited.

“The withdrawal of the liquidation application gives us the opportunity to protect and strengthen this important development institution, ensuring that it continues to serve the people of KwaZulu-Natal,” Premier Thamsanqa Ntuli said in a statement this weekend.

The province said the focus had now