KZN Premier Welcomes Possible Withdrawal of Ithala Liquidation Bid

KwaZulu-Natal Premier Thamsanqa Ntuli has welcomed the possible withdrawal by the Prudential Authority (PA) and Repayment Administrator Johan Kruger of their court application seeking the liquidation of Ithala SOC Limited and Ithala Bank.

The Premier described the development as a significant breakthrough following months of intensive negotiations and engagements led by the Provincial Government to protect the institution.

"This matter has never been merely about a financial entity; it has always been about protecting the economic aspirations of the people of KwaZulu-Natal — particularly the rural poor, small businesses and historically marginalised communities who rely on Ithala," Ntuli said.

Provincial and National-Level Engagements

Ntuli has spearheaded efforts to resolve the impasse, working closely with Members of the Provincial Legislature, including:

• Economic Development, Tourism and Environmental Affairs MEC Reverend Musa Zondi

• Finance MEC Francois Rodgers

The matter was elevated to national leadership, including discussions with President Cyril Ramaphosa, as part of efforts to secure a lawful and sustainable solution.

"Positive Step, But Work Still Ahead"

While describing the possible withdrawal of the liquidation application as encouraging, the Premier cautioned that the process is far from complete.

"There is still a substantial amount of work that lies ahead. Our focus now shifts decisively to revitalising and stabilising Ithala so that it can stand firmly on its feet again and operate as a well-oiled, fully compliant and sustainable financial institution," he said.

Ntuli acknowledged that the process has been complex and at times difficult, requiring patience, discipline and coordination across different spheres of government and regulatory authorities.

Preserving Ithala's Developmental Mandate

The Premier reaffirmed the Provincial Government's commitment to ensuring that Ithala emerges stronger and better structured to fulfil its developmental role.

"This institution has played a critical role in extending financial services to communities that were historically excluded from mainstream banking. That legacy must be preserved and strengthened," he said.

Ithala has long served rural communities, small enterprises and individuals with limited access to traditional banking services.

Collaboration with Regulators and Treasury

The Provincial Government will continue working with:

• Prudential regulators

• National Treasury

• Other relevant stakeholders

to ensure full regulatory compliance while protecting depositors and safeguarding the broader provincial economy.

Call for Public Confidence

Ntuli appealed to residents of KwaZulu-Natal to maintain confidence during what he described as a critical phase for the institution.

"We understand the anxiety and uncertainty that this matter has caused. We assure the people of our province that their government remains fully seized with the task at hand. We ask for continued patience and confidence as we work diligently to secure Ithala's long-term stability and growth," he said.

The possible withdrawal of the liquidation bid signals a turning point for Ithala, with provincial authorities now focusing on long-term restructuring and financial sustainability.