Ithala Has R300 Million Ring-fenced To Secure Deposits, Says Kzn Treasury

Ithala SOC has R300 million ring-fenced in the provincial revenue fund that can be used by the bank to secure deposits as required by the South African Reserve Banks Prudential Authority the KwaZulu-Natal treasury has said in court papers.

The money is not reflected in Ithalas balance sheet because it hasnt been advanced to the bank, according to a supporting affidavit deposed by the KwaZulu-Natal treasury head of department, Carol Lyn Coetzee.

The affidavit was filed last week.

This is additional capital available to Ithala that can be drawn for purposes of security deposits held by Ithala as was required by the Prudential Authority in the final authority, Coetzee said.

The bank was supposed to be in the Pietermaritzburg high court on Tuesday to challenge what it says are unfair legal instructions from Johannes Kruger, the Repayment Administrator of the PA.