Kzn Government To Challenge Liquidation Of Ithala Bank: Ntuli

The KwaZulu-Natal government says it will use all possible avenues to challenge the Prudential Authoritys application to liquidate Ithala SOC Limited .

This was after the repayment administrator, appointed by the Reserve Bank, found that Ithala was technically and legally insolvent, which exposed the more than 200 000 depositors to the potential loss of their deposits.

Premier Thami Ntuli, who addressed the media together with other provincial officials, says that the action taken by the administrator was suspicious and lacked substance.

KZN government says it has assembled a team of senior legal experts to challenge the provisional liquidation of Ithala to be heard in the Pietermaritzburg High Court on Thursday.

Ithala, which is often referred to as a bank, was never granted a banking license. Instead it operated under a special exemption, granted by the Ministry of Finance, which expired in 2023.