Provisional Liquidation Court Application Against Ithala To Be Heard

The provisional liquidation application by the Reserve Banks Prudential Authority against the Ithala finance agency is expected to be heard in the Pietermaritzburg High Court today.

Earlier this month, the KwaZulu-Natal government requested a R2.4 billion loan from the National Treasury.

In a statement, the provincial finance department states that this is to serve as a security guarantee until the entity acquires a banking licence.

Since January 16, over 250 000 Ithala clients have not been able to withdraw or deposit funds, due to an application by the Prudential Authority to provisionally liquidate Ithala.

This was over claims of legal and technical insolvency.