Regulatory Technicality Shouldnt Stand In The Way Of Saving Ithala

The MEC for Economic Development, Tourism and Environmental Affairs in KwaZulu-Natal, Reverend Musa Zondi says a regulatory technicality should not stand in the way of saving iThala from collapse . Zondi took part in a debate in the National Council of Provinces.

Founded in 1958, the aim of iThala was to cater for those who were excluded by commercial banks. It is currently fighting the Prudential Authoritys provisional liquidation court application.

iTthala does not have a banking license. Thousands of clients have been unable to access their funds since January this year.

Zondi has called for the banking regulator to intervene.

If we are truly committed to transforming the financial sector, to empower people, dismantle geographic boundaries to finance, we must defend and preserve institutions like iThala. Let us not allow a regulatory technicality undo the transformative work of decades, says Zondi.