Latest news with #IthalaSOCLimited
IOL News
14-05-2025
- Business
- IOL News
Ithala CEO explains ongoing operations amidst court cases
KwaZulu-Natal Premier Thamsanqa Ntuli and Ithala SOC Limited CEO Dr Thulani Vilakazi during a media briefing in Durban. Image: Sibonelo Ngcobo/Independent Newspapers As Ithala SOC Limited continues its operations following a recent court ruling, CEO Dr Thulani Vilakazi has emphasised the bank's commitment to client engagement and transparency. Vilakazi was speaking during a media briefing on Wednesday hosted by KwaZulu-Natal Premier Thamsanqa Ntuli, alongside Economic Development, Tourism and Environmental Affairs (Edtea) MEC Reverend Musa Zondi. This is a few days after the Pietermaritzburg High court allowed Ithala to continue operations. Vilakazi said they were still being briefed by their legal advisers on the significance of the court decision. 'So for the better part of the weekend, that's what we dealt with.' Vilakazi said they are holding ongoing client and staff engagements. 'We have a number of ways of communicating with our customers. We have a call centre that is in vernacular, that is fully manned. We have also issued notices in both isiZulu and English. We continue to communicate with our clients and clarify for them,' Vilakazi explained. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ He said their operations have been greatly affected. 'We also put up a plan for people to be able to pay. We also have a plan where we allow our customers to now pay into an account at a particular bank to receive these obligations on a monthly basis,' Vilakazi said. 'At the moment, you can come to our branch, you can get insurance advice, but you can't do OTC (over-the-counter services), we don't take deposits.' Vilakazi clarified that all deposits they had were legally collected up to December 15, 2023. Around the insolvency issue, Vilakazi said: 'I won't get into this because that's before the courts and the provisional liquidation case is not going to be held.' He said an institution is said to be insolvent when its current liabilities exceed its current assets. 'That's not our case, but I can't get into it because that matter is still going to be heard.' Ntuli shared experiences of some affected Ithala clients: A young KwaDukuza farmer Mhlengi Ngcobo's hydroponic farm faces closure due to a frozen Ithala account, preventing the purchase of essential agrochemicals and fertilisers. Crop spoilage forced him to dismantle ten tunnels and lay off five employees. Mrs Hlabisa in KwaNongoma received lobolo payments in her Ithala account for her daughter's wedding, which was planned for April 20. However, she has been unable to access these funds, causing distress during what should be a happy time. Mr Ntuli from uMlazi lost his job and had been using his Ithala savings to survive. Now, his funds are frozen, leaving him unable to provide food and meet his family's basic needs.
IOL News
11-05-2025
- Business
- IOL News
Trade union federations welcome ruling reinstating Ithala's operations
The Ithala SOC Limited building in Kingsmead, Durban. A recent court ruling has lifted restrictions on its operations. Image: DOCTOR NGCOBO Independent Newspapers Labour federations have described the court judgment handed down on Friday that restored some functions of Ithala SOC Limited as a victory that has renewed their faith in the justice system, adding this judgment should mark the first step towards turning Ithala into a fully fledged state bank. Labour federation Cosatu stated that the judgment has restored their faith in the justice system, while the South African Federation of Trade Unions (Saftu) said the Reserve Bank should not rush to close Ithala. They were reacting after the judgment handed down by Judge Muzi Ncube at the Pietermaritzburg High Court on Friday lifted some of the restrictions on the bank's operations and management. In March, Ithala approached the court for an order to compel the SA Reserve Bank-appointed Repayment Administrator (RA) Johannes Kruger, to give it access to R863 million in frozen funds to pay staff. Kruger, in turn, sought to overturn a November 2024 court ruling that said he overstepped in his powers when he sought to take control of all operations at Ithala Bank. In Friday's ruling, Judge Ncube reaffirmed that Kruger has no right to take over the operational and day-to-day management of Ithala. The judge clarified that Kruger has no authority over the human resources, treasury, marketing, finance, and any other operational functions of Ithala, and that the board is not stripped of its powers despite the appointment of the RA. He further ordered that transactions on Ithala's bank accounts must be allowed for salaries and other expenses. The court further said Ithala is entitled to continue conducting its business. This may suggest that account holders may be able to access their accounts; however, this could not be confirmed with Ithala yesterday. Cosatu leader in KwaZulu-Natal, Edwin Mkhize, said, 'This judgment has restored our faith in the judiciary; it told us they can look at matters objectively. We hope that the Repayment Administrator and the Prudential Authority take it to heart and use it to assist Ithala, rather than close it.' He added, 'We have been very concerned about the impact this was having on the workers whose future was now in limbo, and we are worried about the effect this has had on the customers of the bank, which serves the most disadvantaged communities.' Saftu's Zwelinzima Vavi welcomed the judgment. 'Ithala must be saved. We hope that the Reserve Bank will not be in a rush to liquidate the only remaining black-owned bank in South Africa and will instead work to strengthen the bank, with the ambition of transforming it into a state bank. 'Ithala and Postbank must be combined to form a state bank with a transformation agenda to address the exclusionary practices that are being implemented by the big commercial banks.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕
IOL News
01-05-2025
- Business
- IOL News
Edtea MEC says closure of Ithala Bank would severely impact KZN's most vulnerable residents.
MEC for Economic Development, Tourism and Environmental Affairs (Edtea) Musa Zondi has emphasised the need for regulatory certainty to clarify the position of entities like Ithala SOC Limited. Zondi stated that the current challenges faced by the bank starkly contrast with the promises made by the country's parliament. He said, 'Most of the issues confronting this institution stem from its position in a regulatory gap—a gap that parliament can help close. The current version of the Financial Matters Amendment Act of 2019 excludes provincial entities from being licensed as banks. Zondi made the remarks while delivering his departments budget recently. 'However, parliament's own records indicate an intention to allow Ithala to continue operating under exemptions, pending further deliberations. What is needed now is not only regulatory certainty but also a major transformation exercise to ensure that Ithala SOC Limited continues to serve as a pillar of development, equality, and opportunity in KwaZulu-Natal and beyond.
IOL News
21-04-2025
- Politics
- IOL News
MK Party's Dirks calls for KZN legislature to meet with national Treasury over Ithala Bank crisis
Members of the KwaZulu-Natal legislature want to meet with the national Treasury, as a block of parties from the province, to address the challenges faced by Ithala SOC Limited. Mervyn Dirks, chief whip of the Umkhonto we Sizwe Party, stated that the legislature can no longer leave the matter of Ithala solely to the Premier of the province and the Treasury. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ This comes after they were briefed that Ithala SOC Limited continues to fight for survival, with its future becoming increasingly bleak. The bank is facing a provisional liquidation application which has been brought by the SA Reserve Bank's Prudential Authority. While commonly referred to as a bank, Ithala was never granted a banking licence. However, the Minister of Finance granted an exemption which allowed it to operate and take deposits. When the exemption expired, the Prudential Authority appointed a repayment administrator to handle the bank's deposits and subsequently brought the provisional liquidation application. Ithala met with members of the Finance Portfolio Committee recently where it revealed that it has not put together a budget for this financial year as a result of the challenges it is facing, which have led to the bank's officials being unable to access key financial information. Members of the committee expressed concerns that the bank has not put together a budget and demanded it does so by Tuesday morning. Dirks said: "From where I am sitting, what is happening here is that their (bank) hands and feet are tied. It is clear that there are some people somewhere in government who want to liquidate Ithala." He added, "Perhaps we must make a joint effort and not leave it up to the Premier or the Treasury. It must be a delegation of all political parties, including the largest party in the province, the MKP. We should go and meet with the national government to present a united front as KZN and deal with this issue, as it seems a decision has already been taken to liquidate this bank." Chair of the Finance Committee, Mthandeni Dlungwana, stated that it was concerning that Ithala had not presented a budget because if the issues they are facing are resolved, Ithala would not be ready to take any action. "As we are sitting here, we want to assist the process; the budget has a process," he said. The CEO of Ithala Bank, Dr Thulani Vilakazi, said that they wrote to the province to request a delay in the submission of the budget. "We are not in control, even of our assets, because they also took that away from us."
