Ithala: KZN Treasury backs liquidation challenge
Updated | By Celumusa Zulu
KZN Treasury has assured Ithala depositors that government will work to protect their funds.

The department says it supports Ithala's decision to challenge the Prudential Authority's application for the provisional liquidation of the entity.
The regulator, which tasked the Repayment Administrator to look into the operations of Ithala, said it believed the liquidation was in the best interests of the over 250 thousand depositors.
The RA found that Ithala is technically and legally insolvent, and ordered it to stop accepting deposits and processing withdrawals.
Ithala plans to challenge the order, which it says came despite the bank's assurances of financial stability and the backing from Parliament’s Standing Committee on Finance and the KZN Government.
Nkosikhona Duma is the spokesperson for the provincial Finance Department.
READ: Ithala: KZN Treasury backs liquidation challenge
"Finance MEC, Francois Rodgers, is concerned by the approach and attitude adopted by the Repayment Authority under the leadership of Johannes Kruger.
"Since his appointment by the credential authority, it appears the Kruger has been hell bent on taking control over the entire Ithala operation, a move which has hamstrung operations at the bank and fact compounded the challenges."
Meanwhile, the IFP has described the move by the PA as provocative, ill-advised and an attack on the bank.
The EFF says its concerned about the impact this will have on the elderly and working-class people in rural areas who relied on the bank.

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