KZN premier raises Ithala liquidation with Ramaphosa
The KwaZulu-Natal Premier says he has taken the Ithala matter up with the President.
Thami Ntuli spoke at a press briefing in Durban on Monday as a banking regulator sought the provisional liquidation of the state-owned entity.
The Prudential Authority says Ithala has failed to obtain a banking licence despite being given a temporary exemption to operate while it resolves the issue.
The regulator has argued that its court application aims to protect the over 257,000 Ithala depositors.
READ: KZN Treasury backs Ithala's fight against liquidation
It had appointed a repayment administrator who found Ithala technically and legally insolvent.
Ntuli rubbished the RA's claims of insolvency.
"This intervention, imposed at the end of the month, disrupts critical services, including the processing of salaries, payment of policies for those who have policies, medical aids, cars, preparations for the return to school and even affecting SASSA recipients.
"Even more concerning is the impact on Ithala’s dedicated staff, who now face uncertainty over their salaries. Such actions appear calculated to incite panic, destabilise Ithala’s operations," he added
Ithala, the provincial treasury, and the KZN Department of Economic Development are opposing Thursday's provisional liquidation application.
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