Prudential Authority Moves to Liquidate Ithala SOC Limited
Ithala faces provisional liquidation after failing to secure a banking license. The Prudential Authority advises depositors to seek alternative banking options.
The Prudential Authority has filed for the provisional liquidation of Ithala SOC Limited in the Pietermaritzburg High Court. This decision aims to protect approximately 257,000 depositors, with the appointed liquidator utilizing insolvency laws to recover and distribute funds.
Ithala, which operated under a temporary exemption from the Banks Act, failed to meet conditions required to obtain a banking license. The exemption, granted by the Minister of Finance, lapsed in December 2023, leaving Ithala unable to continue deposit-taking activities legally.
The Prudential Authority has advised depositors to make alternative banking arrangements and will issue further updates following the court’s decision.