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‘Ithala Bank will not be liquidated': ANC takes credit for Godongwana's intervention
‘Ithala Bank will not be liquidated': ANC takes credit for Godongwana's intervention

News24

time3 days ago

  • Business
  • News24

‘Ithala Bank will not be liquidated': ANC takes credit for Godongwana's intervention

Mbali Dlungwana/Daily Sun The SA Reserve Bank's Prudential Authority has applied for the liquidation of the troubled state-owned entity, Ithala Bank. However, Finance Minister Enoch Godongwana has agreed to intervene in an effort to save Ithala. ANC KwaZulu-Natal provincial task team convener Jeff Radebe said the minister agreed to step in after party representatives met with him. Finance Minister Enoch Godongwana has been roped in to prevent the liquidation of state-owned Ithala Bank. ANC provincial task team (PTT) convener in KwaZulu-Natal, Jeff Radebe, announced this at a media briefing on Wednesday where he said the decision was made after the party 'engaged in decisive and strategic interventions', including meeting with the minister. 'Our intervention was firmly aligned with the ANC's developmental agenda and our responsibility to protect institutions that uplift the people,' Radebe said. Earlier this year, the SA Reserve Bank's Prudential Authority (PA) lodged an application in the KwaZulu-Natal High Court in Pietermaritzburg for Ithala Bank's liquidation on the basis that it considered the entity technically and legally insolvent. READ | Godongwana's R2bn plan to repay Ithala clients ropes in Kganyago, alienates KZN finance MEC But Radebe said on Wednesday: 'We are pleased to report that, following these engagements, a breakthrough was reached: Ithala Bank will not be liquidated.' He credited the party for the result: 'This outcome is a result of the ANC's leadership, proactive governance, and deep commitment to safeguarding the institutions that serve the economic needs of our people.' What now? 'While this is a significant and welcome development, we recognise that much work lies ahead. To ensure the long-term viability and sustainability of Ithala, the ANC proposes practical and actionable steps,' Radebe said. According to him, these are: Strengthening governance and internal controls within Ithala; Enhancing compliance with national banking and regulatory frameworks; Exploring strategic partnerships that preserve its developmental mandate; Launching a turnaround strategy focused on transparency, accountability, and performance; and Ensuring continuous engagement between the provincial and national government structures to reposition Ithala as a development finance institution. Radebe added that the party was committed to 'preserving' institutions aligned with its vision of social justice, equity, and inclusive development. News24 reached out to KwaZulu-Natal Premier Thami Ntuli for comment. His spokesperson, Lindelani Mbatha, said the premier would address the media at a briefing on Thursday.

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