MyZA

News, Directory, Events and Other Stuff

You are here: Home / News / Ithala retail depositors assured of protection after liquidation

Ithala retail depositors assured of protection after liquidation

Ithala retail depositors assured of protection after liquidation

National Treasury has assured the retail depositors of Ithala SOC Limited that their deposits will be protected by a government guarantee, subject to the conclusion of the necessary technical work.

“Following the Prudential Authority’s application for provisional liquidation of Ithala SOC Limited, we understand that depositors may be concerned about the safety of their funds,” National Treasury said on Friday.

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 utilising insolvency laws to recover and distribute funds.

Ithala, which operated under a temporary exemption from the Banks Act, failed to meet the conditions required to obtain a banking licence. The exemption, granted by the Minister of Finance, lapsed in December 2023, leaving Ithala unable to continue deposit-taking activities legally. 

Treasury said the technical work to be done includes providing a government guarantee to one or more banking institutions to ensure the accounts of depositors can be migrated timeously and funds can be made available.

“We are working closely with the Prudential Authority to ensure an orderly process that protects depositors’ interests.

“While depositors will need to urgently make alternative banking arrangements, they can be assured that we will endeavour to secure their funds as far as is possible.

“National Treasury will provide further details about the process for accessing guaranteed funds following the court’s decision on the liquidation application,” National Treasury said. – SAnews.gov.za

 

nosihle
Fri, 01/17/2025 – 09:32

345 views

Friday, January 17, 2025

National Treasury has assured the retail depositors of Ithala SOC Limited that their deposits will be protected by a government guarantee, subject to the conclusion of the necessary technical work.

“Following the Prudential Authority’s application for provisional liquidation of Ithala SOC Limited, we understand that depositors may be concerned about the safety of their funds,” National Treasury said on Friday.

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 utilising insolvency laws to recover and distribute funds.

Ithala, which operated under a temporary exemption from the Banks Act, failed to meet the conditions required to obtain a banking licence. The exemption, granted by the Minister of Finance, lapsed in December 2023, leaving Ithala unable to continue deposit-taking activities legally. 

Treasury said the technical work to be done includes providing a government guarantee to one or more banking institutions to ensure the accounts of depositors can be migrated timeously and funds can be made available.

“We are working closely with the Prudential Authority to ensure an orderly process that protects depositors’ interests.

“While depositors will need to urgently make alternative banking arrangements, they can be assured that we will endeavour to secure their funds as far as is possible.

“National Treasury will provide further details about the process for accessing guaranteed funds following the court’s decision on the liquidation application,” National Treasury said. – SAnews.gov.za

Watch a Ithala retail depositors assured of protection after liquidation related video:

Stunning South Africa:

Have you visited MyPR?

MyPR.co.za offers free to publish press releases for your news site, blog or offline publication. Use the handy REPUBLISH facility or the Full Text RSS Feeds or just copy and paste.

Straton Electrical | Straton Solar | Straton Prepaid | Straton Plumbing | Straton IoT | Straton eBikes | BA Systems | Mbane Contracting | Reach Trust

Category: Tag: , , , , , , ,

If you feel strongly about this article then feel free to send MyZA a ‘Letter to the Editor’ using the submission form below:

Letter to the Editor

This field is for validation purposes and should be left unchanged.
If this is in response to an article please include that article title here or as the lead in for the first paragraph of your Letter below.

Separate tags with commas

Localise your letter by naming the city your words are about. Add relevant words describing your subject. Single comma separated words of no more than 5
Your Name(Required)
Your Name will be linked to the website below.
Your personal, business or social media web site
Choose NO to not set up a user account on MyZA. User Accounts will allow you to submit letters under your own Author Name

3 Latest Letters to the Editor:

  • Older Persons Grants Land Today — No Need to Queue at Dawn

    Dear Editor, Older Persons grants are paid today, 30 October, under SASSA’s revised November payment schedule — with disability grants on Monday 2 November, children’s grants on Tuesday 3 November, and grants under review on Thursday 5 November. Two things every beneficiary should know. First, grant money does not expire on payment day. It stays…

  • November Grants Pay Early – No Need to Queue at Dawn

    Dear Editor, I run SAGrant (sagrant.co.za), a free resource helping South Africans navigate SASSA grants. November grants pay earlier than usual. Older Persons grants are paid on Friday 30 October, Disability grants on 2 November, and Child Support and other grants on 3 November. Grants still under review are paid on 5 November. The money…

  • NSFAS 2027 applications close on 31 October — SASSA households, apply now

    Dear Editor, I run SAGrant (sagrant.co.za), a free resource helping South Africans navigate SASSA grants. NSFAS applications for the 2027 academic year close on Friday 31 October 2026, and no extension is expected. If your household receives a SASSA grant, your child already passes the NSFAS financial eligibility test — but they still have to…

Reader Interactions

Comments

  1. Botswana: You have two cows. But that\’s not surprising because you have pretty much every type of non-extinct mammal in your country.

  2. Fun South African Fact: Lions, elephants and giraffes may not roam the city streets, but nature and animals are never too far away in South Africa. From vervet monkeys swinging through tree-lined streets in the suburbs and baboons frolicking around Cape Point to seals visiting the Hout Bay harbour in search of a fishy snack and an array of bird species taking to the sky at any given moment. Wildlife is all around!