The KwaZulu-Natal provincial government says it has finally made a breakthrough in the Ithala Bank matter, and as a result, the 223 166 clients of the historic bank will, in the coming days, access their monies.
The money, which is slightly above R2 billion, was frozen when the Prudential Authority, a division of the South African Reserve Bank (SARB), which is tasked with overseeing banks, launched a court process to liquidate the bank, citing several concerns, including liquidity.
Since then, some clients, including those who invested their pensions and savings, could not access their money, throwing them into despair.
Addressing the media in Durban on Monday, December 1, KwaZulu-Natal Premier Thamsanqa Ntuli said Ithala SOC Limited (publicly known as Ithala Bank) is not merely a financial institution; it is one of the province’s most important pillars of developmental finance and a symbol of commitment to inclusive economic growth.
It is also an institution with deep historical significance and an essential role in supporting entrepreneurs, small businesses, and communities that are often underserved by the mainstream financial sector.
He added that it was against this background that his administration took a decision to resolve the longstanding challenges faced by Ithala — challenges that were well-documented and pre-dated our term of office.
“We committed ourselves to ensuring that Ithala SOC Limited is stabilised, repositioned, and strengthened so that it can fully realise its founding mandate: to empower the people of KwaZulu-Natal economically and to act as a catalyst for shared prosperity.
“After months of intensive engagements – including with the Office of the President and the
National Treasury – I am pleased to announce today that we have turned the corner. The path to this moment has not been easy, nor without consequence.”
Ntuli also apologised on behalf of the provincial government to the clients whose funds were frozen and lives ruined.
‘It is deeply regrettable that this period of uncertainty resulted in significant disruptions to the livelihoods of our people and businesses. We are acutely aware of the stories shared with us: families unable to pay rent, school fees, or put food on the table; small enterprises forced to pause operations; and dreams temporarily placed on hold due to circumstances beyond their control. These are not abstract challenges – they are human realities that weigh heavily on us as a provincial government.
“On behalf of the Government of KwaZulu-Natal, we sincerely and profoundly apologise to
every individual, family, and business that was affected. Your patience, resilience, and faith in this institution have not gone unnoticed. Today marks not just a turning point for Ithala, but a commitment to ensuring that such disruptions do not occur again,” Ntuli said.
He then concluded by making an announcement that the money will be made available in the coming days.
“I am pleased to announce that we have reached a historic breakthrough. We have successfully concluded all agreements required to begin the repayment of Ithala SOC Limited depositors. This milestone removes the final legal and administrative barriers and ensures that depositors will begin accessing their funds before Christmas.” Ntuli added.
The full details about the required documentation, branches to visit, and other matters would be announced in the coming days, the premier said.
