ANC Welcomes Withdrawal of Prudential Authority Liquidation Bid Against Ithala SOC Limited
BY: CHANON LECODEY MERRICKS | ONLINE EDITOR
ANC Welcomes Withdrawal of Prudential Authority Liquidation Bid Against Ithala SOC Limited
By KasiBCAfrica_News
DURBAN, KWAZULU-NATAL — The African National Congress (ANC) has formally welcomed the withdrawal of the Prudential Authority’s liquidation application against state-owned financier Ithala SOC Limited. The decision follows multi-sphere government interventions and a National Treasury-backed mechanism ensuring that affected depositors are repaid.
The withdrawal comes after extensive depositor reimbursement efforts, where the state committed up to R2.2 billion to enable orderly payouts for over 250,000 account holders. Over R1.7 billion has already been disbursed through partnering institutions.
Key Statements from the ANC Review
1. Protection of Historically Included Depositors
The ANC commended government interventions for prioritizing ordinary working-class depositors and small business account holders.
"The African National Congress welcomes the withdrawal of the Prudential Authority’s application for the liquidation of Ithala SOC Limited following the intervention by government to ensure that depositors are repaid... This development reflects the importance of a responsive and caring state that places the interests of ordinary South Africans at the centre of its decisions." —
African National Congress Statement
2. Developmental Mandate & Financial Sector Transformation
The party highlighted Ithala’s historical role as a development finance institution (DFI) established to extend financial access to rural communities and historically disadvantaged individuals across KwaZulu-Natal.
"Development finance institutions remain critical instruments in advancing economic transformation, supporting small businesses, promoting entrepreneurship, and ensuring that working-class and vulnerable communities have a
ccess to opportunities that enable economic participati on."
3. Institutional Governance and Compliance Lessons
Acknowledging regulatory challenges and the lapsing of Ithala's Banks Act exemption, the ANC emphasized that institutional protection must be accompanied by strict adherence to financial regulations and governance standards.
Governance Systems: Strengthening internal administrative controls, risk management, and regulatory compliance.
Institutional Sustainability: Ensuring state-owned financial entities remain financially viable without compromising safety standards set by the South African Reserve Bank (SARB) and the Prudential Authority.
Status of Ithala Operations and Payouts
While the withdrawal of the liquidation application removes immediate insolvency proceedings, key legal and operational dynamics remain active:
Depositor Claims: Depositors continue to receive claims disbursements through First National Bank (FNB) branches, with a three-year window running through 2028.
Banking License Requirements: Ithala is currently restricted from taking new public deposits until full regulatory compliance and statutory banking licensing conditions are satisfied with the Prudential Authority.
