By Sihle Mavuso
The KwaZulu-Natal government says it is working on a plan to save Ithala Bank from closing, but for now, it’s business as usual.
This follows the Financial Sector Conduct Authority’s decision not to renew the financial services provider licence of the historic black financial institution.
The MEC for Economic Development, Tourism and Environmental Affairs, Reverend Musa Zondi, briefed the media in Durban about the matter today.
During the briefing, he was joined by officials from the bank.
Zondi said they were working on finding a solution.
“We inherited these issues upon taking office as the seventh administration; the matter was already in court when we assumed our offices and roles.
“It is now our responsibility … to address this problem with urgency as there is no intention or desire to have Ithala closed down,” Zondi said.
He also said bank customers need not worry; their money is safe and will not disappear.
“Ithala has not been instructed to fold and stop trading,” Zondi added.
The officials clarified that the only activity the bank would not be able to undertake at present is deposit-taking.
The bank will now move its business to the wing of Ithala Development Finance Corporation, which has a valid licence, while trying to get its house in order and get back its financial services provider licence.
Scrolla.Africa has previously reported on a request from King Misuzulu to fast-track a solution to the suspension of Ithala Bank’s licence.
Pictured above: MEC Musa Zondi with executives from the bank.
Source: Sihle Mavuso
