Ithala not facing liquidation anymore, says Radebe
The convener of the African National Congress in KwaZulu-Natal, Jeff Radebe, says the embattled Ithala Bank will no longer be liquidated.
"The collective leadership of the ANC have engaged directly with the Minister of Finance. Our intervention was firmly aligned with the ANC's developmental agenda and our firm responsibility to protect institutions that uplift our people," he said.
Earlier this year, the South African Reserve Bank's Prudential Authority froze Ithala's accounts after it lost its licence exemption.
The move left thousands of people in KZN and other provinces without access to salaries, pensions and grants.
Ithala was recently allowed to restart some of its services after a High Court ruling.
The authority plans to appeal the decision, but cannot interfere in the bank’s operations for now.
At a media briefing in Durban on Tuesday, Radebe recommended some steps to sustain Ithala.
"Strengthening the governance and internal controls within Ithala, enhancing compliance with the National Banking and regulatory framework."
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