ANC tasks transformation sub-committee with devising plans to rescue embattled Ithala Bank

JOHANNESBURG - The African National Congress (ANC) has tasked its economic transformation sub-committee to devise actionable plans to rescue the embattled Ithala Bank.

The bank faces the risk of being shut down after the Prudential Authority, a regulator under the South African Reserve Bank, filed court papers seeking a provisional liquidation of the financial institution.

The ANC’s economic transformation sub-committee, which includes the finance minister and other national executive members, has now been tasked with saving the bank.

Speaking during a media briefing on Monday, ANC Secretary-General Fikile Mbalula said that Ithala was a key cog in government’s effort to transform the banking sector.

"A critical institution enabling access to banking services for rural communities, stokvels, churches and small businesses in KwaZulu-Natal. The recent application by the SARB’s Prudential Authority, to liquidate Ithala due to insolvency threatens over 400 jobs and disrupts financial services for marginalised communities."