KZN govt confirms 32% of Ithala clients repaid

The KwaZulu-Natal (KZN) government has confirmed that 32% of clients of Ithala SOC Limited have been repaid with payouts totalling R1.65 billion.

This follows National Treasury’s intervention in last December which unlocked up to R2.2 billion to reimburse affected depositors.

Ithala lost its ability to accept deposits in 2023 and has faced ongoing turmoil, including a liquidation application by the prudential authority which has since been withdrawn.

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KZN Premier Thami Ntuli says the province is implementing a plan to reposition Ithala as a credible driver of inclusive economic growth and financial empowerment.

His spokesperson Lindelani Mbatha

“The provincial executive council has moved into consequence management, citing serious governance and compliance failures within Ithala management. Decisive action is now underway, including an urgent shareholder meeting, board reconfiguration and ongoing investigations into executive management,” Mbatha said.