The SA Reserve Bank’s Prudential Authority has filed papers in the Pietermaritzburg High Court for the provisional liquidation of Ithala SOC Limited. This comes after the authority appointed a repayment administrator responsible for the repayment of deposits.

Although commonly referred to as a bank, Ithala was never granted a banking licence. However, the Minister of Finance granted an exemption to Ithala allowing the entity to receive deposits while it regularised its operations.

According to the SA Reserve Bank, the repayment administrator has established that Ithala is technically and legally insolvent, exposing depositors to potential loss of their deposits.

MAHIKENG – North West Premier Lazarus Kagiso Mokgosi has applauded Harmony Gold for
an investment of one-point five billion rand at its Stilfontein operations in the City of Matlosana
Local Municipality.
The investment is a culmination of ongoing efforts by Premier Mokgosi to lure investments and
address the scourge of unemployment afflicting the province.
Earlier this year Premier Mokgosi met with the company’s Executive Management on the sidelines of the Africa Mining Indaba to discuss a number of issues relating to diversification,
localization and SMME Development.
The initiative which will create several jobs opportunities for the people of the province adds to
seven-billion-rand worth of investment by the mine in 2022, which includes an extension of
Moab-Khotsong operations at Stilfontein.
Premier Mokgosi says the investment gives credence to government’s efforts of fostering
partnerships with the various stakeholders to create an enabling environment for investment
and job creation.
“This forms part of a broader strategy by government to encourage investments in the
province. I have no doubt that as more investments trickle in, several more job and business
opportunities will be created and this will help reduce the high unemployment figures afflicting
the province” Premier Mokgosi said.
Newly appointed Chief Executive Officer Mr Beyers Nel maintains, the renewable energy
investment forms part of its long-term investment and diversification strategy.
“Through our seven-billion-rand investment in 2022, we managed to preserve six thousand
jobs for locals, extending the mines lifespan by twenty years. In 2020, we acquired Mine
Waste Solutions leading to an investment of over two billion rand and we have created close
to two thousand five hundred jobs, seventy percent of which are locals”.
Premier Mokgosi who was accompanied by the MEC for Finance, Kenetswe Mosenogi and
Acting Director General, Ndlela Kunene lauded the mine for their investment initiatives and
have urged them to support the Province’s Development Fund, which is primarily aimed at
addressing infrastructure backlogs in the province.

ENDS

Issued by the North West Office of the Premier.
For enquiries, contact
Sello Tatai
Spokesperson to the Premier
North West Provincial Government
Cell: 064 756 2510 / 082 450 7842
E-mail: SITatai@nwpg.gov.za

Or

Brian Setswambung
Provincial Head of Communication
Office of the Premier
North West Provincial Government
Cell: 076 012 4501
E-mail: BSetswambung@nwpg.gov.za

Midlands EMS spokesperson, Ronald Robertson, said they were alerted to the incident, and an advanced life support team was dispatched to the scene to provide urgent medical assistance.



"On arrival, our team found one person who had sustained serious injuries and was in critical condition. Immediate advanced life support treatment was initiated to stabilise the patient," Robertson said.

He said rescue teams had to use specialised rescue equipment to ensure safe and effective care in a challenging environment.

After stabilisation at the scene, the patient was transported to a local trauma hospital for further treatment, Robertson said the patient was taken to a local trauma hospital for further treatment.

In a separate incident, also involving an animal, a young child was seriously injured while out horse riding.

Robertson said emergency teams raced to the scene in Howick, also in the KZN Midlands on Monday afternoon to find the injured child.

"Upon arrival, it was determined that a child had sustained serious injuries and required urgent advanced life support treatment.


"The child was stabilized on scene using specialised rescue equipment before being transported to a nearby hospital for further care," Robertson said.

seanne.rall@iol.co.za

The bank has been under strain for the past few months after a repayment administrator was appointed by the Prudential Authority to oversee the issue of customer deposits in the bank.

The matter came to a head on Thursday when it was announced that the Prudential Authority had decided to bring a court application to liquidate the bank. As a result the bank was ordered to cease its deposit and withdrawal functions. This occurred without any public warning, meaning the bank’s customers found out about the decision when they tried to use their bank cards and the transactions were declined.

Money for stokvels, funeral clubs, and co-operatives is now trapped in the bank, with depositors of those funds unable to access them.

Sandile Nkosi, a councillor in the Ingwavuma area, described the situation as “tense”.

“There is a lot of anger and frustration; the community feels like they have been robbed of their money.

“This situation went off like a bomb. The customers were not informed about it; their funds are trapped there and they cannot withdraw their money. The customers should at least have been informed that they must move their money to other banks.”


Nkosi said Ithala was the only bank in the community and, without it, the town could die.

“The shops and everything in this town rely on this bank to function. With this decision, it means that people will now have to travel to Jozini to access other banks to withdraw their money once they have access to it. Jozini is about 50km away, and the transport fare is almost R50 by bus and close to R100 by taxi.”

Nkosi said even the payment of social grants relied on the bank and he was worried about what would happen with the February grants.


“I have had calls from business people complaining that they have R50 000 stuck inside the Ithala Bank accounts and cannot access it. The bank is closed, and the customers do not have anyone they can go to for help.”

A customer of the bank, who works at a local crèche, said they were told by bank officials that many customers might have access to their money by the end of the month.

Another customer said: “This has traumatised us. There was no thought given to us as a community in this issue because this is the only bank that we have here.


“We received a message at midnight on Thursday that Ithala was closing its doors. We rushed there on Friday morning only to find that the place was now closed,” she said.

Thembeni Msweli, a businesswoman, said the Ithala saga had caused friction between her and her workers.

“I was supposed to pay my employees on Friday. When I inserted the card to withdraw money, it was declined. I later got a message saying everything has been frozen.”

Mfananaye Mathe, mayor of the Jozini Local Municipality, said thousands of people were dependent on Ithala.

“This decision is going to push people and businesses out of that area. If people have to travel to Jozini to access a bank, they will buy whatever they need there, which means the shops in Ingwavuma will go out of business.”