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.

The building was built during the time of the now defunct KwaZulu-Natal government under the late Inkosi Mangosuthu Buthelezi, then the Chief Minister, and has been lying idle for decades since the ANC-led government immediately abandoned the structure after taking power from the IFP in 2004.


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However, KZN Public Works and Infrastructure MEC Martin Meyer said it cannot be business as usual when such unused buildings drain the limited resources of the provincial government through rates and other related costs.

In a media briefing on Tuesday, the MEC said his department was busy finalising proposals which would be presented to the Cabinet on what to do with the building in order for it to be useful again.

“I think the media understands that this is a politically sensitive matter but I can confirm that in our proposal there are a couple of options that we will soon present to the cabinet for approval,” said the MEC.

“We are owed millions by this government and have been raising concerns since last year with no solution. On Monday, we will be picketing outside the Public Works office in KZN to protest the same issue. Unfortunately, the department failed to deliver on its promise to pay contractors by mid-December, leaving many of us without money over Christmas and facing pressure from loan sharks,” said contractor Lungi Zuma.


Responding to the allegations of non-payment, KwaZulu-Natal Public Works MEC Martin Meyer said his department understood the frustrations and that the matter was being addressed at cabinet level.

“We paid more than R500 million to contractors in December and managed to reduce the outstanding debt from R900 million to R200 million. However, the reality is that we don’t control the budget. We must wait for payments from our client departments, whether it be education or others. We are addressing this at the highest level with cabinet and working hard to find a solution,” Meyer said.

Since taking office, Meyer has also intensified efforts to combat corruption within his department.

Recently, several officials, including the former director of the Supply Chain Management unit and three others, were implicated in alleged negligence, corruption and misconduct, which reportedly cost the department more than R1 billion.

Meyer confirmed that criminal charges are being pursued and said efforts would be made to ensure those found guilty are not re-employed within government.

The crackdown has extended nationally, leading to the arrest of several officials from Public Works departments in other provinces.


The arrests have confirmed longstanding complaints from contractors that corrupt officials demand kickbacks for tenders, which affects the prioritisation of payments.

While welcoming the anti-corruption drive, contractors say it offers little immediate relief to their financial struggles.

“It’s good news that they are finally taking action against corrupt officials, which we have been talking about for a long time, but it doesn’t solve our payment issues. Arresting officials doesn’t provide financial relief. We have commitments and debts for work already done for the government.


“We are being told that Public Works is owed money by the Department of Education, which is why they can’t pay us. But why should that be our problem?

We complete the work and tender for jobs with Public Works as the custodian of these projects, yet when it comes to payments, we are told it’s not their responsibility. So why do they issue tenders if they can’t pay? Where is the budget for these contracts?” asked Zuma, who claims to be owed more than R2 million in outstanding payments.

It is understood sanitation pipes covered in vegetation in areas including Northdale and Riverside are preventing sewer teams from conducting maintenance.

Councillor Renisha Singh says it has been an issue for years, causing blockages and spills that overflow onto residents' premises.

"This is actually depriving the residents’ of quality of life. They can't even step into their backyard with the stench that is coming from this sewer overflow, and many of them have actually fallen ill. There are a few residents that have gotten doctors’ notes that their immune systems are being compromised."

READ: uThukela team to tackle sewage spills

She has urged uMsunduzi Municipality to resolve the issue.

"I have had several meetings and onsite meetings, including site visits with the entire sanitation team and the deputy mayor as the chair of the infrastructure portfolio, but after these meetings, there has been no response."

At a memorial service in Pietermaritzburg for the late Yusuf Bhamjee, ANC member Zweli Mkhize emphasized the need for South African leaders to adopt Bhamjee's leadership style. Bhamjee, who passed away on January 3, 2025, served in various capacities within the ANC, including as a member of the KwaZulu-Natal Legislature and as Mayor of the uMgungundlovu District Municipality.



Mkhize highlighted Bhamjee's ability to connect with comrades across the political spectrum and his role in fostering peace during a tumultuous period in the Natal Midlands. He noted that Bhamjee was an activist at heart, dedicated to addressing community challenges rather than seeking personal comfort in office.



According to Mkhize, Bhamjee's commitment to serving the people exemplified the empathy that originally drove the ANC. He lamented the shift in the party, where some members have become careerists focused on personal gain rather than community service. Mkhize pointed out that this change has hindered effective governance and service delivery.



He praised Bhamjee's leadership in the uMgungundlovu District, stating that he understood community needs and managed people effectively. Mkhize called for a return to the type of activism that Bhamjee embodied, urging ANC members to foster cooperation among South Africans of all backgrounds.

He concluded that Bhamjee's legacy should inspire a renewed commitment to serving communities and addressing their challenges.

Last week, PSiRA noted allegations against Pro Secure CEO Ferrel Govender, who was arrested alongside his brother, Darren. Both are accused of murdering uMhlanga businessman Shailen Singh. Singh, 32, was shot dead in uMhlanga on December 29, 2024.



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The brothers are awaiting a decision on their bail application in the Durban Magistrate’s Court.

On Monday, Pro Secure issued a statement in light of widespread speculation regarding the volatile status of the security service, which stated that PSiRA had suspended them.

“We would like to reassure our clients, partners, and the public that these claims are false and have been misrepresented by the media, social media platforms, and other service providers,” Pro Secure said.