RICHMOND,KZN - Ithala SOC Limited (Ithala) faces provisional liquidation, but ANC leadership in KZN is opposed to this.
While noting the challenges the institution faces, ANC KZN provincial secretary Bheki Mtolo said it is 'unfair' to liquidate the institution and that there are other measures that the Prudential Authority could have taken.
Mtolo said there are various areas within the province wherein people still rely on the bank.
READ | Ithala Bank | ANC condemns planned liquidation of Ithala bank
The Prudential Authority has filed papers in the Pietermaritzburg High Court for the provisional liquidation of Ithala.
The Prudential Authority believes this action is in the best interests of the approximately 257 000 depositors of Ithala, as the appointed liquidator will be able to utilise insolvency legislation to recover and distribute their funds to the extent possible.