PINETOWN - Customers of the troubled Ithala Bank are seeking answers amid its liquidation troubles.
This was after the Prudential Authority found that the bank was insolvent and filed for provisional liquidation.
The authority said this was in the best interest of Ithala’s 257,000 depositors, and sought to recover and distribute funds to them.
Analysts are not surprised by these developments citing inadequate efforts to address management and financial issues.
According to Owen Nkomo from the Inkunzi Wealth Group, there is capital adequacy that they have breached and unfortunately, it’s been happening over a long period.
Meanwhile, the KwaZulu-Natal government has pledged to support the bank in opposing liquidation and reassured customers that their funds are secure.
The High Court in Pietermaritzburg will hear Ithala Bank’s application for an interdict on Tuesday.
- eNCA reporter Zanele Buthelezi filed this report.