The MEC seated at a table KwaZulu-Natal Finance MEC Francois Rodgers. Picture: KZN Treasury Facebook page
The KwaZulu-Natal Department of Finance has joined the fight to stop the provisional liquidation of Ithala (SOC) Limited.
The provincial Treasury announced yesterday that it has filed court papers in support of Ithala in the provisional liquidation application launched against the entity by the Repayment Administrator (RA), acting under the auspices of the Prudential Authority of the South African Reserve Bank (SARB).
On January 30, the court is expected to hear the Prudential Authority's application for the provisional liquidation of Ithala.
The matter is being opposed by Ithala SOC Limited with support from the provincial Treasury and the Economic Development department.
In a statement, KZN Treasury said that, contrary to the claims of the RA Johannes Kruger, Ithala does not have solvency and liquidity problems.
It said as of 31 October 2024, Ithala’s total assets amounted to R3.25 billion, while total liabilities amounted to R2.93 billion.This means that Ithala’s assets exceeded its liabilities by R316 million.
Finance MEC Francois Rodgers stated: “It is KZN Treasury’s contention that Kruger has not acted in the best interests of Ithala’s depositors, workers, suppliers, and clients. In fact, Kruger's actions have jeopardised countless SASSA beneficiaries and threaten to worsen the concerning high unemployment and poverty rate in the province.
“We are further aggrieved to learn that Kruger does not want the entity to pay the February salaries of Ithala staff members. This demonstrates a lack of care for people’s livelihoods,” said the MEC.
Rodgers emphasised that Ithala is a relevant institution in the mission of the Government of Provincial Unity (GPU) to build a capable, ethical, and developmental state.
He said the entity offers essential financial and non-financial support to many small and informal businesses that provide jobs, particularly in rural and other communities that are not typically supported by commercial financial institutions.
“The GPU is, therefore, determined to ensure that the entity receives the necessary support for its survival.”
Related Topics: