By Levy Masiteng
On Monday KZN Economic Development MEC, Musa Zondi has come out to reassure the public that Ithala Bank will function yet again and the government is attending to the issue as a priority to get the bank’s licence reinstated.
“The 7th administration inherited the issues at Ithala… However, it is our responsibility to address this problem with urgency as there is no desire or intention for Ithala to close down” said Zondi in a statement.
Zondi said that the matter is being handled and that small businesses, as well as other Ithala Bank clients, can feel at ease.
“This crisis is being addressed with urgency… Despite the challenges that have arisen, we are fully committed to restoring Ithala’s dignity” he said.
The statement came after widespread concerns raised by small businesses and more specifically by amaZulu King, Misusulu kaZwelithini who described Ithala as the “backbone of rural and township entrepreneurs in KZN”.
KwaZulu-Natal’s Cooperative Governance and Traditional Affairs MEC and Traditional Prime Minister Thulasizwe Buthelezi said the king was concerned that the suspension of Ithala’s licence would “devastating consequences on the livelihood of thousands of his subjects who depend on the bank to conduct their business and social enterprises”.
Buthelezi said the king had asked him to reach out to KZN Premier Thami Ntuli and Finance MEC Francois Rodgers to put all efforts in making sure that the licence is reinstated.
On Friday, the Financial Sector Conduct Authority’s (FSCA) suspended the Ithala Bank’s licence stating that it had failed to meet financial soundness requirements, and that solvency was a critical element for the viability of any financial services provider (FSP).
“Solvency is a critical element for the ongoing viability of any FSP, and compliance with the solvency requirements is of utmost importance,” the FSCA said.
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