Ithala bank customers to obtain access to funds before Christmas, KZN Premier Ntuli announces

Customers of Ithala bank will gain access to their money in their bank accounts before Christmas, the provincial government has announced.

Premier Thami Ntuli said on Monday that an agreement has been reached that will allow customers to access their funds. Customers have not been able to access their money for several months after the bank's operations were taken over by an repayment administrator, and all operations of the bank stopped.

Ntuli briefed the public yesterday on the progress made to resolve the situation. The premier did not provide specific details on the agreement that has been reached.

“I am pleased to announce that we have reached a historic breakthrough. We have successfully concluded all agreements required to begin the repayment of Ithala SOC Limited depositors. This milestone removes the final legal and administrative barriers, ensuring that depositors will begin accessing their funds before Christmas.

“This progress is a victory for the people of KwaZulu-Natal. With the agreements now concluded, we move decisively into the operational phase. In the coming days, the provincial government — working together with Ithala, the National Treasury, and the appointed payment administrator — will issue detailed instructions outlining:

1. When and where depositors may access their funds
2. Which branches and service points will be activated
3. What documentation will be required for verification
4. Support arrangements for vulnerable depositors

Ntuli said they are fully aware that many Ithala clients are elderly, reside in far-flung rural areas, or may not have complete documentation.

“In response, the province will deploy support teams to assist depositors directly. All communication will be issued in both isiZulu and English and will be distributed through Ithala branches, community radio, social media platforms, traditional leadership channels, and official government communication systems.

“This coordinated approach is designed to ensure that every depositor — regardless of age, location, or circumstance — can access accurate information and receive their funds with dignity and clarity.

“On this point, I wish to caution the public to remain vigilant. Depositors should only rely on official announcements from the Office of the Premier, National Treasury, Ithala SOC Limited, and the Payment Administrator. No official is authorised to request any fee or payment in order to release funds. This process will be fully transparent, lawful, and people-centred, ensuring that every depositor is treated with dignity and fairness,” he added.

Ntuli said resolving the Ithala SOC Limited challenge is not merely about unlocking funds; it is about restoring trust in government and strengthening a provincial institution that has supported livelihoods for generations.

“Beyond this immediate breakthrough, we are actively finalising a long-term repositioning strategy to reinforce Ithala SOC Limited’s governance structures, capital base, and developmental mandate.

“This strategy is designed to ensure that Ithala SOC Limited continues to empower communities, support entrepreneurs, and contribute to inclusive economic growth for decades to come,” the premier concluded.

The South African Reserve Bank's Prudential Authority (PA) had appointed a Repayment Administrator Johan Kruger last year to deal with the management of deposits that Ithala held. 

While Ithala had been conducting the business of a bank and accepting deposits from members of the public, it had no banking licence but was operating in terms of the exemption granted to it by the Finance Minister. When that exemption expired, the PA appointed a repayment administrator to recover and take possession of all deposits taken by Ithala from depositors or under its control in terms of the Banks Act.

THE MERCURY