Ithala CEO explains ongoing operations amidst court cases

As Ithala SOC Limited continues its operations following a recent court ruling, CEO Dr Thulani Vilakazi has emphasised the bank's commitment to client engagement and transparency.

Vilakazi was speaking during a media briefing on Wednesday hosted by KwaZulu-Natal Premier Thamsanqa Ntuli, alongside Economic Development, Tourism and Environmental Affairs (Edtea) MEC Reverend Musa Zondi. This is a few days after the Pietermaritzburg High court allowed Ithala to continue operations. 

Vilakazi said they were still being briefed by their legal advisers on the significance of the court decision. 

“So for the better part of the weekend, that’s what we dealt with.”

Vilakazi said they are holding ongoing client and staff engagements. 

“We have a number of ways of communicating with our customers. We have a call centre that is in vernacular, that is fully manned. We have also issued notices in both isiZulu and English. We continue to communicate with our clients and clarify for them,” Vilakazi explained.

He said their operations have been greatly affected.

“We also put up a plan for people to be able to pay. We also have a plan where we allow our customers to now pay into an account at a particular bank to receive these obligations on a monthly basis,” Vilakazi said.

“At the moment, you can come to our branch, you can get insurance advice, but you can’t do OTC (over-the-counter services), we don’t take deposits.”

Vilakazi clarified that all deposits they had were legally collected up to December 15, 2023. 

Around the insolvency issue, Vilakazi said: “I won’t get into this because that’s before the courts and the provisional liquidation case is not going to be held.”

He said an institution is said to be insolvent when its current liabilities exceed its current assets.

“That’s not our case, but I can’t get into it because that matter is still going to be heard.”

Ntuli shared experiences of some affected Ithala clients:

• A young KwaDukuza farmer Mhlengi Ngcobo’s hydroponic farm faces closure due to a frozen Ithala account, preventing the purchase of essential agrochemicals and fertilisers. Crop spoilage forced him to dismantle ten tunnels and lay off five employees.
• Mrs Hlabisa in KwaNongoma received lobolo payments in her Ithala account for her daughter’s wedding, which was planned for April 20. However, she has been unable to access these funds, causing distress during what should be a happy time.
• Mr Ntuli from uMlazi lost his job and had been using his Ithala savings to survive. Now, his funds are frozen, leaving him unable to provide food and meet his family’s basic needs.

thobeka.ngema@inl.co.za