More than R1.7 billion of the R2.1 billion owed to Ithala SOC Limited depositors has been repaid since December 2025, marking significant progress in resolving the institution's long-running financial challenges.
The update emerged from a recent high-level meeting between KwaZulu-Natal MEC for Finance Francois Rodgers, Head of Department Carol Coetzee, Finance Minister Enoch Godongwana, South African Reserve Bank (SARB) Deputy Governor Fundi Tshazibana, and Financial Sector Conduct Authority (FSCA) Commissioner Unathi Kamlana.
The meeting, held in Pretoria, focused on resolving outstanding issues delaying the finalisation of legal agreements related to Ithala, including the repayment of depositors and the settlement of the government guarantee.
Participants described the engagement as constructive and positive, with discussions centred on accelerating the completion of the remaining processes, while maintaining robust governance and accountability measures.
“We are encouraged by the significant strides made in repaying Ithala depositors and the strong collaboration among all stakeholders. Our focus remains on ensuring that all legitimate depositors receive their funds as quickly as possible, while upholding strict governance and accountability,” Rodgers said.
Under the current agreement between National Treasury and FirstRand Bank Limited, depositors have a three-year window to claim their funds.
However, the Government of Provincial Unity continues to encourage clients to visit their nearest First National Bank (FNB) branch with the required documentation, as efforts continue to conclude the repayment process sooner. All claims remain subject to stringent verification processes.
The meeting also agreed that, given the back-to-back agreements structured by Provincial Treasury, the role of Repayment Administrator Johan Kruger would be reviewed by the Prudential Authority. This is required in order to enable the provincial government to meet its contractual obligations contained in the agreement with National Treasury.
This was a welcomed resolution for all parties concerned and further collaboration will be required to reach final transaction by 30 June 2026. – SAnews.gov.za
