In a significant development in Ithala SOC Limited, KwaZulu-Natal Premier Thamsanqa Ntuli has confirmed that depositors will regain access to their funds before Christmas.
Ntuli, joined by Finance MEC Francois Rodgers and Economic Development, Tourism and Environmental Affairs MEC Reverend Musa Zondi, made the announcement during a media briefing on Monday.
The release of the funds follows months of intensive intergovernmental engagements involving the Presidency, National Treasury, and the KwaZulu-Natal Provincial Government.
Turning the corner at Ithala Bank
The Premier said the recovery plan marks major progress in resolving long-standing operational and structural challenges at Ithala SOC Limited, which he described as a pillar of developmental finance and an anchor of inclusive economic participation for historically marginalised communities.
Ntuli confirmed that all legal and administrative agreements required to unlock the repayment process have now been finalised.
“This marks a turning point for Ithala and a commitment to ensuring that such disruptions do not occur again,” Ntuli said.
He apologised for the distress experienced by families and businesses during the period of uncertainty, noting that many faced delayed rent and school fees, halted business operations, and immense financial strain.
“With the agreements now concluded, we move decisively into the operational phase,” he said, adding that the final approvals have been secured for depositors to start accessing their funds before Christmas.
He said detailed public instructions will now be issued on when and where funds can be collected, which branches and service points will operate, required documents for verification, and support for vulnerable or elderly depositors.
“To ensure accessibility, communication will be in isiZulu and English, and information will be distributed through branches, community radio, traditional leadership structures, government platforms, and social media.”
The Premier also warned the depositors to beware of scammers. “No official is authorised to request any fee to release funds. This process will be fully transparent, lawful, and people-centred,” he said.
He added that a long-term repositioning strategy for Ithala is being finalised to strengthen governance, stabilise capital structures, and reinforce its developmental mandate.
The Premier extended special appreciation to MECs Zondi and Rodgers, and the Executive Council for their support in concluding the matter.
Rodgers welcomed the release of funds to the depositors, noting that financial, administrative, and legal barriers have been overcome, with agreements successfully concluded with the relevant stakeholders.
Strengthening governance across the province
Providing an update on governance improvements, the Premier confirmed that KwaZulu-Natal recorded 474 pending misconduct cases as of 1 November 2025. Of these, 119 have been finalised, reducing the active caseload to 355.
Suspension cases have also declined from 52 to 46.
Ntuli said interventions underway include Operation MBO (a case-reduction and tracking programme), improved collaboration with organised labour, and mass training for presiding and investigating officers, with specialised focus on the Department of Health.
“These measures are part of the administration’s commitment to clean, ethical, and accountable governance,” Ntuli said.
Youth empowerment fund investigation
The Premier also outlined progress on the investigation into alleged irregularities in previous Youth Fund allocation cycles.
The probe covered applications from the 2023/24 and 2024/25 financial years.
Ntuli confirmed that the investigation report has been completed and reviewed.
“It [report] identified systemic gaps in processes and made recommendations for stronger internal controls.
Key outcomes include:
• Nineteen applications were validated and will receive funding before December 2025 ends.
• Thirty-eight applications were incomplete; applicants will have 30 days to rectify issues.
• Two applications were cancelled after it emerged the applicants were not KZN residents.
• The remaining 36 applications are undergoing final processing.
The Premier committed to meeting all affected beneficiaries and applicants to provide feedback and outline corrective steps.
“We want to assure the youth of KwaZulu-Natal that we will do everything to ensure the process is transparent and just,” he said. – SAnews.gov.za
