Five board members of Ithala SOC Limited have resigned, in a move welcomed by KwaZulu-Natal Premier Thami Ntuli as part of efforts to restore stability at the financial institution.
The resignations follow the payout of more than R1.6 billion to over 64,000 customers who had been unable to access their funds, raising concerns about governance and operational challenges within the entity.
Ntuli described the departure of the board members as a decisive step toward safeguarding Ithala’s future and rebuilding it as a trusted financial institution.
His spokesperson, Lindelani Mbatha, said the resignations form part of broader interventions by the provincial government aimed at stabilising and repositioning the institution.
“The Premier emphasised that these resignations must be understood within the broader context of decisive interventions being undertaken to ensure Ithala becomes a credible, resilient and forward-looking financial institution that serves the developmental needs of the people of KwaZulu-Natal,” Mbatha said.
He added that the provincial government is aware of longstanding governance, compliance and operational challenges that have affected the institution and is working to address them.