SARB sidesteps questions on the liquidation of Ithala Bank. Picture: DOCTOR NGCOBO/Independent Newspapers
THE South African Reserve Bank (SARB) deflected questions relating to the liquidation of Ithala Bank when it appeared before Parliament on Tuesday.
The bank was among the institutions that attended the joint sitting of the standing committee on finance and trade, industry and competition portfolio committee to engage the finance sector on issues of transformation, and other elated matters that are raised by consumers.
MK Party MP Des van Rooyen noted that Parliament had resolved that the Prudential Authority should ensure that Ithala Bank was supported to become a fully-fledged bank.
Van Rooyen said the Prudential Authority had instead snubbed the suggested parliamentary proposal.
“Can you give reasons, what is your take on the resolution of Parliament. It is important for us to understand that,” he said.
Van Rooyen also said they had learnt from their constituencies that out of desperation, the Ithala database has been handed over to FNB.
"As we speak now, Ithala clients are being harassed, urging them to join FNB. I am concerned because of the POPIA Act provisions. Are the Prudential Authorities aware of this particular practice? Who transferred the Ithala clients to FNB?” he asked.
“What is clear is that this is more of a political process where people are desperate and expeditiously wanting to take over the clientele of Ithala and collapse Ithala,” Van Rooyen added.
SARB banking supervisor Emanuel Molewa said the Prudential Authority in September presented their update to the standing commit on finance with regard to Ithala.
“That matter is currently part of litigation proceedings between the Prudential Authority, Ithala and its shareholder representative.
“Unfortunately, we will not be able to provide the direct response given the matter is subjudice,” Molewa said.
In response, standing committee on finance chairperson Joe Maswanganyi said Parliament took a decision on December 3 on how Ithala should be revitalised.
“Within a month you decided to liquidate and you come here to tell us about the subjudice,”
He also questioned the decision to transfer Ithala Bank’s clients to FNB.
“Are you above Parliament yourselves, and Treasury. You were so quick to liquidate Ithala. Have you studied the resolution of Parliament? Okay, lets pass because you said it is subjudice,” Maswanganyi said.
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