Premier Thamsanqa Ntuli announces a decisive turnaround for Ithala, securing R1.685 billion in customer deposits while launching a crackdown on the governance failures that nearly led to the institution’s liquidation.
Image: Sipho Jack
The KwaZulu-Natal Government of Provincial Unity has signalled a "decisive" turning point for the embattled Ithala Development Finance Corporation (IDFC), revealing that billions have already been moved to protect depositors while a hammer of accountability is set to fall on failing leadership.
In a media statement released, Premier Thamsanqa Ntuli detailed the province’s aggressive roadmap to stabilise the institution, which has faced a tumultuous period of regulatory scrutiny and a looming threat of liquidation.
According to the provincial government, the immediate priority has been the safeguarding of public funds. The intervention appears to be yielding fruit. As of March 30, 2026, the government has processed 64,801 customer payments, representing roughly 32% of Ithala's customer base.
Crucially, the value of these payments totals R1.685 billion, which accounts for 81% of the total deposit value held by the institution.
"Beneficiaries include individual depositors, businesses, and community-based savings groups such as stokvels, who continue to enjoy unhindered access to their funds," the statement read.
This liquidity injection follows a major legal victory for the province: the Prudential Authority formally withdrew its application for the liquidation of Ithala SOC Limited earlier this year. Premier Ntuli described the withdrawal as a vital "opportunity to protect and strengthen" a cornerstone of KZN’s development finance.
While the stabilisation phase focuses on the "little guy," the provincial executive is now shifting its gaze toward those at the top. The Executive Council recently flagged "serious governance and fiduciary lapses" within Ithala SOC Limited, citing:
In response, the IDFC as the sole shareholder, is convening an urgent Annual General Meeting (AGM) specifically to reconfigure the board. This includes cutting short current board memberships.
Executive management is also under the microscope, with an ongoing investigation into their conduct.
The Premier confirmed that the Special Investigating Unit (SIU) is currently digging into Ithala’s affairs. Ntuli warned that there would be no "holy cows" in the quest for accountability.
"Those responsible, wherever they are and regardless of their position, will be held accountable," Ntuli said. "Action will extend to any individuals or entities that benefited from wrongdoing."
The repositioning of Ithala is being framed not just as a bailout, but as a strategic pivot to return the 60-year-old institution to its roots of rural enterprise development and financial inclusion.
"Where there has been failure, there will be consequence," the Premier concluded.