Pretoria: The National Treasury has announced a significant allocation of up to R2.2 billion to facilitate the repayment of depositors of Ithala SOC Limited ('Ithala'), with disbursements set to commence on 8 December 2025. This initiative aims to address the ongoing financial challenges faced by depositors since the institution's liquidity crisis earlier this year.
According to South African Government News Agency, the decision comes after extensive intergovernmental discussions involving the Office of the President, National Treasury, and the KwaZulu-Natal Provincial Government. Depositors have been unable to access their funds since January 2025 due to the Prudential Authority's (PA) application to liquidate Ithala over solvency issues and regulatory breaches. Although the liquidation proceedings are still pending, with no set date for the hearing, the government is taking proactive steps to ensure depositors receive their funds.
The National Treasury emphasized that depositors would undergo a verification process to ensure that payments are directed to the correct recipients. Once verified, payments are expected to be processed within approximately two days. First National Bank (FNB) has been designated as the payout bank for Ithala depositors, tasked with facilitating access to their funds in an orderly and secure manner. Importantly, depositors will not be obligated to become FNB clients and may opt to transfer their funds to any bank of their choice, although no payouts will be conducted at Ithala branches.
To streamline the process, depositors will be contacted by FNB via SMS with instructions on the necessary documentation, including an ID, proof of address, and proof of an alternate bank account for fund deposits. Starting 8 December 2025, depositors can visit any FNB branch for verification and fund collection. They will have until 2028 to claim their payouts.
The National Treasury has also clarified that depositors with existing loans must continue repaying them to the designated Absa account number: 4067762302. Efforts are underway in collaboration with the KwaZulu-Natal Government and the Prudential Authority (PA) to ensure a seamless and secure payout process for all affected individuals.