ITHALA, the state-owned company mandated to promote development in KwaZulu-Natal through providing financial and property services, has received an “unqualified audit” for the fiscal year 2023/4.
By focusing on strengthening the institutional, financial and governance foundation that is essential to support business integrity, Ithala accomplished an unqualified audit, said CEO Dr Thulani Vilakazi.
“For the last three financial years, Ithala has achieved Unqualified Audit outcomes, no fruitless and wasteful expenditure, and no unauthorised expenditure has been incurred.
“In the 2024 financial year audit, the Auditor General has commended Ithala for the improvements in its audit outcomes over the years, enhancements in its supply chain management controls, and ensuring Public Finance Management Act (PFMA) requirements were rigorously met,” said Vilakazi.
He said Ithala has been providing essential financial and supportive services to the people of KwaZulu-Natal, especially the poorest of the poor in deep rural areas, despite encountering challenges pertaining to its banking licence.
“Engagements between Ithala, the KZN Provincial Government, the Minister of Finance, and the Regulatory Authorities are ongoing. In his response in Parliament in March 2024 regarding Ithala licence situation, the Minister expressed support for Ithala to pursue the Mutual Banking Licence option.
“Ithala has steered a steady ship – for over 20 years since the corporatisation of Ithala, it has been able to meet depositors’ demand. And one of the key aspects is that Ithala has never ever dipped into the depositors’ funds to cover its losses. That’s a clear indication that customer deposits have never been at risk at Ithala for over 20 years.
“Ithala is a solid business with no liquidity issues. All it needs is a legal instrument in the form of a licence to operate.
“When Ithala briefed the Standing Committee on Finance in the National Assembly of Parliament in February 2024 on the status of the financial institution, the Committee had a most sympathetic ear and commended the Ithala Executive and staff on the sterling work they are doing.
“The committee confessed that it was the first time that a SOC came before it and had no liquidity issues and was not asking for a bailout. The Committee committed to taking the necessary steps to assist in ensuring the long-term sustainability of Ithala,” Vilakazi said.
He said whilst the milestone of achieving an unqualified audit had been reached, the challenge is for Ithala not to regress and to continue to improve the control environment.
“With continuous changing standards and increasing reporting and legislative requirements in the public sector, the workload to improve this status remains substantial.
“However, we recognise the support and guidance of our Ithala Board, the executive team and all staff in helping us achieve this accolade and we extend special thanks to the office of the Auditor General for their patience, diligence and strong partnering approach to our work,” Vilakazi added.
