Ithala Bank gets first all clear in five years

ITHALA FINANCE CORPORATION: Investigations are being called for into loans made by the handing out of Ithala loans Finance Development Corporation

ITHALA FINANCE CORPORATION: Investigations are being called for into loans made by the handing out of Ithala loans Finance Development Corporation

Published Sep 16, 2014

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Durban - Ithala Bank, which has been dogged by financial troubles caused by dodgy loans, has received a clean audit report for the first time in five years from the provincial auditor-general.

Auditor-general’s audit manager Naseem Mohammed said that discrepancies had been picked up during the audit process, but these were internal issues and did not affect the audit opinion.

The public financial institution has been criticised in the past for its failure to manage creditors and staff abusing loans.

The bank’s chief executive, Yvonne Zwane, said over a period of three years the bank had been able to bring its outstanding loans from 61 percent down to 20 percent.

“We agreed that things happened in the past, but now we are looking forward. For us to actually achieve a clean audit is a milestone,” said Zwane.

The controversies included the failed Dolphin Whispers property development in Durban’s Point area.

The bank had financed the construction of the multistorey building to the tune of R84 million, but the construction had to be terminated because of structural faults and lack of funding.

Zwane told the media that the building’s name would be changed to the Ithala Trade Centre and it would house government departments.

The KZN Growth Fund, a subsidiary of the bank, funded several projects, most of which failed dismally.

Ithala board member Greg White said the bank started to transform after the appointment of a new board.

“It has been a long and difficult journey, but I think we are extremely happy that we have made this milestone.

“We are not complacent because this is just the beginning. The board is vigilant and our expectations are very high,” said White. - The Mercury

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