Durban — For the third consecutive year, Ithala SOC Limited achieved an “unqualified audit” for the 2023/24 financial year for clean and no unauthorised expenditure.
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 for ensuring that Public Finance Management Act requirements were rigorously met, said CEO Dr Thulani Vilakazi on Friday.
Vilakazi added that, for the last three financial years, Ithala had achieved unqualified audit outcomes due to no fruitless and wasteful expenditure, with no unauthorised expenditure.
He said this was achieved by focusing on strengthening the institutional, financial and governance foundation that is essential to support business integrity.
Vilakazi said Ithala has been providing essential financial and supportive services to the people of KZN – especially the poorest of the poor in deep rural areas – despite encountering challenges pertaining to its banking licence.
He said Ithala had steered a steady ship for more than 20 years since the corporatisation of Ithala and had been able to meet depositors’ demands.
Vilakazi said one of the key aspects was that Ithala had never ever dipped into depositors’ funds to cover its losses.
“That is a clear indication that customer deposits have never been at risk at Ithala for over 20 years,” Vilakazi added.
Engagements between Ithala, the KZN provincial government, the minister of finance and the regulatory authorities were ongoing.
In his response in Parliament in March 2024 on the matter of the Ithala licence situation, the minister expressed support for Ithala’s pursuit of a mutual banking licence.
When Ithala briefed the standing committee on finance in 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 for the sterling work they were 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 while the milestone of achieving an unqualified audit had been reached, the challenge was for Ithala not to regress but 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,” Vilakazi said.
“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,” he concluded.
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