SARB seeks court order to liquidate Ditsobotla Bank over insolvency

SARB heads to court to liquidate Ditsobotla Bank after insolvency findings.

image: Internet

by Keleboigile Matlou

The South African Reserve Bank (SARB) has approached the High Court to seek an order for the liquidation of Ditsobotla Primary Savings and Credit Co-operative Bank Limited, based in Lichtenburg, North West. The case is set to be heard next week Friday, after findings revealed the bank’s worsening financial state.

The application comes after the finance minister, acting on SARB’s recommendation, placed the bank under resolution. A subsequent in-depth assessment found that Ditsobotla Bank’s financial condition was far weaker than initially reported. The resolution practitioner determined that the institution is insolvent and highlighted serious compliance, governance, and operational failures.

It was further concluded that the continuation of the resolution process would not allow the bank to settle its debts or fulfill its obligations.