KwaZulu-Natal state-owned development agency Ithala is scrambling to secure a sponsorship agreement with a bank authorised to clear and settle payments in the national payment system (NPS) after its long-term banker, Absa, informed it of its intention to terminate their nearly 20-year agreement.

In a letter from the Prudential Authority (PA) to Ithala, obtained by Business Day, Absa notified the entity a year ago that it would end the agreement by the end of 2023. Several issues about its governance structures were raised in the letter...

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