The South African Reserve Bank has applied to the High Court to liquidate Ditsobotla Primary Savings and Credit Co-operative Bank (DCB), a community-owned bank based in Lichtenburg, North West.
The hearing is scheduled for 29 August.
DCB was placed in resolution on 1 August after failing to meet its obligations. Anoosh Rooplal was appointed as the resolution practitioner.
Read: Community-owned bank placed in resolution as SARB steps in
In a statement released last week, the SARB said that subsequent to the bank’s being placed in resolution, in-depth assessments disclosed that DCB’s financial position was significantly worse than previously reported by management.
“The resolution practitioner concluded that DCB is insolvent and identified significant compliance, governance, and operational failures,” the central bank said.
Rooplal notified the SARB there was no reasonable probability that the resolution process would enable DCB to pay its debts, meet its obligations, or become a sustainable concern.
The SARB added that the bank’s total assets are significantly less than its liabilities, and the practitioner judged it highly unlikely that DCB could attract an equity investor to recapitalise it.
“The resolution practitioner also highlighted serious concerns regarding DCB’s ability to operate effectively as a banking institution and has found its business model to be unsustainable.”
The central bank noted that urgent liquidation would serve the best interests of DCB’s creditors, primarily its depositors.
“Liquidation would allow a liquidator to preserve the bank’s assets for the benefit of its creditors and, if necessary, allow for any investigations into the bank’s affairs,” the SARB said.
About DCB
DCB is a co-operative bank: it is owned and governed by its members, who have exclusive access to its services. They participate in decision-making, including electing the board. Unlike commercial banks, co-operative banks are not profit-driven; their goal is to meet the financial needs of members.
The bank was registered with the SARB in March 2014 following the merger of three local savings and credit co-operatives – Aganang, Ikageng, and Itireleng – whose original members were employees of Alpha Cement, the Lichtenburg Municipality, and Lafarge Cement, respectively. Over time, the membership expanded to include residents and employees across the Ngaka Modiri Molema District, with Ditsobotla Local Municipality employees forming the majority.
As of May 2025, DCB had 1 452 members and reported assets of R8.3 million (unaudited).
Finance Minister Enoch Godongwana announced that DCB had been placed in resolution on 4 August, acting in terms of the Financial Sector Regulation Act and on the SARB’s recommendation. According to the SARB, DCB had failed to meet regulatory requirements for an extended period, was operating at a loss, and could not fulfil its financial obligations.
The SARB added that the bank suffered substantial losses, failed to pay all its creditors, and breached the capital and liquidity requirements. Governance, internal controls, and risk management were also found to be inadequate.
Despite “heightened supervision” by the Prudential Authority, DCB did not implement corrective measures, including diversifying its membership beyond the Ditsobotla Local Municipality or providing governance training for staff.
