The imminent liquidation of Ithala Bank has sparked widespread concern among ANC leaders, traditional authorities, and community stakeholders, who view the bank as a critical institution supporting local communities in KwaZulu-Natal (KZN).
Speaking at the ANC’s 113th anniversary celebration at Caluza Sports Ground in Pietermaritzburg on Sunday, ANC KZN chairperson Siboniso Duma emphasized the urgent need to restore Ithala Bank. He criticized the Prudential Authority, stating that it appears to favor major commercial banks at the expense of community-focused financial institutions.
Duma highlighted how grandmothers and grandfathers in KZN rely on Ithala Bank to safeguard their stokvel savings and suggested that the bank has the potential to evolve into a sovereign wealth fund for the province.
“It is a KwaZulu-Natal bank, and it could lead to a sovereign wealth fund. Imagine transferring the appropriation bill of KwaZulu-Natal into it—it would become a major financial institution,” Duma remarked.
Amakhosi and ANC Join Forces to Protect Ithala Bank
The Amakhosi (traditional leaders) of KZN have also expressed deep concern over the potential collapse of Ithala Bank. During the ANC anniversary celebration, Duma revealed that traditional leaders have been engaging with the ANC’s provincial leadership to address the crisis.
“The ANC will stand by the Amakhosi because we serve under them,” he stated, reaffirming the party’s commitment to traditional leadership structures in the province.
ANC First Deputy Secretary-General Nomvula Mokonyane added that the national and provincial governments have formed a task team to work on resolving the compliance issues that have placed Ithala Bank at risk.
“Of course, there are compliance issues, but what matters most is that we must not destroy an institution that was created to serve the poor and rural communities,” Mokonyane explained.
King Misuzulu and KZN Government Step Up to Save Ithala Bank
On Saturday, Zulu King Misuzulu kaZwelithini also voiced his concern over the bank’s possible liquidation. Through KZN Co-operative Governance and Traditional Affairs MEC Reverend Thulasizwe Buthelezi, the king described Ithala Bank as an indispensable institution for the Zulu Kingdom, with historical, cultural, and economic significance.
Buthelezi revealed that King Misuzulu has instructed a delegation of senior royal family members and traditional leaders to support KZN Premier Thamsanqa Ntuli in efforts to rescue the bank.
Additionally, the king has directed the delegation to engage the national government, emphasizing the bank’s unique role in ensuring the financial stability of hundreds of thousands of KZN residents.
“If this issue is not resolved, the Amakhosi of KwaZulu-Natal will lose R34 million held in Ithala Bank’s Traditional Levies Trust account,” Buthelezi warned.
Premier Ntuli echoed similar concerns last week, reaffirming the provincial government’s commitment to keeping Ithala Bank operational.
“The fight to protect Ithala is a fight for economic justice, inclusion, and the empowerment of the province’s most vulnerable communities,” Ntuli stated. “We are unwavering in our commitment to ensuring Ithala SOC survives, no matter the challenges we face.”
Ntuli urged all stakeholders in society to come together in a unified effort to save the institution.
“The people of KwaZulu-Natal are not oblivious; they see the actions being taken and the intentions behind them,” he added, hinting at possible political motives behind the Prudential Authority’s decision.
Political Opposition Stands Against Liquidation
The Inkatha Freedom Party (IFP) has also condemned the move to liquidate Ithala Bank, with IFP President Velenkosini Hlabisa describing the decision by the Prudential Authority as “ill-advised” and a “travesty of justice”.
Hlabisa stressed that Ithala Bank is vital to the black economy, as it provides essential financial services to people who lack access to mainstream banking institutions.
“The IFP will do everything possible to defend Ithala Bank because it is a critical pillar in the economic empowerment of black South Africans,” he declared.
What’s Next for Ithala Bank?
As Ithala Bank faces an uncertain future, pressure is mounting on the national government, the ANC, and financial regulators to find a solution that will ensure the bank remains operational.
With political leaders, traditional authorities, and community members rallying behind the cause, the fate of Ithala Bank could become a defining issue in KZN’s economic and political landscape.
For now, the battle to save Ithala Bank continues, as leaders across different sectors push for a resolution that prioritizes the financial security of KZN residents and protects a legacy institution that has served the community for decades.