The looming liquidation of Ithala Bank has sparked widespread concern among ANC leaders and traditional authorities in KwaZulu-Natal, who see the institution as a cornerstone of economic empowerment for local communities.
Speaking at the ANC’s 113th anniversary celebration at Caluza Sports Ground in Pietermaritzburg, ANC KwaZulu-Natal chairperson Siboniso Duma voiced his frustration over the bank’s precarious future. He accused the Prudential Authority of favoring major financial institutions over community-focused banks like Ithala. “We want Ithala Bank back,” Duma declared passionately, emphasizing the bank’s role in safeguarding the savings of pensioners and stokvel groups.
Duma went further, suggesting that revitalizing Ithala could pave the way for a sovereign wealth fund in KwaZulu-Natal. “Imagine transferring the appropriation bill of KwaZulu-Natal – it will be a big bank,” he mused, highlighting the institution’s potential beyond its current community-focused scope. He also noted that Amakhosi, traditional leaders in the province, have been in direct communication with the ANC’s provincial leadership about the bank’s fate. “The ANC will be there to support Amakhosi because we serve under them,” Duma reaffirmed.
ANC’s first deputy secretary-general Nomvula Mokonyane echoed Duma’s sentiments, revealing that a dedicated team is working alongside the KwaZulu-Natal government to address Ithala’s financial challenges. “Of course, there are issues of compliance,” she admitted, “but what is of importance for us is to not destroy an initiative that is for the poor and was meant to serve the rural group.”
The concern over Ithala’s future extends beyond political circles. On Saturday, KwaZulu-Natal’s Co-operative Governance and Traditional Affairs MEC, Reverend Thulasizwe Buthelezi, conveyed King Misuzulu kaZwelithini’s deep anxiety regarding the bank’s potential collapse.
“Ithala Bank is an indispensable structure of the Zulu Kingdom,” Buthelezi stated, underscoring its historical, cultural, and economic importance. The king has instructed Buthelezi to lead a delegation of senior royal family members and amakhosi to support Premier Thamsanqa Ntuli in efforts to rescue the bank. Moreover, the delegation is tasked with engaging the national government to emphasize Ithala’s vital role in sustaining the livelihoods of hundreds of thousands of Zulu citizens.
Buthelezi highlighted the tangible financial risks at stake. “Amakhosi of KwaZulu-Natal stand to lose R34 million held in Ithala Bank in their Traditional Levies Trust account if this matter is not resolved,” he warned, adding urgency to the calls for intervention.
Premier Ntuli has vowed that the provincial government will continue to engage all relevant stakeholders to keep 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 declared. “As the provincial government, we are unwavering in our commitment to ensuring the survival of Ithala SOC, no matter the challenges we face. We call upon all societal stakeholders to join hands with us in this critical fight to preserve the soul of Ithala.”
Adding to the chorus of voices opposing the liquidation, IFP President Velenkosini Hlabisa described the Prudential Authority’s decision as “ill-advised” and “a travesty of justice and access for people.” Hlabisa vowed that the IFP would “do everything possible” to defend Ithala Bank, which he emphasized is vital to the province’s economic fabric.
As political leaders, traditional authorities, and community members unite in defense of Ithala Bank, the coming weeks will prove critical in determining whether this financial institution can be saved from liquidation—and if so, what its future might look like in the broader landscape of South African banking and community development.
