As Ithala Bank teeters on the edge of closure, a storm of emotion has erupted within the Buthelezi family, with Princess Phumzile Buthelezi, the eldest daughter of the late Inkosi Mangosuthu Buthelezi, speaking out against what she believes is a calculated attempt to erase her father’s legacy. In a deeply personal interview with the Daily News, Phumzile, visibly shaken and struggling to hold back tears, expressed the anguish felt by her family over the ongoing crisis at the bank that her father fought so hard to establish.
“What is happening at Ithala Bank pains us as a family,” she said, her voice trembling. “My father worked very hard for that bank. Today, some people still hate my father even though he is no longer around.” For Phumzile, the bank was not just a financial institution; it was a symbol of her father’s dedication to uplifting black South Africans who had long been excluded from traditional banking services. The creation of Ithala in 1958 was seen as a revolutionary step toward financial independence for many in KwaZulu-Natal, a province that was still under the grip of apartheid-era exclusion.
Phumzile, who also serves as an MPL for the IFP in KwaZulu-Natal, is no stranger to political tension and criticism. She claimed that there has been sustained hostility toward her father, stretching back to the pre-democratic era, and that this animosity has carried over into the present day. “Look at the colleges that were built by my father,” she said, her words dripping with frustration. “They are all defunct as we speak. Look at the airport in Ulundi. The airport has been left to crumble because it was built by my father. There is clear propaganda to erase all the good that my father did.”
Her remarks reflect a broader narrative that has followed her family for decades: a belief that political rivals and vested interests have sought to diminish the contributions of Mangosuthu Buthelezi, a key figure in South African history. Ithala Bank, under the ownership of the KwaZulu-Natal government, was one of his proudest accomplishments, providing vital financial services to communities that had long been shut out from mainstream banking institutions. But now, as the bank faces liquidation due to alleged non-compliance, Phumzile feels as though the forces that have undermined her father’s legacy are continuing their work.
The bank’s financial crisis reached a new tipping point last week when the Prudential Authority (PA) applied to the High Court in Pietermaritzburg for Ithala’s provisional liquidation. The bank, which has 38 branches throughout KwaZulu-Natal, was once a beacon of hope for nearly 257,000 depositors, many of whom are now in limbo as they watch their financial lifeline unravel. Phumzile described the situation as not just a personal loss but a blow to the many communities that rely on Ithala’s services.
“It is sad to see an institution like Ithala going through such a crisis,” she said, her eyes brimming with tears. “What makes it painful is that we couldn’t spend time with Dad because he was always crisscrossing the country and the world in search of funding to build the institutions that we have, such as Ithala.” Her words reveal a deep sense of loss—not only for her father, who devoted his life to the cause of his people, but for the future of the bank that embodies his vision for economic empowerment.
Phumzile’s distress has been compounded by her own health struggles, as she spoke to the Daily News from a hospital bed in Pretoria, following a recent operation. She candidly admitted that the stress of the situation had worsened her health. “I have been watching the developments on TV and calling people about the matter,” she said. “I can tell you now that my health has deteriorated a bit due to the Ithala crisis. But we will overcome.”
Her pleas to prevent the bank’s closure have echoed throughout the political landscape. Phumzile warned that the liquidation of Ithala Bank would be a devastating blow, not only to the 257,000 depositors but also to the broader legacy of financial inclusion in South Africa. “It will be a sad day in the history of the country if Ithala is liquidated,” she said. “Many people will suffer if this bank is allowed to collapse. Our plea is for the government to fight against the closure of the bank. That is what we are hoping for.”
The political ramifications of Ithala’s potential closure are not lost on the IFP, which has been vocally critical of the situation. The party, founded by Buthelezi in 1975, has vowed to take action to defend the bank. Mkhuleko Hlengwa, the party’s spokesperson, condemned the efforts to liquidate Ithala, calling it a direct attack on the financial security of black South Africans. “Ithala Bank was established to support and safeguard the financial interests of the previously disadvantaged and those excluded by major corporate banks,” Hlengwa said in a recent statement. “Any move to liquidate Ithala Bank is a direct assault on the financial security of black South Africans. The Prudential Authority’s actions are provocative, and the IFP will respond decisively to defend Ithala Bank.”
While political figures continue to rally behind the bank, some outside observers have suggested that political interference may have played a role in the current crisis. Economist Dawie Roodt pointed to this as a possible factor in Ithala’s financial troubles, adding another layer of complexity to the situation.
As the future of Ithala Bank hangs in the balance, the Buthelezi family’s fight to preserve its legacy grows more urgent. For Phumzile, the crisis at Ithala is more than a matter of finance—it is a fight to protect her father’s legacy, his vision for economic empowerment, and the dignity of the people he sought to uplift. If the bank collapses, it will not just be a loss for the Buthelezi family, but for all those who have benefited from Ithala’s services over the decades. The coming days will likely determine whether the bank’s closure becomes a reality or whether the government can step in to save a cornerstone of South Africa’s financial history.
