THE Premier of KwaZulu-Natal, Thamsanqa Ntuli, has thrown down the gauntlet, vowing to fight tooth, nail and legally to save Ithala SOC from the “forces” bent on wanting to collapse the black-owned bank.
Ntuli addressed the media yesterday in Durban alongside the MEC for Economic Development, Tourism and Environment Affairs (Edtea), Reverend Musa Zondi, amid the looming liquidation of the bank.
Ithala is locked in a legal battle with the Prudential Authority (PA), under the South African Reserve Bank (SARB), due to alleged non-compliance and insolvency.
Ntuli said: “We must question the timing and motives behind the recent actions of the RA (Repayment Administrator) and PA to halt Ithala SOC’s operations. This intervention, imposed at the end of the month, disrupts critical services, including the processing of salaries, payment of policies, medical aids, cars, and preparations for the return to school.”
Ntuli lambasted the PA’s Johan Kruger for allegedly having ulterior motives in the Ithala matter.
He said: “We firmly believe that, if there were no ill intentions toward dismantling Ithala, the Prudential Authority would have opted to provide guidance and support to address any compliance concerns, rather than resorting to aggressive actions aimed at forcing Ithala’s closure. Such actions appear to serve the egos of those seeking to benefit at the expense of this vital institution.”
Ntuli said there was “something fishy” regarding the crisis at Ithala Bank.
Ntuli alleged that there was a sinister plot to collapse the bank so that the big commercial banks could poach the Ithala’s more than 257 000 clients.
“We all know that when Ithala collapses, other banks will benefit and that is worrisome. There is a deliberate ploy to destroy Ithala. We will fight to ensure that Ithala does not collapse.
“We are on the verge of a solution. We are going to fight to ensure that Ithala is not buried alive.
“We will fight within the ambit of the law to save Ithala Bank,” said Ntuli.
Ntuli said Ithala has been a “beacon of hope and empowerment for marginalised communities in KwaZulu-Natal, standing as a testimony to the visionary leadership of the IFP's founding president, Prince Mangosuthu Buthelezi. It is an institution that champions economic justice and inclusion, providing vital banking services to rural and under-served areas for decades.”
“We must question the timing and motives behind the recent actions of the RA and PA to halt Ithala SOC’s operations. This intervention, imposed at the end of the month, disrupts critical services, including the processing of salaries, payment of policies, medical aids, cars, and preparations for the return to school.”
Ntuli said he had met President Cyril Ramaphosa about the Ithala matter.
“I am pleased to report that my discussion with the president was both productive and constructive, with a firm commitment to prioritising the Ithala SOC issue. Preserving Ithala is not just about protecting a financial institution, it is about safeguarding the future of marginalised communities who depend on its services. As the provincial government, we will not allow any agenda to derail the critical role Ithala plays in empowering our people.”
Like Ntuli, MEC Zondi also drew the line in the sand and lashed out at the Prudential Authority for being “hellbent” on closing the bank to the detriment of the clients, who are mostly impoverished.
“What is happening is that people’s money is kept away from them, and that is illegal. We will fight to ensure that people have access to their funds that are being illegally kept away from them,” said Zondi.
Political parties, including the ANC, DA, uMkhonto weSizwe Party (MKP), IFP and lobby groups such as Injeje yabeNguni, have also vowedto defend Ithala Bank.
The late Inkosi Mangosuthu Buthelezi’s son, the man who was instrumental in the formation of Ithala Bank, Inkosi Zuzifa Buthelezi, has also started a petition in a bid to save the bank.
The legal team of Ithala Bank and that of the Prudential Authority (PA) will meet today (Wednesday) in a bid to find a way forward.
The liquidation application by the Prudential Authority will be heard on Thursday at the Pietermaritzburg High Court.
DAILY NEWS