Durban, 28 January 2025 - KwaZulu-Natal Premier Honourable Thamsanqa Ntuli held a media briefing at the Inkosi Albert Luthuli Convention Centre earlier today to address concerns over the financial affairs of Ithala Bank. The briefing followed recent interventions by the Prudential Authority (PA) and the Resolution Authority (RA), which threatened to halt Ithala Bank’s operations, triggering widespread alarm among depositors and staff.
Premier Ntuli highlighted Ithala Bank’s historic role in providing financial services to marginalised communities. He emphasised that the institution, established during Prince Mangosuthu Buthelezi’s tenure in the former KwaZulu government, has been a lifeline for rural and underserved areas, fostering economic inclusion through small business support, stokvel savings, and SMME empowerment.
He questioned the timing and motives of the PA and RA’s actions, noting their disruptive effect on salaries, policy payments, and other financial obligations at the end of the month. “This move appears designed to destabilise Ithala, erode public confidence, and pave the way for its closure to benefit commercial banks,” Premier Ntuli said. He added that the provincial government firmly opposed the interruption of Ithala’s core activities.
In outlining the institution’s legal challenges, Premier Ntuli explained that Ithala had operated under a banking licence exemption, which expired on 15 December 2023. Two applications for a full banking licence—in 2016 and 2023—were declined by the PA, including one that he alleged was dismissed without proper assessment. He insisted that Ithala’s financial health remained sound, citing consecutive clean audits, assets surpassing liabilities, and ongoing operations that pose no risk to depositors’ funds.
Regarding the legal proceedings initiated by the provincial government and Ithala, Premier Ntuli reported that the urgent court application originally scheduled for 28 January 2025 had been removed from the roll due to the unavailability of the presiding judge. He expressed concern over the looming liquidation application set for 30 January 2025. “Our main priority is to prevent the closure of Ithala Bank and safeguard the future of the communities it serves,” he said.
The Premier revealed that he had escalated the matter to President Cyril Ramaphosa, who pledged national government’s urgent attention. He called on all stakeholders to join the provincial government in defending Ithala, underscoring its importance as a developmental finance institution that has long bridged the gap for those excluded from mainstream banking.
“It is not just about protecting a financial institution; it’s about preserving economic justice for thousands of vulnerable people in our province,” Premier Ntuli concluded. “We urge everyone to stand with us—lawfully and in unity—to ensure Ithala’s survival and continued service to KwaZulu-Natal’s marginalised communities.”
The provincial government’s stance reaffirmed its commitment to preserving Ithala as a cornerstone of economic empowerment, vowing to fight any actions perceived as part of an agenda to undermine the bank’s crucial role.