King Misuzulu KaZwelithini is leading efforts to save Ithala Bank from liquidation. Picture: File
King Misuzulu kaZwelithini has instructed KZN Co-operative Governance and Traditional Affairs MEC Rev Thulasizwe Buthelezi to lead a delegation to support Premier, Thami Ntuli, in the provincial government’s efforts to save Ithala SOC Limited.
The looming liquidation of Ithala, which is a subsidiary of KZN Economic Development and Environmental Affairs, stems from claims by the Prudential Authority (PA) of alleged insolvency and non-compliance.
This comes after the black-owned bank, which plays a pivotal role in the financial well-being of many in KwaZulu-Natal, lost its exemption to accept funds from depositors in December 2023, yet continued regardless.
Making the announcement in a statement Saturday, Buthelezi said that he has been instructed by His Majesty King Misuzulu kaZwelithini to express his concern about the impending liquidation of Ithala.
Buthelezi said the King views Ithala as an important and indispensable structure of the Zulu Kingdom, which carries historical, cultural, and economic significance.
“In this regard, His Majesty has instructed me to lead a delegation of senior members of the Royal family and Amakhosi of the Kingdom to support the Premier of KwaZulu-Natal, Hon. Thamsanqa Ntuli, in his government’s efforts to save Ithala Bank,” he said.
The MEC and Amakhosi of KwaZulu-Natal stand to lose R34 million held in Ithala in their Traditional Levies Trust Account if this matter is not resolved.
“His Majesty has also tasked this delegation with engaging with the National Government to underscore Ithala Bank’s unique role in sustaining the livelihood of hundreds of thousands of His Majesty’s subjects in KwaZulu-Natal,” said Buthelezi.
According to reports, approximately 65 000 social grant recipients who receive payments via Ithala Bank have been urged to visit FNB to open new bank accounts between January 28 and February 4.
Using their IDs, these beneficiaries would be able to gain access to their funds during the next payment run.
Hundreds of Ithala employees are facing uncertainty regarding their salary payments after the Pietermaritzburg High Court postponed a matter that was to determine whether their salaries would be paid.
The urgent application was due to be heard on January 28 but was postponed due to Judge Muzikawakhelwana Ncube’s unavailability.
On January 17, Ithala urgently sought a court order to prevent Johan Kruger, the Repayment Administrator (RA) appointed by the PA, from interfering with its operations.
This interference included freezing the bank’s transactions, which prevented payment of salaries, access to funds for depositors, and payment to the bank’s service providers.
karen.singh@inl.co.za
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