Amakhosi oppose closure of Ithala Bank

Umzumbe’s Inkosi Phathisizwe Shinga said the KZN Provincial House of Traditional and Khoisan Leaders strongly condemns the decision to close Ithala Bank, which serves thousands of ordinary citizens in the province.

This follows the Prudential Authority’s (PA) application to the High Court in Pietermaritzburg for Ithala’s provisional liquidation.

Inkosi Shinga, the chairperson of the provincial house, said that following the PA’s announcement of its intention to liquidate the bank, they convened an urgent special meeting, which was extended to all Amakhosi in the province.

He said while traditional leaders acknowledged the matters raised by the PA, the move to deem Ithala Bank insolvent contradicted the bank’s financial statements as of March 31, 2024.

He said the statements signed off by the Auditor-General presented a different picture from the claims made by the PA.

“It’s not only premature to resolve to liquidate the bank but also a decision that would severely impact the poorest members of society, based on issues that remain disputed. Ithala has been the only bank pivotal in developing rural areas on communal land under Amakhosi. Today, our people have access to banking services, and through Ithala, they have been able to build family homes using the Rural Home Loan programme. Ithala has provided our people with dignity and improved their quality of life,” said Shinga.

He added that the services delivered by the bank to rural communities are far-reaching compared to other commercial banks, which makes it impossible for the previously marginalised portion of society to access financial services.

He said the closure of Ithala Bank is not only an attack on rural communities in KZN but also undermines the essence of rural economic development.

Inkosi Shinga said as Amakhosi they view the decision as a direct affront to the Zulu monarch, King Misuzulu kaZwelithini and the subjects of the Kingdom.

He added that the provincial house noted positive statements from the provincial government and several political formations that support the position of Amakhosi.

“We, therefore, call on President Cyril Ramaphosa, the Minister of Finance Enoch Godongwana, the Governor of the South African Reserve Bank, Lesetja Kganyago, and the Premier Thami Ntuli to respond decisively to this issue,” he said.

He added that Amakhosi also resolved to mobilise all members of traditional communities to take mass action against the liquidation of Ithala Bank, saying that all Africans should unite against actions disguised as administrative decisions but which ultimately serve to oppress African-led and black-led institutions.

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