Ithala fiasco destroys livelihoods in KZN

A call for all KwaZulu-Natal municipalities and provincial departments to demonstrate tangible support for Ithala Bank has been made.

This call comes amid a court battle between the provincial government and the Repayment Administrator over the entity’s operations.

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Addressing the media yesterday (Wednesday), KZN Premier Thami Ntuli informed journalists that over the past five months, the provincial government has presented the legal and administrative facts surrounding the challenges facing Ithala SOC Limited.

“We must move beyond legal arguments and confront the human cost of this unfolding crisis; a cost that is now devastating families, small businesses and livelihoods across our province,” said Ntuli.

He mentioned that one affected client from Ulundi, Zandile Mnguni, has seen her children drop out of school because she could not access the funds in her Ithala account to pay tuition.

“One of her children was enrolled at Berea Tech and is now sitting at home. To make matters worse, her home was recently damaged by severe flooding, but she is unable to fund repairs despite having the money, which is locked and inaccessible,” said Ntuli.

The premier added that this is no longer just a legal matter but one of public interest, dignity, access to opportunity, and basic human rights.

“The question now before us is not whether or not the government acted within its rights. It is whether or not we, as a society, are willing to allow this level of disruption to continue, knowing full well the impact on the poorest and most vulnerable among us,” said Ntuli.

“In the spirit of self-reliance and collective upliftment that gave birth to Ithala, I now call upon all municipalities and provincial departments across KZN to demonstrate tangible support for this institution,” added Ntuli.

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