Delivered by Hon. VF Hlabisa MP,
President of the Inkatha Freedom Party (IFP)
Minister of Cooperative Goverance and Traditional Affairs (COGTA)
At the #SaveIthala March
Durban: Monday, 24 February 2025
The Clients of Ithala Bank –
Representatives of the Reserve Bank –
The leadership of the IFP –
The rank and file of the IFP –
Members of the Media –
Good morning –
We thank the KZN Government, Amakhosi, amabutho, izinduna, the IFP, other civil and political formations, the clients of Ithala for joining us this morning in our clarion call to say enough is enough!
Thank you for declaring your support for the rolling mass action to #SaveIthala.
We have marched here this morning with one message and one message only: Ithala is worth saving, and we will fight for Ithala.
We have come with our messages displayed on our placards:
#HANDSOFFITHALA
#PROTECTTHEVUNERABLE
The distressing news of the imminent closure of Ithala Bank, an institution founded by the IFP’s Founder, the late HRH Prince Mangosuthu Buthelezi, has caused untold distress and uneasiness amongst the IFP family, the Buthelezi clan, the People of KwaZulu-Natal and South Africans at large.
Established with the primary aim of economically empowering black individuals and businesses during apartheid, Ithala Bank, has played a crucial role in supporting our communities. It granted funding to many who could not access the help and services of well-established banks.
Three decades later, it remains a lifeline to many.
Today, Ithala’s footprints can be found in townships and rural towns, where many businesses it funded, still stand. In some towns across this Province of ours it is the only bank, and the bank through which our most vulnerable receive their SASSA grant.
Ithala has been a beacon of hope and empowerment for marginalised communities in KwaZulu-Natal’s rural heartlands and urban centres. This is the lasting impact and contribution of Prince Mangosuthu Buthelezi’s legacy.
We have been informed that Ithala SOC’s assets exceeds its liabilities by R400 million and that it was deemed a viable concern by the Auditor-General during its last audit of Ithala. We are also informed that Ithala’s bank license has been turned down twice, for no good reason.
We can only therefore reasonably conclude that the South African Reserve Bank’s Prudential Authority (PA), and the Repayment Administrator (RA) has launched an unjust assault on a pro-poor, African bank.
This cannot be left unchallenged.
This is a matter that goes to the very heart of KwaZulu-Natal’s prosperity. Losing Ithala would severely undermine KwaZulu-Natal’s developmental agenda, which depends on institutions like Ithala to drive inclusive economic growth.
But this crisis is about more than just Umtwana’s legacy. It is about the livelihoods of thousands of people in KwaZulu-Natal. It stands at the heart of the IFP’s vision of a KwaZulu-Natal that is stable, prosperous. A KZN that works for its people.
We stand in solidary with the Ithala Bank beneficiaries who have no access to their funds. Can we stop for a moment to consider what pain this has caused to many vulnerable families?
We stand in solidary with Sassa beneficiaries who depend on Ithala, who had their personal information simply transferred to another bank without their go ahead or approval, while others have had their accounts frozen.
We stand in solidarity with all families, famers and small business owners who are adversely affected.
WE THEREFORE DECLARE AND DEMAND THE FOLLOWING:
- We demand that the South African Reserve Bank’s Prudential Authority (PA) seize and desist from further action to liquidate Ithala Bank.
- We demand that the Repayment Administrator (RA) seize and desist from their unjust assault on a pro-poor, African bank.
- We demand that Ithala Bank be granted a banking license so that it is able to become a fully-fledge State Bank.
- We call on Treasury and the KwaZulu-Natal Government to ensure a lasting solution to #SaveIthala.
- We demand protection for the poor who have lost access to their funds.
- We will defend uMntwana waKwaPhindangene’s legacy at all cost. The institutions he built, must be protected, supported and multiplied. We therefore declare Hands Off Ithala!
We stand united against the closure of Ithala Bank.
