AS ITHALA Bank fights for survival against Prudential Authority, an entity of the South African Reserve Bank, more and more organisations threw their weight behind the beleaguered financial institution .
The legal bout, initially scheduled for late last month, has been postponed to a date in March, the wait is sure to increase the tension around the bank’s future and its thousands of clients.
In its corner, Ithala has the backing of various political entities such as the IFP, ANC, MKP, and the DA, and the Association of Mineworkers and Construction Union (AMCU), have also expressed their support for the embattled institution.
King Misuzulu KaZwelithini has also tasked the MEC for Cooperative Governance and Traditional Affairs Reverend Thulasizwe Buthelezi to assemble a team that would deal with the Ithala matter.
In a statement, AMCU President Joseph Mathunjwa said: “We will not be fooled by hidden agendas. The private ownership of the South African Reserve Bank is a calculated assault on the interests of our people. All evidence points to a sinister alliance of political and corporate forces mounting this legal attack. They aim to seize control of Ithala and the lifeblood it provides to our communities.”
As Ithala gears up for the looming legal battle, at stake are the accounts of more than 250000 clients who relied on the bank for keeping their funds.
Premier of KwaZulu-Natal also backs Ithala, alongside the MEC for Economic Development, Tourism and Environmental Affairs, Musa Zondi, and MEC for Finance Francois Rodgers, who have all joined Ithala in its legal bid to survive liquidation.
The ultimate decider would be the Pietermaritzburg High Court, where the matter will be heard next month.
As Ithala garners support from many sympathisers, President Cyril Ramaphosa unleashed the Special Investigating Unit (SIU) to investigate the alleged acts of corruption at Ithala Bank.
This is related to claims that a tech company was awarded an R34 million tender allegedly without due process.
Ithala bank, founded in 1958, found itself on the ropes as it was unable to process funds for its clients, with many of them unable to access social grants earlier this week.
The bank is now pinning its hopes on a favourable court verdict for its survival.
Inkosi Zuzifa Buthelezi, the son of the late Inkosi Mangosuthu Buthelezi, who was instrumental in the formation of the bank, has also declared war against the closure of Ithala.
He previously told the Daily News: “My father worked very hard for this bank to help poor people who were unable to get access banking services from the commercial banks. They could not get loans (car and home). This bank rescued them from that. I will not allow for the hard work to be in vain.”
He added: “This is not even about my father’s legacy, but it is about the people who would suffer should the bank be liquidated. I know some people are bent on erasing my father’s legacy, but I will make sure that Ithala is not systematically shut down like all the other institutions that were built by my father, including the teachers' colleges.”
Like Zuzifa, Buthelezi’s eldest daughter, Princess Phumzile Buthelezi also dug in her heels, vowing to defend her father’s legacy.
“I will do everything in my power to make sure that Ithala Bank is not shut down. It is in the best interest of the poor people that Ithala is saved,” she previously told the Daily News.
Political heavyweights such as EFF leader Julius Malema have also publicly declared support for Ithala Bank.
The Prudential Authority is backed by the South African Reserve Bank (SARB).
DAILY NEWS