A MASS mobilisation of political parties, labour groups, community leaders and Amabutho (Zulu soldiers) have vowed to stand their ground in opposition to the potential liquidation of Ithala Bank.
This coalition of organisations includes the IFP, ANC, DA, uMkhonto weSizwe Party (MKP), DA, labour federation, Cosatu and traditional lobby group Injenje YabeNguni.
Their mobilisation comes as Ithala is set to square off with the Prudential Authority (PA) at the Pietermaritzburg High Court over allegations of non-compliance and insolvency on Friday.
The ANC and its alliance partners in KwaZulu-Natal announced during a joint media briefing yesterday (Wednesday) that they would picket outside the Pietermaritzburg High Court on Friday while the Prudential Authority and Ithala Bank exchange legal blows in the courthouse.
“Over the past few days, we witnessed reports in various media houses about the liquidation of Ithala by forces opposed to meaningful transformation of the financial services sector. As the alliance in KZN, we cannot be silent and allow these anti-forces of social and meaningful economic transformation to plunge the province into a socio-economic crisis that will take decades to address.
“As the alliance, we have agreed to embark on a grassroots-based mass action against the unsound and unjustifiable actions of the Repayment Administrator (RA). This will start with picketing on Friday, during the hearing at the Pietermaritzburg High Court,” read the alliance partners’ statement.
The alliance comprises the ANC, the Congress of the South African Trade Unions (Cosatu), the South African Community Party (SACP) and the South African Civics Organisation (SANCO).
The alliance indicated that the mass action will continue against the RA, Johan Kruger, whom it accused of profiting off rural and township economies.
He is also against the overall socio-economic development of indigenous communities, claimed the alliance.
However, the alliance said it was against any form of corruption within Ithala.
“With this said, we wish to reiterate our firm opposition against fraud and corruption within Ithala.”
The alliance helds the view that any form of corruption and financial mismanagement must be attended to separately by relevant crime-fighting agencies without collapsing this financial institution.
Also, the alliance said the bank had always been a beacon of hope for marginalised people, particularly rural women and single mothers, by providing access to finance and banking services.
The MKP in the Amajuba Region (Newcastle) will also embark on a protest in support of Ithala on January 30 at Arbor Park near Newcastle.
The party in the region said it would use the protest to express its anger at the attempts to close Ithala Bank.
Phumlani Mfeka from the lobby group Injeje YabeNguni Induna told the Daily News that they were against the bank’s closure.
“There is an agenda to close down all institutions that are not controlled by monopoly capital. We are against the closure of Ithala, and we are registering our frustrations about this,” said Mfeka.
MEC for Finance Francois Rodgers, the DA’s leader in the province, also backed Ithala.
“We will joining the province of KZN and the MEC for Economic Development, Tourism and Environmental Affairs (Musa Zondi) in opposing Ithala’s liquidation,” he said.
The IFP, which was founded by the late Inkosi Mangosuthu Buthelezi, who was instrumental in the establishment of the Bank in 1958, has also threatened to take the streets if the entity was liquidated.
The IFP described the Prudential Authority's actions as “provocative”, warning that the IFP will respond “decisively” to defend Ithala Bank.
Buthelezi’s son, Zuzifa, who took over the reins as Inkosi of the Buthelezi clan after the death of the IFP founder and long-time leader in September 2023, said he will mobilise the amakhosi to descend on the Pietermaritzburg High Court on Friday.
“This is clearly a war against my father’s legacy, so we will fight back to save Ithala for the sake of the poor people who rely on its services to survive. I will mobilise the amakhosi against this,” said Buthelezi.
He added: “This is not even about my father, its about the people, mostly poor, who will suffer should the bank be closed. As an Inkosi, I will personally mobilise Amabutho to go to court on Friday. We can’t allow this bank to collapse.”
Buthelezi said he had been “watching the Ithala movie” with “pain and frustration”.
“This is painful because the aim of this is to systematically erase my father’s legacy. Some people are folding their arms and watching with glee as the bank is being deliberately destroyed,” said Buthelezi.
He warned that impoverished people would suffer if the bank, which had 257000 clients, was liquidated.
DAILY NEWS