King Misuzulu Steps In to Prevent Ithala’s Collapse
King Misuzulu kaZwelithini has stepped in to prevent the liquidation of Ithala SOC Limited, instructing KwaZulu-Natal Co-operative Governance and Traditional Affairs MEC, Reverend Thulasizwe Buthelezi, to lead a delegation in support of Premier Thami Ntuli’s efforts to save the financial institution.
The black-owned Ithala Bank, which plays a vital role in the financial well-being of thousands in KwaZulu-Natal, faces imminent liquidation due to claims of insolvency and non-compliance by the Prudential Authority (PA).
The crisis deepened in December 2023 when Ithala lost its exemption to accept deposits from customers. However, the institution allegedly continued operating, which has now led to intervention from the authorities.
King Misuzulu’s Call to Action
In a statement issued on Saturday, MEC Buthelezi revealed that King Misuzulu has expressed deep concern over the impending liquidation of Ithala.
“His Majesty views Ithala as an important and indispensable structure of the Zulu Kingdom, carrying historical, cultural, and economic significance,” Buthelezi stated.
King Misuzulu
In response, the King has instructed a delegation of senior members of the Royal Family and Amakhosi (traditional leaders) to support the Premier of KwaZulu-Natal, Thamsanqa Ntuli, in his government’s efforts to rescue the bank.
Financial Losses and Community Impact
The potential collapse of Ithala could have devastating consequences for various stakeholders, including the MEC and Amakhosi of KwaZulu-Natal, who stand to lose R34 million from their Traditional Levies Trust Account if the bank is liquidated.
Buthelezi emphasized that the King’s delegation has also been tasked with engaging the National Government to highlight Ithala’s critical role in sustaining the livelihoods of thousands of people in KwaZulu-Natal.
Thousands of Social Grant Recipients Affected
One of the most immediate concerns is the impact on approximately 65,000 social grant recipients, who depend on Ithala for their monthly payments.
Authorities have urged these beneficiaries to visit FNB branches between January 28 and February 4 to open new bank accounts. By doing so, they will be able to access their social grant payments in the next cycle.
Many affected grant recipients rely solely on these funds, and the uncertainty surrounding Ithala’s future has caused panic among vulnerable citizens.
King Misuzulu
Ithala Employees Face Uncertainty
The bank’s hundreds of employees are also facing a financial crisis, with their salaries at risk.
The Pietermaritzburg High Court was expected to rule on whether their salaries could be paid on January 28, but the case was postponed due to the unavailability of Judge Muzikawakhelwana Ncube.
This delay has left employees in limbo, adding further pressure on the institution’s ongoing legal battles.
Legal Challenges and Freezing of Transactions
Ithala’s troubles escalated on January 17, when the bank urgently sought a court order to prevent Johan Kruger, the Repayment Administrator (RA) appointed by the Prudential Authority, from interfering with its operations.
The RA’s interference included freezing transactions, making it impossible for Ithala to:
Pay salaries to employees
Provide depositors with access to their funds
Settle payments to service providers
This move has crippled the bank’s ability to function, intensifying the urgency for a solution to prevent its closure.
AmaZulu King Misuzulu kaZwelithini
King Misuzulu’s Vision for Ithala’s Future
King Misuzulu’s intervention underscores the importance of Ithala in the Zulu Kingdom. He believes that the bank serves more than just an economic function—it is a symbol of financial empowerment and an institution that has historically uplifted black communities in KwaZulu-Natal.
His efforts, alongside the provincial government, seek to:
Prevent the liquidation of Ithala
Protect depositors and grant recipients
Safeguard jobs at the institution
Engage National Government for a long-term solution
