KZN government vows to protect Ithala Bank amid ongoing legal battles

KwaZulu-Natal Premier Thamsanqa Ntuli has declared that the provincial government will not back down in its fight for Ithala SOC Limited.

“As the provincial government, we are not going to back off, we are going to fight the battle until we win because Ithala belongs to the people of KwaZulu-Natal and is the hope for the emerging entrepreneurs, especially in rural communities and also in township communities. It’s the hope for the poor, that they can turn around their lives,” Ntuli said. 

“I am calling upon everyone to join hands with us and to fight. Take it to different platforms, call for the preservation of Ithala and for the PA (Prudential Authority) and the RA (Repayment Administrator) to back off Ithala.”

Ntuli was speaking during a media briefing following last week’s court decision allowing Ithala to continue operations. Ntuli was joined by Economic Development, Tourism and Environmental Affairs (Edtea) MEC Reverend Musa Zondi and Ithala CEO Dr Thulani Vilakazi.

The matter was heard before Judge Muzi Ncube on March 17, and judgment was delivered on May 9. Ithala had called on the court to uphold its November ruling, which declared the RA was not authorised to interfere with its day-to-day operations. Ithala also requested the court to permit it to continue operating as normal pending the outcome of the provisional liquidation application brought against it by the PA.

Ntuli said there was a court judgment, which was making the PA and the RA back off in terms of the mandate that they gave themselves. 

“Unfortunately, there’s an appeal again… Meaning that the PA and RA are adamant in destroying Ithala SOC Limited,” Ntuli said.

“That is why we are saying, as the provincial government, we will continue to defend Ithala using different means.

“We’re hopeful that at the end of the day, even if it calls for us to go to the Constitutional Court, we’ll go to the Constitutional Court, so that we save Ithala.”

“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,” Ntuli said. 

“Let me be clear: Ithala SOC must be preserved and transformed — not dismantled. We owe it to those who have trusted this institution for generations.

“We are not asking for the rules to be broken. We are asking for the people to be heard — and for governance decisions to be matched by a sense of humanity and urgency.”

He said the provincial government must be the first to place its deposits and transact through Ithala, and municipalities should follow suit. 

“By choosing to bank with Ithala, we are not merely supporting a financial institution, we are investing in a more inclusive and equitable economy,” Ntuli said. 

thobeka.ngema@inl.co.za