The Inkatha Freedom Party (IFP) in KwaZulu-Natal has strongly condemned the looming closure of Ithala Bank, a historic financial institution that has long been a pillar of support for black-owned businesses, individuals, and emerging enterprises in the province.
Recent reports revealing the imminent shutdown of Ithala Bank, orchestrated by the Prudential Authority (PA) and overseen by Mr. Johan Kruger, have sent shockwaves through the community. This development marks a devastating blow to the economic landscape of KZN and threatens the livelihoods of many who rely on the bank’s services.
Ithala Bank, formerly known as Ithala Limited, has faced an uphill battle in obtaining a banking license, with stringent requirements set by the South African Reserve Bank (SARB). Despite its efforts to comply, the lack of political will and support from the government has hindered its progress, ultimately leading to its downfall.
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IFP in KZN voices outrage over impending Ithala Bank closure
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In a desperate attempt to survive, Ithala Bank formed a partnership with ABSA to access essential financial services. However, instead of receiving the necessary assistance, the bank became embroiled in political agendas, resulting in its inevitable demise.
Founded by the late HRH Prince Mangosuthu Buthelezi, Ithala Bank was more than just a financial institution; it was a symbol of hope and empowerment for marginalized communities during apartheid. Its closure represents a betrayal of Prince Buthelezi’s legacy and a disregard for the economic well-being of the province.
The IFP firmly believes that Ithala Bank still has the potential to be salvaged and transformed into a fully-fledged State bank. However, this requires genuine political will and commitment, which seems lacking among current political leaders in KZN.
As the IFP prepares for the 2024 election, it pledges to protect and support the legacy of Prince Mangosuthu Buthelezi and the institutions he built. The party remains committed to advocating for the interests of the people of KZN and ensuring that their voices are heard.
