Durban - The KwaZulu-Natal Provincial House of Traditional and Khoisan Leaders has weighed in on the pending court action against Ithala SOC Limited, warning that they will protest against this action.

The KZN House recently convened an urgent special meeting which was extended to all Amakhosi in the province to discuss the issue. In a statement, the traditional institution strongly condemned the decision to close Ithala bank, which it says serves thousands of citizens in the province.

It said while Amakhosi acknowledged the matters raised by the SA Reserve Bank’s Prudential Authority (PA), the move to deem Ithala Bank insolvent contradicted the bank’s financial statements as of 31 March 2024.

“These statements, signed off by the Auditor-General, present a different picture from the claims made by the PA. It is, therefore, not only premature to resolve to liquidate the bank but also a decision that would severely impact the poorest members of society, based on issues that remain disputed, said the statement.

The statement said the services delivered by this bank to rural communities are far-reaching compared to other commercial banks, which it said makes it impossible for the previously marginalised members of society to access financial services.

It said the closure of Ithala Bank is not only an attack on rural communities in KwaZulu-Natal but also undermines the very essence of rural economic development.

The KZN House said Amakhosi view this decision as a direct affront to His Majesty, iSilo uMisuzulu, all Amakhosi, and the subjects of the Kingdom.

“We, therefore, call on His Excellency President Cyril Ramaphosa, the Minister of Finance Mr Enoch Godongwana, the Governor of the South African Reserve Bank Mr Lesetja Kganyago, and the Premier of KwaZulu-Natal Mr Thami Ntuli to respond decisively to this issue. Their response must prioritise the interests of marginalised and downtrodden communities, resisting undue influence from capitalist structures that seek to protect the wealth of a privileged minority.

“The Amakhosi resolved to mobilise all members of traditional communities, led by Amakhosi alongside Izinduna zamabutho, to take mass action against the liquidation of Ithala Bank. All Africans should unite against actions disguised as administrative decisions but which ultimately serve to oppress African-led and Black-led institutions,” said the statement.

THE MERCURY