By Celani Sikhakhane
The suspension of Ithala Bank’s licence has been described as disastrous for townships and rural communities. The Zulu King has intervened, instructing his Traditional Prime Minister to engage with the Minister of Finance and the Premier of KwaZulu-Natal, urging them to spare no effort in reinstating the licence.
This follows the decision by the Financial Sector Conduct Authority (FSCA) to suspend Ithala from rendering financial services, citing that the bank does not meet financial soundness requirements.
The battle over this suspension started last year, with plans to suspend Ithala Bank’s licence in December. However, the bank attempted to fight this through appeals, which were ultimately rejected on 26 July this year.
King Misuzulu kaZwelithini, through his Traditional Prime Minister, Reverend Thulasizwe Buthelezi, stated that the suspension of Ithala Bank’s licence would have devastating consequences on the livelihoods of thousands of his subjects who depend on the bank for their business and social enterprises.
“His Majesty strongly believes that the services of Ithala Bank, as the backbone of rural and township entrepreneurs in KwaZulu-Natal, must not be disrupted. His Majesty views Ithala Bank as the enduring legacy of his erstwhile Prime Minister, Prince Mangosuthu Buthelezi—a legacy that must be honoured and defended so that future generations can also benefit from Ithala Bank,” the statement read.
It further stated that His Majesty has directed the Traditional Prime Minister of the Zulu Nation, Reverend Buthelezi, to reach out to the Minister of Finance and the Premier of KwaZulu-Natal to ensure that no effort is spared in reinstating Ithala Bank’s licence without delay.
Ithala was founded by the late IFP leader, Prince Mangosuthu Buthelezi, with the assistance of the first black Southern African Anglican Church Bishop, Alpheus Zulu, to provide capital to black entrepreneurs.
The FSCA has instructed Ithala Bank to transfer its services to other institutions.
Ithala was authorised in terms of the FAIS Act to act as a category 1 Financial Services Provider (FSP).
Pictured Above: Ithala Bank’s licence has been suspended, causing concern in townships and rural communities.
Source: Ithala Bank
