DEFEND ITHALA SOC @KASIBCNEWS

IFP YOUTH BRIGADE COMMENDS KZN PROVINCIAL GOVERNMENT FOR ITS RESOLUTE STANCE TO DEFEND ITHALA SOC

The IFP Youth Brigade unequivocally commends the Honourable Premier of KwaZulu-Natal, Thamsanqa Ntuli, for his unwavering commitment and bold leadership in defending the Ithala SOC. As the IFP Youth Brigade, we fully support the efforts of the Premier and the KwaZulu-Natal Provincial Government in their fight to protect this historic financial institution from the unwarranted and ill-conceived actions of the Prudential Authority (PA) and Reserve Authority (RA).

Ithala SOC has been a beacon of hope and empowerment for marginalized communities in KwaZulu-Natal. Its legacy, deeply rooted in the vision of the IFP's Founding President, Prince Mangosuthu Buthelezi, embodies the principles of economic justice and inclusion. For decades, Ithala has been the only financial institution providing essential banking services to rural and underserved areas, empowering small businesses, fostering savings through stokvels, and supporting SMMEs that lack access to other financial assistance.

We question the timing and intention of the RA and PA in their decision to force a halt and restrain Ithala SOC from conducting transactions and continuing operations. This unjust intervention, implemented just before the end of the month, appears calculated to create widespread panic and destabilization. The timing disrupts Ithala clients from receiving their salaries, paying policies, and preparing children for school. 

Even more egregiously, it prevents Ithala staff from being paid their salaries, deliberately fostering distrust and frustration among Ithala’s clients and employees. This orchestrated chaos seeks to undermine confidence in Ithala and pave the way for its closure, while simultaneously erasing the proud legacy of Prince Buthelezi to the benefit of commercial banks.

What is even more troubling is the PA's reported actions in sending direct messages to Ithala clients, encouraging them to leave Ithala and migrate to other commercial banks. There are also allegations of some municipalities dissuading their employees from banking with Ithala and instead urging them to transition to commercial banks. We must ask: what is the true intent behind these actions? Such behaviour is not only unethical but also points to a targeted campaign to dismantle Ithala SOC entirely. We warn such Municipalities to be very careful not to be tangled along in an attempt of destroying Ithala, in fact if we hear of any municipality doing that, we will take stern actions against it.

We call on municipal workers and every employee banking with Ithala to resist these coercive tactics and refuse to collaborate in any scheme aimed at destroying Ithala SOC. Municipalities have a responsibility to stand with the people of KwaZulu-Natal and preserve this vital institution that has been instrumental in empowering communities and driving economic development.

The IFP Youth Brigade stands firm in its support for the Provincial Government as they take a principled stand against the Prudential Authority’s malicious actions. The Premier’s decision to escalate this matter to President Cyril Ramaphosa demonstrates his commitment to ensuring that justice prevails and that Ithala SOC continues to serve the people of this province.

Ithala SOC’s financial position remains robust, as evidenced by clean audits, assets exceeding liabilities, and its continued ability to meet depositors’ needs. These facts contradict the PA's baseless claims and underscore the necessity of protecting Ithala SOC from undue interference.

We reiterate our unwavering support for the Provincial Government’s efforts to preserve Ithala SOC. This fight is not just about a financial institution; it is a fight for economic justice, the empowerment of marginalized communities, and the protection of Prince Buthelezi’s enduring legacy. The IFP Youth Brigade will continue to advocate for Ithala SOC and calls on all stakeholders to unite in defence of this invaluable institution.