IN A DRAMATIC escalation of tensions surrounding the future of Ithala Bank, Phumlani Mfeka, the leader of the traditional lobby group INjeje YabeNguni, has made damning allegations against pro-Afrikaner rights organisation AfriForum.
Mfeka claimed that the group was conspiring to facilitate the bank's impending liquidation through its ties with the repayment administrator, Johan Kruger, appointed by the South African Reserve Bank (SARB).
“The only logical conclusion that one can arrive at is that the AfriForum was using Kruger to collapse Ithala Bank,” remarked Mfeka.
His comments reflect a growing concern regarding the fate of Ithala, which served approximately 257000 clients, many of whom could be left without essential banking services if liquidation proceeds.
As the controversy heightens, Mfeka, who resigned from the uMkhonto weSizwe Party (MKP) earlier this week, has pledged to galvanise a significant following, including traditional leaders, to resist the dissolution of Ithala Bank.
“We will not allow Ithala Bank to collapse. As INjeje we will mobilise our constituency to be at court when the matter is heard,” he said.
Mfeka’s utterances come as many organisations and politicians upped the ante of initiatives to save the bank that was formed in 1958.
The matter was expected to be heard next month.
On Friday, King Misuzulu kaZwelithini will convene an imbizo to explore ways to save the only black-owned bank.
This gathering will take place at the newly built royal palace, Emashobeni, near Pongola, evidencing the multi-faceted approach to address the challenges facing the institution.
The Imbizo will be followed by a massive rally dubbed the “Save Ithala Bank March”, organised by the IFP and set to take place at the Durban City Hall next Monday.
Senior IFP members, including party President Velenkosini Hlabisa and provincial chairperson, and Premier Thamsanqa Ntuli, are expected to lead the charge.
The IFP had previously launched a broadside at Kruger, the repayment administrator, accusing him of being “rogue”.
“The IFP is deeply concerned by the alleged rogue behaviour of the Repayment Administrator, Johannes Kruger. We demand his immediate removal, especially in light of the court ruling from the last quarter of 2024, which restrains the Repayment Administrator from interfering in Ithala Bank's daily operations,” IFP spokesperson Mkhuleko Hlengwa in January.
The uMkhonto weSizwe Party (MKP), led by former president Jacob Zuma, have also joined the fray, with their weekly "#SaveIthala" demonstrations throughout KwaZulu-Natal. These demonstrations will go on until the matter is finalised.
Premier Thamsanqa Ntuli laid the gauntlet down, vowing to fight to save Ithala Bank.
The provincial government has joined Ithala Bank in its court matter against the Prudential Authority.
Inkosi Zuzifa Buthelezi, the son of the late founding IFP leader Mangosuthu Buthelezi, the man who is credited for being the brains behind the formation of Ithala, was also preparing his subjects to attend court proceedings and defend Ithala Bank.
In a recent media briefing, MKP member of the provincial legislature, Sthembiso Magubane, said the party would fight tooth and nail to save Ithala. “The moment you collapse Ithala, you are not only affecting Ithala; you are also affecting the SMMEs of the province of KwaZulu-Natal.”.
AfrForum’s head of Inter-Cultural Relations and Cooperation, Barend Uys, said: "The claim made by INjeje YabeNguni is false. AfriForum has no direct or indirect involvement with the Ithala Bank matter."
He added: "AfriForum's work is focused on assisting communities to become more self-reliant and to establish good relations and cooperation between cultural communities based on mutual recognition and respect."
President Cyril Ramaphosa recently authorised the Special Investigative Unit (SIU) to probe the shenanigans and allegations of corruption entity.
The South African Reserve Bank could not be reached for comment and did not respond to questions.
DAILY NEWS