The Association of Mineworkers and Construction Union (AMCU) has thrown its weight behind the embattled Ithala Bank as the Prudential Authority (PA) presses on with its Pietermaritzburg High Court application to have the historic KwaZulu-Natal financial institution liquidated.
In a statement, AMCU President, Joseph Mathunjwa said it looks like underlying political and commercial interests are driving the legal action, potentially threatening the livelihoods of thousands and further destabilising the province.
He added that AMCU is committed to safeguarding this essential institution in an effort to defend its continued contribution to local economic and social stability.
According to Mathunjwa, since its establishment on 15 January 1982 by Prince Mangosuthu Buthelezi during his tenure as the head of the KwaZulu Bantustan government, Ithala has played a massive role in uplifting communities in the region.
Ithala provides essential financial services to some of the province’s most vulnerable citizens.
Mathunjwa said the bank is directly employing over 900 workers and indirectly supporting more than 5 000 families. It has been a beacon of hope in a region where over 40% of the population lives below the poverty line, he added.
Recent financial statements as of December 2024 clearly demonstrate that Ithala is technically solvent, according to the KwaZulu-Natal government. With assets estimated at approximately R15 billion against liabilities of around R3 billion, the bank’s robust financial footing seems evident despite the ongoing legal challenge.
“We will not be fooled by hidden agendas: the private ownership of the South African Reserve Bank is a calculated assault on the interests of our people. All evidence points to a sinister alliance of political and corporate forces mounting this legal attack, their aim clear – to seize control of Ithala and the lifeblood it provides to our communities,” Mathunjwa said.
Mathunjwa accused the PA and the South African Reserve Bank (SARB) of double standards, saying they have not acted against banks like ABSA that were allegedly involved in manipulating the rand against major global currencies a few years ago.
“This is not just about financial services – it is a battle for the very survival of thousands of workers and their families who depend on Ithala for sustenance”, the AMCU boss said.
“Any attempt to dismantle this institution is a direct blow to our people, an act that will only worsen the scourge of unemployment, especially in rural KZN where hope is already in short supply”, Mathunjwa added.
