KwaZulu-Natal Premier Thami Ntuli has refuted claims by the African National Congress (ANC) in the province that the liquidation of Ithala Bank has been halted, calling the announcement premature and politically motivated.
The ANC in KZN had declared a “significant breakthrough,” stating that engagements with Finance Minister Enoch Godongwana had secured a guarantee for depositors and prevented the bank’s liquidation. However, Premier Ntuli, speaking in an interview, said his government was unaware of any such developments.
No Official Confirmation
Ntuli clarified that the provincial government had not received any formal communication regarding a resolution to Ithala Bank’s financial crisis.
“We are not aware of the new developments,” Ntuli said, adding that the matter remains before the courts. A liquidation hearing is scheduled for July in the Pietermaritzburg High Court, following an earlier judgment that barred the Public Investment Corporation (PIC) and the Repayment Authority from interfering in the bank’s affairs.
ANC Accused of “False Hope”
KZN’s Economic Development MEC, Musa Zondi, earlier accused the ANC of misleading the public for political gain. Ntuli echoed concerns that the announcement could raise false expectations among depositors, many of whom have been unable to access their funds for months.
“We cannot allow people to be given false hope,” Ntuli said, emphasizing that the provincial government continues to engage with national authorities, including the Minister of Finance, to find a sustainable solution.
Government of Provincial Unity Faces Strain
The controversy has also raised questions about communication within KZN’s Government of Provincial Unity (GPU), a coalition involving the ANC, Inkatha Freedom Party (IFP), and Democratic Alliance (DA). Ntuli admitted that the ANC’s claims were not discussed in the recent cabinet meeting, suggesting a lack of coordination.
When pressed on whether his administration had full control over governance matters, Ntuli defended his cabinet’s stability but acknowledged the need for better information-sharing among coalition partners.
Broader Political Implications
The dispute comes amid tensions in the national Government of National Unity (GNU), following the removal of DA deputy minister Andrew Whitfield. Ntuli declined to predict whether a potential DA exit from the GNU would destabilize KZN’s GPU but stressed the importance of stability for the province’s economy.
“The people of KZN come first,” he said. “We must ensure that political differences do not undermine service delivery.”
What’s Next for Ithala Bank?
With the liquidation case still pending, depositors—including businesses and pensioners—remain in limbo. Ntuli assured that the provincial government would continue legal and diplomatic efforts to protect the bank, which he described as vital for KZN’s economic growth.
As the ANC and provincial leadership clash over the bank’s future, customers await clarity on whether their frozen funds will ever be recovered.
