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Protest Erupts Over Closure of Ithala Bank Amid Fears of Job Losses and Legacy Erosion
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Protests erupted outside Ithala Bank’s offices in Port Shepstone on Wednesday as the Inkatha Freedom Party (IFP) made their opposition clear to the planned closure of the bank. Members of the IFP in the Ugu Region and Esayidi Sub-Region gathered in large numbers, demanding that the decision by the Prudential Authority and the South African Reserve Bank to liquidate Ithala Bank be overturned. The closure has sparked outrage, with concerns raised about the bank’s vital role in supporting small businesses and the black community.
A Legacy at Stake
The protest was sparked by the decision to shut down Ithala Bank, which has long been a key financial institution for black South Africans, particularly those in small businesses and cooperatives. IFP Ugu Regional Chairperson Sfundo Ngwane voiced the party’s concerns, emphasizing that the closure would erase a critical legacy tied to the late IFP founder, Prince Mangosuthu Buthelezi.
“We cannot stand by and watch Ithala Bank’s legacy go down the drain,” Ngwane said. “This is the only bank owned by blacks, and it has helped many small businesses. It’s a vital part of our community, and we cannot let it be wiped out.”
Fear of Job Losses and Financial Insecurity
One of the most pressing issues raised during the protest was the fear of job losses. With Ithala Bank’s closure, employees face the uncertainty of unemployment, and many clients fear they may lose access to their funds. Ngwane stated that clients are unwilling to be moved to other banking institutions, as those institutions are not their bank of choice.
“There is confusion, and people are concerned they may lose their money,” Ngwane explained. “For many, Ithala Bank is the only institution they trust.”
Community Support and Protest Participation
Despite the scorching heat, numerous IFP supporters participated in the protest, showing solidarity with the bank’s employees and clients. Many expressed that Ithala Bank was more than just a financial institution—it was a pillar in their community, offering access to banking services that other banks failed to provide to marginalized sectors of society.
Opposition to the Liquidation Decision
The IFP is steadfast in its opposition to the closure and is determined to protect the interests of the black community, small businesses, and employees. The party is calling for a review of the liquidation decision and has vowed to continue the fight against the bank’s closure.
With the decision still looming, it remains to be seen whether the IFP’s efforts will be successful in preserving Ithala Bank’s operations and ensuring that the bank’s legacy endures for future generations.