30 January 2025
MEDIA RELEASE
SUMMARY: The Association of Mineworkers and Construction Union (AMCU) has pledged strong support for Ithala Community Bank amid a legal challenge over its alleged insolvency. AMCU warns that underlying political and commercial interests may be driving this legal move, potentially threatening the livelihoods of thousands and further destabilising the region. The Union remains committed to safeguarding this essential institution in an effort to defend its continued contribution to local economic and social stability.
The Association of Mineworkers and Construction Union (AMCU) has pledged strong support for the Ithala Community Bank in KwaZulu-Natal as it faces a legal challenge over its alleged insolvency. The bank is currently embroiled in High Court proceedings initiated by the Prudential Authority of the South African Reserve Bank, with hearings ongoing as from early February 2025 and set to continue through March.
Since its establishment on 15 January 1982 by Prince Mangosuthu Buthelezi, Ithala has played a massive role in uplifting communities in KZN. Ithala provides essential financial services to some of the province’s most vulnerable citizens. Directly employing over 900 workers and indirectly supporting more than 5 000 families, Ithala has been a beacon of hope in a region where over 40% of the population lives below the poverty line.
Recent financial statements as of December 2024 clearly demonstrate that Ithala is technically solvent. With assets estimated at approximately R15 billion against liabilities of around R3 billion, the bank’s robust financial footing is 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”, declared AMCU President Joseph Mathunjwa. “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”, he pointed out. “Even worse, other banks have in the past been accused of manipulating currency, but nothing happened to them”, Mathunjwa said.
ABSA Bank was implicated in allegations of manipulating the South African rand. In 2015, the South African Competition Commission initiated an investigation into several financial institutions, including ABSA, for alleged collusion in manipulating the USD/ZAR currency pair between 2007 and 2013. The Commission accused these banks of coordinating to fix prices and divide markets in the trading of the rand. However, while ABSA was implicated, it was not the only bank involved in these allegations. Other major financial institutions, both local and international, were also accused of participating in the manipulation of the rand.
“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”, he 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 said.
AMCU has called on all stakeholders and relevant authorities to acknowledge Ithala’s historic and ongoing contribution to the economic and social stability of KZN. The potential closure of Ithala would not only remove a crucial financial service provider but also have a severe impact on the local economy, further increasing the unemployment rate in a region that is already struggling.
“We will leave no stone unturned in our struggle – every resource and every ally will be mobilised to repel this assault on a cherished institution that has long been the lifeblood of our people in KwaZulu-Natal”, he warned.
“We stand united in defence of the downtrodden and the vulnerable, and we will not allow these forces of oppression to strip away the dignity and hope that Ithala has brought to our communities. Our fight is righteous, and we are prepared to wage it with every fibre of our being”, Mathunjwa concluded.
*ENDS*
455 words excluding summary, heading and other text
For more information or media interviews, contact AMCU President Joseph Mathunjwa.