The bank has been under strain for the past few months after a repayment administrator was appointed by the Prudential Authority to oversee the issue of customer deposits in the bank.

The matter came to a head on Thursday when it was announced that the Prudential Authority had decided to bring a court application to liquidate the bank. As a result the bank was ordered to cease its deposit and withdrawal functions. This occurred without any public warning, meaning the bank’s customers found out about the decision when they tried to use their bank cards and the transactions were declined.

Money for stokvels, funeral clubs, and co-operatives is now trapped in the bank, with depositors of those funds unable to access them.

Sandile Nkosi, a councillor in the Ingwavuma area, described the situation as “tense”.

“There is a lot of anger and frustration; the community feels like they have been robbed of their money.

“This situation went off like a bomb. The customers were not informed about it; their funds are trapped there and they cannot withdraw their money. The customers should at least have been informed that they must move their money to other banks.”


Nkosi said Ithala was the only bank in the community and, without it, the town could die.

“The shops and everything in this town rely on this bank to function. With this decision, it means that people will now have to travel to Jozini to access other banks to withdraw their money once they have access to it. Jozini is about 50km away, and the transport fare is almost R50 by bus and close to R100 by taxi.”

Nkosi said even the payment of social grants relied on the bank and he was worried about what would happen with the February grants.


“I have had calls from business people complaining that they have R50 000 stuck inside the Ithala Bank accounts and cannot access it. The bank is closed, and the customers do not have anyone they can go to for help.”

A customer of the bank, who works at a local crèche, said they were told by bank officials that many customers might have access to their money by the end of the month.

Another customer said: “This has traumatised us. There was no thought given to us as a community in this issue because this is the only bank that we have here.


“We received a message at midnight on Thursday that Ithala was closing its doors. We rushed there on Friday morning only to find that the place was now closed,” she said.

Thembeni Msweli, a businesswoman, said the Ithala saga had caused friction between her and her workers.

“I was supposed to pay my employees on Friday. When I inserted the card to withdraw money, it was declined. I later got a message saying everything has been frozen.”

Mfananaye Mathe, mayor of the Jozini Local Municipality, said thousands of people were dependent on Ithala.

“This decision is going to push people and businesses out of that area. If people have to travel to Jozini to access a bank, they will buy whatever they need there, which means the shops in Ingwavuma will go out of business.”

The Department of Transport successfully launched the 8th United Nations Global Road Safety Week on Sunday, 11 May 2025, at Soldiers Way CBD Taxi Rank in Durban, KwaZuluNatal. The event, held under the theme “Make Walking and Cycling Safe,” focused on raising awareness about the safety of pedestrians and cyclists.
The Deputy Minister of Transport, Mkhuleko Hlengwa, is actively participating in the UN’s Global Road Safety Campaign, which runs from Sunday, 11 May to Friday, 16 May 2025 in Durban.

As part of the campaign, this event at the taxi rank was aimed to educate taxi drivers and commuters on the importance of road safety when using public transport. The Deputy Minister was joined by officials from the Provincial Department of Transport, eThekwini MMC for Transport, Human Settlements and Engineering, Councillor Themba Mvubu, law enforcement officials, and representatives from various civil society organizations, including SANTACO and various stakeholders.

The launch marked the start of a week-long series of activities held in line with the global UN Road Safety Week, observed from 12 to 18 May 2025

The SA Reserve Bank’s Prudential Authority has filed papers in the Pietermaritzburg High Court for the provisional liquidation of Ithala SOC Limited. This comes after the authority appointed a repayment administrator responsible for the repayment of deposits.

Although commonly referred to as a bank, Ithala was never granted a banking licence. However, the Minister of Finance granted an exemption to Ithala allowing the entity to receive deposits while it regularised its operations.

According to the SA Reserve Bank, the repayment administrator has established that Ithala is technically and legally insolvent, exposing depositors to potential loss of their deposits.

At a memorial service in Pietermaritzburg for the late Yusuf Bhamjee, ANC member Zweli Mkhize emphasized the need for South African leaders to adopt Bhamjee's leadership style. Bhamjee, who passed away on January 3, 2025, served in various capacities within the ANC, including as a member of the KwaZulu-Natal Legislature and as Mayor of the uMgungundlovu District Municipality.



Mkhize highlighted Bhamjee's ability to connect with comrades across the political spectrum and his role in fostering peace during a tumultuous period in the Natal Midlands. He noted that Bhamjee was an activist at heart, dedicated to addressing community challenges rather than seeking personal comfort in office.



According to Mkhize, Bhamjee's commitment to serving the people exemplified the empathy that originally drove the ANC. He lamented the shift in the party, where some members have become careerists focused on personal gain rather than community service. Mkhize pointed out that this change has hindered effective governance and service delivery.



He praised Bhamjee's leadership in the uMgungundlovu District, stating that he understood community needs and managed people effectively. Mkhize called for a return to the type of activism that Bhamjee embodied, urging ANC members to foster cooperation among South Africans of all backgrounds.

He concluded that Bhamjee's legacy should inspire a renewed commitment to serving communities and addressing their challenges.