The building was built during the time of the now defunct KwaZulu-Natal government under the late Inkosi Mangosuthu Buthelezi, then the Chief Minister, and has been lying idle for decades since the ANC-led government immediately abandoned the structure after taking power from the IFP in 2004.


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However, KZN Public Works and Infrastructure MEC Martin Meyer said it cannot be business as usual when such unused buildings drain the limited resources of the provincial government through rates and other related costs.

In a media briefing on Tuesday, the MEC said his department was busy finalising proposals which would be presented to the Cabinet on what to do with the building in order for it to be useful again.

“I think the media understands that this is a politically sensitive matter but I can confirm that in our proposal there are a couple of options that we will soon present to the cabinet for approval,” said the MEC.

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.”

It is understood sanitation pipes covered in vegetation in areas including Northdale and Riverside are preventing sewer teams from conducting maintenance.

Councillor Renisha Singh says it has been an issue for years, causing blockages and spills that overflow onto residents' premises.

"This is actually depriving the residents’ of quality of life. They can't even step into their backyard with the stench that is coming from this sewer overflow, and many of them have actually fallen ill. There are a few residents that have gotten doctors’ notes that their immune systems are being compromised."

READ: uThukela team to tackle sewage spills

She has urged uMsunduzi Municipality to resolve the issue.

"I have had several meetings and onsite meetings, including site visits with the entire sanitation team and the deputy mayor as the chair of the infrastructure portfolio, but after these meetings, there has been no response."

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.