FOR several decades, Ithala Bank served destitute communities offering loans, savings plans, and financial guidance, with special focus on empowering those who were not prioritised by commercial banks.
Its clients came from all walks of life, including small business owners, young families, farmers, and elderly people who had relied on Ithala to help secure their future.
But as the years went by, things began to change.
The once-thriving institution, founded in 1958 with a deep focus on the local economy, found itself struggling.
Challenges grew, both externally and internally, with rumours swirling about its impending closure.
The news of its imminent liquidation sent shock-waves through the lives of its 257000 clients. People who had trusted Ithala with their precious savings, investments, and hopes for a better tomorrow were left in a state of limbo.
Among the most vulnerable were the elderly.
According to Isolezwe, a sister publication of the Daily News, earlier this week, scores of Ithala customers who are recipients of social grants were unable to access their funds.
Lungani Buthelezi, a pensioner from uLundi, shared his “shock” after attempting to access his funds with no success.
His frustration was echoed by thousands of others, as over 65,000 individuals, including those receiving old-age and child grants, rely on funds that were intended to provide for their families but have now been thrown into disarray.
Buthelezi recounted the scene at the FNB branch in uLundi, where around 500 elderly customers lined up in sweltering 37-degree heat, many without the transport funds to return home. “The sun was scorching. Many people had borrowed money to get there,” Buthelezi explained.
“What upsets me is the lack of choice. I had an agreement with another bank, and yet there I was, forced to wait for a payment at FNB.”
Another pensioner who spoke about her distress was Ntombenhle Ntombela. The stress of waiting for payment exacerbated her health issues. “Some of us are getting sick. We don’t know what to do now,” she lamented.
Social media has also become a platform for expression, as families took to the internet to voice their anger and despair on behalf of their elderly relatives, whose payments have been delayed. The South African Social Security Agency (SASSA) announced that payments for the affected elderly citizens would be facilitated through FNB due to difficulties in withdrawing money from Ithala. However, many felt left in the dark about the entire process.
KZN Premier Thamsanqa Ntuli expressed hope that the Special Investigations Unit’s investigation into Ithala Bank, including the awarding of an R34.97 million technology tender, would yield results and accountability for the alleged misconduct.
With more thousands of clients, many of whom were senior citizens and vulnerable, Ithala’s situation illuminates a pressing need for accountability especially around affairs related to financial institutions.
For the affected clients, the bank had been more than just a financial institution, it had been a lifeline. Many of the elderly clients had opened savings accounts in the hope of ensuring they would have enough to cover their retirement, medical expenses, and other unforeseen needs.
Some had even invested in pension plans with Ithala, thinking their golden years would be secure.
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Daily News