Zulu king asks KZN premier to intervene in Ithala banking licence suspension

Zulu King Misuzulu kaZwelithini says the Financial Sector Conduct Authority’s (FSCA’s) decision to suspend Ithala’s banking licence will jeopardise the livelihood thousands of KwaZulu-Natal residents.

The FSCA said on Friday it suspended the beleaguered KwaZulu-Natal development bank’s licence as it had failed to meet financial soundness requirements, saying solvency was a critical element for the viability of any financial services provider (FSP).

“It is imperative FSPs comply with the requirements of the FAIS Act, which are aimed at protecting the interests of financial customers. Solvency is a critical element for the ongoing viability of any FSP, and compliance with the solvency requirements is of utmost importance,” the FSCA said.

“This is relevant to the financial customer protection objective of the authority.”

On Sunday, KwaZulu-Natal co-operative governance & traditional affairs MEC and Misuzulu’s traditional prime minister Thulasizwe Buthelezi said the king was concerned the suspension would have “devastating consequences on the livelihood of thousands of his subjects who depend on the bank to conduct their business and social enterprises”.

“His Majesty strongly believes the services of Ithala bank as the backbone of rural and township entrepreneurs in KwaZulu-Natal must not be disrupted.

“His Majesty views Ithala bank as the enduring legacy of his erstwhile [late] prime minister Prince Mangosuthu Buthelezi — a legacy that must be honoured and defended so future generations can also benefit from the bank.”

Buthelezi said the monarch had asked him to reach out to KwaZulu-Natal premier Thami Ntuli and finance MEC Francois Rodgers to “ensure no effort is spared to reinstate the banking licence”.

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