Despondent Ithala Bank depositors — including pensioners, contractors and small business owners — took their battle to the bank’s headquarters in Durban on Tuesday, demanding that executives explain when their hard-earned savings would be released.
But their pleas fell on deaf ears. No official emerged to address them. Instead, a man clearly dispatched by the bank kept a close watch on the crowd. He wouldn't identify himself to TimesLIVE Premium, saying he wasn't allowed to talk to media.
After being denied an audience with bank officials, the crowd erupted into song and toyitoyed outside Ithala's headquarters.
Brandishing handwritten placards that read ‘Release Our Savings’, ‘We Trusted You’, and ‘Ithala Has Destroyed Lives’, the depositors danced and chanted in defiance, their frustration spilling into the streets. The protest, though peaceful, carried the weight of desperation and betrayal.
The protesters, some of whom have been banking with Ithala for decades, say they are being treated with contempt. Even the bank’s call centre, once a lifeline for information, has gone silent.
“We don’t know what’s going on. We are just left in the dark,” said one protester.
Behind the scenes, Ithala is embroiled in complex litigation.
The South African Reserve Bank’s Prudential Authority has filed for its provisional liquidation, accusing the institution of unlawfully accepting deposits after its exemption expired in December 2023.
The bank is fighting back in court, arguing that its closure would devastate thousands of depositors — many of whom are from rural and township communities with few alternatives. The impasse has left an estimated 257,000 depositors in limbo since their accounts were frozen in January this year.
But for those gathered outside the HQ, the legal wrangling means little. What matters is their survival.
Zama Mngoma, a 28-year-old contractor from eXobho on the south coast, said her business account held all her savings. “I haven’t been able to pay my staff since January . I had to approach loan sharks just to survive,” she said. “Workers don’t want to hear anything about the closure of accounts. When they work for 30 days, they expect to be paid. Since then, my whole life — including my business — has been at a standstill.”
Thandi Shange, 41, from Klaarwater, south of Durban, sold her house and deposited the proceeds into Ithala, hoping to buy a new home. “Since the closure of these accounts, I haven’t been able to buy another home for our family. Now we live in a one-room rented house with seven kids. Our lives are very difficult — we take turns sleeping in one bed while others sleep on the floor.”
All our lives are standing still. We don’t hear any comprehensive information from the bank on how we will get our money
— Wilfred Khumalo, 52, from Newcastle
Wilfred Khumalo, 52, from Newcastle, had been saving for his children’s education for over five years. One is at university and three others are still in school. “Now all our lives are standing still. We don’t hear any comprehensive information from the bank on how we will get our money.”
Noma Gabhisa, 31, attended the protest on behalf of her mother, a pensioner who suffered a stroke and is hospitalised at Life Hospital in Mount Edgecombe. “My mum was heartbroken to find out she couldn’t access her lifetime savings. The reason she’s sick is because of this bank,” she said. “Why are they fighting political wars while we suffer? They are destroying lives with this thing.”
Lindiwe Mpanza, 59, said she had been playing a stokvel for many years and investing in Ithala with the dream of buying land and building a home for her family. “Now, everything is gone. Even the land I was keen on buying has been sold and we are left stranded,” she said.
Despite their despair, the protesters say they will not give up. They plan to intensify their struggle to reclaim their savings — though many are now penniless. “We trusted iThala with our futures,” said one elderly woman. “Now we are fighting just to survive.”
Approached for comment about the protest, Ithala Bank spokesperson Sandile Xolo said: “We have been advised that everything that has to deal with iThala and the media is being handled at the level of the office of the premier and the MEC for economic development [Reverend Musa Zondi].”
Bongani Gina, spokesperson for KZN premier Thami Ntuli, said though he was not aware of Tuesday's protest by depositors, they are urging them to be patient.
“We sympathise with their frustrations because some of them are business people and even pensioners, and their lives are deeply affected by this saga,” Gina said.
“We, however, urge them to wait a little longer as the premier and other stakeholders are doing everything within their powers, including engaging the finance minister [Enoch Godongwana] and even the president [Cyril Ramaphosa] to find a solution to the impasse. These meetings are very fruitful and comprehensive. We are hopeful that a breakthrough will soon be found and Ithala depositors will have access to their accounts.”
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