Trade union federations welcome ruling reinstating Ithala's operations
The Ithala SOC Limited building in Kingsmead, Durban. A recent court ruling has lifted restrictions on its operations.
Image: DOCTOR NGCOBO Independent Newspapers
Labour federations have described the court judgment handed down on Friday that restored some functions of Ithala SOC Limited as a victory that has renewed their faith in the justice system, adding this judgment should mark the first step towards turning Ithala into a fully fledged state bank.
Labour federation Cosatu stated that the judgment has restored their faith in the justice system, while the South African Federation of Trade Unions (Saftu) said the Reserve Bank should not rush to close Ithala. They were reacting after the judgment handed down by Judge Muzi Ncube at the Pietermaritzburg High Court on Friday lifted some of the restrictions on the bank's operations and management.
In March, Ithala approached the court for an order to compel the SA Reserve Bank-appointed Repayment Administrator (RA) Johannes Kruger, to give it access to R863 million in frozen funds to pay staff. Kruger, in turn, sought to overturn a November 2024 court ruling that said he overstepped in his powers when he sought to take control of all operations at Ithala Bank.
In Friday's ruling, Judge Ncube reaffirmed that Kruger has no right to take over the operational and day-to-day management of Ithala. The judge clarified that Kruger has no authority over the human resources, treasury, marketing, finance, and any other operational functions of Ithala, and that the board is not stripped of its powers despite the appointment of the RA.
He further ordered that transactions on Ithala's bank accounts must be allowed for salaries and other expenses. The court further said Ithala is entitled to continue conducting its business. This may suggest that account holders may be able to access their accounts; however, this could not be confirmed with Ithala yesterday.
Cosatu leader in KwaZulu-Natal, Edwin Mkhize, said, 'This judgment has restored our faith in the judiciary; it told us they can look at matters objectively. We hope that the Repayment Administrator and the Prudential Authority take it to heart and use it to assist Ithala, rather than close it.'
He added, 'We have been very concerned about the impact this was having on the workers whose future was now in limbo, and we are worried about the effect this has had on the customers of the bank, which serves the most disadvantaged communities.'
Saftu's Zwelinzima Vavi welcomed the judgment. 'Ithala must be saved. We hope that the Reserve Bank will not be in a rush to liquidate the only remaining black-owned bank in South Africa and will instead work to strengthen the bank, with the ambition of transforming it into a state bank.
'Ithala and Postbank must be combined to form a state bank with a transformation agenda to address the exclusionary practices that are being implemented by the big commercial banks.'
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
IOL News
a day ago
- IOL News
Exploring the growth of South Africa's agricultural exports amid global challenges
As of quarter one of 2025, data from the International Trade Centre Trade Map shows that South Africa's agricultural exports maintained its growth trajectory, increasing by 6% to a value of $3.4 billion from $3.2 billion in Q4 of 2024.. Image: Doctor Ngcobo / Independent Newspapers Over the previous year, South Africa maintained its robust export growth of agricultural products in international markets reaching a new record of $13.7 billion (R245bn) in 2024. This was equivalent to a year-on-year (y/y) growth rate of 4% compared to a record $13.2bn observed in 2023. South Africa's continued export growth is largely underscored by collaborative efforts of both government and industry in maintaining good relations with existing markets and opening of new markets. In addition, efforts to adhere to export requirements such as pre-export controls, sanitary and phytosanitary (SPS) requirements among other things have contributed to the sustained export growth of South Africa's agricultural products. As of quarter one (Q1) of 2025, data from the International Trade Centre Trade Map shows that South Africa's agricultural exports maintained its growth trajectory, increasing by 6% to a value of $3.4bn from $3.2bn in Q4 of 2024. This is equivalent to a 10% increase compared to the same period (Q1) in 2024. Fresh grapes were the leading exported commodity during this period accounting for a share of 21% of total agricultural exports in value terms, followed by maize (7%), fresh apples and pears (3%), plums and sloes (3%), wine (3%), and wool (3%), among others. The African continent maintained its position as South Africa's leading export destination for agricultural products, representing a share of 45% in value terms, despite recording a 10% decline compared to Q4 in 2024. The European Union (EU) accounted for a share of 23% followed by Asia (16%), the UK (8%), Americas (6%) with the US specifically accounting for 4% of South Africa's agricultural exports. In terms of imports, South Africa's agricultural imports declined by 5% to a value of $1.9bn compared to the previous quarter. The main contributors to this contraction were led by a sizable reduction in imports of apple juice which contracted by approximately 42%, followed by frozen poultry meat (34%), whiskies (26%), animal feed preparations (25%), and milled rice (21%), among others. Palm oil was the leading imported commodity representing 8% of total imports, despite recording a decline of 8% compared to the previous quarter. Other leading imported agricultural products were wheat and meslin (8%), followed by milled rice (7%), maize (6%), raw sugarcane (3%), and food preparations (3%), among others. During this period, China was the leading source destination for South Africa's agricultural imports along with Argentina, Brazil, Thailand, Eswatini, Indonesia all with a share of 6%. Followed by the US (5%), Malaysia (4%), France (4%), and India (4%). Although the sector continues to expand its export footprint globally, it remains prone to global disruptions due to geopolitics, disease outbreaks, and climate change, and stringent non-tariff barriers in key markets. For instance, currently the country is battling with the outbreak of Foot and Mouth Disease (FMD), with cases of outbreaks mainly reported KwaZulu-Natal and a few cases in Mpumalanga and Gauteng provinces. These reported outbreaks led to China suspending imports of cloven hoofed animals and related products from South Africa. Although the preliminary information suggests that the ban only includes imports of beef from the whole of South Africa. In 2024, China was the leading market for frozen beef exports with a share of 27% followed by United Arab Emirates (12%) and Egypt (12%), among others. On the other hand, South African government has recently banned importation of poultry related products from Brazil due to the reported cases of Highly Pathogenic Avian Influenza (HPAI) from this region. In 2024, Brazil was the leading supplier of poultry meat to South Africa, with a share of about 81% of total imports. According to the World Animal Health Organisation, due to the new HPAI season which started in October 2024, about 59 outbreaks were reported in poultry and 44 outbreaks in non-poultry birds and in mammals in the Americas, Asia and Europe as of May 2025. About 3.76 million poultry birds had been reported death or culled during this month, and these were mostly in Asia. Moreover, the country's agricultural trade is currently subject to uncertainty in one of its key markets, the US. In April 2025, the US administration announced a 10% tariff on all imports to the US and additional reciprocal tariffs for several of countries, including 30% for South Africa. These developments raised speculations about South Africa's potential exclusion from benefiting on Agoa, which enabled the country to relish duty free access to this market for majority of agricultural products since year 2000. The US is a crucial market for South Africa's agricultural exports such as citrus (oranges and soft citrus), nuts, raisins, and wine, among others. These new proposed tariffs will definitely have negative economic ramifications on the country's overall agriculture trade. South Africa's response to these challenges will be key in determining the sustainability of the sector and its global trade standing in the future. It is important to adopt collaborative actions towards maintaining good relations with the rest of the world while also diversifying exports towards other high potential markets to minimize the risks. Hence, negotiating bilateral trade and regional agreements and/or protocols remains essential. Controlling disease outbreaks is crucial in ensuring that the industry maintains good reputation in international markets while also preventing bans against the industry's exports. Therefore, there is a need to increase efforts towards investing in animal and plant disease controls, infrastructure and improving port operations are crucial for driving exports. Bhekani Zondo is an economist under the Trade Research Unit at the National Agricultural Marketing Council. Dr Solly Molepo is a manager at the Trade Research Unit at the National Agricultural Marketing Council. BUSINESS REPORT
The Citizen
2 days ago
- The Citizen
Cosatu says debate on B-BBEE is needed for beneciaries' benefit
Cosatu calls for reform of B-BBEE to ensure real empowerment for workers and disadvantaged communities, not just political elites and business insiders. The debate about the broad-based black economic empowerment (B-BBEE) is needed on how to ensure it benefits the beneficiaries. This is according to union federation Cosatu spokesperson Matthew Parks, who was reacting to the ongoing debate on whether the B-BBEE policy is aimed at being biased against whites. Inequality persists 'While we support the B-BBEE Act, we believe a debate is needed on how to make sure it reaches its intended beneficiaries, in particular historically disadvantaged individuals and communities,' he said. 'We support the objectives of B-BBEE. These are necessary given three and a half centuries of systematic discrimination and disempowerment under colonial and apartheid rule. South Africa is 31 years into democracy but remains the world's most unequal society.' Parks said the policy was a necessity to help historically disadvantaged persons and communities to enter the economy, not only as wage earners but also as owners of businesses. He said Cosatu cannot remain satisfied with progress when the colour of one's skin still largely determines one's economic status. ALSO READ: Minister extends date for comments on R100 billion transformation fund 'Ticking time bomb' He added the majority of shares on the Johannesburg Stock Exchange are owned by whites, similarly with regards to ownership patterns of businesses. 'This is a ticking time bomb that we must address. It's not racism against whites and, in fact, white women and white South Africans with disabilities are included. White South Africans and investors are not excluded,' he said. 'All the policy seeks to do is to boost the economic empowerment of those still disadvantaged. It has helped to begin the journey of building a nonracial society. While some progress has been made in building a black middle class and black industrialists, it is not enough given the inequalities still so prevalent.' Parks said more must be done to ensure 'it benefits workers and not just the elite and worker ownership and employee shareholder ownership programmes should be ramped up'. He added more must be done to ensure investors honour their B-BBEE shareholders and equity equivalents. Equity equivalents offer alternative for foreign investors When asked if Cosatu supports the equity equivalents, Parks agreed and said that has been one of two options under the B-BBEE Act for many years. He said they provide a useful option for international investors who are not able to do the B-BBEE shareholders' option. ALSO READ: DA transformation policies stance dents its image and may lose it votes, says expert 'Equity equivalent option allows investors to support local manufacturers, create jobs, skill workers or invest in local communities,' he said. 'These have benefited many local businesses, workers and communities. They have been successful in many sectors, including clothing and motor manufacturing. Many companies have utilised this option before.' Malatsi's draft policy Communications and Digital Technologies Minister Solly Malatsi was recently criticised for unveiling a draft policy direction in the Government Gazette 'proposing an alternative to the B-BBEE ownership requirements for the ICT [Information and Communication Technology] sector'. 'The new model would allow companies to meet empowerment obligations through equity equivalent programmes rather than direct ownership transfers,' one critic said. The proposed amendment to the Act could facilitate the entry of investors such as Elon Musk's Starlink into South Africa's telecommunications market and contribute to the empowerment of the previously disadvantaged people without having done a direct transfer of ownership. Malatsi's critics said he was trying to pave a way for Starlink to do business in SA. Musk has previously criticised the B-BBEE policy, saying it was racist. NOW READ: Proposed Starlink deal 'wrong in principle and practice'
IOL News
2 days ago
- IOL News
Crunch time for Beacon chocolate range as Tiger Brands hits uncertain times
Beacon chocolates face an uncertain future as Tiger Brands considers selling the brand. Image: YouTube For countless South Africans, the sight of a Beacon chocolate bar evokes feelings of nostalgia and comfort. Whether it's a casual slab snatched at the checkout or special treats like Nosh or the beloved TV Bar, these local delights have become an integral part of sharing sweet moments across generations. Yet, this emblem of South African confectionery may soon vanish from our shelves, as Tiger Brands—a towering figure in the country's food production—has revealed plans to sell its Beacon chocolate range. Founded nearly a century ago, the Beacon brand encompasses an array of popular items, from the iconic chocolate-and-marshmallow Easter eggs to the creamy slopes of Ebony and Ivory chocolates. However, current realities paint a challenging picture. CFO Thushen Govender recently shared with News24 that while no definitive decision has been made, the company is actively pursuing options to divest its chocolate category. "We will continue delivering on the strategic turnaround of the business until such time as an appropriate exit mechanism has been identified," Govender stated, leaving the future of these beloved treats hanging in the balance. CEO Tjaart Kruger further emphasised the difficulties facing the chocolate division, admitting that technological advancements had not kept pace, with the chocolate-making equipment remaining unchanged for over three decades. "The investment required to modernise the facility is now too high to justify," he explained. However, Kruger remains hopeful about the brand's potential, reiterating that 'in the hands of the right person, the Beacon chocolate brand can be a good business.' The competitive landscape presents another hurdle, as Kruger noted the challenges of competing with industry giants. "We price against Cadbury like R4 or R5 a slab cheaper and still don't get the volumes," he remarked. This disparity in scale and marketing prowess has left Beacon struggling to maintain its footprint in a market dominated by formidable competitors. While the future of Beacon chocolates remains uncertain, Tiger Brands has reassured its consumers that other cherished favourites in its sweets portfolio—such as Jelly Tots, Maynards Wine Gums, and Liquorice All Sorts—will remain unaffected by these changes. They have also confirmed that production of Beacon chocolates will continue until a suitable buyer or alternative strategy is established. The prospect of losing such a beloved brand is undoubtedly a troubling thought for loyal fans and casual consumers alike. For many, these chocolates represent more than just a snack; they are a nostalgic reminder of simpler times, family gatherings, and spontaneous treats that could turn an ordinary day into something extraordinary. As we await further announcements from Tiger Brands, our cherished Beacon chocolates might soon transition from a simple indulgence to treasured memories, leaving us all pondering the future of these iconic treats. DAILY NEWS
