The ongoing problems at Ithala Bank have led to some food suppliers being unable to deliver food to several schools in the KwaZulu-Natal Midlands.
The uMngeni Municipality in Howick revealed that it was forced to use its own funds to buy food for pupils in its areas to prevent children from going hungry. This food purchase will serve as a stop-gap measure to ensure that pupils have meals this week.
On Friday, uMngeni Mayor Chris Pappas and the DA spokesperson on Education, Sakhile Mngadi, visited several schools in the Midlands that have not received their supplies under the National School Nutrition Programme (NSNP).
The DA stated that the failure to deliver food resulted from challenges faced by Ithala Bank. The Mercury has previously reported that the bank played a crucial role in providing financial assistance to service providers, many of whom relied on cession agreements to purchase food supplies for schools.
The bank is currently under the control of a repayment administrator and the SA Reserve Bank's Prudential Authority has launched court proceedings to have it provisionally liquidated.
The provincial government, with the support of almost all the parties in the legislature, has mounted a fight on various fronts in its efforts to save the bank from being liquidated.
“From the municipality’s side, we have used our funding from disaster management to provide the five affected schools with enough food to supply them for a few days. I must say it’s not a mandate of the local government to clean up after the provincial and national nutritional scheme, but we can’t let kids go hungry, so we have made money available for that,” said Pappas.
Mngadi expressed deep concern about the ongoing food supply disruptions affecting schools in uMngeni Municipality.
“While the KwaZulu-Natal Department of Education has fulfilled its obligation by paying service providers for the NSNP, delays caused by Ithala Bank have resulted in service providers being unable to purchase food, leaving vulnerable learners without meals,” he said.
The DA education spokesperson commended Pappas for stepping in to assist.
“We have urgently raised this matter with both the education department and the KZN Treasury, emphasising the need for immediate intervention to resolve the banking challenges and prevent further disruptions. The NSNP is a critical lifeline for thousands of children who rely on it for their daily meals, and the DA will continue to advocate for a sustainable and efficient system to ensure food security for all learners. No child should ever go hungry due to administrative failures. The DA remains committed to holding the government accountable and ensuring that the rights and well-being of learners are prioritised,” said Mngadi.
Thabang Mncwabe, the Communication and Stakeholders Specialist for the NSNP Service Providers Association, said, “We are aware that several service providers that are using Ithala are really struggling to supply food items. We have spoken to the department not to wait till the end of the month to pay them, as they have not been paid since December. Most service providers don’t want to come forward because instead of the department bringing alternative payment options, they rush to terminate contracts and award their allies.”
KZN Education Department spokesperson Muzi Mahlambi stated, “We are not aware of non-feeding, but we are aware of the Ithala problem and the effects that it has on clients. This is a matter that even the premier has raised in his state of the province address.”