The party withdrew its case in the Electoral Court because it would be difficult to prove, not because it retracted its claims of widespread irregularities, Buthelezi told a rally in Dududu, south of Durban.
"The Electoral Court's decisions are based upon narrow legal and technical considerations, not moral arguments," he said in his speech.
"In order to obtain remedy, which in practical terms would have been a fresh election or the redistribution of seats, we would have had to prove, beyond a shadow of doubt, that the election irregularities and acts of intimidation had a 'material effect' on the election result."
He said this would have been very difficult, if not near impossible.
However, he then went on to list a number of examples of irregular and unfair practices, including double voting, acts of intimidation, and "vile propagandistic lies".
Buthelezi did concede that there were other reasons for the IFP's defeat "which we need to address in the months ahead".
He said that the IFP was disadvantaged by lack of resources, and also that there was a lack of "commitment by every one of us to our success at the poles".
He said he wished the IFP had made more of an effort to gain support from the Indian and white communities.
"My message to people in Indian and white communities is that they have a political home in the IFP."
The IFP should capitalise on its position as South Africa's largest black opposition party, he said.
Buthelezi lashed out at IFP members who were now critical of the party's failure to win in the province, yet had done nothing themselves towards the elections.
"I find the whole thing utterly disgusting" he said.
He ended his speech on a more upbeat note, telling members to forego mutual recrimination and engage pro-actively in the party's upcoming Annual General Conference.
"Our public policy and issue-based campaigns must emerge from the real live experiences of our voters and supporters, if we are to become a mighty political alternative.
"People need to know that we really care about them and their concerns." – Sapa.
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