Ithala to resume operations
The KwaZulu-Natal government has welcomed a ruling by the
Pietermaritzburg High Court giving Ithala the green light to resume core
business operations.
The Reserve Bank's Prudential Authority approached the courts to have Ithala provisionally liquidated, after the Repayment Administrator found that it was legally and technically insolvent.
The entity's depositors, mostly from KZN, have been unable to access their money after all activities on Ithala's accounts were suspended.
READ: MPs call for Ithala to be saved from liquidation
MEC for Economic Development Musa Zondi has welcomed the ruling.
"The ruling confirms that it can continue its operations, excluding deposit taking, while its bought remains fully in control. The court has also parted the repayment administrator from interfering in its affairs. The court ordered ABSA bank to not block essential transactions, including salaries and pensions."
KZN Treasury's spokesperson, Nkosikhona Duma says the attempts to systematically shut down the bank were malicious.
"This is the second time that Judge Ncube has affirmed that Mr. Kruger has overstepped his powers. Unfortunately, we are concerned that some of the damage caused by his actions may prove impossible to reverse."
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