The Prudential Authority (PA) has announced that it has launched an application for leave to appeal the 9 May 2025 ruling by the Pietermaritzburg High Court
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The Prudential Authority (PA) has launched an application for leave to appeal the May 9, 2025 ruling by the Pietermaritzburg High Court regarding Ithala SOC Limited (Ithala).
Judge Muzi Ncube's ruling last week allowed the embattled state-owned bank to resume operations, while also stating that Johannes Kruger, the Repayment Administrator appointed by the Prudential Authority (PA), had no legal right to assume control of the bank's daily operations.
KwaZulu-Natal Premier Thami Ntuli welcomed the High Court's decision, noting that the ruling would bring relief to the thousands of clients, employees, and suppliers who have been unable to receive payments due to the current Administrator's halt on all transactions.
"We urge the public to stand in solidarity with us as we fight to preserve an institution that represents economic dignity, inclusion, and empowerment for millions," Ntuli said.
In a statement released on Monday, the Prudential Authority confirmed it had filed for leave to appeal the ruling, and the Repayment Administrator also intends to challenge the judgment.
"It is important to note that the RA has, in any event, complied with the court’s prior order not to take control of Ithala SOC Limited’s (Ithala) non-deposit-taking operations. However, the RA has been unable to isolate depositor funds from other funds, as Ithala has never maintained a separation between its deposit-taking activities and its other business operations," the statement read.
The Prudential Authority further clarified that this judgment is separate from the ongoing liquidation application, which is still pending before the same court. The PA is awaiting the finalisation of the liquidation application.
"The PA’s primary mandate is to protect depositors. In this context, while the PA understands the frustration and difficulty this situation may cause for depositors, the freezing of accounts remains a necessary and prudent step to safeguard the depositors’ remaining funds.
"This measure aims to ensure a fair and lawful distribution process of depositor funds while awaiting the outcome of the liquidation application."
mthobisi.nozulela@iol.co.za
IOL Business