The Prudential Authority (PA) has announced that it notes the recent ruling by Judge J Ncube in the Pietermaritzburg High Court and has launched an application for leave to appeal the decision.
On Friday, (9 May 2025), the court ruled in favour of Ithala following a dispute over the powers of Johan Kruger, the Repayment Administrator (RA), who has taken over the operations of the bank following his appointment by the PA pending a liquidation process, which is a separate matter pending in court.
“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,” the PA said.
“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.
“It is also important to highlight that this judgment is separate from the main liquidation application, which is still pending before the same court.”
The PA said it awaits the finalisation of the liquidation application and insists its 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,” the PA said.
“This measure aims to ensure a fair and lawful distribution process of depositor funds while awaiting the outcome of the liquidation application.”
Further context on the liquidation proceedings against Ithala can be accessed on the SARB’s website here.
