The KwaZulu-Natal Development Bank, Ithala will continue to operate normally, but will not be taking deposits.

This is according to a judgment, which the High Court in Pietermaritzburg delivered yesterday.

Ithala had sought an urgent court interdict against the Repayment Administrator’s instruction in January that its ABSA accounts be frozen.

Judge Muzi Ncube also granted the Repayment Administrator, Johan Kruger leave to appeal the judgment.

The High Court’s order comes as an application for the liquidation of Ithala is pending.

Johan Kruger was appointed by the Reserve Bank’s Prudential Authority to repay the deposits Ithala has been taking from the public after it’s excemption from the Bank Act expired at the end of 2023.

Ncube found Kruger’s instruction that ABSA freeze the Ithala accounts was in violation of the order he made in November last year.

This meant that Ithala couldn’t pay staff salaries, or for security at its branches.

Ithala CEO, Dr. Thulani Vilakazi says in court papers Ithala would cease to exist if their normal operations were stopped until Kruger’s appeal was finalised.

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