JOHANNESBURG - Ithala Bank has been allowed to resume its core business operations, excluding deposit taking.
The KwaZulu-Natal High Court in Pietermaritzburg ruled that Johannes Kruger may appeal but cannot interfere with the entity’s daily activities.
The Prudential Authority, which headed to court to liquidate the bank, appointed Kruger as a repayment administrator.
READ: Ithala bank customers seek answers as liquidation looms
The authority asserts that the bank is technically insolvent.
ABSA has also been ordered not to block transactions related to salaries, pensions, and expenses.
The court ruled that Ithala’s board retains full control, with cost matters referred to the Supreme Court of Appeal.