Ithala Claims Account Freezing Led To Systematic Bank Collapse

The legal team of Ithala SOC Limited has argued in the Labour Court in Durban that freezing the banks accounts was a deliberate systematic collapse of the bank.

This emerged in court during the application for leave to appeal brought by the Repayment Administrator on behalf of the Prudential Authority of the South African Reserve Bank.

Since 16 January, over R250 000 Ithala clients have not been able to withdraw or deposit funds .

Ithalas representative, Advocate Sandile Khumalo, wants the court to grant extended orders allowing the company to continue operating as normal pending the outcome of the application for provisional liquidation.

"They have decided to be a law unto themselves and continued as if there are no legal proceedings pending. What makes their conduct even worse is that we are not dealing with a review that is coming, we are dealing with a declarator that has already been given by your Lordship which is clear and was carefully crafted after a full argument. And my Lord will remember that they had an application that they can take control of all the assets of Ithala. My Lord that application was reviewed, and you dismissed it."