Trade unions welcome ruling reinstating Ithala's operations

LABOUR federations have described the court judgment handed down on Friday that restored some functions of Ithala SOC Limited as a victory that has renewed their faith in the justice system, adding this judgment should mark the first step towards turning Ithala into a fully fledged state bank.

- THAMI MAGUBANE

Labour federation Cosatu stated that the judgment has restored their faith in the justice system, while the South African Federation of Trade Unions (Saftu) said the Reserve Bank should not rush to close Ithala.

They were reacting after the judgment handed down by Judge Muzi Ncube at the Pietermaritzburg High Court on Friday lifted some of the restrictions on the bank's operations and management.

In March, Ithala approached the court for an order to compel the SA Reserve Bank-appointed Repayment Administrator (RA) Johannes Kruger, to give it access to R863 million in frozen funds to pay staff.

Kruger, in turn, sought to overturn a November 2024 court ruling that said he overstepped in his powers when he sought to take control of all operations at Ithala Bank.

In Friday's ruling, Judge Ncube reaffirmed that Kruger has no right to take over the operational and day-to-day management of Ithala.