KwaZulu-Natal KZN Premier Thamsanqa Ntuli says the provincial government will continue to legally challenge any attempts by the Reserve Banks prudential authority to take over operations of Ithala Bank.
Ntuli says the provincial government welcomes the judgment by the High Court in Pietermaritzburg which barred the Repayment Administrator Johannes Kruger from taking over day-to day operations of Ithala.
The Reserve Bank's Repayment Administrator found that the Ithala was technically and legally insolvent which put the depositors' funds at risk.
Premier Ntuli held a media briefing in Durban today.
Over 200 000 clients of Ithala have been unable to access their funds from the institution for about three months now.