fnb to appeal million-a-month ruling
Posted 18 December 2006

First National Bank has lodged an application for leave to appeal a High Court ruling which outlaws its Million-a-Month Account (Mama) product, which the group says is aimed at creating a savings culture in South Africa.

The Pretoria High Court on Friday ruled in favour of the National Lotteries Board, which argued that the Mama product contravened the National Lotteries Act.

FNB said it will pursue its arguments in favour of the product in the Supreme Court of Appeal if granted leave to appeal early next year.

No funds under threat

The bank went on to assure its Mama customers that the status quo remains, and that the monthly draws will continue. No funds/deposits are under threat.

There is no finding which indicates any prejudice at all to any depositor as a result of the judgment. The Million-a-Month Account is simply a unique savings account, and all deposits remain safe," says Michael Jordaan, FNB CEO.

"We have instructed our lawyers to apply for leave to appeal which they have already done. The lawyers have advised us that the legal effect of the application for leave to appeal suspends the effect of the judgment, and the product will continue as normal," says Jordaan.

I-Net Bridge,  business.iafrica.com, 15 December 2006