SA Unrest: Finance Minister Tito Mboweni Says Damage to Property May Amount to R15 Billion

SA Unrest: Finance Minister Tito Mboweni Says Damage to Property May Amount to R15 Billion

  • Damage to infrastructure caused during the unrest in KwaZulu-Natal and Gauteng in the weeks past is said to amount to more than R15 billion
  • Finance Minister Tito Mboweni says the National Treasury will allocate over R3 billion to assist the South African Special Risk Insurance Association cover the cost
  • Mboweni also stated that the National Treasury has allocated funding to help small businesses and social relief grants

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Minister of Finance Tito Mboweni says the damage to infrastructure caused during the unrest in KwaZulu-Natal and Gauteng may cost the South African Special Risk Insurance Association (Sarisa) billions of rands.

SA Unrest, Finance Minister Tito Mboweni, Damage To Property, Cost Sarisa more than R15 Billion, KwaZulu-Natal, Gauteng, looting
Finance Minister Tito Mboweni says the damage caused to infrastructure during the unrest in KwaZulu-Natal and Gauteng could cost more than R15 Billion. Image: Gem Atkinson/Bloomberg
Source: Getty Images

Sarisa which is a state-owned short term insurer that covers people, businesses and government entities against financial damages caused by riots, terrorism or civil commotion could pay anywhere between R15 billion to R20 billion to cover costs incurred by damaged properties according to SABC News.

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Mboweni stated that Treasury allocated Sarisa R3.9 billion to quell the insurance claims from companies who suffered losses during the unrest.

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This funding by Treasury to Sarisa could aid the insurer cover damages since the company only managed to collect more than R2.4 billion in premiums in 2020, according to a report by Moneyweb.

The department of small businesses has been allocated R2.3 billion to assist SMMEs affected by the lockdown restrictions, states the National Treasury. In addition to that funding, Treasury has allocated R36.1 billion to social relief programmes.

Mboweni stated that South Africa would not be borrowing money from any financial institutions to fund South African this time around.

Mboweni also stated that government employees may soon be able to access their pension funds to pay off their debts and was working National Treasury to expedite the process.

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Social Development Minister Lindiwe Zulu says South Africans need to reapply for social grants

Briefly News previously reported that Minister of Social Development Lindiwe Zulu says South Africans will need to reapply in order to have access to the Social Relief of Distress Grant.

This comes after President Cyril Ramaphosa announced on Sunday that the R350 social relief grant has been reimplemented and will be in place until March next year, according to News24.

Unlike the previous grant, recipients of Sassa grants who are unemployed caregivers are also eligible to receive funding from this current programme.

In an interview with eNCA, Zulu explained that the department of social development has already set up a system to roll out the Social Relief of Distress Grant. In terms of receiving the grant, Zulu stated that individuals will only receive their social grants if they meet the requirements.

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They will also have to fill out an application form again despite having been recipients of the previous social relief grant. Zulu stated that the reason for this process was that the department does not want to pay individuals who may have access to an income.

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Source: Briefly.co.za

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