Business News: Banks Could Spend Close R400k to Replace Destroyed ATMs
- South African banks faced with the challenge of spending R385 000 per ATM to replace those that were destroyed during the unrest
- The Banking Association of South Africa says the around 1 400 ATMs were destroyed by looters in the wake of protests
- The Banking industry estimates that R20 million was stolen from the ATMs that were affected by the unrest
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South African banks said that replacing the ATMs that were vandalised and looted during the recent violent protests in KwaZulu-Natal and Gauteng could take up to two months.
The Banking industry estimates that over 1 400 ATMs, as well as 269 bank branches, were either vandalised or destroyed according to a report by Fin24.
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The Banking Association of SA (BASA) says they are still calculating the cost of damage to their infrastructure, but have estimated that would cost around R385 000 to replace an ATM. The cost of repairing or refurbishing damaged bank branches is projected to be much higher.
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Managing director of the Banking Association South Africa Bongiwe Kunene stated that they have not yet calculated how much was in the looted ATMs but estimates that it could be anywhere close to R20 million, according to Reuters.
“We haven’t been able to add up the exact numbers of how much was in the ATMs that were looted. What we do know is we’re working with estimates which are close to R20 million , however that is a rough estimate,” Kunene said.
Kunene said that although a significant number of ATMs had been damaged some of the ATMs would not be to be replaced but fixed.
"Others may end up being out of commission altogether and replaced because the extent of the damage was severe," she said.
Despite the obstacles faced by banks currently, banks believe that rebuilding is in everyone's best interests, according to Kunene.
Finance Minister Tito Mboweni says damage to property may amount to R15 billion
Briefly News previously reported that 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.
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.
Mboweni stated that Treasury allocated Sarisa R3.9 billion to quell the insurance claims from companies who suffered losses during the unrest.
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.
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Source: Briefly News
