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Damage to property due to unrest may cost Sasria more than R15 billion, says Mboweni


Finance Minister, Tito Mboweni, says the estimated cost of damages to properties from the social unrest that recently gripped parts of the country will cost Sasria between R15 billion to R20 billion in claims.

To this effect, Treasury says it will allocate R3.9 billion towards Sasria to deal with the anticipated claims of insured companies.

Sasria is a state-owned company and the only short-term insurer that provides cover to all the people and businesses that have assets in South Africa, as well as government entities, against special risks such as civil commotion, public disorder, strikes, riots and terrorism.

“As I mentioned, Sasria is already coming to the party and together with other insurance companies are speeding up the assessment process so that they can be able to assist our companies to come back to life. And we anticipate that this will cost R15 to R20 billion, which between Sasria and the national treasury, we’ll have to make sure that these are met,” adds the finance minister.

National Treasury says it will allocate R2.3 billion towards the department of small businesses to assist SMMEs that have been affected by lockdown restrictions.

Mboweni says government has set aside R36.1 billion to fund all the social relief measures provided to deal with the impact of COVID-19 pandemic and the recent violence and looting that engulfed the country.

He says government will not borrow further funds for these measures.

Mboweni says a discussion is at an advanced stage to allow workers an access to their retirement funds to be able to pay off their debts.

The finance minister says he will ensure that National Treasury speeds up this matter.

“I am now determined more than ever before to ensure that the officials in the National Treasury speed up this matter. A portion of their retirement fund, workers should be able to access in this difficult time maybe to finish off their bond repayments, maybe to sort out whatever debts they might be in. But I must warn at the same time people must ensure that they use this facility for purposes of relief making better their own situation,” says Mboweni. – @SABCNews

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