PRESIDENT Cyril Ramaphosa authorised the Special Investigating Unit (SIU) to investigate allegations of maladministration in the affairs of the South African Special Risk Insurance Association (Sasria) payments relating to July 2021 unrest, the SIU announced on Monday.
The SIU will investigate allegations of maladministration in connection with the affairs of Sasria relating to the receipt, capturing, processing, verification, assessment, authorisation and payment of claims related to the July 2021 civil unrest.
The SIU said its probe will seek to establish whether the claims made were in line with applicable legislation manuals, guidelines, policies, procedures, practice notes, instructions, prescripts or practices of the National Treasury. Furthermore, the probe will ascertain if there is unlawful or improper conduct of Sasria’s employees, officials and any other person or entity to corruptly or unduly benefit themselves or others.
The investigation will probe to see if there was fraudulent conduct, including the causes of such maladministration and any losses, damages or prejudice actually or potentially suffered by Sasria or the State and any irregular, improper or unlawful conduct by employees or officials of Sasria or any other person or entity.
The Proclamation covers allegations of unlawful and improper conduct that occurred between 1 July 2021and 08 November 2024, as well as any related activities before 1 July 2021 and after the date of the Proclamation that are pertinent to the matters under investigation or involve the same persons, entities, or contracts, according to the SIU.
Nkateko Mayimele, executive manager: claims, highlights the impact of the riots in an blog, The real cost of the riots: financial impact, job losses and disrupted communities, posted on the SOC’s website in August this year. It reads: “The devastation of those eight days in July 2021 saw the South African economy lose money it couldn’t afford – close to R50 billion. Consequentially, Sasria was hit by a bill of R32 billion in claims. With the help of a committed government shareholder, this was addressed, as 99% of these claims were paid out.
“While the looting affected only two provinces in SA, Gauteng and KwaZulu-Natal, the latter was the hardest hit. The insured losses to the KZN economy were estimated at a staggering R20 billion, with a lot of businesses and traders affected the most. Fortunately, most of the businesses that claimed and were successfully paid out are back in business, rebuilding and doing what they do best, with the best possible hindsight of being more prepared and living with the hope that July 2021 won’t happen again,” Mayimele writes.
Sasria is a state-owned company that provides special risk cover to all individuals and businesses that own assets in South Africa, as well as government entities. “This is unique cover against risks such as civil commotion, public disorder, strikes, riots and terrorism, making South Africa one of the few countries in the world that provide this insurance, particularly at affordable premiums.
“By enabling businesses to restore their liquidity or operations quickly and efficiently after experiencing loss or damage due to special risk events, Sasria SOC Ltd plays a significant role in preventing job losses, maintaining livelihoods, restoring pride and dignity and facilitating economic stability,” according to Sasria’s website.
