The South African Special Risk Insurance Association (SASRIA) said it requested the investigation by the Special Investigating Unit (SIU) into irregular claims related to the July 2021 unrest.
On 25 October, President Cyril Ramaphosa signed a proclamation, in terms of the Special Investigating Units and Special Tribunals Act, authorising the SIU to investigate serious 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 unrest in a manner that was conducted by or facilitated through the unlawful or improper conduct of SASRIA’s employees, officials, or agents, or any other person or entity.
Proclamation 214 of 2024 was published in Government Gazette No. 51517 on 8 November.
SASRIA incurred claims of more than R30 billion as a result of the unrest, and the state-owned insurer had to receive a R22bn cash injection from National Treasury to assist in paying the claims.
In a statement on Tuesday, SASRIA said “internal and forensic reviews identified certain areas of claims that, due to their complexity and sheer volume, warranted further scrutiny”.
In response to questions from Moonstone, SASRIA said it requested the SIU’s assistance, and no external whistleblower was involved in initiating the process. “However, in respect of some of the claims under investigation, we did have some tip-offs that contributed to SASRIA’s flagging of those claims.”
Asked about the financial scope or the exact number of claims under investigation, SASRIA’s marketing manager, Andiswa Madolo, said these details are part of the ongoing review and cannot be shared at this stage.
SASRIA’s statement said the proclamation will allow for a comprehensive review, extending beyond the July 2021 claims, to include SASRIA’s claims procedures and processes in line with legislative standards.
“SASRIA views this as an opportunity to reinforce our commitment to responsible governance, ensuring that our business practices align with applicable legislation and our core values of accountability and public service.”
SASRIA said it is committed to working with the SIU to protect public resources, uphold trust, and, where appropriate, recover any unduly paid funds.
The Schedule to the proclamation says the SIU will also investigate whether any of the claims were fraudulent; or were processed, authorised, or paid in contravention of the applicable legislation, or in contravention of the manuals, guidelines, practice notes, or instructions issued by National Treasury; or in contravention of manuals, codes, policies, procedures, prescripts, guidelines, instructions, or practices that apply to SASRIA.
It will also investigate any related unauthorised, irregular, or fruitless and wasteful expenditure incurred, or losses suffered by SASRIA or the state relating to the unrest claims.
