Sabric tallies cost of banking infrastructure damaged during civil unrest
"There is great concern over the impact of intelligence failures and the state’s response to the eight consecutive days of civil unrest that resulted in unprecedented destruction of banking infrastructure in South Africa,” said Sabric CEO Nischal Mewalall.
THE South African Banking Risk Information Centre (Sabric) confirmed on Wednesday that at least 1227 ATMs and 310 bank branches were vandalised or destroyed in the unrest in KwaZulu-Natal and Gauteng between July 9 and 17.
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Of the 1227 ATMs, 256 ATMs were breached (broken into using force) and 36 ATMs physically stolen from their sites which have not been recovered to date.
In addition, 82 in-branch safes were also breached as well. Physical cash stolen from ATMs and bank branches amount to R119 400 243 to date.
This amount excludes all further infrastructure damage and replacement costs.
“There is great concern over the impact of intelligence failures and the state’s response to the eight consecutive days of civil unrest that resulted in unprecedented destruction of banking infrastructure in South Africa,” said Sabric CEO Nischal Mewalall.
“The theft of R119 400 243 in hard cash is very concerning. Not all notes are dye-stained and millions in unsoiled notes will be injected back into the economy. This money is the proceeds of crime and there is now a war chest available to fund more organised crime, to corrupt more officials and to promote lawlessness, ” added Mewalall.
The effectiveness of South Africa’s anti-money laundering and counter financing of terrorism regime will be critical in detecting the individuals behind these crimes.
Sabric therefore urges businesses to be stringent about cash threshold reporting, to not engage in facilitating suspicious transactions and immediately report any suspicious and unusual transactions to the Financial Intelligence Centre on 012 641 6000.
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