Rebuilding and responding - how can we help you?

We have spoken to several clients to see how they are managing the devastating violence and rioting taking place in parts of South Africa. From our discussions, there are some key common issues that many are grappling with. To assist, we have prepared a few insight pieces which may be useful to you in navigating this difficult time.

• SA riots - does force majeure apply?

  
  

  In the face of ongoing and future disruptions, the potential impact on a party's ability to perform in terms of a contract may be far-reaching. We have highlighted some key issues related to contracts at this time - focusing on force majeure clauses and the accompanying doctrine of supervening impossibility. 

• Civil unrest and public looting: managing key employment issues

  
  

  The civil unrest and looting raise complexities in managing employees. There are different factual scenarios that employers will need to consider.

• SA riots: limitations on insurance claims

  
  

  Where loss / damage is suffered as a result of the looting / rioting, normal assets insurance won't cover. SASRIA SOC Limited is the only insurer in South Africa that provides special risk cover for loss and damage caused by such events. If you do have SASRIA cover and intend to claim under your SASRIA policy, there are a couple of important things you need to know.

• Riots in SA: what happens under a state of emergency declaration?

  
  

  There have been some calls for the declaration of a state of emergency - we set out in brief terms the laws and processes related to declaring a state of emergency.

• SA hopeful that vandalised Telecoms infrastructure will be protected by the SANDF

  
  

  The civil unrest has resulted in numerous telecommunications and broadcasting infrastructure being destroyed. Members of the SANDF have now been instructed to protect property and national key points, and presumably this includes critical infrastructure such as telecommunications networks.

• Competition Block Exemptions for the Security of Supply of Essential Goods

  
  

  The Minister of Trade, Industry and Competition issued Block Exemptions for the Security of Supply of Essential Goods. The purpose of the Essential Goods Exemption is to allow certain forms of concerted conduct that may otherwise be prohibited under the Competition Act. The Essential Goods Exemption applies to a category of agreements or practices amongst firms in the value chain (i.e. production, distribution and retail) in response to disruptions to the supply chains of essential goods within the country.

• The complex tax consequences of riot insurance payments

  
  

  Businesses able to claim from SASRIA for damage to premises or equipment from the recent unrest need to be aware of the tax implications of payouts

Please feel free to reach out to your usual Webber Wentzel contact should you need any further assistance. While our physical offices are closed in part, our people are online and working effectively from home.

We stand united together to rebuild our country.