Latest news with #R1.68
IOL News
3 days ago
- IOL News
Old Mutual says policy was accidental death as widow cries foul over R1. 68 million rejected claim
A Gauteng woman is locked in a bitter conflict with Old Mutual over a policy payout following the tragic death of her husband. Insurance company, Old Mutual, clarified that the policy held by a deceased client was an accidental death benefit, not a life insurance policy as the widow had stated. The statement follows accusations from Annette Monica Mulder, a 60-year-old Gauteng resident, who claimed Old Mutual unjustly denied her claim after her husband, Rudolf Johan Frederick Mulder, died tragically in January 2018. According to Mulder, her husband took a policy with Old Mutual in 2009 and at the time of his death, it was R1.68 million. Old Mutual explained that the accidental death benefit policy inherently excludes suicide, as it is not considered accidental death. However, Mulder maintains that her husband's death was accidental, asserting that the firearm involved was defective. "I have a report from a forensic gun specialist that says the gun had a faulty safety clip. The cartridge of the bullet was stuck in the gun on the police photos, and when we received the gun back from the SAPS, we found it was not working. I took it to a gunsmith the same day they found it faulty and a piece of metal behind the safety," she said. Mulder said that even if her husband's death was suicide, Old Mutual failed to produce concrete evidence to support the allegations. "The medical examiner said she couldn't tell if it was an accident or suicide. Also, nowhere does the police report say suicide, they say suspicion of suicide. Old Mutual didn't prove without reasonable doubt that my husband died of suicide," she said. Moreover, she said the words on the policy can be easily misconstrued due to the grammar. "In the Afrikaans version of the policy, the title may appear as 'Accidental Disability and/or Death.' However, due to the absence of appropriate punctuation, the term 'Accidental' cannot be conclusively interpreted as modifying or applying to 'death.' On this basis, 'death' stands as a distinct and separately covered event under the policy, irrespective of whether it was accidental or not." According to Mulder, the life insurance contract specified just three exclusions: death while committing a crime, death in war, or death during a strike. "Those were the three exclusions that were listed in the contract. If they decided to add suicide, it's something they added without notifying us. We were certainly not made aware of this,'' she said.
The Citizen
3 days ago
- Business
- The Citizen
Standard Bank's ‘disproportionate' attempt to foreclose on Vavi's home fails
Bank was also claiming more than R160 000 in legal costs from Vavi and his wife – twice the value of their current repayment arrears. Saftu General Secretary Zwelinzima Vavi and his wife can stay put, for now. Picture: Neil McCartney / The Citizen Standard Bank has failed in its attempt to obtain authorisation for the foreclosure of a mortgage bond it granted over the Sandton primary residence of South African Federation of Trade Unions (Saftu) General Secretary Zwelinzima Vavi and his wife Noluthando. The judgment highlighted the high legal costs that result from mortgage bond arrears and foreclosure, with the bank claiming more than R160 000 in legal costs from the couple – twice the value of their current mortgage bond repayment arrears. Judge Stuart Wilson said Standard Bank had placed nothing before him explaining why execution against the Vavis' home is a proportionate means of recovering the arrears. He postponed the application brought by the bank indefinitely on Tuesday and ordered that each party should pay its own costs. Wilson said a court asked to authorise foreclosure against a debtor's primary residence must be satisfied that to do so would be proportionate. Read more The Art Lab: A space for collaboration, experimentation, and creativity at Nelson Mandela Square He added that foreclosure is generally proportionate when there is little meaningful prospect of the debt secured against the residence being recovered in some other way – and when the interest of the creditor in obtaining payment outweighs the interest of the debtor in retaining ownership of the home. Standard Bank was seeking a money judgment and leave to execute it against the primary residence of the couple, whose indebtedness arose from a mortgage bond passed over the property. ALSO READ: Court rules in favour of clients in Standard Bank home loan dispute Steps taken to reduce arrears – judge Wilson said the fact that the property is, on the face of it, an expensive dwelling in a well-heeled suburb makes no difference to the fundamental inquiry – but cases in which it would be disproportionate to authorise execution of a proven mortgage debt against such a property are likely to be rare. However, he said: 'This is such a case. The Vavis owe around R1.68 million on their bond, and are in arrears to the tune of just over R85 000 – or around four months' worth of instalments. 'The arrears were accumulated around three years ago, and since then the Vavis appear to have serviced their bond punctiliously while taking steps to reduce their arrears from just under R170 000 when the application was instituted to around R85 000 today. 'The latest home loan statement filed shows around 18 months of apparently perfect adherence to the Vavis' obligations to pay their monthly instalments.' ALSO READ: Class action suit shows banks sell repossessed houses for cents in the rand Legal costs and arrears 'separate issues' Wilson added that Standard Bank claims over R160 000 in legal costs against the Vavis – and it is apparent from the affidavits that the bank has tied the resolution of this dispute to the settlement of those costs. 'It is at least possible that the Vavis have balked at paying legal costs of twice the value of their current arrears. 'It seems to me that the Vavis would be entitled to rehabilitate the loan agreement by paying their arrears and then debating the reasonableness of those costs with Standard Bank as a separate issue, but I cannot say why the arrears have not been settled. 'Nevertheless, in the absence of more information, I cannot presently conclude that foreclosure against the Vavis' home is a proportionate means of liquidating their arrears.' Although the judge postponed the application sine die (indefinitely), Wilson said the bank may renew the application if and when it presents evidence that foreclosure would be proportionate. ALSO READ: What to do if you start falling behind on your home loan Financial woes The Vavis have been in the news for other alleged arrears related to their Sandton home. City Press reported in February 2024 that Vavi and his wife had been taken to court by the City of Johannesburg (CoJ) Metropolitan Municipality for allegedly failing to pay more than R400 000 in outstanding levies for their home. It said the CoJ was seeking an order from the High Court in Johannesburg that would compel the couple to pay an amount stipulated as R433 493 after they had applied to the municipality for provision. The article said it had previously reported on their financial woes, which it claimed began in 2022 when Standard Bank applied for a writ of execution on the same house after accusing them of non-payment. It subsequently reported that Noluthando Vavi said they only became aware of the court papers when inquiries were made by City Press about their home, which they bought for R2 million in 2008. It is unclear what happened to the CoJ's arrears high court application. This article was republished from Moneyweb. Read the original here.
The Citizen
12-06-2025
- Business
- The Citizen
Goodyear exit seen as betrayal by unions and workers
Goodyear's potential shutdown could impact over 900 workers and hurt dependent industries in the Kariega and Gqeberha areas. Goodyear to close down its manufacturing plant in the Eastern Cape, affecting 900 jobs. Picture: iStock Department of trade, industry and competition officials are in discussions with the Goodyear tyre company in a last-ditch effort to stave off the closure of the company's factory in Kariega in the Eastern Cape, which could cost more than 900 jobs. Department spokesperson Yamkela Fanisi said this was to assess the possibility of a deal being struck along the lines of the one implemented by the Industrial Development Corporation (IDC) to avert job losses at ArcelorMittal. The IDC provided a R1.68 billion facility to ArcelorMittal, leading to the deferring of the closure of two key steel mills in Newcastle and Vereeniging, saving 3 500 jobs. Goodyear hasn't expressed view on possibilty of IDC deal Goodyear has not expressed a view on the possibility of a deal with the IDC, saying only it was committed to supporting affected employees through the process. 'The minister sees this as devastating for the economy,' said Fanisi. Goodyear said Section 189A retrenchment notices have been served on workers. ALSO READ: Tyre giant hits the brakes: Numsa laments Goodyear closure affecting 900 jobs With secondary industries such as catering, security and corporate social investment projects dependent on Goodyear, the closure of its operations is expected to have a ripple effect on Eastern Cape communities. Political economist Sam Koma said the ArcelorMittal-IDC model could be applied to avert the Goodyear crisis. 'The reasons ArcelorMittal announced the closure of its operations are similar to Goodyear: competition from cheaper products, mainly from China, and high electricity costs. ArcelorMittal-IDC model could be applied 'There should be negotiations involving Goodyear, the trade, industry and competition and labour departments to arrive at a mutually beneficial outcome.' SA Federation of Trade Unions general secretary Zwelinzima Vavi said: 'This decision by a multinational which has operated in South Africa since 1932, is nothing short of economic betrayal of the workers and communities who built its profits over 90 years. 'Goodyear's closure comes on the heels of another major blow: Conti-Tech, a subsidiary of Continental Tyres, is also winding down. 'And in Gqeberha, Aspen Pharmacare is retrenching workers.' NOW READ: Act now to absorb impact of Trump tariffs on SA vehicle manufacturing sector – BLSA
IOL News
10-06-2025
- Business
- IOL News
Gauteng widow in distress after Old Mutual rejects R1. 68 million claim following husband's death
Old Mutual's non-profit entity 'Masisizane' Fund has reached a milestone by disbursing R1 billion to over 400 SMEs and creating more than 13,000 jobs. A Gauteng woman is locked in a bitter conflict with Old Mutual over a life insurance payout following the tragic death of her husband. Annette Monica Mulder, 60, lost her husband, Rudolf Johan Frederick Mulder in January 2018. Before his death, he had taken out a policy with Old Mutual in 2009 and according to his wife, at the time of his death, it was R1.68 million. Mulder's anguish began when Old Mutual denied her claim, citing suicide as the cause of death. "When my husband died, they refused to pay out the policy and claimed that my husband killed himself. The policy never excluded suicide, there was no clause mentioning suicide. Because it wasn't clear how my husband died, they decided to pick suicide to avoid making payment," she said. According to Mulder, the life insurance contract specified just three exclusions: death while committing a crime, death in war, or death during a strike. "Those were the three exclusions that were listed in the contract. If they decided to add suicide, it's something they added without notifying us. We were certainly not made aware of this,'' she said.
The Citizen
08-05-2025
- Business
- The Citizen
Tariff lifeline for ArcelorMittal means higher prices for customers
'Safeguard' duties of 13% were imposed at the start of May to shield Amsa's hot-rolled steel products from international competition. Itac and the IDC both fall under the dtic. In setting steel tariffs, Itac is accused of cossetting its own portfolio. Picture: Supplied The International Trade Administration Commission of SA (Itac) has announced temporary 'safeguard' duties on some hot-rolled steel products produced by ArcelorMittal SA (Amsa). The 13% safeguard duties kicked off on 2 May for a year, reducing to 11% and 9% over the subsequent two years, and then to zero. The safeguard duty is on top of the 10% customs duty already in place, bringing the import protection to 23% in the first year. The total duties on hot-rolled products fall to 21% from May 2026 and 19% from May 2027. The safeguard duties were gazetted last week and are seen as a lifeline for embattled steel producer Amsa, which has been undercut by low-cost imports from China. 'There's nothing worse than a temporary tariff,' comments Neels van Niekerk, executive chair of International Steel Fabricators. Hot-rolled steel is used in construction, manufacturing, and engineering and is a key input in mining equipment, water tanks, gas cylinders, and truck trailers. ALSO READ: IDC saves ArcelorMittal days before furnaces switched off 'Necessary, not punitive' – Itac 'Safeguard measures are designed to address unforeseen surges in imports that threaten or cause serious injury to a domestic industry,' says Itac. 'While these measures are not punitive, they are necessary to ensure fair trade conditions and protect local industries from being overwhelmed by excessive foreign competition.' Imports now account for about a third of local steel consumption, with Amsa's net realised prices falling to levels last seen in 2015. This, and Amsa's galloping transport and electricity bill – up 14% to R3.2 billion in 2024 – contributed to its decision to wind down its long steel mills in Newcastle and Vereeniging. ALSO READ: Government still talking to ArcelorMittal while Seifsa identifies challenges Perspective 'Effectively, what this means is that customers can expect to pay 13% more for hot-rolled steel products,' says Gerhard Papenfus, CEO of the National Employers Association of SA (Neasa). 'Amsa asked for additional protection and they got it. What South Africa needs right now is steel of the best possible quality, wherever we can get it. 'If we have to import, then so be it. We cannot continue to support industries that cannot compete without more and more protection.' The Industrial Development Corporation (IDC) provided R1 billion in short-term lending to Amsa, alongside another R380 million loan and an additional R1.68 billion shareholders loan in the hopes of extending the life of its longs business. However, that may not be enough to rescue Amsa. 'For Amsa Newcastle to survive, it will require a lot more than money,' says Donald MacKay, CEO of XA Global Trade Advisors. 'If the problems they identified are not addressed, they will burn through the money from the IDC and we will be back here [for more money].' ALSO READ: Concern about SA steel industry: Trump's tariffs and ArcelorMittal closure looming Market distortion The steel market is further distorted by the IDC's R14 billion exposure to mini-mills, which use scrap metal as feedstock and compete with Amsa in certain products. These mills enjoy a substantial pricing advantage through the Preferential Pricing System (PPS), which allows them to secure scrap at 30-50% discounts to market prices. This means scrap can only be exported after being offered to local mills at a 30% discount. This is in effect a ban on scrap exports and a R8.5 billion annual subsidy to mini mills – resulting in an estimated 50 000 scrap collectors in SA being forced out of business. Scrap dealers tell Moneyweb that removing the PPS would allow the 300 000 scrap collectors in SA to earn a decent living rather than transferring this benefit to the mills. This benefit comes on top of a 20% export duty on scrap. Mark Fine, head of the Scrap Recycling Coalition, an informal grouping of 48 scrap metal dealers, says these mills produce billets, which are little more than scrap 2.0 and a way to circumvent export restrictions on scrap. ALSO READ: Did government policy kill SA's steel industry? Mini-mills say even with the PPS in place, there remains a shortage of scrap in SA, though Fine says this is disproven by the fact that these mills exported more than 400 000 tons of recycled scrap in billet form in the first few months of 2025. Itac's steel tariff policy has been criticised as self-serving, given the IDC's massive exposure to these mini-mills, some of which are in business rescue. Itac and the IDC both fall under the Department of Trade, Industry and Competition (dtic). In setting steel tariffs, Itac is accused of cossetting its own portfolio. 'If government demand increases, it will be met by product from the mini mills, because the subsidies give them an ability to keep their prices low. Amsa on the other hand, has to pay back the IDC loan, which will be burnt through even quicker this time, given the steep discount they are providing on long products to simply stay in the game. ALSO READ: Steel producers slam ArcelorMittal's call to end scrap export tax PPS 'a massive scam' Fine says the PPS is a legacy of former trade and industry minister Ebrahim Patel and has been fatal for the industry. 'These mini-mills are mostly foreign-owned and they add very little value in the steel chain. Yet they receive this massive transfer of wealth each year, claiming that without the PPS South Africa would face a shortage of scrap. 'That's an absolute lie. These mini mills produce what I call scrap 2.0 which they can then export and make nice profits for themselves because the export restrictions don't apply. This is a massive scam.' Nampak is reckoned to be losing R115 million a year due to its inability to earn fair market value on its ferrous scrap. ALSO READ: Cheap IDC funding 'placing the complete steel market at risk' And Transnet – the country's largest generator of scrap – is reckoned to lose R40-R50 million a month due to the PPS. That does not count scrap from automotive producers such as VW and Toyota. Tami Didiza, manager for stakeholder management and communications at Amsa, says a number of these companies have been unable to operate successfully and could have closed had the current dtic policies of scrap intervention through the PPS, Scrap Export Tax and an export ban (which lapsed in 2023) not saved them over the last five years. 'The government intervention to allow a deferral of the wind down of the Amsa longs business provides an opportunity for the fundamental structural issues facing the steel industry to be addressed, and to place it on a sustainable path by removing the market distortions that have been created,' says Didiza. This article was republished from Moneyweb. Read the original here.
