#UnrestSA: Retrieved goods must be destroyed for the sake of the economy, says Ntshavheni

HunterNW

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Goods recovered after the recent spate of looting and unrest have to be destroyed to protect the economy, says acting Minister in the Presidency Khumbudzo Ntshavheni.

'Basic economics'

"The stolen goods are no different from counterfeit products, and that’s why we destroy them. Because … the manufacturers of those goods, are not going to generate an income from those goods that enables them to pay employees to continue with their businesses," Ntshavheni said.

However, destroying the items means that the manufacturers can recoup their losses by making other products and selling them in the market, according to Ntshavheni. The government also gets to benefit because it can collect its tax revenue.
 

Urist

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Thought it would get auctioned off for the insurance companies. Makes sense.
Probably depends, destroy the expensive stuff that is cheap in resources, or maybe send it back to the manufacturers.
Donate the food to affected communities disrupted by the riots.
 

Mekon

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Donate appliances to places in need? Childrens homes, places of safety? Not like they get any assistance from the shyt sucking government anyway. nKUNTla should be stripped bare and everything donated by those affected by the riots.
 

Milano

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May well be required however the optics are not great considering the twisted narrative of the usual instigators.
 

rietrot

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Man this idiot have no idea what he is doing.

Stollen and and recovered goods gets auctioned off by the insurance company.
The act of stealing/looting it was harmful to the economy. Recovering some of the money is helpful not harmful.
And people get to buy stuff for cheap also good not bad.

Counterfeit goods gets destroyed for a completely different reason. Those good should not exist in the first place and destroying it is punishment for the manufacturer/retailers of counterfeit goods.
It punishes the crime and help the real goods maintain its value

There's one really bad argument here for "job creation" if you fsck things up, someone needs to be employed to fix it. This is bad for the economy because it actually destroys wealth. At the end it cost you more and you are left with what you had before at best.
 
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Herr der Verboten

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Goods recovered after the recent spate of looting and unrest have to be destroyed to protect the economy, says acting Minister in the Presidency Khumbudzo Ntshavheni.

'Basic economics'

"The stolen goods are no different from counterfeit products, and that’s why we destroy them. Because … the manufacturers of those goods, are not going to generate an income from those goods that enables them to pay employees to continue with their businesses," Ntshavheni said.

However, destroying the items means that the manufacturers can recoup their losses by making other products and selling them in the market, according to Ntshavheni. The government also gets to benefit because it can collect its tax revenue.
Another doom face sprayer logic hard at work.
 

TheChamp

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Man this idiot have no idea what he is doing.

Stollen and and recovered goods gets auctioned off by the insurance company.
The act of stealing/looting it was harmful to the economy. Recovering some of the money is helpful not harmful.
And people get to buy stuff for cheap also good not bad.

Counterfeit goods gets destroyed for a completely different reason. Those good should not exist in the first place and destroying it is punishment for the manufacturer/retailers of counterfeit goods.
It punishes the crime and help the real goods maintain its value

There's one really bad argument here for "job creation" if you fsck things up, someone needs to be employed to fix it. This is bad for the economy because it actually destroys wealth. At the end it cost you more and you are left with what you had before at best.
The difficult task of deciding what belongs to who already implies that even the insurance companies will have a hard time reclaiming the goods, some will but there will be something left that no one can claim.
 

rambo919

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Uhm..... why not just give a partial refund back to the insurance companies?
 

surface

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Goods recovered after the recent spate of looting and unrest have to be destroyed to protect the economy, says acting Minister in the Presidency Khumbudzo Ntshavheni.

'Basic economics'

"The stolen goods are no different from counterfeit products, and that’s why we destroy them. Because … the manufacturers of those goods, are not going to generate an income from those goods that enables them to pay employees to continue with their businesses," Ntshavheni said.

However, destroying the items means that the manufacturers can recoup their losses by making other products and selling them in the market, according to Ntshavheni. The government also gets to benefit because it can collect its tax revenue.
WTF indeed. Khumbudzo Ntshavheni is smoking some illegal counterfeit stuff.
 

aleksandar

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The difficult task of deciding what belongs to who already implies that even the insurance companies will have a hard time reclaiming the goods, some will but there will be something left that no one can claim.
Since this was a riot and SARIA is responsible to pay for it and not insurers maybe it should be auctioned and go to SARIA's pocket.
 

Milano

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The difficult task of deciding what belongs to who already implies that even the insurance companies will have a hard time reclaiming the goods, some will but there will be something left that no one can claim.
There will also be thousands of claims against these enforcement actions once the dust settles. As much as this search and seizure operation is required there is no doubt that laws are being broken in a late attempt to restore order however there will be very low legal compliance from law enforcement. I would conservatively estimate the equivalent of 10 years of court awards in a single tax year, so in the region of R5 billion to be paid by taxpayers to victims of law enforcement contraventions, aside from the actual high operational costs.
 

Milano

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Uhm..... why not just give a partial refund back to the insurance companies?

Since this was a riot and SARIA is responsible to pay for it and not insurers maybe it should be auctioned and go to SARIA's pocket.

This particular problem has nothing to do with the insurance problems. Two separate problems. This is a demand issue. Most of the looted goods were looted with the intention to be sold. This means the market will be flooded with double the number of goods with half the goods in mint condition at 50% off. In other words once retailers eventually get back in business they have a new competitor at 50% off. This would cause a massive hit on the demand side forcing business closures and further loss of jobs. Auctions would still hit the demand side.
 

TheChamp

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Hands up if u ever heard of Ntshavheni before last week
She is one of the most active Ministers in cabinet, first time I saw her was during some xenophobic attacks in her role as minister of small business. She is also the one who put Malema in his place some time ago in Parliament.

It would require some effort of deliberately ignoring current affairs not to have heard of her.
 

Cray

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This particular problem has nothing to do with the insurance problems. Two separate problems. This is a demand issue. Most of the looted goods were looted with the intention to be sold. This means the market will be flooded with double the number of goods with half the goods in mint condition at 50% off. In other words once retailers eventually get back in business they have a new competitor at 50% off. This would cause a massive hit on the demand side forcing business closures and further loss of jobs.
This is a very good point, it's the same reason buying stolen goods is a crime. You destroy the demand for legitimate, full-priced goods. Sure some people score cheap TV's but that means those people might not buy regular-priced TV's in future.
 
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