This matter is playing out in the public domain and doing no good for the reputation of South African racing.

There are two other ways to have handled this and the wording is seeming controversial by both operators according to the NHA release.

There are serious repercussions from an international standpoint on this as stated by the NHA - let's not be oblivious to that fact. It comes also from cases previously where refunds had to be offered during commingling situations.

The two other solutions could have been 1. Offer cash refunds independent of the tote dividends (stand to corrected if this was done or taken out of the pool) or 2. To offer cash/freeplay vouchers instead of refunds. These solutions could have been disseminated in a well worded press statement emphasising a goodwill gesture and hence not undermining the actual declared result.

Here's a refund case from 2019: "Phumelela Gaming and Leisure have had a serious reprimand from the Hong Kong Jockey Club for not informing the club of jockey changes during the Sun Met meeting. This has resulted in the club issuing the following statement, refunding bets. HKJC Horse Race Betting Limited would like to inform the public that during the simulcast of the Met Day races in South Africa, held on 26 January 2019, its contract partner in South Africa, Phumelela Gaming and Leisure Limited (Phumelela) failed its contractual obligation to inform it of the jockey substitutions in the following races prior to the start of the races.... According to the Horse Race Betting Rules, all confirmed results and dividends remain unchanged. However, after considering the interests of customers, we have decided to make a discretionary refund for the following Race and Horses on single and all-up pools for WIN, PLACE, QIN, QPL, TRI, TCE, FF&QTT, DT, Treble "

The situations compared are similar in outcome where 'refunds' had to be issued. BUT seemingly the HKJC paid its punters out independent of the dividends declared, which means they seemingly took the losses outside of the tote structure as a goodwill gesture. 

Each release had been published as received below... 

The Gold Circle Press release on the matter stated, "Gold Circle has taken the decision to refund punters who placed any bets with TabGold on She's A Klawer (Number 4) in the first race at the Vaal earlier today after the starting stalls opened without S'manga Khumalo aboard, even though the filly was declared a runner. All punters who included the No. 4 in their bets (all bets) can request a refund from TabGold branches where they placed their bets and those clients who took bets on their account will be credited automatically. Refund calculations will be based on No. 4 being a non-runner."

The Tab4Racing Press release, "TAB4Racing is refunding all Win, Place, Swinger, Exacta, Trifecta and Quartet bets on Number 4 She’s A Klawer in Race 1 at the Vaal today in which she was included.Jockey S’manga Khumalo, who was carded to ride She’s A Klawer, was not in the saddle when the start was effected. The National Horseracing Authority stipendiary stewards declared She’s A Klawer a runner, but in light of the circumstances TAB4Racing is refunding Win and Place bets on the filly, as well as the relevant portions of Exacta, Swinger, Trifecta and Quartet wagers in which she was included.TAB4Racing accountholders will be automatically refunded. Retail customers wishing to claim refunds must submit a claim form at a TAB outlet if they have discarded their tickets."

The Cape Racing release stated, "Cape Racing TOTE has decided to refund punters who placed any bets on race one (number 4) She's A Klawer at the Vaal earlier today after the starting stalls opened without S'manga Khumalo aboard, even though the filly was declared a runner. All punters who included the No. 4 in their bets (all bets) can request a refund from Cape Racing TOTE branches where they placed their bets."

Image by 4Racing of the finish of race 1 in which She's A Klawer was declared a runner.