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Net1 pledges to fulfill contract

Companies
Durban - Trouble-prone Net1 UEPS Technologies said it remained committed to fulfilling its contract to the end in South Africa despite the unsubstantiated public attacks and questioning of its business practices in the country.

Chief executive Serge Belamant said the last few months had been challenging, aggravated by the tarnishing of their reputation and questioning of its business ethics amidst the public attacks.

“Although we devoted a substantial amount of time to manage these issues, we believe that we have made sufficient progress towards the finalisation of our South African and international expansion strategy,” said Belamant.

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Serge Belamant

The company courted controversy early this year after the Black Sash asked the Constitutional Court to resume its oversight of the processes around the payment of grants amid concern over the continuation of the welfare system.

Read also: Net1 reputation 'tarnished'

Belamant allegedly said that unless the government used pigeons to deliver social grants to more than 16 million recipients, it was only Net1 subsidiary Cash Paymaster Services (CPS) that has the capacity to fulfil payments on April 1, forcing the company’s board of directors to issue a public apology for comments that were perceived as offensive.

Other shareholders called for Belamant’s head.

On Friday, Belamant said that consistent with the company’s service delivery track record over the last five years, the distribution of grants in April and May has gone smoothly and without any delay or interruption and they continue to fulfil its obligations in accordance with the Constitutional Court’s order. “We remain willing to support a smooth transition to Sassa or whomever they determine to be the most suitable service provider when our current contract expires.

Net1 shares closed 3.98 percent lower on the JSE on Friday at R136.54.

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