Net1 to pay Serge Belamant R650,000 per month to consult
Net1 UEPS Technologies says it has agreed to pay founder and CEO, Serge Belamant, an $8 million severance payment after he stepped down earlier this month amid controversy over the company’s management of its contract with the SA Social Security Agency (Sassa).
Belamant will also earn a $50,000 a month consultancy fee from the company for a two-year period, following his early retirement earlier this month, the company said in a disclosure to the US Securities and Exchange Commission on Tuesday.
Net1 also agreed to buy back in excess of one million shares he owns at $10.80 a share.
Net1 initially won a contract in 2012 to distribute grants in South Africa, but was later ruled invalid, with Sassa instructed to find a new provider.
It failed to do so however, and when the company’s contract expired at the end of March, the Constitutional Court was forced to extend the contract because there was no other viable delivery option.
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