Net1 wins supreme court case over Absa

Net1 UEPS Technologies, a provider of alternative payment systems, says it has won its supreme court case against Absa subsidiary, AllPay Consolidated Investment Holdings.

Net1, through its subsidiary CashPaymaster Services, manages and distributes social grants in South Africa, having been awarded a R10 billion contract by the SA Social Security Agency (Sassa).

In August 2012 however, the North Gauteng High Court ruled that the tender process for the Sassa contract was improper, after rival bidder AllPay, voiced its concerns about the process.

In September, the North Gauteng High Court then granted leave to appeal the judgment handed down in August, having ruled that the tender process followed by the Sassa was illegal and invalid, but that the award of the tender to a Net 1 subsidiary would not be set aside and therefore remained valid.

On Wednesday (27 March), Net1 said that a full bench of the South African Supreme Court of Appeal unanimously ruled that the tender process followed by Sassa in awarding a contract to CPS was valid and legal.

“Accordingly, the contract between Sassa and CPS to distribute social welfare grants to ten million South Africans every month for a period of five years, remains in full force and effect,” Net1 said.

Net1 is currently being investigated by the US Department of Justice (DOJ) Criminal Division and the SEC, regarding possible acts of corruption in South Africa.

More on Net1

Court grants leave to appeal in Sassa case

Net1 set for legal action against AllPay

Net1 shares slump 55% on corruption probe

Net1 under FBI investigation for corruption in SA

Net1 bemoans damage to its reputation

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Net1 wins supreme court case over Absa