Absa‘s Allpay Consolidated Investment Holdings has filed leave to appeal with the South African Constitutional Court against the judgment handed down by the South African Supreme Court of Appeal in March.
The case involved listed company, Net1 UEPS Technologies, a provider of alternative payment systems.
Net1 manages and distributes social grants in South Africa, having been awarded a R10 billion contract by the SA Social Security Agency (Sassa).
Net1, through its subsidiary, Cash Paymaster Services (CPS), was awarded the tender in January 2012; however, rival bidder Allpay claimed the process to be illegal and invalid citing corruption.
In August 2012, the North Gauteng High Court ruled that the tender process for the Sassa contract was improper, after AllPay voiced its concerns about the process.
At the end of March 2013, 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.
In the meantime, Net1 said it has commenced a lawsuit in the South Gauteng High Court against AllPay, seeking damages of R478 million, plus interest and costs.
Net1 alleges that AllPay wrongfully and unlawfully, and with the intention of injuring its
reputation, infringed Net1 and its subsidiaries’ goodwill and reduced its share price.
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.
“The Company cannot predict what the outcome of the application process will be,” Net1 said in a statement on Monday (22 April).