The World Bank\u2019s International Finance Corp has indicated that it\u00a0will place pressure on Net1 to complete a financial assessment after several human rights organisations alleged that the company\u2019s subsidiaries are improperly marketing goods and services to the more than 17 million South Africans on welfare.<\/p>\n
Chief among the concerns was that\u00a0Net1 is abusing grant beneficiaries through its business of debiting money from social grants to pay for financial products, according to a report by Bloomberg<\/a>.<\/strong><\/p>\n \u201cWe pushed the company to look again at their processes and have a third party certify them as a responsible lender. We started a process in September last year,\u201d said Andi Dervishi, global head of financial technology investments at the IFC.<\/p>\n \u201cIn the light of what we have seen and what we are hearing in public we are pressing harder. It should happen this year.\u201d<\/p>\n Net1 was granted a controversial extension of its controversial grants tender after social development minister, Bathabile Dlamini failed to find a suitable replacement candidate for the delivery of social grants by 1 April.<\/p>\n The company\u00a0is currently in the process of\u00a0challenging an amendment made by the government to regulations that would stop deductions being made from welfare grants.<\/p>\n
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