Net1 UEPS Technologies,\u00a0a provider of alternative payment systems, says it has commenced a\u00a0lawsuit in the South Gauteng High Court against AllPay Consolidated
\nInvestment Holdings.<\/p>\n
Net1 alleges that\u00a0AllPay wrongfully and unlawfully, and with the intention of injuring it’s
\nreputation, infringed Net1 and its subsidiaries’ goodwill and reduced it’s share price.<\/p>\n
Net1 is currently being investigated by the\u00a0US Department of Justice (DOJ) Criminal Division and the SEC, regarding possible acts of corruption in South Africa.<\/p>\n
Shares in Net1 UEPS Technologies fell R37.10 \u2013 more than 55% \u2013 in early trade on the JSE on\u00a0Wednesday (5 December), after the group said it was being investigated.<\/p>\n
The company, through its subsidiary\u00a0CashPaymaster Services, manages and distributes social grants in South Africa, having been awarded a R10 million contract by the\u00a0SA Social Security Agency (Sassa).<\/p>\n
In August,\u00a0the North Gauteng High Court ruled that the tender process for the Sassa contract was improper,\u00a0after rival bidder and Absa bank subsidiary,\u00a0AllPay, voiced its concerns about the process.<\/p>\n
The group is seeking damages of R478 million\u00a0(approximately US$55 million based on the ZAR\/US dollar exchange rate on\u00a0December 11, 2012), plus interest and costs.<\/p>\n
Net1 says that AllPay competed unlawfully with Net1, by doing the following:<\/p>\n
Net1 shares slump 55% on corruption probe<\/strong><\/a><\/p>\n Net1 under FBI investigation for corruption in SA<\/strong><\/a><\/p>\n Court grants leave to appeal in Sassa case<\/strong><\/a><\/p>\n Net1 reaches biometric cards milestone<\/strong><\/a><\/p>\n Net 1 sees 18% decrease in earnings for Q3<\/a><\/strong><\/p>\n Net1 concludes Sassa contract agreement<\/a><\/strong><\/p>\n