Net1 UEPS Technologies expects to continue issuing the government’s social grants until June 2018, it said in its financial results statement released on Friday morning.This is a despite a ruling from the Constitutional Court that Net1 was to relinquish its South African Social Security Agency (Sassa) contract by the end of March. But Sassa’s mismanagement of the tender process for a new welfare grant distributor forced the court to extend the deadline indefinitely.Although Net1 denied it was holding the government to ransom, the controversy resulted in the ousting of its founder Serge Belamant in May. Belamant was replaced as CEO by the group’s chief financial officer, Herman Kotzé."Our guidance assumes that our contract with Sassa remains in effect for the full year on the existing terms and conditions," Kotzé said in Friday’s results statement.Net1’s overall revenue grew 3% to $610m, but its aftertax profit declined 14.5% to $72m.The group segments itself into three divisions: So...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.