Allan Gray confirms social grants worries
Research by the fund manager confirms numerous NGO concerns over Net1’s handling of its social-grants contract
Allan Gray’s recent research into Net1 UEPS Technologies has confirmed many of the concerns raised by nongovernmental organisations (NGOs) about the firm’s handling of its social-grants contract, but the fund manager, which holds 16% of Net1, said it wanted to pursue other options before selling. The fund manager has also undertaken to deepen its research capacity through the addition of an environmental, social and governance officer who will interview companies before considering investment. Andrew Lapping, chief investment officer at Allan Gray said its researchers had done a lot of digging around Net1 and its subsidiary Cash Paymaster Services and had confirmed many of the concerns raised. "Clearly with Net1 we didn’t know what we should have known," Lapping said. Allan Gray would collate the information and present it to the Net1 board. It was still hoping the Net1 board would implement promised changes, including the appointment of new nonexecutive directors. Lapping’s comment...
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