Corruption watchdog queries IFC on Net1 investment
World Bank unit flouts standards it sets for others, says Corruption Watch
Corruption Watch, which is taking legal action against the South African Social Security Agency (Sassa) about its contract with Net1, has queried the International Finance Corporation’s (IFC’s) apparent disregard of its own standards with private-sector investments. The IFC, which is part of the World Bank Group and invests in private companies across the world, is the single largest investor in Net1. Unlike Allan Gray, which has been subjected to criticism in SA, the IFC has maintained a low profile in the controversy. In stark contrast to Allan Gray’s engagements, the IFC has demonstrated no urgency in tackling the matter. Earlier this month it said it was pushing Net1 to complete an internal investigation into its lending practices. It also wants a third party to certify Net1’s as a responsible lender. "In light of what we have seen and what we are hearing in public, we are pressing harder. It should happen this year," Andi Dervishi, IFC global head of financial technology invest...
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.