LEGAL CHALLENGE
Net1 not fully off hook after US officials close probe
CEO Herman Kotze says the US justice department’s letter concludes a lengthy, arduous and costly exercise
The criminal division of the US department of justice has closed its inquiry into Net1 UEPS, but has given notice that it could reopen the inquiry at any time. In a letter to the group’s US lawyer Daniel Kahn, deputy chief of the criminal division, said based upon the information known to the department, it had closed its inquiry into possible violations of the Foreign Corrupt Practices Act. However, he said, if the department received additional information, "it may reopen its inquiry". The probe was initiated in November 2012, when Barclays Africa subsidiary AllPay launched a legal challenge against the awarding of the social grant distribution contract to Net1 subsidiary Cash Paymaster Services by the South African Social Security Agency (Sassa). On Thursday, Net1 said AllPay had referred unsubstantiated South African news articles to the department, alleging or implying that the Sassa tender process was tainted by corruption involving CPS. "These actions resulted in the DOJ [dep...
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