Net1 is looking forward to ‘being released’ from Sassa contract
CEO Herman Kotze says the company ‘appears to have more clarity and is likely to be relieved of its constitutional obligations by September’
Cash Paymaster Services’s (CPS’s) holding company Net1 UEPS Technologies says “we look forward to being released from the social grants payment contract by the end of September”. The Nasdaq- and JSE-listed group reported on Friday morning its net income for the March quarter was $3.3m — down to nearly a sixth of the $19m it reported in the matching quarter in 2017. Revenue, however, grew 10% to $163m. Despite the Constitutional Court ordering Social Development Minister Susan Shabangu to replace CPS with another service provider to South African Social Security Agency (Sassa) in 2014, Net1 has kept the contract for the past four years via repeated applications for extensions. The Constitutional Court approved Shabangu’s latest application for an extension on March 26, but made it clear this would be the last time. “After years of uncertainty and litigation relating to the social services contract held by our subsidiary, CPS, we now appear to have more clarity and are likely to be re...
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