Net1 Says South African Subsidiary CPS Doesn't Share SASSA Beneficiary Data With Other Subsidiaries

Global payments company, Net1 UEPS Technologies (Net1), which pays South African social security beneficiaries on behalf of the government has said that it's South African subsidiary, Cash Paymaster Services (CPS), does not share South African Social Security Agency (SASSA) beneficiary data with any of its other subsidiaries. This is contained in a KPMG report which Net1 comissioned after two of its shareholders raised concerns about its business practices.

"After two of our largest shareholders recently publicly encouraged us to procure an external review of our business practices to determine the truth or falsity of the accusations made against us; our Board concluded that such a review would assist us in setting the record straight." said Net1 in a statement.

The accusations against Net1 alleged that the company's varioius subsidiaries are improperly marketing loans and other financial products to more than 17 million South Africans on social security.

Net1 say these allegations are false, citing the KPMG report and emphasizing that their South African subsidiary, CPS, does not share any SASSA beneficiary data with other Net1 subsidiaries.

"Net1's Moneyline and Smart Life sales teams do not market or sell products inside the secured area of pay-points and are treated no differently from the many other service providers present near pay-points," explained Net1 with regards to claims that its salespeople target social security recipents. The company further said that it does not perform any "recurring or unauthorised monthly deductions or debits" for any services by its subsidiaries.

Whether this internal audit report by Net1 will convince many who have claimed that the company abuses the social security beneficiary data for the benefit of its subsidiaries remains to be seen.

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