Net1 shareholder Allan Gray 'would welcome stricter grant controls'

Net1 UEPS Technologies has been involved in dispersing grants to 17 million South Africans through Cash Paymaster Services.

FILE: Picture: Supplied.

JOHANNESBURG - The second largest shareholder in the company involved in possibly providing social welfare grants says it would welcome further controls of additional information being used.

Net1 UEPS Technologies has been involved in dispersing grants to 17 million South Africans through Cash Paymaster Services.

However, it came under fire for using information of grant recipients to sell additional services, leaving many cash strapped.

A new contract still needs to be signed for a company to distribute grants on 1 April, with the Social Development Department accused of leaving this to the last minute.

Bloomberg is reporting that firm Allan Gray which has a 16% investment in Net1 would welcome stricter controls of information.

There have been complaints that many grant recipients land up paying for other services, but still need the full amount.

However despite this, net1 still hasn't signed a deal with the Social Development Department to disperse grants on 1 April.

The department says it intends signing a contract with the company, but the matter is being evaluated by the Constitutional Court this week.

In 2014, the court questioned the tender process involving cash paymaster services saying the contract needed to end this month and a new service provider should be appointed.

(Edited by Zamangwane Shange)