Net1: We're clean & we can prove it
Net 1 says it has enlisted audit firm KPMG to set the record straight after persistent allegations against it about wrongdoing.
CAPE TOWN – Net1, the company which owns Cash Paymaster Services (CPS) which is responsible for paying out social grants, has moved to defend allegations that its business practices are not above board.
Net 1 has released an independent review to prove that it’s not cheating the country's pensioners.
CPS says it's complying with a Constitutional Court order not to share any beneficiary data with other Net 1 subsidiaries.
Net 1 says given "ongoing, repetitive and false" accusations levelled against it regarding the payment of social grants, it enlisted audit firm KPMG to set the record straight.
The firm tested various Net 1 systems and payment processes, and found that the company was not selling its financial services and products through CPS.
KPMG says it also tested the purchase of electricity and airtime, and was blocked from subscribing for a recurring service.
It says it could also not find that unauthorised monthly deductions or debits were being made from grant beneficiaries for these services.
KPMG says while it did find that there were instances where more than one funeral policy premium was being deducted from a beneficiary's grant, these payments were not exceeding the 10 percent threshold set by the South African Social Security Agency (Sassa).
CPS and Net1 have faced intense scrutiny in recent months as the Sassa grant payments saga has played out in public.
CPS's contract with Sassa, which was declared invalid by the Constitutional Court in 2014, was extended for 12 months to ensure millions of grant beneficiaries continued to receive their payments while the Social Development Department and Sassa secure a plan to replace the current deal.
(Edited by Masechaba Sefularo)