KPMG: No evidence of malpractice at Net1

Net1 enlisted KPMG to conduct a full review of its business practices, in the wake of allegations that it’s distributing beneficiary information to its subsidiaries and making illegal deductions from pensioners' grants.

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CAPE TOWN - Audit firm KPMG says it couldn’t find any proof that the company responsible for paying out social grants made any donations to any political party.

Net1 enlisted KPMG to conduct a full review of its business practices, in the wake of allegations that it is distributing beneficiary information to its subsidiaries and making illegal deductions from pensioners' grants for services provided by those companies.

Last month, the Constitutional Court allowed the Cash Paymaster Services contract to continue for another year because South Africa Social Security Services had no alternative.

KPMG says it went through all the cashbook payments of Net1 and its subsidiaries between April 2012 and April 2017 and could not find any payments to any of the 10 political parties it searched for.

It could also not find evidence that deductions were being made directly from grants for premiums for Net1's Smart Life funeral scheme after April 2016.

The review also found that Net1's Moneyline was not charging excessive interest or fees on its loans.

Net1 says it has not been advised that it is under investigation by the Financial Services Board for any unlicensed activities.

(Edited by Shimoney Regter)