Wrap Text
Net1 comments on SASSA charges
Net 1 UEPS Technologies, Inc.
Registered in the state of Florida, USA
(IRS Employer Identification No. 98-0171860)
Nasdaq share code: UEPS
JSE share code: NT1
ISIN: US64107N2062
(“Net1” or the “Company”)
Net1 comments on SASSA charges
Johannesburg, June 17, 2016 – Net1 (NasdaqGS: UEPS; JSE: NT1) announced today that
the South African Social Security Agency (“SASSA”) has brought criminal charges against
it and Grindrod Bank Limited for failing to act in terms of the recently amended
Regulations to the Social Assistance Act (the “Regulations”) which limits the processing of
deductions from bank accounts held by SASSA beneficiaries.
SASSA’s decision to file charges today follows the Company’s announcement on June 3,
2016, that it had filed for a declaratory order with the South African High Court to provide
certainty on the interpretation of the Regulations (the “application”). SASSA indicated that
it will oppose the Company’s application but has not yet filed an answering affidavit, which
is due on June 20, 2016.
The Company has already been joined in its application by several other industry
participants, and the South African Reserve Bank (the “SARB”) has also indicated that it
will not oppose the application and will file an explanatory affidavit setting out its position
concerning the effects that new regulations will have on the national payment system
regulated by the SARB. It is not clear why SASSA has not yet filed similar criminal
charges against the approximately 1,300 other financial institutions (including most of the
major South African banks), who submitted debit orders against the bank accounts held by
SASSA beneficiaries during the June payment cycle, or if it intends to do so in order to be
consistent in its approach.
The High Court hearing on the application has been scheduled for June 28, 2016.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that leverage its Universal
Electronic Payment System (“UEPS”) or utilize its proprietary mobile technologies.
The Company operates market-leading payment processors in South Africa and the
Republic of Korea. Through Transact24, Net1 offers debit, credit and prepaid processing
and issuing services for Visa, MasterCard and ChinaUnionPay in China and other
territories across Asia-Pacific, Europe and Africa, and the United States. Through
Masterpayment, Net1 provides payment processing and enables working capital financing
in Europe.
UEPS permits the Company to facilitate biometrically secure, real-time electronic
transaction processing to unbanked and under-banked populations of developing economies
around the world in an online or offline environment. Net1’s UEPS/EMV solution is
interoperable with global EMV standards that seamlessly enable access to all the UEPS
functionality in a traditional EMV environment. In addition to payments, UEPS can be used
for banking, healthcare management, payroll, remittances, voting and identification.
Net1’s mobile technologies include its proprietary mobile payments solution - MVC, which
offers secure mobile-based payments, as well as mobile banking and prepaid value-added
services in developed and emerging countries. The Company intends to deploy its varied
mobile solutions through its ZAZOO business unit, which is an aggregation of innovative
technology companies and is based in the United Kingdom.
Net1 has a primary listing on the NASDAQ and a secondary listing on the Johannesburg
Stock Exchange.
Forward-Looking Statements
This announcement contains forward-looking statements that involve known and unknown
risks and uncertainties, including statements relating to charges filed by SASSA and the
timing or substance of any High Court ruling. A discussion of various factors that may
cause our actual results, levels of activity, performance or achievements to differ materially
from those expressed in such forward-looking statements are included in our filings with
the Securities and Exchange Commission. We undertake no obligation to revise any of
these statements to reflect future events.
Investor Relations Contact:
Dhruv Chopra
Head of Investor Relations
Phone: +1-917-767-6722
Email: dchopra@net1.com
Johannesburg
June 17, 2016
Sponsor:
Deutsche Securities (SA) Proprietary Limited
Date: 17/06/2016 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
