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Net1 board statement on recent media reports
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 BOARD STATEMENT ON RECENT MEDIA REPORTS
Johannesburg, March 16, 2017 – Net1 (NasdaqGS: UEPS; JSE: NT1).
The board of directors of Net1 is deeply concerned with certain comments made by
senior South African government officials, Members of Parliament, shareholders and
reporters concerning the alleged “unacceptable and arrogant” attitude displayed by
Cash Paymaster Services (Pty) Ltd (“CPS”), the Net1 subsidiary that distributes welfare
grants in South Africa on behalf of SASSA.
The board is also aware of the media coverage, including interviews given by CPS
relating to the grant payment crisis and, in particular, the comments made after the
Constitutional Court proceedings yesterday.
The board reiterates its commitment to assist SASSA to insource the grant payment
function during the anticipated interim grant payment period.
The board regrets any arrogance, perceived or real, by CPS relating to the grant crisis,
directed at SASSA, other government bodies or potential solution providers.
The board is of the view that any of the comments made were meant most sincerely and
only with the intention of providing transparency regarding the solution currently
provided by CPS and to assist in ensuring uninterrupted service delivery to the 10.5
million grant recipients.
The board, including its Chairman, apologizes unreservedly to the South African
government, SASSA and all grant beneficiaries to the extent that comments made by
CPS were perceived as offensive, or in any way criticizing the vital process currently
underway.
Notwithstanding the above, the board respectfully reminds all participants in this
process that CPS engaged with SASSA over the last twelve months with the intent of
demonstrating the urgency, complexity and time frame required for SASSA or a new
service provider to take over from CPS. Net1 and CPS remain fully committed to assist
the Government and SASSA to ensure that no grant beneficiaries are prejudiced during
the transitional period. Notwithstanding the uncertainty regarding its arrangements with
SASSA, CPS has not in any way reduced or downgraded its operational capabilities to
deliver grants in the world class, efficient and secure manner it has maintained over the
past five years.
The board wishes to advise that no further statements or interviews by any Net1 or CPS
officials are authorised while the SASSA process and negotiations are being finalised
and pending the decision of the Constitutional Court. The board intends to appoint a
media relations agency to manage all of the group’s communications in future.
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.
Investor Relations Contact:
Dhruv Chopra
Head of Investor Relations
Phone: +1-917-767-6722
Email: dchopra@net1.com
Johannesburg
March 16, 2017
Sponsor:
Rand Merchant Bank (A division of FirstRand Bank Limited)
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