Share

Net 1 tumbles on US govt probe

Johannesburg - Net 1 UEPS Technologies [JSE:NT1] said the US Department of Justice is investigating whether the company had violated provisions of the Foreign Corrupt Practices Act, sending its shares down 53% to a lifetime low.

The Johannesburg-based company said it received a letter from the DOJ on November 30 informing it that the department and the FBI are investigating whether the company had made corrupt payments to South African government officials to secure a contract with the South African Social Security Agency (SASSA).

One of the company's units won the contract from the SASSA in January, making it the sole provider of social welfare distribution services in South Africa.

The agencies will also investigate if Net 1 violated federal securities laws in connection with statements made in its SEC filings regarding the SASSA contract.

The company also received a letter from the US Securities and Exchange Commission on an investigation initiated against it, Net 1 said in a regulatory statement.

Net 1 said it intends to cooperate fully with the DOJ and the SEC on the investigations.

 
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.87
+0.3%
Rand - Pound
23.86
+0.2%
Rand - Euro
20.37
+0.3%
Rand - Aus dollar
12.31
+0.2%
Rand - Yen
0.12
+0.2%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders