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
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.