Johannesburg - Net1 UEPS Technologies [JSE:NT1] said on
Wednesday it was co-operating fully with US authorities in their investigation
of a controversial R10bn tender awarded to it by the South African government
earlier this year.
In January‚ Net1 announced its subsidiary‚ Cash Paymaster
Services (CPS)‚ was awarded a tender by South African Social Security Agency to
distribute social grants of R500bn to more than 15-million recipients over a
Absa subsidiary AllPay challenged the decision‚ alleging
widespread corruption and irregularities in the tender process.
But Net1‚ which is listed on the Nasdaq exchange in the US
and on the JSE‚ said on Wednesday: “As a preliminary matter‚ the company
believes that it is important to note that these investigations are
investigations and not findings of wrongdoing on the part of any person and
that Net1 is fully co-operating with the investigations.”
The company said the US investigations appeared to be
directed at matters that were similar to those raised by AllPay to set aside
Shares in Net1 slid more than 50% on the JSE on Wednesday‚
but in thin volumes.
At 9:53am‚ the counter was down 55.29% at R30‚ valuing the
company at R1.751bn.