Publications
Partners
Johannesburg – The Democratic Alliance (DA) wants the R1.1bn profit generated by Cash Paymaster Services (CPS) to be investigated by Treasury’s Chief Procurement Officer.
This comes as CPS, owned by Net1, has filed audited financial statements in compliance with an order by the Constitutional Court earlier this year.
- CPS coy on its expected profit on new Sassa deal
- Net1 revenue from SA ops over R800m despite 'public attacks'
The DA wants the probe to reveal if CPS had misled government, or if the Department of Social Development and the South African Social Security Agency (Sassa) had agreed to the profit margin, MP Bridget Masango wrote in a letter to Finance Minister Malusi Gigaba.
“Such extraordinary profiteering from public money an insult to poor South Africans,” said Masango. “It also may contradict the Constitutional Court order from 2014 which banned CPS from making any further profits from the invalid contract,” she added.
“We believe that the Chief Procurement Officer must investigate the terms under which this contract was concluded that allowed for such obscene profits to be made.”
READ: Net1 to pay outgoing CEO over R100m
Following the Sassa controversy earlier this year, founder and chief executive of Net1, Serge Belamant announced his retirement.
Bloomberg reported that Belamant would be paid $8m (R105m) as well as a 14% premium on his shares. He will also be paid $50 000 (R657 165) monthly to consult for the company.
Read Fin24's top stories trending on Twitter: Fin24’s top stories
