South Africa: Net1 announces closure of competition commission complaint

Net 1 UEPS Technologies, today announced that the Competition Commission of South Africa has declined to refer a complaint lodged against the Company and Grindrod Bank Limited by the Hon. Elza van Lingen, a Member of Parliament, to the Competition Tribunal for consideration.

The complaint alleged that Cash Paymaster Services Proprietary Limited (“CPS”), a subsidiary of the Company, provided other associates of the Company as well as Grindrod Bank with access to the database of social grant beneficiaries that CPS maintains as part of CPS’s contract with the South African Social Security Agency. The complaint further alleged that access to this database had the effect of placing Grindrod Bank and Net1 at an advantage over other banks for the provision of insurance policies, loans and prepaid airtime and electricity.

Following an investigation of the complaint, the Commission decided not to refer the matter to the Tribunal for consideration and advised the Hon. Van Lingen that she had the option of referring the matter directly to the Tribunal if she disagreed with the Commission’s decision. The Hon. Van Lingen has not referred the matter within the prescribed time and the matter has accordingly been closed.

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