South African Constitutional Court Sets Aside Appeals Court Decision
29 November 2013 - 1:15PM
Marketwired
South African Constitutional Court Sets Aside Appeals Court
Decision
JOHANNESBURG, SOUTH AFRICA--(Marketwired - Nov 29, 2013) - Net 1
UEPS Technologies Inc. (NASDAQ:UEPS)(JSE:NT1) today announced that
the South African Constitutional Court ("Constitutional Court")
ruled that the tender process followed by the South African Social
Security Agency ("SASSA") in awarding a contract to Net1's wholly
owned subsidiary Cash Paymaster Services (Proprietary) Limited
("CPS") was constitutionally invalid. However, the Constitutional
Court suspended its declaration of invalidity pending determination
of a just and equitable remedy. The grant of a just and equitable
remedy is reserved pending a further hearing, which has been set
for February 11, 2014. The parties have been ordered to submit
additional information on affidavit by January 30, 2014. Finally,
the Constitutional Court ordered the CEO of SASSA, SASSA and the
Company to pay costs, including the cost of three counsel, in the
High Court, South African Appeals Court and the Constitutional
Court to AllPay Consolidated Investment Holdings Limited
("AllPay").
The Company cannot predict what the outcome of the February 2014
hearing will be. The contract between SASSA and CPS to distribute
social welfare grants to ten million South Africans every month
remains in full force and effect until the Constitutional Court
determines the appropriate remedy.
The Constitutional Court is the highest court in South Africa
and this judgment follows an appeal by AllPay, an unsuccessful
bidder, against the unanimous judgment by the South African Appeals
Court on March 27, 2013, that the tender process was valid and
legal. The full Constitutional Court judgment is available on the
Company's website at www.net1.com.
The Company may issue further comment on the ruling once it has
had sufficient time to study the full judgment.
About Net1 (www.net1.com)
Net1 is a leading provider of alternative payment systems that
leverage its Universal Electronic Payment System, or UEPS, to
facilitate biometrically secure, real-time electronic transaction
processing to unbanked and under-banked populations of developing
economies around the world in an online or offline environment.
Net1's UEPS/EMV solution is also completely interoperable with
global EMV standards that seamlessly permit access to all the UEPS
functionality in a traditional EMV environment. In addition to
payments, UEPS can be used for banking, healthcare management,
payroll, remittances, voting and identification.
Net1 operates market-leading payment processors in South Africa,
Republic of Korea, and Ghana. In addition, Net1's proprietary
Mobile Virtual Card technology offers secure mobile payments and
banking services in developed and emerging countries while its
MediKredit and XeoHealth subsidiaries provide its proprietary 5010
and ICD-10 compliant real-time claims adjudication system.
Net1 has a primary listing on the Nasdaq and a secondary listing
on the JSE Limited.
Forward-Looking Statements
This announcement contains forward-looking statements that
involve known and unknown risks and uncertainties. A discussion of
various factors that cause our actual results, levels of activity,
performance or achievements to differ materially from those
expressed in such forward-looking statements are included in our
filings with the Securities and Exchange Commission. We undertake
no obligation to revise any of these statements to reflect future
events.
Investor Relations Contact:Net 1 UEPS Technologies Inc.Dhruv
ChopraManaging Director+1-917-767-6722dchopra@net1.com
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