Net1 Finalizes Recovery of Additional SASSA Implementation Costs
06 Juni 2014 - 4:30PM
Marketwired
Net1 Finalizes Recovery of Additional SASSA Implementation Costs
JOHANNESBURG, SOUTH AFRICA--(Marketwired - Jun 6, 2014) - Net 1
UEPS Technologies Inc. ("Net1" or the "Company")
(NASDAQ:UEPS)(JSE:NT1) today announced that it has received
approximately ZAR 275 million (or $25.7 million at prevailing
exchange rates) from the South African Social Security Agency
("SASSA"), related to the recovery of additional implementation
costs incurred during the beneficiary re-registration process in
fiscal 2012 and 2013. At the time, SASSA requested Net1 to
biometrically register all social grant beneficiaries (including
all child beneficiaries), in addition to the grant recipients who
were issued with the SASSA-branded UEPS/EMV smart cards. As a
result, Net1 performed approximately 11 million additional
registrations that did not form part of its monthly service fee.
After an independent verification process, SASSA agreed to pay the
ZAR 275 million as full settlement of the additional costs
incurred.
The decision to re-register all 21 million social grant
beneficiaries has enabled SASSA, through the use of Net1's
biometric search engine and data analysis tools, to identify and
remove any duplicate, invalid and non-existent grant recipients
from the grant system. The saving to the South African fiscus to
date amounts to approximately ZAR 3 billion per annum due to the
elimination of these grants.
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:Dhruv ChopraHead of Investor
Relations+1-917-767-6722dchopra@net1.comwww.net1.com
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