Net1 has lashed out at what it says are false and unsubstantiated media reports and statements made by the human rights organisation Black Sash, alleging that the JSE-listed company's subsidiary Cash Paymaster Services (CPS) has made illegal and unauthorised deductions on the bank accounts of South African Social Security Agency grant recipients.
A report published on Sunday said Black Sash claimed that millions of grant recipients had been ripped off and said the organisation, together with the Association of Community Advice Officers of SA, were leading a campaign "to stop the abuse of the outsourced social-grant payment system, currently administered by CPS".
"Unscrupulous lenders are swooping on social-grant recipients, getting access to their grant money and hitting them up for cellphone airtime, funeral insurance and even micro loans".
The organisation claimed that, in some cases, recipients have had nearly all their grant money deducted to pay for these products.
In a lengthy media statement today, Net1 said it wished to put the facts on record, saying the banking industry is experiencing a general problem with unauthorised debit orders. "Grant beneficiaries, who all have bank accounts, are also at times affected by unscrupulous entities who execute unlawful debit orders. CPS is working tirelessly to eradicate the risk to grant beneficiaries through biometric technology."
Live audit
Net1 says, in November 2013, the company demonstrated its financial products, collection systems and processes, and the security technology involved in these to both the Black Sash and the Legal Resource Centre. "[Net1] answered all questions honestly and transparently [and] a live audit was conducted in the presence of representatives from the Black Sash to demonstrate that no unlawful deductions were being made by CPS.
"We have not received any further communication from, or been asked any questions by the Black Sash regarding these or any other issues since then. We have been in communication with the LRC since and have assisted the LRC to investigate complaints by beneficiaries.
Net1 refers to another report, published today, in which Black Sash did not allege illegality, but rather immorality. "We note that in today's release [Black Sash] does not allege any illegality on the part of Net 1 or CPS.
"Therefore, Net1 and its subsidiaries, including CPS, assert that any allegation of unlawful and unauthorised deductions made by CPS, as asserted in the documentation distributed for the media briefing, is baseless and defamatory."
Parliament briefing
A media invitation, for a briefing set to take place in Parliament tomorrow, reads: "Members of the media are invited to a joint media briefing by social development minister Bathabile Dlamini, and the Black Sash. A pronouncement will be made on how unauthorised and unlawful deductions by CPS from social grants beneficiaries will be dealt with going forward.
"In February Black Sash wrote a letter to the minister bringing to her attention how money was deducted from social grants beneficiaries without their consent. Minister Dlamini established a task team to investigate, report and recommend to her how the unlawful deductions should be stopped. The task team has completed its investigation and has tabled the report before the minister with recommendations. Minister will announce steps the department will take to stop the illegal deductions."
Net1 says it has collaborated fully with various organisations "and provided proof on numerous occasions that we ensure that any debit order instruction effected by us is properly authorised, verified and documented".
The said media briefing will take place at 10am tomorrow, at Parliament in Cape Town.
Share