Net1 UEPS Technologies announced today that the US Securities and Exchange Commission (SEC) investigation into the company has been concluded.
The company says it has received a letter from the Foreign Corrupt Practices Act Unit of the Division of Enforcement of the SEC, stating: "Based on the information we have as of this date, we do not intend to recommend an enforcement action by the commission against Net 1 UEPS Technologies.
"We are providing this notice under the guidelines set out in the final paragraph of Securities Act Release No 5310, which states in part that the notice 'must in no way be construed that the party has been exonerated, or that no action may ultimately result from the staff's investigation'."
Chairman and CEO of Net1 Dr Serge Belamant explains the investigation started in December 2012, following the award of the South African Social Security Agency national contract to the company in January 2012.
"It commenced largely as a result of one of the losing bidders for the contract, Barclays Africa's subsidiary, AllPay, referring unsubstantiated South African press articles alleging irregularities in the tender process to the US Department of Justice. We believe that AllPay was responsible for instigating those media allegations.
"This resulted in the DOJ [Department of Justice] and SEC initiating investigations into alleged FCPA [Foreign Corrupt Practices Act] and disclosures violations. This letter from the SEC is an important step in the company clearing its name and is in line with the total absence of any findings of irregularities against Net1 by any South African court or regulator, resulting from actions pursued by AllPay over the past three years," says Belamant.
The separate investigation into these matters initiated by Net1 with the South African Police Service's Commercial Crimes Unit is expected to be concluded shortly.
"It is the company's understanding that the DOJ investigation remains open at this time," it says.
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