Net1 scored R1bn from unlawful Sassa contract

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A man in a wheelchair carries a protest placard during a demonstration by Democratic Alliance supporters on Friday, 10 March 2017, where the party led a #SaveOurGrants march to the Department of Social Development.

A man in a wheelchair carries a protest placard during a demonstration by Democratic Alliance supporters on Friday, 10 March 2017, where the party led a #SaveOurGrants march to the Department of Social Development.

web_photo_DA_grants_160317

A man in a wheelchair carries a protest placard during a demonstration by Democratic Alliance supporters on Friday, 10 March 2017, where the party led a #SaveOurGrants march to the Department of Social Development.

A man in a wheelchair carries a protest placard during a demonstration by Democratic Alliance supporters on Friday, 10 March 2017, where the party led a #SaveOurGrants march to the Department of Social Development.

JOHANNESBURG - Net1 made R1-billion in profit from its unlawful contract with the South Africa Social Security Agency (Sassa), according to KPMG.

Over a period of five years, Net1 subsidiary Cash Paymaster Services (CPS) maintained a 12.2-percent  profit margin giving out social grants, a KPMG audit shows.

 

The auditing company made the disclosure in terms of a Constitutional Court order that any benefit from the grants contract should be disclosed.

READ: Net1 CEO retires

CPS was ordered to appoint auditors and provide details of its finances when the court extended its contract with Sassa in March.

The contract will last another year. 

Minister of Social Development  Bathabile Dlamini might face questions about the level of profit exposed by KPMG's audit.