Corruption Watch to launch court bid for Net1 to return R1 billion profit

Corruption Watch is expected to approach the Constitutional Court in an attempt to have Cash Paymaster Services (CPS) to return some of the profit it has made from social grants to the South Africa's fiscus.

Over the past five years CPS, the Net1 subsidiary, recorded a gross profit of R1.1-billion from paying social grants on behalf of the government

We will argue that the full amount should be disgorged from CPS... and they simply be allowed to cover the costs.

David Lewis, Executive Director of Corruption Watch

Read: Net1's R1 billion profit only covers cash accounted for, says Black Sash

It was revealed this week that Net1 CEO Serge Belamant is to receive at least R263 million from the company, after agreeing to leave his job early.

Corruption Watch head David Lewis says the profits made from the social grants contract are technically illegal.

The court said no one is entitled to benefit from an illegal and invalid contract.

David Lewis, Executive Director of Corruption Watch

Take a listen to him explain:


This article first appeared on CapeTalk : Corruption Watch to launch court bid for Net1 to return R1 billion profit


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