We didn't invest in Net1 because of its contract with Sassa - Allan Gray

The current crisis at South African Social Security Agency (Sassa) has led to serious scrutiny into its relations with Cash Paymaster Services (CPS), a company that runs grant payments systems.

The Constitutional Court declared the tender that was awarded to Net1’s Cash Paymaster Services invalid and unconstitutional amid irregularities in the awarding of the deal.

One of South Africa's largest asset managers, Allan Gray, finds itself in the middle of the squabble between Sassa and CPS as it holds almost 16% of the issued share capital of Net1 on behalf of its clients.

Prof Pierre de Vos, Claude Leon Foundation Chair in Constitutional Governance at the University of Cape Town, says based on the court ruling, there are concerns in the way CPS conducts business and the ethics of the company.

Many have been asking why does a reputable company like Allan Grey invested in Net1.

Rob Dower, Chief Operating Officer of Allan Gray says they did not invest with Net1 based on the Sassa contract but it was its exciting technology that drew them to it in 2012.

I agree with Prof de Vos there are serious questions about the ethics of the company.... no matter how exciting the technology is we have to do this with our eyes open.

Rob Dower, Chief Operating Officer of Allan Gray

Remember we only have 16% of the company, we can't control things...

Rob Dower, Chief Operating Officer of Allan Gray

Dower says communication with management is ongoing based on what they hear in the media.

We keep our eyes and ears open to what is going on out there...

Rob Dower, Chief Operating Officer of Allan Gray

To hear more on this subject, please listen below:


This article first appeared on 702 : We didn't invest in Net1 because of its contract with Sassa - Allan Gray


CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Black Sash satisfied with Concourt's grip on Sassa

Black Sash satisfied with Concourt's grip on Sassa

Chief Justice Mogoeng has asked Sassa for the full details of the decision making around its inability to pay out social grants.

ConCourt wants Bathabile Dlamini to reveal full details on new CPS contract

ConCourt wants Bathabile Dlamini to reveal full details on new CPS contract

The court also wants Dlamini to clarify when she first became aware that Sassa would not be able to pay out grants.

Constitutional court summons will now provide answers to Sassa saga

Constitutional court summons will now provide answers to Sassa saga

Freedom Under Law's Chief Executive Nicole Fritz says she is confident they will get the information requested.

Sassa to answer to ConCourt

Sassa to answer to ConCourt

South Africa Social Security Agency has now been summoned to the Constitutional Court over social grant payment debacle.

ConCourt wants answers from Dlamini on Sassa saga

ConCourt wants answers from Dlamini on Sassa saga

Earlier this week CPS and Sassa confirmed that verbal consensus had been reached for a new contract, but no deal has yet been signed.

Scopa calls Finance Minister to give answers on Sassa contract number crunching

Scopa calls Finance Minister to give answers on Sassa contract number crunching

Scopa chair says it's still unclear what the plan is for 1 April, even though Minister Dlamini insists that grants will be paid.

'CPS lures grant recipients into buying insurance (and taking out microloans)'

'CPS lures grant recipients into buying insurance (and taking out microloans)'

Cash Paymaster Services shareholder Net1 UEPS is using the database of grant recipients to cross-sell services, says Sygnia’s CEO.

[Cartoon] Lost In Translation

[Cartoon] Lost In Translation

EWN's Dr Jack & Curtis take a dry look at Social Development's Lumka Oliphant's refusal to speak English to 702's Xolani Gwala.

Popular articles
What Shoprite, Checkers, Pick n Pay and Makro will offer on Black Friday

What Shoprite, Checkers, Pick n Pay and Makro will offer on Black Friday

Up for a Springboks level scrum? Instructions on how to ensure you get the deals in your inbox the moment they become known...

‘If Mugabe could be shafted so can Zuma - the view of many in SA’

‘If Mugabe could be shafted so can Zuma - the view of many in SA’

The Money Show’s Bruce Whitfield interviews independent political analyst Daniel Silke.

'Molefe doesn't fit the recruitment criterion into the SANDF'

'Molefe doesn't fit the recruitment criterion into the SANDF'

Sandu secretary, Pikkie Greef says the union will lay criminal charges against Molefe's illegal appointment in the SANDF.

I didn't believe that he was ever going to step down - JJ Cornish

I didn't believe that he was ever going to step down - JJ Cornish

EWN Africa Correspondent, JJ Cornish describes Mugabe's Sunday evening speech as a humiliating downturn for the Zim president.

 Mugabe is actually showing them that he knows this game - Njabulo Ncube

Mugabe is actually showing them that he knows this game - Njabulo Ncube

Millions tuned for the Zimbabwean president's 'resignation' speech on Sunday night and instead called for unity in Zanu-PF.