S. African Social Agency Files Case Against Grindrod, Net 1

The South African Social Security Agency on Wednesday filed a criminal complaint against units of Grindrod Ltd. and Net 1 UEPS Technologies Inc. over alleged illegal deductions from welfare grants.

Sassa says that the companies, which distribute grants and operate bank accounts for welfare recipients, failed to comply with amended regulations barring deductions.
Grindrod Bank will continue to seek clarity from a court on the new regulations and its legal obligations, it said in an e-mailed response to queries.

“Grindrod Bank is of the view that Sassa misinterprets these newly amended regulations,” the company said. “Adhering to Sassa’s interpretation would put Grindrod Bank in conflict with the requirements of the National Payment Systems’ rules.”

The Sassa filed its case against Grindrod Bank and Net 1’s Cash Paymaster Services unit in Pretoria, the country’s capital.

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