Richard L. Cassin Publisher and Editor

Andy Spalding Senior Editor

Jessica Tillipman Senior Editor

Elizabeth K. Spahn Editor Emeritus

Cody Worthington Contributing Editor

Julie DiMauro Contributing Editor

Thomas Fox Contributing Editor

Marc Alain Bohn Contributing Editor

Bill Waite Contributing Editor

Shruti J. Shah Contributing Editor

Russell A. Stamets Contributing Editor

Richard Bistrong Contributing Editor 

Eric Carlson Contributing Editor

Bill Steinman Contributing Editor

Aarti Maharaj Contributing Editor

FCPA Blog Daily News

« Grow with the leader | Main | Chinese play 'spot the bling' »

With Net 1 investigation, the U.S. sends a message

Why investigate South Africa's Net 1 in the U.S. for payments to South African officials?

The answer is probably because the South African enforcement authorities dropped the ball.

According to Nicola Whittaker of Corruption Watch, one of Net 1’s local companies, Cash Paymaster Services, allegedly bribed government officials to win a contract from the South African Social Security Agency (Sassa). 

An unsuccessful bidder, Allpay Consolidated Investment Holdings, sued Sassa and Cash Paymaster Services earlier this year, alleging the tender process was irregular and corrupt.

The South African court agreed but refused to set aside the tender. An appeal is pending but won't be heard till next year.

As Whittaker said, 'South African authorities . . . appear to be asleep. The corruption allegations are set out in the court papers deposed to by Allpay and have been placed before the authorities by parties in the know, as is required in terms of our own corruption legislation. And yet all is quiet in SA.'

By launching the unusual investigation into Net 1's payments in South Africa, to South Africans, working for the South African government, U.S. enforcement agencies are sending a message everywhere.

'Enforce your anti-corruption laws against your own companies, or we'll enforce our laws against them.'

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
All HTML will be escaped. Hyperlinks will be created for URLs automatically.