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To: Allan Gray

Allan Gray, Net1 Hands Off Our Grants

Allan Gray, Net1 Hands Off Our Grants

Stop Net1's unlawful grant deductions and accessing the grant recipients database.

Why is this important?

Allan Gray who, through various accounts, holds 15.6% of the issued shared capital of Net1. Allan Gray, similarly to other asset managers, has a publically available policy on how it incorporates sustainability considerations, such as environmental, social and governance issues, into its investment decision-making. Among the factors it lists, as being taken into account when making investment decisions, are the corporate culture and ethics of the companies it invests in. This is interesting given the unethical nature in which Net1 has been stealing from the poor through deductions made from social grant recipients.

Most asset managers forget that they are the custodians of the savings of many South Africans who would be appalled to know that they own shares in Net1 which, it appears, exploits the poorest strata of society to make a profit.

The Sassa saga was an opportunity for Allan Gray and other owners of Net1 to stand up and intervene in the manner in which the situation was handled by Net1 and in the pricing strategies it deployed.

They might not be able to change the business model of Net1 through shareholder activism alone. They can, however, choose not to hold its shares, based on ethical considerations. If more shareholders followed this approach Net1 would be forced to change its business model. 17

The Sassa saga is more than a failure of government to look after the interests of the poor. It is a failure by corporate South Africa to do the same.

Reference:
Sassa Saga: How CPS cross-sells microloans, insurance and services to poor grant recipients, Magda Wierzycka for The Daily Maverick. March 7, 2017.


Reasons for signing

  • Profiting off social security grants to vulnerable people must be the height of cynicism and outsourcing by government of the payment of these grants to private enterprise is a betrayal of taxpayers and public trust.
  • Corporate greed and its pseudo ethical facade must end. It has no place here.
  • It's only fair enough to give a helping to those in need.

Updates

2017-12-13 11:32:18 +0200

Allan Gray defends its shareholding in Net1 on the likely extension of the SASSA contract with CPS.

https://www.moneyweb.co.za/news/companies-and-deals/agdefendsshareholdingnet1/

2017-03-15 13:57:17 +0200

100 signatures reached

2017-03-15 12:48:27 +0200

50 signatures reached

2017-03-15 12:32:28 +0200

25 signatures reached

2017-03-15 12:08:24 +0200

10 signatures reached