Besides cash‚ Belamant scored some handy benefits from Net1


Besides cash‚ Belamant scored some handy benefits from Net1

Tmg Digital | 2017-06-02 10:49:19.0

Newly appointed Net1 CEO Herman Kotze.


Serge Belamant has scored some handy benefits as part of his exit package from Net1‚ where he was embroiled in controversy over the handling of social grants.

Besides a golden handshake of more than R200-million‚ Net1 has also agreed to pay for Belamant’s legal costs up to a maximum of $20‚000 (R258‚486) and to finance the costs of setting up an office in Surrey in the UK‚ as well as an administrative assistant‚ for nine months.

Even though Belamant has resigned as chief executive‚ he will still earn a handsome pay cheque as a Net1 consultant for the next two years‚ the company said in a filing to the US Securities and Exchange Commission on Tuesday.

In addition to a salary amounting to about R660‚000 a month‚ the company will also cover his “ordinary‚ necessary and reasonable business expenses‚ including travel expenses‚ consistent with the budget approved by the Company and incurred by Consultant”.

As part of his 24-month contract‚ Belamant will get to decide how he carries out his new duties and cannot be required to work more than 20 days a month or 20 hours a week.

Belamant was pressured to step down as CEO last month after outrage over the social grants saga and Net1 using the personal details of grant beneficiaries to sell its products.

Net1 subsidiary Cash Paymaster Services (CPS) has been responsible for the distribution of social grants for several years‚ even after the Constitutional Court ruled that the contract was irregular.

Earlier this year‚ the Constitutional Court allowed the SA Social Security Agency (Sassa) to extend the CPS contract for 12 months‚ after the agency said it was not ready to take from CPS.

Newly appointed Net1 CEO Herman Kotze on Thursday defended the $8-million (around R103-million) severance package paid to Belamant.

The $8-million includes a $1-million cash payment in recognition of Belamant’s lengthy company service and $7-million for his “cooperative resignation”‚ according to the filing to the Securities and Exchange Commission.

In addition‚ Belamant will also receive close to $11-million (R141.8-million) for shares that the company will buy back from him‚ plus $475‚266 (R6.13-million) in stock option pay-outs.

Kotze said the company had taken into account the income forfeited by Belamant as a result of his early retirement at age 63.

– TMG Digital/TimesLIVE

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