R80 million legal bill deepens Prasa dispute
· Citizen
The long-running legal tussle between the state Passenger Rail Agency of South Africa (Prasa) and Siyangena Technologies, dating back to 2018, has reportedly already cost the agency more than R80 million.
Siyangena Technologies has again approached the courts to force Prasa to pay R1.27 billion for the installation of an integrated security access management system at Prasa’s 72 train stations it says is outstanding.
Visit grenadier.co.za for more information.
Prasa’s dispute with Siyangena escalates
Documents suggest the dispute has already cost the embattled rail agency tens of millions of rands in legal fees, with some estimates placing expenditure close to R100 million over the years.
Correspondence from January 2020 by Prasa’s attorneys in the matter, Werksmans Attorneys, reveals that Prasa had at the time accumulated unpaid legal bills exceeding R19 million, some outstanding for more than 180 days.
The firm had warned in a letter that failure to settle invoices risked derailing key litigation, including the Siyangena matter.
Prasa spokesperson Andiswa Makanda said the question of the amount of legal costs outstanding was asked by the standing committee on public accounts (Scopa), but Prasa had said “we need to reconcile and revert”.
The dispute has dragged on through multiple court processes.
Legal costs rise past R80m and a R1.27bn claim
A High Court in Pretoria 2020 ruling set aside the original R5 billion contract as unlawful, but ordered that an independent engineer determine the value of the work Siyangena completed.
In fresh court papers filed in the High Court in Johannesburg, Siyangena alleges Prasa has failed to comply with that order.
The company claims the independent engineer assessed the project’s value at approximately R5.16 billion, later reduced to R4.21 billion after removing profit margins.
ALSO READ: Outcry as second person killed by train in same Kempton Park spot
According to Siyangena, Prasa has paid about R2.93 billion, leaving an outstanding balance of R1.27 billion that it is now seeking to recoup through the courts.
Prasa, however, disputes the valuation and has argued it could not complete its own assessment due to missing documentation.
Prasa denies being in contempt of court
It has also denied being in contempt of court, insisting Siyangena should seek judicial determination if it wants to enforce the engineer’s findings.
Siyangena rejected this, pointing to Prasa’s own 2024-25 annual report, which confirms the agency had already rejected the independent engineer’s report and appointed external experts to conduct a separate valuation.
“Prasa’s refusal to engage with Siyangena was thus not attributable to any inability to do so. It was a deliberate and unjustifiable refusal,” Siyangena CEO Rui Ferreira said in an affidavit.
“Prasa does not want to agree to a value of the works and pay Siyangena the amount determined by the [independent engineer] and/or reflected in its own financial statements.”
The company further argues that Prasa had access to extensive documentation, more than 15 000 pages, as far back as 2018, shooting down the rail agency’s claims of an inability to engage.
Inability to engage
“Prasa has long been in possession of all documentation and information required to calculate the value of the works. The figure of R1 857 038 000, excluding VAT, was calculated by Prasa following a review and consideration of that documentation.
“It accordingly represents Prasa informed and considered assessment of the amounts owing to Siyangena. That figure has also been confirmed by Prasa auditors,” he said.
In September 2024, Transport Minister Barbara Creecy said Prasa had spent more than R5.1 million in legal fees in its failed attempt to get rid of former boss Zolani Matthews.
NOW READ: Government opens new mall in KZN and unveils Prasa’s renewable energy project