The department of home affairs is close to reaching a settlement with IT company Gijima but press reports of a R2bn payout were false, home affairs minister Nkosazana Dlamini-Zuma said on Friday.

The minister said protracted negotiations in search of an out of court settlement meant that the department’s attempts to integrate its electronic systems were on hold.

“It means if this matter is not settled it means we can’t move because if we move then they can claim that it is still under this contract,” she told a media briefing in Cape Town.

“But we are almost at the end now and in the next couple of days, we’ll be able to report it properly but is not true that there is a settlement that is giving Gijima R2bn. Absolutely not.”

She added: “For us what is important is that this matter should be behind us because we have to implement what was meant and if this matter is not gone through we are stuck, we are held to ransom, so it is very important for us to conclude and then move ahead.”

The minister said her department, national treasury and the SA Revenue Service had been involved in the discussions that ensued after the department cancelled its contract with Gijima last year.

The company, which is chaired by ANC backer Robert Gumede, was awarded the tender for the department’s “Who Am I Online?” project in 2008.

It was reported that the contract was signed for R4,5bn, though the tender was awarded for R1,9bn. — Sapa