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Musician and businessperson Sello “Chicco” Twala and his business partner Solly Segalo are demanding R12.4 million from the Passenger Rail Agency of SA (Prasa), saying it defaulted on 11 months of payments to their communications agency Blue Flame.
In 2013 Blue Flame scored a sizeable contract to render marketing and communication services to Prasa.
“It is sad that they are treating us like criminals. We have pitched like any other company and we got the contract,” a frustrated Twala told City Press.
“I blame the new board for sabotaging us – I’ve put my other business interests on hold to work on this project. Little did we know we would encounter financial challenges.”
But Prasa’s group chief executive, Sibusiso Sithole, said Twala and Segalo’s claims had been investigated and found to be unsubstantiated: “We’ve written to Twala and Segalo informing them that they have no legitimate claim against Prasa. This has been confirmed by an independent legal opinion that we sought and both parties are free to take civil action against us.”
On Thursday Sithole admitted the organisation, which has been in the headlines for allegations of corruption and state capture, is struggling to survive and is in a broken state.
He blamed poor governance, corruption and leadership instability.
But Twala’s having none of it.
“They should have told us from the beginning they were bleeding instead of trying to get away with not paying us,” he said.
Four months ago attorneys Amod and Van Schalk served a letter of demand to Prasa on behalf of Blue Flame. Segalo said Prasa ignored it.
The veteran music producer claimed that in May this year Prasa’s corporate secretary, Lindikhaya Zide, agreed to pay the money, but Sithole allegedly made an unreasonable request via an email from an assistant that Blue Flame give Prasa a R1.8 million discount on the R12.4 million.
City Press has seen the emails between Blue Flame and Prasa.
Prasa did not respond to queries about the emails.
Both Twala and Segalo said they rejected the offer because they felt bullied by the state-owned enterprise.
“In the past 11 months we’ve been sent from pillar to post in a pattern that has resembled what could be deemed as bullying and sabotage. Our payment has still not been processed for reasons that have nothing to do with us,” Segalo said.
Months ago they requested intervention from Transport Minister Blade Nzimande and he allegedly assigned his special adviser Nqabekaya Nqandela to intervene.
Twala and Segalo said they met Nqandela and he told them he was promised by Zide that they would be paid on or before May 15. But that did not happen.
City Press has seen messages from Nqandela stating that he had cleared with Zide that Blue Flame would be paid in May.
On Friday Nqandela admitted to City Press that because of his access to the minister this matter was escalated to him.
“In this case the matter was sent to Prasa, reviewed and feedback was given directly to the people concerned and as far as I know the matter is closed,” Nqandela said.
“How can the matter be closed when we have not been paid?” Segalo asked.
“They kept saying they would pay, the excuses went on and on. Blue Flame’s debt began to spiral out of control and our very strong relationships with suppliers suffered immensely as the agency was left to bleed,” he said.
“Our staff members have also not been paid because of a depleted cash flow. Blue Flame may be forced to close its doors and let the staff go. It’s a decision we’re not taking lightly, but one that has seen us fall from grace because of one big invoice that has not been paid to us by Prasa,” said an emotional Segalo.
Twala said the government always preached that it was helping small businesses to grow, but the same government has killed so many black businesses by not paying them on time pay.
“They don’t practise what they preach.”
