Ex-Prasa boss in a R55 million battle with the taxman

Former Passenger Rail Agency of South Africa (Prasa) CEO turned uMkhnoto we Sizwe Party (MKP) member of parliament (MP), Tshepo Lucky Montana, has doubled down on his claims against the country’s revenue service.

He has alleged that there is an orchestrated “political witch hunt” against him, claiming in a press briefing on 13 October that he does not owe the South African Revenue Service (SARS) a cent.

This comes after a rare and highly public move, where SARS disclosed detailed taxpayer information about Montana.

Over the weekend, the revenue service revealed that the MP owes them R55,133,282.94.

SARS said it acted under section 67(5) of the Tax Administration Act, which permits disclosure of taxpayer information to counteract “false statements that could undermine public confidence in the tax system.”

Montana made claims in the media and via legal channels, alleging “abuse of powers,” “maladministration,” a “politically motivated witch hunt,” and that SARS had “fraudulently doctored a fake court judgment to justify a hefty tax bill.”

On October 7, 2025, Montana announced he had “laid charges” with the South African Police Service (SAPS) against SARS Commissioner Edward Kieswetter.

He described these actions were aimed at intimidating him due to his political affiliations and past criticisms of state institutions.

The tax man rejected these claims, noting that Montana was not a political representative at the time the matter arose around 15 years ago.

“This matter can therefore never be about his politics or a political witch-hunt,” SARS said.

It emphasised that all actions taken against Montana have been lawful and will remain subject to judicial scrutiny.

The agency also confirmed it will cooperate fully with any investigation by SAPS or the National Prosecuting Authority stemming from Montana’s allegations.

On 8 August 2025, Montana submitted a compromise offer of approximately R5.4-million.

SARS noted that a prerequisite for considering such an offer is that the tax debt must be undisputed and requested that Montana provide the required legal and formal information by 14 October 2025.

“It is therefore untenable for Mr Montana to publicly attack SARS and its officials, whilst simultaneously seeking a compromise of a tax debt he accepts.”

The dispute

The dispute began with Montana’s failure to submit tax returns for the 2017, 2018, and 2019 years of assessment.

SARS subsequently audited his 2009–2019 income, issuing a Letter of Findings on 7 July 2021 that proposed additional income tax assessments of approximately R15.5 million.

Montana was granted multiple extensions to respond, but his submissions were limited and did not address the majority of the audit findings, said SARS.

By April 2022, SARS had finalised assessments totaling roughly R28 million, including penalties.

Although Montana was advised of his right to formally object, he either submitted partial objections or requested extensions that he did not use to submit a valid objection.

Under section 100 of the Tax Administration Act, the assessments therefore became final and binding.

Montana also had an outstanding 2015 tax liability exceeding R1.8 million. SARS filed certified statements with the High Court in October 2019 and August 2022, which have the effect of civil judgments.

Due to non-payment, SARS launched a sequestration application against Montana’s estate on 22 May 2023.

Multiple attempts to serve him at various addresses failed, leading the court to allow service via email and public notice

Montana previously made similar claims in court in Montana v Commissioner for the South African Revenue Service.

The Gauteng High Court ruled that Montana’s allegations of maladministration, abuse of power, and political witch hunting were “scandalous and vexatious,” “unsupported by facts,” and “constitute gratuitous abuse.”

The court issued a punitive cost order against Montana.

Montana’s legal threats

Montana held a media briefing in Johannesburg today to respond to SARS’s disclosure of his alleged R55-million tax debt.

Montana denied owing SARS, dismissing the figure as fabricated and challenging the agency to produce court documents.

He described the debt as stemming from a “fake court judgment” issued without due process.

Montana accused Kieswetter and officials of fraud, maladministration, and abuse of power, once again calling the investigation a “politically motivated witch-hunt” linked to his political affiliation.

He criticised SARS’s recent briefing as an illegal disclosure of confidential tax information, including his R5.4-million compromise offer, and reiterated criminal charges he filed with SAPS on 7 October 2025.

In a combative 45-minute session, Montana announced plans to sue SARS to nullify the judgment, seek damages for reputational harm, and bar further disclosures.

Motana’s time at Prasa and turn to MP

Appointed Prasa group CEO in 2010, Montana promised to modernise South Africa’s rail network, including a multi-billion-rand tender for new locomotives and plans for a Johannesburg “centre of excellence.”

His tenure, however, was marred by controversy: the R3.5 billion CAF locomotive deal proved incompatible with local infrastructure, causing a R2.65 billion loss.

The 2015 Public Protector report Derailed detailed systemic maladministration, irregular tender awards, and conflicts of interest involving senior officials, including cases where individuals with PRASA ties secured contracts through questionable means.

Other questionable contracts, including a R100 million training deal with Prodigy Business Solutions, raised corruption concerns.

Montana also clashed with the Prasa board, allegedly orchestrating the removal of dissenting executives.

Under pressure, he announced in April 2015 he would step down in 2016, but was effectively removed earlier following the locomotive scandal.

According to reports, there was a loss of about 129 million passenger trips annually by the end of his tenure.

Journalist Pieter-Louis Myburgh’s report about the property transactions between Montana and lawyer Riaan van der Walt, showed they had a relationship with Montana and did legal work for Siyangena Technologies, which received tenders from Prasa.

The 2021 Zondo Commission on State Capture recommended that the Hawks conduct expedited criminal investigations into his alleged misconduct, including potential prosecution for Prasa’s “slide into almost total ruin.”

Montana joined former president Jacob Zuma’s MKP in late June 2024 alongside other prominent SOE figures like Brian Molefe and Tom Moyane.

R7.5 billion PRASA train scandal