The Times newspaper reports that Gijima is negotiating a settlement payment with the Department of Home Affairs that could be as high as R2-billion.
The settlement relates to the "Who am I Online" contract that was cancelled by the Department last year.
The contract was plagued by delays and cost overruns.
The Department cancelled the whole deal shortly before the World Cup when it became clear that part of the implementation – an online visa application system – wouldn't be ready for the soccer tournament.
The Times reports that the two parties are in dicussions, and says it has information that a figure of R2-billion has been put forward as a settlement.