Top cops linked to R60m sleaze probe

A dramatic revelation in court naming businessman Toshan Panday as the source of a R2-million bribe allegedly offered to a Hawks general is set to lift the lid on corruption to the tune of R60-million reaching into top echelons of the SA Police Service.

The KwaZulu-Natal businessman stands accused of colluding with top cops to inflate police bills at hotels and B&Bs by up to 400%.

Soon after the Hawks corruption probe was launched, Panday bankrolled a lavish birthday party for the husband of KwaZulu-Natal provincial commissioner Lieutenant-General Mamunye Ngobeni.

Colonel Navin Madhoe, who headed the police's provincial supply chain management office, allegedly rigged procurement processes to make sure all accommodation deals in the province went to companies linked to Panday.

Madhoe was arrested in a sting operation on September 8 after he allegedly offered provincial Hawks boss Major-General Johan Booysen R2-million to throw the case.

During Madhoe's bail hearing at the Commercial Crimes Court in Durban on Friday, it emerged he had allegedly told detectives shortly after his arrest that Panday gave him the money. The case was postponed and he remains in custody.

His lawyer Ravindra Maniklall said the allegations "are not going to go unchallenged".

State prosecutor Bheki Manyati told the court more arrests of top police officers were imminent.

The Sunday Times pieced together the dramatic events of the sting from three senior police officials close to the case who spoke on condition of anonymity.

Madhoe is accused of trying to bribe Booysen to backdate a preliminary report from investigators used to obtain warrants to raid Panday's home and businesses, and access his bank accounts.

After Madhoe proposed the bribe, Booysen reported the incident to national Hawks head General Anwa Dramat. Soon afterwards the sting operation was set in motion.

After several meetings with Madhoe it was agreed the handover would take place in the police headquarters basement.

After Booysen gave him the report with a predated stamp Madhoe dumped a suitcase containing R1362000 in the police general's boot. He was arrested while driving out the basement.

If the raids happened before the Hawks had applied for subpoenas it would have destroyed their case against Panday because the courts would have ruled evidence from the raids to be inadmissible.

Documents seen by the Sunday Times show while Panday was being investigated he bankrolled a lavish birthday party at the Royal Palm Hotel for Ngobeni's husband, Brigadier Lucas Ngobeni, who is the commander of Phoenix police station.

Top brass, including the provincial commissioner, attended.

Said one police officer: "That was the best party I have ever attended, the food and the drinks, everything was well organised and lavish."

Hawks investigators complained several times that senior management - and Ngobeni in particular - were trying to block the probe, papers submitted in court show.

Panday also held several meetings in Ngobeni's office.

"It was (Ngobeni) who had on three occasions tried to stop the investigations," said one investigator.

Ngobeni declined to discuss the claims against her.

"It's a very serious allegation that you are making (but) this matter is under investigation (so) I can't comment."

Investigators also became increasingly frustrated at what they saw as foot-dragging by top brass in Pretoria in appointing competent forensic auditors.

A request was sent to police headquarters in August 2010. Earlier this year a small, little-known auditing firm was appointed and then fired, fuelling suspicions that Pretoria was trying to frustrate a probe that could implicate a provincial commissioner.

Police spokesman Colonel McIntosh Polela confirmed the auditing firm's contract was cancelled because of "non-performance". He promised another company would be appointed soon "to continue with investigations".

Polela denied police brass were deliberately dragging their heels to cover up high-level corruption.

"If one of our own is implicated, we will not stand in the way of the investigation. It doesn't matter how senior the individuals are."

Documents seen by the Sunday Times show companies belonging to Panday and his relatives benefited from the deals. One Panday company, Gold Coast Trading, was paid more than R40-million in less than a year, with invoices grossly inflated.

Asked about Panday supplying Madhoe with the money to bribe Booysen, his lawyer, Carl van der Merwe, said yesterday: "I have no knowledge of that at all."

Several attempts to reach Panday proved fruitless. - additional reporting by Mandla Zulu