Businessman Thoshan Panday and cop appear on graft charges

Controversial businessman Thoshan Panday and police colonel Navin Madhoe appeared in the Durban magistrate's court on Friday in connection with corruption relating to a multimillion-rand police tender.

They are accused of corruption linked to 2010 Fifa World Cup police tenders involving about R47m.

The National Prosecuting Authority's Investigating Directorate spokesperson Sindisiwe Twala said three of the four people for whom arrest warrants were issued were arrested on Friday morning.

“The last accused has been spotted in Cape Town and will not appear with the others as he has not been arrested yet.”

Twala said all four had all been charged with multiple counts of corruption, while three of them face five counts of fraud, two counts of forgery, one count of uttering (when a person offers as genuine a forged instrument with the intent to defraud).

“The arrests pertain to manipulation of the tender system of the KwaZulu-Natal police services in the period 2010 valued at R47m.”

According to the charge sheet, Panday, Madhoe and a third accused, who is a police captain attached to the Supply Chain Management Services “actively associated themselves with the common purpose and worked together to manipulate the procurement process to ensure that the common goal of the orders or contracts were awarded to a specific supplier”.

The implicated business entities include Goldcast Trading CC, Unite Mzanzi Trading and Projects CC, Bravostat 25 CC, Valtone 21 CC and Kaseev Trading CC, which were represented by Panday and his relatives.

In 2009, ahead of the Soccer World Cup, the two policemen allegedly introduced Panday to Capt Kevin Stephen of the public policing unit and operational response services (ORS).

Stephen's duties entailed obtaining procurement and financial authority for all ORS deployment within KwaZulu-Natal from the supply chain management services.

“They [the police officers] indicated that Panday and or Goldcoast Trading CC would act as an agent, and would be assisting SAPS in all accommodation procurement. It was further indicated that Panday and/or Goldcoast Trading CC would be responsible for all procurement in relation to ORS detachment accommodation.

“Madhoe also indicated that from that day on that Panday and/or Goldcoast Trading CC should be contacted whenever there is any need to secure procurement accommodation.”

The police officers allegedly obtained a single quotation from Panday's company and would justify obtaining only one quotation on the basis of an emergency. Madhoe would then allegedly authorise the procurement authority and the deviation.

Panday, Madhoe and the police captain, who has not yet appeared in court, are charged with more than 200 counts of fraud.

The fourth accused, a former top cop, is accused of ordering the investigation into Panday's contracts to be stopped.

According to the charge sheet, Panday paid for the policewoman's husband's birthday party in 2010.

“Accused 4, being a person who holds a position of authority, who knew or ought reasonably to have known or suspected that any other person has committed the offence of theft, fraud, involving an amount of R100,000 or more had a responsibility to report such,” it states.

“Accused 4 at no stage declared her relationship with Panday, nor the gift or sponsorship she received from him in the manner of a surprised birthday party for her husband.”

Panday was released on R100,000 bail while Madhoe was granted R10,000 bail.

They are expected to appear in court again on November 11 when the indictment is expected to be served.

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