Durban businessman Thoshan Panday denied bail in alleged tax fraud case

The state argued that Panday was a flight risk and had interfered with state witnesses in another case

09 September 2024 - 22:32
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Durban businessman Thoshan Panday, who was arrested on tax fraud charges, was on Monday denied bail.
Durban businessman Thoshan Panday, who was arrested on tax fraud charges, was on Monday denied bail.
Image: Sandile Ndlovu

The Durban magistrate’s court on Monday denied businessman Thoshan Panday bail in his alleged tax fraud case. 

Panday, 52, made his first appearance last week to face 27 counts of fraud, alternatively contraventions of tax legislation.

Before his latest arrest, Panday was charged — together with eight others, including former KwaZulu-Natal police commissioner Mmamonnye Ngobeni — in the Durban high court with racketeering, fraud and corruption.

“Relying upon an affidavit of the investigating officer, the prosecutor argued that Panday was a flight risk,” Independent Directorate Against Corruption (IDAC) spokesperson Henry Mamothame said on Monday. 

Mamothame said in respect of the pending matter in the high court, Panday had been granted bail subject to stringent conditions, including that he surrender his passport to the investigating officer.

“Panday, however, contravened his bail conditions by misrepresenting to the high court in 2022 that he required his passport to enable him to travel to several destinations in Europe in December 2022, returning in January 2023.

“Unbeknown to the state, Panday travelled to the US in the face of the high court order permitting him to travel to Europe only.” 

Mamothame said the state alleged that on entering the US, Panday had presented a passport which he had previously stated under oath in court proceedings had been lost, and which he had reported as lost to the department of home affairs. 

Upon his departure from the US, Panday had presented another passport which, on his return to South Africa, he had claimed was also lost. 

“The prosecution argued that it was not in the interest of justice to grant Panday bail as he was proved not to be a credible person and thus constituted a flight risk.” 

Mamothame said the prosecution also drew attention to evidence that Panday had previously interfered with state witnesses, had tried to bribe an investigating officer and was proved to have the financial means to live a luxurious lifestyle even after his assets were restrained by the Asset Forfeiture Unit.

“The magistrate agreed with the submissions of the prosecutor and dismissed Panday’s application to be released on bail.” 

In the corruption matter before the high court, the state alleges Panday was effectively in control of several entities which had received payments from the South African Police Service, amounting to R47m, owing to a corrupt relationship formed with members of the supply chain management division of the police service. 

These payments were allegedly made by the police in respect of services rendered, preceding and during the Soccer World Cup in 2010.

The tax fraud case was postponed until September 25 for an indictment to be served. 

TimesLIVE 


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