Thoshan Panday Denied Bail in Durban Tax Fraud Case
The Durban magistrate’s court, in a decisive move on Monday, rebuffed the bail request of businessman Thoshan Panday in connection to his alleged involvement in a tax fraud scheme.
Panday, aged 52, had made his initial appearance the prior week, facing a staggering 27 charges of fraud or, alternatively, violations of tax laws. His legal troubles did not begin here—prior to this recent arrest, Panday and eight others, including former KwaZulu-Natal police commissioner Mmamonnye Ngobeni, were implicated in a racketeering and corruption case, which is currently before the Durban high court.
The prosecutor, armed with an affidavit from the lead investigator, contended that Panday represented a significant flight risk, according to Henry Mamothame, spokesperson for the Independent Directorate Against Corruption (IDAC).
The prosecution posited that releasing Panday on bail would undermine the pursuit of justice, given his proven unreliability and the tangible threat of his absconding,” – Henry Mamothame, IDAC Spokesperson
Mamothame further elaborated that, with respect to the ongoing high court case, Panday had been previously granted bail under strict conditions, one of which required him to relinquish his passport to the investigating authorities.
Yet, in a brazen defiance of these terms, Panday had misrepresented his intentions in 2022 by claiming he needed his passport for travel to multiple European locations between December 2022 and January 2023. Contrary to this, Panday had covertly ventured to the United States, flouting the high court’s travel restriction, which only sanctioned European travel.
Mamothame added that upon entering the United States, Panday had utilised a passport that, in prior court proceedings, he had sworn was lost—a claim he also formally reported to the Department of Home Affairs. Further compounding the deception, on his departure from the U.S., Panday presented yet another passport, and on his return to South Africa, he again claimed this one had been lost.
“The prosecution posited that releasing Panday on bail would undermine the pursuit of justice, given his proven unreliability and the tangible threat of his absconding,” Mamothame said.
Additionally, the prosecution highlighted instances where Panday had interfered with state witnesses, attempted to bribe an investigating officer, and maintained an opulent lifestyle despite having assets frozen by the Asset Forfeiture Unit.
These payments, the state claims, stemmed from a corrupt nexus between Panday and members of the police’s supply chain management division…” – referring to the alleged R47 million fraud
Ultimately, the magistrate concurred with the prosecution’s arguments and denied Panday’s bail application.
In the parallel corruption case before the high court, the state has alleged that Panday, in essence, commanded a web of entities that received substantial sums—totalling R47 million—from the South African Police Service. These payments, the state claims, stemmed from a corrupt nexus between Panday and members of the police’s supply chain management division, with the funds allegedly exchanged for services rendered both before and during the 2010 FIFA World Cup.
The tax fraud case has been adjourned until September 25, when Panday is expected to be served with a formal indictment.
5 FAQs: Thoshan Panday Denied Bail
Why was Thoshan Panday denied bail?
The Durban magistrate’s court denied Panday bail, citing concerns that he posed a significant flight risk. He had previously violated bail conditions in the other case by travelling to the United States using a passport he claimed was lost. He is also accused of interfering with state witnesses and attempting to bribe an investigating officer.
What is the alleged R47 million SAPS corruption scandal about?
The state alleges that Panday’s companies received R47 million from SAPS through corrupt dealings with members of the police’s supply chain management division. These payments were allegedly made in exchange for services rendered before and during the 2010 FIFA World Cup.
What happens next in the Thoshan Panday cases?
The tax fraud case has been adjourned until September 25, when Panday is expected to be formally indicted. The separate corruption case, where he is implicated alongside Mmamonnye Ngobeni, is ongoing in the Durban high court.
Who is Thoshan Panday?
Thoshan Panday is a South African businessman who has been implicated in various corruption and fraud cases. He is known for his alleged involvement in a R47 million fraud scheme related to the South African Police Service (SAPS) and a separate tax fraud case.
What are the charges against Thoshan Panday?
In the recent case, Panday faces 27 charges related to tax fraud and violations of tax laws. He is also implicated in a separate, ongoing case involving racketeering and corruption alongside former KwaZulu-Natal police commissioner Mmamonnye Ngobeni.