Businessman Thoshan Panday, who has been embroiled in various legal battles, has recently been granted bail of R100 000 by the Durban Magistrate’s Court. Panday, who was initially arrested on tax-related charges, has been in custody since September.
Prior to the tax-related charges, Panday was implicated in a scandal involving former KwaZulu-Natal police commissioner Mmamonnye Ngobeni and others. The charges against them revolved around racketeering, fraud, and corruption related to a R47 million Fifa Soccer World Cup tender scandal. Panday’s company was awarded contracts by the South African Police Service to provide accommodation during the event.
While Panday was granted bail in the Fifa scandal case, he was subsequently arrested on tax fraud charges. The state alleges that Panday made misrepresentations to the South African Revenue Service (Sars) in an attempt to evade tax, assist others in tax evasion, or obtain undue tax returns. The total potential prejudice to Sars in the 27 counts amounts to more than R7.5 million.
Initially, Panday’s bail application in the tax fraud case was denied by the Durban Magistrate’s Court due to his violation of bail conditions. It was argued that Panday had disregarded his bail conditions by using a passport he had reported as lost to travel to the United States instead of for business purposes.
Following his bail grant of R100 000, Panday is required to appear in the Durban High Court on 15 February next year for both the corruption and tax fraud cases. Additionally, there have been allegations that Panday received preferential treatment by spending time in private hospitals instead of in prison, prompting an investigation by Correctional Services Commissioner Makgothi Thobekgale.
Correctional Services Minister Pieter Groenewald conducted spot visits to prisons where Panday and another convicted prisoner, Rajivee Soni, were alleged to have bribed authorities for special treatment. The investigation aims to uncover any misconduct and ensure that all prisoners are treated fairly and according to the law.
