Businessman Thoshan Panday’s tax fraud trial set for October

The corruption case against Durban businessman Thoshan Panday and his eight co-accused has been postponed for a pre-trial hearing.

Panday and his co-accused appeared in the Durban High Court on Thursday. He faces fraud and corruption charges concerning the 2010 Soccer World Cup in South Africa.

Pre-trial

Investigating Directorate Against Corruption (IDAC) spokesperson Henry Mamothame said the court postponed the corruption case to 08 May 2025.

“The case was postponed for the outcome of the defence’s appeal on the court’s decision granting leave to appeal a ruling that compels the state to disclose certain information to the accused. The court further set this matter for pretrial.”  

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The 52-year-old Panday faces charges of fraud and corruption relating to the 2010 FIFA World Cup. It is alleged that they colluded to award a contract valued at over R47 million for accommodation for the Saps.

The eight other accused in the case include former KwaZulu-Natal (KZN) police commissioner Mmamonnye Ngobeni.

Sars tax fraud

Panday, who had been in custody since September after being arrested on tax-related charges, was granted bail of R100 000 by the Durban Magistrate’s Court in December.

Panday was granted bail on the 2010 FIFA World Cup matter but was arrested on the tax charges in September.

In the tax fraud case, the state alleged that Panday misrepresented to the South African Revenue Service (Sars) to either evade tax, assist others in evading tax or obtain undue tax returns.

It is alleged that SARS had suffered prejudice in the amount of approximately R 7.3 million due to these false tax declarations.

Bail

When Panday initially applied for bail in the tax fraud case, bail was denied on the grounds that he had violated his bail conditions.

During court proceedings, the prosecutor, relying on an affidavit from the investigating officer, argued that Panday was a flight risk if granted bail.

ALSO READ: Thoshan Panday hit with more than 20 tax fraud charges

In her judgment, Judge Esther Steyn concluded that Panday is a flight risk, considering that he had supplied false information to the court when he applied for a variation of the bail condition to travel to the United Emirates, Italy, Europe and other countries listed in his itinerary.

Unknown to the state, Panday travelled to the United States of America despite the High Court order permitting him to travel to Europe only.

Bail conditions

Mamothame said the state alleged that upon entering the USA, Panday presented a passport that he had previously stated under oath in court proceedings had been lost and that he had reported as lost to the Department of Home Affairs.

“Panday’s tax matter, wherein he is charged with four others on 27 tax fraud charges of approximately R7.5 million, also appeared before the Durban High Court. The matter was postponed to 06 to 24 October 2025 for trial.

“Meanwhile, Panday’s application to have his bail conditions relaxed in the tax matter will be heard at the Durban Magistrates’ Court on Friday, 14 February 2025. This is subsequent to the court granting him bail owing to his health condition, thus ordering him to be confined to house arrest,” Mamothame said.

‘Special treatment’

In October last year, Panday, a former business partner of Jacob Zuma’s son Edward, allegedly spent several weeks in private hospitals rather than the  Westville prison.

Correctional services commissioner Makgothi Thobekgale appointed an investigation into the allegations that Panday and convicted Pietermartizburg prisoner Rajivee Soni, were bribing authorities to receive preferential treatment, according to a Mail & Gurdian report.

Correctional Services Minister Pieter Groenewald conducted spot visits on both prisons shortly thereafter.

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