Thoshan Panday fails in bid to appeal the decision denying him bail

Durban businessman Thoshan Panday has been dealt a blow after his bid to appeal a decision denying him bail was dismissed by the KwaZulu-Natal High Court in Durban.

Panday’s appeal follows the refusal of his bail application by the Durban Magistrate’s Court last month after his arrest on 27 tax-related charges and contraventions of tax legislation.

Flight risk

Investigating Directorate Against Corruption spokesperson, Henry Mamothame, said the charges related to an amount of approximately R7.5 million.

“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 variation of the bail condition to travel to the United Emirates, Italy, Europe and other countries listed in his itinerary. 

“He instead travelled to the United States of America, deviating from what the court had authorised. The judgement also highlighted that releasing Panday on bail will bring the criminal justice into disrepute,” Mamothame said.

Mamothame said the matter will return to the Durban High Court on 24 October 2024.

Panday is facing 27 counts of fraud, alternatively contraventions of tax legislation, which outlaw false returns in respect of VAT and annual income tax.

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Tax fraud

Before his arrest, Panday was charged together with eight others, including former KwaZulu-Natal police commissioner Mmamonnye Ngobeni, with racketeering, fraud and corruption. This matter is ongoing.

The state alleges that Panday was effectively in control of several entities which had received payments from the South African Police Services (SAPS) in an amount of approximately R47 million owing to a corrupt relationship with members of the Supply Chain Management Division of the Saps.

These payments were allegedly made in respect of services rendered to the SAPS preceding and during the Soccer World Cup in 2010.

As a result, it is alleged that the South African Revenue Services (Sars) suffered prejudice in the amount of more than R 7 million as a result of these false tax declarations.

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