State opposes relaxing Thoshan Panday’s bail conditions for overseas holiday

Panday's 25-year-old son, who is employed by a bank, is allegedly going to pay for the trip

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The state has opposed a plea from corruption-accused Umhlanga businessman Thoshan Panday that his bail conditions be relaxed so that he can travel to Turkey and the UAE with his family from 20 December to 3 January.

In the state’s application in opposition to the eased bail conditions, investigator Colonel Phillip Herbst said he did not think Panday had shared all the important information affecting the court’s decision on changing his bail conditions.

The application was set down for hearing on Monday in the Durban High Court but was adjourned, according to the Investigating Directorate (ID) spokesperson, Sindisiwe Seboka, for the state to peruse the state’s affidavit.

In his affidavit, Herbst said that Panday had purchased Ferraris worth millions and continued to run his former businesses, although they have been transferred to different ownership since he was charged with corruption.

Panday made the application in November.

According to advocate Jimmy Howse SC, acting for Panday, the businessman’s 25-year-old son was going to be paying for the trip since Panday’s assets had been seized by the National Prosecuting Authority’s (NPA) Asset Forfeiture Unit (AFU) and the Investigating Directorate (ID).

The criminal syndicate that Panday allegedly led, has been accused of acting in common purpose to deprive SAPS of over R47,3 million through acts of fraud, corruption, forgery, bribery and money laundering before and during the 2010 Soccer World Cup.

According to Herbst’s affidavit, Panday’s son works at a bank and doesn’t earn enough to pay for an overseas trip for the entire family.

Herbst said the application did not reflect the cost of the trip. “The cheapest flight for six people-being the applicant, his former wife [also an accused in the case] and four children, will cost approximately R169 092. The most expensive will be approximately R364 002.”

Herbst’s affidavit also revealed that Panday had ordered a Ferrari, which was paid for by one of the companies he used to own. While under investigation and having his assets restrained by the state, he registered another company in October, which he changed ownership of in December, after he found out that the state knew about it. While the company was still in his name, he purchased a Ferrari for R7,9 million. According to the state he has ordered another Ferrari, which can cost up to R14 million.

Background to the state’s allegations

The state alleges that three former SAPS officials failed to follow the prescripts of the Public Finance Management Act by, among other things, deliberately delaying applications for procurement authority from the national office for accommodation for the 2010 Soccer World Cup.

“They deliberately didn’t follow up on invitations they had sent to existing service providers [who charged reasonable rates]; thereby causing the need to procure accommodation for SAPS members for the 2010 World Cup on an urgent basis and at inflated rates, a mere couple of days before the event was due to start,” said Seboka.

She said said their intentional delay in procuring accommodation well in advance of the 2010 SWC, led to an urgent deviation from normal procurement processes, which had to be processed in haste by the national office.

“Goldcoast (of which Panday is the sole member) was awarded orders for accommodation for police members deployed within the KZN province during times of unrest from October 2009, at inflated rates. Goldcoast was awarded 80% of the accommodation order for the 2010 SWC, and charged SAPS rates which were much higher than other service providers,” said Seboka.

The five entities alleged to have been controlled by and associated with Panday, were paid over R47,3 million by SAPS between October 2009 and August 2010 (Goldcoast R39 336 283, Valotone R3 515 704, Bravosat R2 079 469, Kaseev Traders R1 552 019 and Unite Mzansi R863 122).

According to the NPA, Panday misrepresented that Goldcoast had secured block bookings in 2008 for the 2010 SWC, which was false. Panday then had to place police members in venues, paid them a low rate and claimed inflated rates from SAPS.

“In addition, Goldcoast and four other entities associated with him through family member ownership, received orders approved by [colonel Navin] Madhoe and [former police captain Aswin] Narainpershad for miscellaneous goods required by SAPS members for the 2010 Soccer World Cup, through fraud including cover quoting and forgery,” said Seboka.

The state has not previously opposed Panday’s travel applications, but during one of those trips, according to the state, Panday took a detour using a passport that he previously said he had lost.

An unedited version of this story was first published by The Witness.

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