Durban businessman Thoshan Panday is set to spend the weekend behind bars following his arrest on tax fraud charges. The 51-year-old appeared in the Durban Magistrate’s Court on Thursday, where the Investigating Directorate Against Corruption (IDAC) revealed that he faces 27 counts of fraud, specifically related to VAT and income tax. The alleged fraud has cost the South African Revenue Service (SARS) millions of rands.
IDAC spokesperson Henry Mamothame stated that the case has been postponed to Monday, September 9, 2024, for a formal bail application, which the state plans to oppose.
The state alleges that Panday controlled several entities that received payments from the South African Police Service (SAPS) amounting to approximately R47 million. These payments were allegedly tied to a corrupt relationship with SAPS’ Supply Chain Management Division for services rendered before and during the 2010 Soccer World Cup.
Panday is already facing charges of fraud and corruption alongside eight others in a separate case in the Durban High Court. He was previously released on R100,000 bail in that case, while his co-accused, including family members such as his mother, wife, and sister, were granted bail amounts ranging from R5,000 upwards.
Mamothame explained that the new tax fraud charges stem from false tax returns filed for entities under Panday’s control, which received SAPS payments during the 2010 and 2011 tax years. The fraudulent declarations led to SARS suffering losses amounting to R7.3 million.
The case continues next week as Panday remains in custody.