Evidence has Panday case reeling

IN A dramatic turn of events, the corruption case against multimillionaire Durban businessman Thoshan Panday hangs in the balance as the state’s primary witness, Goodwill Sithole from the South African Revenue Service (SARS), admitted to making mistakes during his audit of Panday’s business.

- SIPHO JACK

The revelations come amid allegations of fraud, corruption, and tax evasion facing Panday, whose company, GoldCoast, is embroiled in a significant fraud case linked to the 2010 Fifa World Cup.

During court proceedings yesterday, Sithole, an Operational Specialist in the Enforcement Investigative Audit Division at SARS, conceded that he relied on incomplete documentation and acknowledged errors in his audit process.

He said discrepancies in income and VAT declarations stemmed not only from Panday’s submissions but also from faults on his part.

“Under the declaration form, there was a mistake on the accountant’s side, and I also made some mistakes during the audit,” Sithole stated.

These admissions not only raise doubts about the state’s evidence but also place significant pressure on the prosecution team.

Cross-examined by Senior Counsel Michelle Helens, Sithole further clarified that his audit was a ‘desktop audit, meaning he considered only the documentation provided to him and did not verify each invoice.

This point was highlighted by prosecutor Talita Louw, who said Panday had submitted false claims, including documents indicated as submitted late.

Helens rebutted this assertion, stating the core issue revolved around the interpretation of personal and company expenses that SARS had not recognised.