New evidence of "observation" photographs taken of known drug dealers was presented in the Wynberg regional court during the bail application of Nazier and Said Mhatey on Tuesday.
The brothers, who are Pagad supporters, were arrested during a raid at their College Road, Rylands, home in December last yea. They were charged with possession of an illegal firearm and the possession of a pipe bomb and grenade, allegedly found in their house during a raid.
Inspector Devries Vermeulen testified that an envelope of photographs labelled "Mhatey" was found in the house of a Pagad member during a raid on an Athlone house.
The photographs were taken at the 1997 funeral of alleged Americans gang member Edmund "Ougat" Herold, the brother of Neville Herold, better known as Americans gang leader Jacky Lonty, who was also shot dead.
Vermeulen said photographs were taken of Kaldimola Madat, a person known only as "Kashief", who is believed to be a drug dealer, and a third person known only as "Sayed", a drug dealer in Hanover Park who was shot dead.
However, the relevance of the photographs to the Mhatey brothers' bail application was not explained.
During cross-examination of Inspector Johannes Kruger, a member of the crimes against the state unit, defence counsel Anton Veldhuizen put it to him that there were allegations that Kruger was a member of a "third force".
Kruger is investigating the St Elmo's, Blah Bar, Mano's Restaurant and Wynberg court blasts.
Veldhuizen also put it to Kruger that a small group of Pagad members were in cahoots with police in the bombings.
"The police catch criminals, they do not work with criminals," replied Kruger.
He said there had been 154 pipe-bomb attacks in the Western Cape since 1996, 48 of which were striker series pipe bombs where a "Widowmaker" firecracker was used as detonator.
He said the pipe bomb found in the Mhatey's house in 1996 was similar to the striker series bombs.
"It is identical in design to at least two pipe bombs - one of which exploded in Strandfontein and another which was found in Mitchell's Plain," said Kruger.
He said paint found on an unexploded pipe bomb might be of the same origin as paint found in the Mhatey house. He added that gunpowder was found in the pipe bomb discovered in the Rylands home.
Veldhuizen argued that if the illegal firearm had not been found during the raid in December last year, the Mhateys would not have been arrested.
"After the Cape Town bombs, there was so much pressure on police from the public, the press and politicians that you acted in the hope of finding something," Veldhuizen said.
Kruger said he would have made an arrest solely on the evidence found in Said Mhatey's room. This included mercury switches, cellphones and documents found on his computer relating to urban terrorism and how to make pipe bombs.
"I am under a lot of pressure, but that did not move me to make these arrests," Kruger said.
He said he had received information from informers that the Mhateys were making pipe bombs, but conceded there were no witnesses linking them to the planting of bombs in Cape Town.
Kruger also read out a profile of Said Mhatey, which referred to him as a "Muslim extremist". According to the profile, Said Mhatey was an active Pagad G-Force member. Veldhuizen objected to the profile, calling it a "smear campaign" against his client.
Magistrate J P Anandale will make a ruling on whether the profile can be used as evidence on Thursday.