Charges have been dropped against a Durban businessman accused of trying to bribe an official for a better seat at Jacob Zuma's presidential inauguration, The Star newspaper reported.

In fact, horse-racing magnate and security company owner Roy Moodley merely handed over the money as "a token of his appreciation for the efficient service rendered".

National Prosecuting Authority spokesperson Tlali Tlali confirmed to the newspaper that the charges were withdrawn on Friday after it came to their attention that "there might have been a misunderstanding".

Moodley was arrested last Wednesday when it was alleged he tried to pay a woman at the accreditation tent R100 for a "better view" of Zuma.

The National Intelligence Agency was summoned after the bribe was allegedly paid.

Moodley recently hosted a lavish birthday party for Zuma and a victory bash for the African National Congress in Umhlanga, Durban.