By Charles Molele
Former Johannesburg mayor Kabelo Gwamanda was arrested on fraud charges on Friday following an investigation by the Financial Sector Conduct Authority (FSCA).
Gwamanda, currently a Member of the Mayoral Committee (MMC) for community development in Joburg, is accused of operating a fraudulent funeral policy scheme called iThemba Lama Afrika.
The Al Jama-ah party said in a media statement on Sunday that the former mayor was requested to present himself to the Protea North South African Police Service on Friday, which he fully complied with.
“The MMC was subsequently charged with fraud. He had on the same day appeared before a judge and is currently released on bail pending further investigation,” it said in a statement.
“Although the political party would like to observe and respect the sub judice nature of the matter, we as a political party reaffirm our respect for the rule of law and judicial processes as demonstrated by MMC Gwamanda.
“We are, however, surprised by the timing of the law enforcement at the time of councillor Gwamanda’s appointment to the GNU Clearing House Committee and on the eve of the highly contested street renaming from Sandton Drive to Leila Khaled Drive.
“Although we advocate for the application and enforcement of the rule of law, we would equally appreciate a fair application of such across the board; the merits of the case are yet to be tested before a court of law,” it said.
The former mayor allegedly operated the illegal business in 2012, but later vanished when his clients came looking for their money.
Soon after his election in May of last year, an audio recording started circulating on social media, suggesting that Gwamanda and a partner identified only as Mduduzi, had operated the investment and funeral scheme in Soweto.
The Democratic Alliance filed a criminal complaint after several alleged victims stepped forward.
However, Gwamanda – a member of the Al Jama-ah party, dismissed the accusations and continued in his role as mayor, maintaining his position amidst the controversy.
In a statement on Sunday, the DA welcomed Gwamanda’s arrest for his alleged funeral scam.
The DA’s Belinda Kayser-Echeozonjoku said Gwamanda’s arrest, while overdue, “not only vindicates the DA but exposes the reckless disregard the ANC, along with its coalition partners Al Jama-ah and the EFF, have shown toward the people of Johannesburg by allowing a deeply compromised individual to hold the city’s highest office and now as MMC community development”.
“Since his election as mayor, serious allegations of fraud and deception hung over Gwamanda’s head, allegations which the DA raised as early as May 2023. Yet, despite these warnings, the ANC chose to support him as the mayor of Johannesburg, dismissing the concerns as mere ‘gossip’.”
Kayser-Echeozonjoku said that for years, Gwamanda avoided accountability, even leading the city as mayor while his victims were left believing he had died, a shocking betrayal of the public’s trust.
She said the DA would write to Joburg mayor Dada Morero to request an investigation into all agreements entered into under Gwamanda’s tenure as mayor and now as MMC due to the seriousness of the allegations he was arrested for.
“The people of Johannesburg deserve better. They deserve a mayor they can trust, not one who swindles them out of their hard-earned money,” she said.
ActionSA leader Herman Mashaba also took to X (formerly Twitter) on Sunday to call for the immediate resignation of Gwamanda, not only as an MMC but also as a councillor.
“He must not only resign as an MMC, he must resign as a councillor with immediate effect. ActionSA is going to act on this,” Mashaba said.
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