Cape Town – Kabelo Gwamanda, a former funeral policy executive turned mayor of Johannesburg, has reportedly been arrested for alleged fraud related to his previous business dealings.
According to reports, Gwamanda, accused of running a scam through his company Ithemba Lama Afrika, allegedly sold funeral policies in Soweto but disappeared with clients’ premiums.
Timea Live reported that Gwamanda turned himself in to the police on Friday morning following the reported issuance of an arrest warrant against him in May.
He faced accusations that he misled clients by claiming his co-directors had died when they hadn’t, only to resurface as a mayor.
Gwamanda’s arrest exposes the ANC-EFF-ActionSA coalition’s failure to lead Joburg with integrity. The DA has long warned about his fraudulent activities. Joburg deserves ethical leadership that prioritises residents, not corruption. #ANCFailedJoburg #NoToCorruption #RescueJoburg https://t.co/8JLiFRmG6v pic.twitter.com/Ujah81lWuL
— DA Joburg Caucus (@DA_JHB) October 20, 2024
Gwamanda was arrested after a victim filed a case with the Protea Glen police, claiming she was unable to claim funeral policy money from his company, Ithemba Lama Afrika, according to IOL.
Following her own investigation, she discovered that the company’s offices had moved and its two directors were believed to have committed suicide.
However, she later saw Gwamanda, one of the directors, on TV as Johannesburg’s mayor.
The Financial Sector Conduct Authority (FSCA) launched an investigation into Gwamanda’s company in July 2023, and a warrant for his arrest was issued in May 2024, the reort said.
ActionSA has called for his immediate resignation as both MMC and councillor, with Herman Mashaba vowing to take action.
“He must not only resign as an MMC, he must resign as a Councillor with immediate effect. @Action4SA is going to act on this,” ActionSA leader Herman Mashaba said on social media on Sunday.
He must not only resign as an MMC, he must resign as a Councillor with immediate effect. @Action4SA is going to act on this. https://t.co/zEc79FnYVX
— Herman Mashaba (@HermanMashaba) October 20, 2024
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Compiled by Betha Madhomu
