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Reading: Funeral Investment Scam: Ex-Joburg Mayor Kabelo Gwamanda’s Arrest ‘Vindicates’ DA
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The Bulrushes > Crime > Funeral Investment Scam: Ex-Joburg Mayor Kabelo Gwamanda’s Arrest ‘Vindicates’ DA
Crime

Funeral Investment Scam: Ex-Joburg Mayor Kabelo Gwamanda’s Arrest ‘Vindicates’ DA

Robert Tlapu
Robert Tlapu
Published: October 20, 2024
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5 Min Read
ARRESTED: Former Johannesburg Mayor Kabelo Gwamanda has been arrested in connection with a fraudulent funeral investment scheme
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Johannesburg – The arrest of ousted Joburg mayor Kabelo Gwamanda in connection with an alleged funeral policy scam has been met with a “we told you so” response by the Democratic Alliance (DA).

In a statement Sunday, (20 October 2024), the DA said: “Since his election as mayor, serious allegations of fraud and deception have hung over Gwamanda’s head, allegations which the DA raised as early as May 2023.

“Yet, despite these warnings, the ANC [African National Congress] chose to support him as the Mayor of Johannesburg, dismissing the concerns as mere ‘gossip’.”

RELATED: New Joburg Mayor Kabelo Gwamanda Accused Of Scam, DA Going To SAPS – The Bulrushes

Just a day into the job, in May last year, Mayor Gwamanda faced allegations that he may have been part of a “funeral investment” scam.

At the time an audio recording was doing the rounds claiming that Gwamanda and his partner only identified as Mduduzi used to run an “investment and funeral scheme called ‘iThemba Lama Africa’”. 

The DA laid a criminal complaint after victims of the scam came forward, but Gwamanda brushed aside the allegations and continued to serve as mayor.

In the statement on Sunday, the DA apportioned blame on the ANC, the Economic Freedom Fighters (EFF), and Al Jama-ah for overlooking Gwamanda’s dubious past.

“This arrest 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 [Member of the Mayoral Committee] of Community Development,” the DA said.  

Gwamanda’s alleged scam involving funeral policies defrauded innocent residents of Soweto, leaving them in financial ruin.

“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,” the statement said.

“The DA calls on the ANC and its coalition partners to reflect on the damage they have caused by enabling questionable individuals to lead our great city.

“We further demand that the legal process be allowed to run its course without any interference and that those affected by Gwamanda’s alleged fraud be given the justice they deserve.  

“Johannesburg deserves leaders who act with integrity, transparency, and accountability.

The DA said it will also write to the Executive Mayor to request an investigation into all agreements entered into under Gwamanda’s tenure as mayor and now as MMC Community Development, due to the seriousness of the allegations he was arrested for. 

RELATED: Under Fire Kabelo Gwamanda Quits As Mayor Of Johannesburg – The Bulrushes

Giving details of Gwamanda’s predicament, his Al Jama-ah party said that the former Joburg mayor and now MMC for Community Development was on Friday, (18 October 2024), requested to present himself to the Protea North  Police Station, which he fully complied with. 

“The allegation was that he [Gwamanda] had a business that had scammed a community of monies over 10 years before his involvement in politics,” Al Jama-ah said.

“The MMC [Gwamanda] was subsequently charged with fraud.”

Al Jama-ah said Gwamanda appeared before a judge the same day and was released on bail pending further investigation.  

“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.” 

The party, however, said it was surprised by the timing of the arrest which coincided with Gwamanda’s appointment to the GNU Clearing House Committee and on the eve of the highly contested street remaining 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,” Al Jama-ah said, adding: “The merits of the case are yet to be tested before a court of law.” 

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