Kabelo Gwamanda, the mayor of Johannesburg and a member of the Al Jama-ah party, has reportedly been arrested for fraud in connection with a funeral policy scam that dates back to 2011. Gwamanda, who once ran a company called Ithemba Lama Afrika selling funeral policies to Soweto residents, handed himself over to police on Friday following a warrant for his arrest issued earlier this year.
Allegations of Fraud and a Bizarre Cover-Up
Gwamanda’s company allegedly collected monthly premiums from clients for funeral policies but disappeared when clients sought refunds or needed to claim benefits. According to reports, frustrated customers were told that the company’s two directors had committed suicide. However, to their shock, one of the “dead” directors later resurfaced as the mayor of Johannesburg.
One determined client pursued the matter and eventually opened a case against Gwamanda, triggering an investigation by the Financial Sector Conduct Authority (FSCA). The FSCA found that Gwamanda had operated the business illegally and vanished with clients’ money. Despite these findings, Gwamanda, who had since risen to political prominence, denied the allegations and claimed he had resolved the issue with his clients.
Gwamanda’s Response
In an interview with the Sunday Times, Gwamanda admitted that his business had collapsed but asserted that he had taken responsibility and worked to address the concerns of his former clients. “I had taken ownership, I had presented myself to my clients and told them, ‘This is where the business is, we have failed, so what do we do and what are your expectations from me?’ And then [the matter] was closed,” he explained.
He also characterized the fraud allegations as a “character assassination,” challenging anyone with evidence of wrongdoing to come forward and file a case against him.
Political Fallout and ANC’s Response
Despite the serious allegations, the African National Congress (ANC) regional leadership in Johannesburg had previously dismissed concerns about Gwamanda’s past, describing the claims as “gossip.” ANC regional secretary Sasabona Manganye defended the decision to appoint Gwamanda as mayor, explaining that a basic vetting process had been conducted and found no criminal record or pending cases at the time. “We vetted the mayor, and he met the minimum basic requirements,” Manganye told *News24*.
However, with the recent arrest, these previous assurances will likely come under renewed scrutiny as Gwamanda’s political future hangs in the balance. As investigations continue, the scandal is likely to affect the public’s perception of the city’s leadership, already under strain due to various governance challenges.
What’s Next for Gwamanda?
Gwamanda’s arrest brings fresh attention to his past and could have broader implications for the Al Jama-ah party and its alliance with the ANC. As Gwamanda faces legal proceedings, Johannesburg residents and political analysts alike will be watching closely to see how this development impacts both his mayoral position and the stability of the city’s administration.
