Former Joburg Mayor Kabelo Gwamanda Arrested for Alleged Funeral Scam

Kabelo Gwamanda, the former mayor of Johannesburg and current MMC for Community Development, has been arrested in connection with a funeral policy scam that allegedly defrauded Soweto residents more than a decade ago. The arrest follows an investigation that uncovered the illegal operations of his funeral insurance company, Ithemba Lama Afrika, which left many victims without the payouts they were promised.

Gwamanda, a councillor from the Al Jama-ah party, was arrested on Friday after a victim filed a case at the Protea Glen police station earlier this year. The victim claims that Gwamanda convinced residents to make monthly payments for funeral insurance, only for the company to disappear when clients tried to claim their funds.

Details of the Alleged Scam

According to a report by the Financial Sector Conduct Authority (FSCA), Gwamanda was involved in the illegal funeral policy business back in 2012. His clients only discovered the fraud when the company’s office in Soweto mysteriously closed, and Gwamanda vanished.

One of the victims who opened the case against Gwamanda revealed that she had taken out a funeral policy with Ithemba Lama Afrika. When she later attempted to contact the company, she discovered that the business had moved without notice. The victim then learned of other Soweto residents who had also fallen prey to the scheme. According to police reports, two directors of the company allegedly committed suicide after failing to repay investors.

The victim was shocked when she saw Gwamanda, whom she believed had disappeared, appearing on television as the mayor of Johannesburg.

Arrest and Investigation

A warrant of arrest was issued for Gwamanda in May 2023, but at the time, he was in Brazil. Upon his return to South Africa, he failed to meet with the investigating officer, which led authorities to profile and track his whereabouts. Gwamanda eventually handed himself over to the police on Friday morning.

This arrest raises significant concerns about the conduct of public officials and brings attention to past financial wrongdoings. With Gwamanda now in custody, the investigation will determine the full scope of the scam and the number of victims affected.

Public Reaction

The arrest of a former mayor and current MMC has caused widespread controversy in Johannesburg. Residents, especially those in Soweto, are awaiting further developments in the case as more details emerge. The case highlights the need for stronger oversight in the funeral policy industry to protect consumers from fraudulent schemes.

Gwamanda’s fall from grace not only raises questions about accountability but also about the integrity of public officials who hold positions of power. As the investigation progresses, more information is expected to come to light.