Johannesburg MMC Kabelo Gwamanda on Special Leave Amid Fraud Allegations

Johannesburg MMC Kabelo Gwamanda Placed on Special Leave Amid Fraud Allegations

Johannesburg is facing political upheaval as the city’s MMC for Community Development, Kabelo Gwamanda, has been placed on special leave. This follows his arrest over fraud allegations. The Kabelo Gwamanda fraud case involves a funeral policy scam in Soweto that dates back to 2011 and 2012. Mayor Dada Morero made this decision swiftly after the arrest.

Mayor Morero’s Swift Action

On Tuesday, Mayor Dada Morero informed Gwamanda that he would be relieved of his duties as MMC. The allegations in the Kabelo Gwamanda fraud case are serious and have prompted a fast response to protect the integrity of the city’s leadership.

“The severity of these allegations demands a proactive response to protect the integrity of the office of the executive mayor,” Morero said. “In line with the city’s commitment to integrity, good governance, and accountability, I have decided to place Gwamanda on special leave, effective immediately, and relieve him of all his executive duties.”

Morero assured the public that service delivery will not be affected as an acting MMC will be appointed to step in during Gwamanda’s absence.

Understanding the Kabelo Gwamanda Fraud Allegations

Gwamanda, a former mayor of Johannesburg, was arrested in connection with a funeral policy scheme that defrauded Soweto residents. The Kabelo Gwamanda fraud investigation reveals that his company, Ithemba Lama Afrika, collected monthly payments for funeral insurance but disappeared when clients attempted to claim their benefits.

In 2023, an investigation by the Financial Sector Conduct Authority (FSCA) found that Gwamanda had been running the illegal business. One victim reported buying a funeral policy, but when she tried to find the company’s office, it had closed. She later learned that the directors had allegedly committed suicide. To her surprise, Gwamanda resurfaced years later as the mayor of Johannesburg.

Political Ramifications

The Kabelo Gwamanda fraud case has significant political implications. Many believe Gwamanda could be forced to step aside from his position. Although he has been released on bail, the investigation is ongoing, and more details are expected.

Mayor Morero’s decision to place Gwamanda on special leave shows the city’s commitment to transparency and good governance. As the Kabelo Gwamanda fraud investigation continues, residents will be watching closely to see how it impacts Johannesburg’s leadership.