By Staff Reporter
JOHANNESBURG-Kabelo Gwamanda, the former mayor of Johannesburg and a current Member of the Mayoral Committee (MMC) for community development, has been arrested in connection with an alleged funeral policy scam.
The scam was reportedly run through his company, Ithemba Lama Afrika, and is said to have targeted Soweto residents between 2011 and 2023.
According to allegations, Gwamanda conned residents into paying monthly premiums for funeral insurance.
However, when policyholders attempted to claim their benefits, they discovered that the offices had moved, and Gwamanda had disappeared. The company, Ithemba Lama Afrika, had been operating for over a decade before complaints began surfacing about fraudulent activity.
The arrest comes after a Soweto woman, one of the scheme’s alleged victims, opened a case with the Protea Glen police in January 2024. She reported that after a death in her family, she was unable to claim from her funeral policy, and her investigation revealed that there were many other victims.
Shockingly, the woman was informed that the directors of Ithemba Lama Afrika had allegedly committed suicide. Yet, to her astonishment, Gwamanda later appeared on television serving as the mayor of Johannesburg.
The Financial Sector Conduct Authority (FSCA) began investigating Ithemba Lama Afrika in July 2023 following multiple complaints. “The investigation is currently ongoing, and as such, no further details can be shared at this time,” the FSCA said in a statement.
After a warrant of arrest was issued for Gwamanda in May 2024, he failed to meet with investigators and left the country. Police had to trace him down after his return, and he finally turned himself in on Friday.
Gwamanda was appointed as MMC for community development in Johannesburg in August 2024, following his removal as mayor after serving for a year. His arrest has prompted calls from political parties, including ActionSA, for his resignation. Herman Mashaba, ActionSA leader, called for Gwamanda to resign not only as an MMC but also as a councillor, vowing that his party would pursue the matter further.
While Gauteng police have yet to comment on the situation, a media liaison officer from Al-Jama-ah has promised to release a statement in response to Gwamanda’s arrest. Updates are expected as the investigation unfolds.
