Kabelo Gwamanda, the former mayor of Johannesburg, was arrested on Friday in connection with a fraudulent funeral insurance scheme that he allegedly ran over a decade ago.
Story Summary:
- Former Johannesburg Mayor Kabelo Gwamanda has been arrested on charges related to an alleged funeral insurance scam that dates back to 2011.
- He is expected to appear in court soon.
- Gwamanda, who is accused of defrauding Soweto residents through his company, Ithemba Lama Afrika, handed himself over to the police on Friday.
Kabelo Gwamanda arrested: Here’s what we know
The former Al Jama-ah politician reportedly handed himself over to the authorities after evading arrest for months.
A warrant had been issued for Gwamanda in May 2024, but he left the country, delaying his capture.
The allegations against Gwamanda stem from his company, Ithemba Lama Afrika, which sold funeral policies to Soweto residents in 2011.
Many policyholders paid their premiums, but when it came time to file claims, they found that Gwamanda’s company had disappeared.
It is reported that some clients were even told that the company’s directors had committed suicide.
This confusion intensified when one of the victims recognised Gwamanda on television as the mayor of Johannesburg, in May 2023.
A formal investigation was launched by the Financial Sector Conduct Authority (FSCA), revealing that Gwamanda had been running the business illegally and absconded with the money.
While Gwamanda has previously dismissed the allegations, referring to them as “character assassination,” the FSCA’s findings have led to serious fraud charges being brought against him.
After eluding authorities, Gwamanda turned himself in at the police station on Friday morning. He is expected to appear in court soon, where he will face multiple charges of fraud related to the defunct funeral insurance scheme.
Now, with his arrest, Gwamanda will face the full weight of the law as investigations continue into the extent of the fraud and the total number of victims.
He is scheduled to make his first court appearance soon, where more details surrounding the charges will be revealed.