He’s been in the spotlight having dribbled past Sowetan’s who invested their hard earned money into his funeral policy company Ithemba Lama Afrika – only to find out it’s a sham!
Now, Gwamanda who handed himself to the cops last Friday, after a warrant of arrest was issued, is crying foul play.
SAPS Gauteng spokesperson Colonel Dimakatso Nevhuhulwi confirmed Gwamanda handed himself over to the police on Friday and had since appeared in court.
The Al Jama-ah politician sold funeral policies to Soweto residents in 2011 through his company.
Those who bought policies paid monthly premiums to the company, but when they had complaints or wanted their money could not find its offices.
One frustrated client, according to the police report, did her own investigation and was told the company’s two directors committed suicide.
“Investors were under the impression that both directors had died, only to see one suspect appearing on TV as the mayor of Johannesburg.”
A case was opened and investigation by Financial Sector Conduct Authority (FSCA) ensued, against Gwamanda and his company.
“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 was quoted.
Gwamanda is currently the member of the mayoral committee (MMC) for community development.
Former DA Mayor Mpho Phalatse, was the one who brought this matter to the public.
Executive Mayor of the City of Johannesburg, Dada Morero, says he’s deeply concerned by matter of the arrest of MMC Kabelo Gwamanda.
“The developments deserve to be handled with sense of urgency on behalf of the residents of the City in order to ensure that it does not impact on the service delivery.
I wish to confirm that as a first step I am meeting Cllr Kabelo Gwamanda tomorrow to receive his counsel and official report,” says Morero.
“Consequently, as a deployee of the ANC in political office, we are guided by the ANC’s position on similar matters and cannot and do not expect any less from our partners in government. We can duly confirm that the situation meets the minimum requirements for the step aside rule to kick in.
As we deal with this matter with the urgency it requires, we shall make use of the authority vested in us in office, including as provided for in the Code of Conduct for Councillors, to execute our responsibilities faithfully and without favour,” continued the Mayor.
It seems politicians lately are lining-up their pockets with ill-gotten money, instead of delivering services!
Image (Ponzi scheme? Former CoJ Mayor Kabelo Gwamanda owes Soweto residents money. Should swop that green overalls into orange.
