By Lehlohonolo Lehana.
Kabelo Gwamanda, Al Jama-ah councillor has been arrested in connection with funeral policy scam that he ran through his company, Ithemba Lama Afrika.
The Sunday Times reported that Gwamanda, currently the MMC for community development in the city, was arrested for an alleged funeral policy scam.
Gwamanda operated the illegal business in 2012 and then disappeared when his clients came looking for their money.
Gwamanda’s company, Ithemba Lama Afrika, took money from Soweto residents. However, when they wanted to claim money, it was not possible.
The publication reported that a warrant of arrest for Gwamanda was issued in May, but he travelled to Brazil at the time.
“He promised to meet the investigation officer upon his return but he failed to do so,” the publication said.
After some back and forth, Gwamanda handed himself over to the police on Friday around 08:00.
This arrest should not come as a surprise. Retired politician and diplomat Douglas Gibson provided an overview of the situation in 2023.
Gibson, who was an attorney before entering politics, highlighted that Gwamanda faced serious criminal charges of fraud related to the funeral insurance scheme.
The scheme he ran in 2011 and 2012 was not registered with the Financial Services Conduct Authority (FSCA), making it illegal.
In July 2023, the Financial Sector Conduct Authority (FSCA) confirmed that it was investigating complaints received about Ithemba Lama Afrika and Gwamanda.
“The investigation is currently ongoing, and as such no further details can be shared at this time,” the FSCA said at the time.
Gauteng police are yet to respond after attempts to get comment. This story will be updated once they have responded.