By Thabo Mosia
Kabelo Gwamanda, the former Johannesburg mayor and Al Jama-ah councillor, has been arrested in connection with an alleged funeral policy scam dating back to 2011. Gwamanda, who served as mayor of South Africa’s economic hub for a brief period, is facing serious allegations related to a fraudulent scheme he is said to have operated through his company, Ithemba Lama Afrika.
The arrest has sent shockwaves through political and public circles, as Gwamanda was a prominent figure in the Al Jama-ah party and in Johannesburg’s governance. The scam in question is alleged to have targeted vulnerable Soweto residents, who were convinced to pay monthly premiums under the pretext of securing funeral insurance. Instead of providing legitimate coverage, the scheme reportedly left many families without recourse when they needed it most, compounding their financial hardship during times of loss.
The Allegations Against Gwamanda
According to reports, Gwamanda’s company, Ithemba Lama Afrika, enticed Soweto residents to join the funeral insurance scheme by offering affordable policies that promised financial support in the event of a loved one’s death. Many families signed up, believing they were securing their financial future and ensuring dignity for their deceased relatives. However, it is alleged that when policyholders attempted to claim payouts for funeral expenses, they were met with silence, excuses, or outright refusal from Gwamanda’s company.
The former mayor is accused of pocketing the premiums paid by hundreds of unsuspecting residents while providing no actual insurance coverage. Investigators have revealed that the scam ran from 2011, affecting numerous families who struggled to recover their money or hold Gwamanda accountable.
Legal Action and Investigations
Gwamanda’s arrest follows an intensive investigation that spanned several years. Complaints from aggrieved policyholders began surfacing as early as 2012, with many of them filing reports to the police after being defrauded. However, it was not until recently that law enforcement agencies gathered sufficient evidence to formally arrest the former mayor.
According to authorities, the investigation is ongoing, and additional charges may be brought against Gwamanda as more victims come forward. Law enforcement officials have urged any residents who were affected by the scheme to report their cases to the police to ensure they receive justice and, where possible, compensation for their losses.
“The level of deception in this case is staggering,” said one official close to the investigation. “Families believed they were securing the future for their loved ones, only to discover that they had been conned by someone they trusted. We are committed to ensuring that justice is served in this case, and we encourage any additional victims to come forward.”
Gwamanda’s Response and Political Fallout
Following his arrest, Kabelo Gwamanda has denied the allegations, claiming that he is the victim of a political smear campaign aimed at tarnishing his reputation. His legal representatives have stated that Gwamanda will be cooperating with the investigation and intends to clear his name in court. However, the damage to his reputation and political career has already been substantial.
Al Jama-ah, the party Gwamanda represents, has distanced itself from the former mayor, stating that the allegations against him are personal matters unrelated to the party’s operations. In a statement, Al Jama-ah leadership expressed shock and disappointment at the news of Gwamanda’s arrest, calling for the legal process to take its course while affirming their commitment to upholding ethical governance.
“While we await the outcome of the judicial process, Al Jama-ah is committed to transparency and ethical leadership,” the statement read. “We call for a full and fair investigation into the matter, and we trust that justice will prevail.”
However, the party’s attempt to distance itself from the scandal has not shielded it from public criticism. Political commentators have noted that the arrest of Gwamanda, who was a sitting councillor and former mayor, raises serious questions about the vetting processes within Al Jama-ah and the City of Johannesburg’s governance structures.
A Troubled Political Career
Kabelo Gwamanda’s political journey has been marred by controversy. His time as Johannesburg mayor was brief and contentious, with critics arguing that he lacked the experience and leadership qualities necessary for such a critical role. His tenure was marked by infighting within the city council, and his inability to navigate the complex political landscape of Johannesburg ultimately led to his downfall.
Gwamanda was appointed mayor in 2023 as part of a coalition deal between Al Jama-ah and other parties, but his time in office was short-lived, with his resignation coming just months later amid mounting pressure from both the opposition and his coalition partners. At the time, Gwamanda cited personal reasons for stepping down, though some speculated that internal party dynamics and his alleged involvement in financial mismanagement may have played a role in his decision.
His subsequent arrest has only deepened the scrutiny around his tenure and raised further concerns about his activities while in public office. Some opposition parties have seized upon the scandal as evidence of deeper corruption within the ranks of Johannesburg’s leadership.
Impact on Victims
The fallout from the alleged scam has been devastating for the affected families, many of whom come from low-income households in Soweto. For these families, funeral policies represent a critical financial safety net, providing the means to give their loved ones a dignified send-off. The alleged fraud perpetrated by Gwamanda has left many in dire financial straits, with some families forced to take out loans or seek financial assistance from relatives to cover funeral costs.
Victims of the scam have expressed their anger and frustration, with many calling for Gwamanda to face the full force of the law. One victim, who lost his mother in 2015 and attempted to claim on the policy he had paid into for years, described the experience as “heartbreaking.”
“I trusted Kabelo Gwamanda and his company to help me in my time of need,” said the victim. “But when my mother passed away, they refused to pay out. I had to borrow money from family members to bury her. It’s been years, and I’m still paying off that debt.”
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