The fraud case against former Johannesburg mayor Kabelo Gwamanda has been postponed until January 28, 2024, following a brief appearance in the Protea magistrate's court on Tuesday.
This marks another twist in the ongoing legal saga surrounding the former community development MMC, who was recently dismissed from his position by the city’s new mayor, Dada Morero.
Last month, IOL reported that Morero booted out Gwamanda after placing him on suspension while an internal investigation was conducted.
Gwamanda, who served as a councillor for the Al Jama-ah party, faces serious charges linked to an alleged funeral policy scam that reportedly took place in Soweto back in 2011. His case has drawn significant attention, especially after reports surfaced indicating that the scheme involved unwitting residents making monthly payments for what they believed was legitimate funeral insurance.
The troubling allegations against Gwamanda came to light after a victim of his supposed fraudulent activities stepped forward to file a complaint with the Protea Glen police. The Sunday Times, a sister publication to Sowetan, revealed that the victim, who took out a funeral policy with Gwamanda's company, Ithemba Lama Afrika, was unable to recover her money after Gwamanda ceased operations in 2012, effectively disappearing when clients sought recourse.
The Financial Sector Conduct Authority (FSCA) conducted an investigation last year, confirming that Gwamanda had indeed operated this illegal business, raising questions about the oversight of financial services within the community during that period.
As the legal proceedings continue, the political ramifications of Gwamanda's alleged actions extend beyond the individual, reflecting larger concerns about integrity and accountability in public office. With the case set to resume in January, all eyes will remain firmly on the courtroom as more details emerge regarding these serious allegations.
In October, the Johannesburg Magistrate's Court granted 39-year-old Gwamanda bail in relation to a fraud case where he’s accused of allegedly running a funeral policy scam that he established in Soweto in 2011 and 2012.
In a statement, the Morero had indicated that Gwamanda’s removal from office was to ensure that the City’s service delivery remained uninterrupted while in a letter by his lawyers addressed to the speaker of the City of Joburg, Gwamanda said his removal process lacked compliance with procedural fairness as outlined in Section 53 of the Structures Act.
The Star