Ex-Joburg mayor Kabelo Gwamanda arrested for running ‘ponzi scheme’

Former City of Johannesburg mayor Kabelo Gwamanda's party Al Jama-ah has confirmed his arrest. Here's what you should know..

Oct 20, 2024 - 15:00
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Ex-Joburg mayor Kabelo Gwamanda arrested for running ‘ponzi scheme’

Al Jama-ah has confirmed the arrest of former Johannesburg mayor and now MMC of Community Development Kabelo Gwamanda. 

Gwamanda was arrested on Friday, 18 October, for allegedly running a ponzi scheme, 10 years before he was involved in politics. 

AL JAMA-AH CONFIRMS KABELO GWAMANDA’S ARREST 

Al Jama-ah said Gwamanda was invited by the Gauteng Provincial Hawks Commercial Crimes Division to present himself to the Protea North SAPS, which he fully complied with. 

The MMC was subsequently charged with fraud. On the same day, he appeared before a judge and is currently released on bail pending further investigation.

The party said it was surprised by the timing of the law enforcement, which occurred at the time of Gwamanda’s appointment to the GNU Clearing House Committee and on the eve of the highly contested street renaming from Sandton Drive to Leila Khaled Drive. 

“Although we advocate for the application and enforcement of the rule of law, we would equally appreciate a fair application of such across the board; the case’s merits are yet to be tested before a court of law.

“We would also like to commend the councillor for courage and cooperation during this period,” advocate Yusuf Khan Dalwai said. 

HOW DID WE GET HERE? 

When Gwamanda was elected mayor in 2023, then-Democratic Alliance (DA) councillor in the metro, Mpho Phalatse, accused the Al Jama-ah member of running a fraudulent Ponzi scheme. 

Al Jama-ah gave Phalatse 48 hours to retract her statements or face legal action. She did not retract, and instead, she pursued a case against Gwamanda. 

The Financial Sector Conduct Authority (FSCA) also confirmed that it investigated complaints received about Gwamanda and his burial scheme, Ithemba Lama Afrika. 

The FSCA also emphasised that the existence of an investigation should not be construed as a statement or indication that any person has indeed contravened a financial sector law. 

“The investigation aims to establish whether such a contravention has occurred. Once the investigation is concluded, the Authority will inform the public of the outcome of the matter,” the Authority said at the time. 

WHAT DO YOU THINK ABOUT THE ARREST OF KABELO GWAMANDA?

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