Former Joburg mayor Kabelo Gwamanda’s political party, Al Jama-ah, has confirmed the arrest of the city’s former first citizen and that he has been charged with fraud but has questioned the timing of the arrest.
This follows a report by the Sunday Times that detailed events leading to Gwamanda’s arrest and the nature of the charge he faces.
The Sunday Times reported that according to the warrant of arrest, which the publication has seen, Gwamanda was arrested after a victim of his alleged scam opened a case with Protea Glen police.
Gwamanda is alleged to have conned Soweto residents in a scheme in which they made monthly payments for funeral insurance.
A Financial Sector Conduct Authority (FSCA) investigation last year revealed that Gwamanda — an Al Jama-ah councillor — operated the illegal business in 2012 and then disappeared when his clients came looking for their money.
The victim who opened the case against Gwamanda in January told the police she had taken out a funeral policy with Gwamanda’s company, Ithemba Lama Afrika, which was based in Soweto. However, when she tried to visit its offices, she found out the company had moved.
In a statement, his party said Gwamanda, now the MMC of community development, complied with a request by the provincial commercial crimes division of the Hawks to present himself at Protea North police station on Friday.
“The MMC was subsequently charged with fraud. He had on the same day appeared before a magistrate and is currently released on bail pending further investigation.
“Though the political party would like to observe and respect the sub judice nature of the matter, we as a political party reaffirm our respect for the rule of law and judicial processes as demonstrated by MMC Gwamanda,” reads the statement.
The party, however, questioned the timing of Gwamanda’s arrest, highlighting he was arrested and charged after he was appointed to the government of national unity’s clearing house committee and on the eve of the highly contested street renaming of Sandton Drive to Leila Khaled Drive.
TimesLIVE
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