Ex-Johannesburg mayor Kabelo Gwamanda arrested over alleged 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, October 18 for running an alleged Ponzi scheme, a decade before he became involved in politics.

AL JAMA-AH CONFIRMS THE ARREST OF KABELO GWAMANDA

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 accused of fraud. He appeared in court on the same day and is currently out on bail pending further investigation.

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

“While we advocate the application and enforcement of the rule of law, we would equally appreciate its fair application across the board; the merits of the case have yet to be tested in court.

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

HOW DO WE GET HERE?

When Gwamanda was elected mayor in 2023, then Metro Democratic Alliance (DA) councilor 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 take legal action. She did not withdraw, but instead pursued a case against Gwamanda.

The Financial Sector Conduct Authority (FSCA) also confirmed that it has investigated complaints received about Gwamanda and his funeral arrangement, Ithemba Lama Africa.

The FSCA also emphasized that the existence of an investigation should not be construed as a statement or indication that someone has indeed violated a financial industry law.

“The investigation aims to determine whether such a violation has occurred. Once the investigation is completed, the Authority will inform the public of the outcome of the case,” the Authority said at the time.

WHAT DO YOU THINK OF KABELO GWAMANDA’S ARREST?

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