Kabelo Gwamanda put on special leave

City of Johannesburg mayor Dada Morero has placed his MMC for community development, Kabelo Gwamanda, on special leave with immediate effect. 

On Tuesday, Morero wrote to Gwamanda informing him of the decision to relieve him of his duties because of his arrest.

This comes after it was reported that Gwamanda was arrested on Friday over allegations of fraud. The 39-year-old former Johannesburg mayor was arrested in connection with an alleged funeral policy scam that he ran in Soweto in 2011 and 2012. He has since been released on bail.

The decision by Morero to place Gwamanda on special leave comes after the pair held a meeting on Tuesday morning. TimesLIVE understands Morero wrote to Gwamanda after their meeting, telling him that he had decided to relieve Gwamanda of his duties.

Morero would appoint an acting MMC to ensure service delivery was not hampered, insiders said.

Morero said on Monday Gwamanda’s arrest required urgent action from him.

“The developments deserve to be handled with a sense of urgency on behalf of the residents of the city to ensure it does not impact on service delivery. I wish to confirm that as a first step I am meeting ... Gwamanda tomorrow [Tuesday] to receive his official report,” Morero said on Monday.

The Sunday Times reported a warrant of arrest on Gwamanda states that he was arrested after a victim of his alleged scam opened a case with Protea Glen police. 

Gwamanda is alleged to have conned unsuspecting Soweto residents in a scheme in which they made monthly payments for funeral insurance. A Financial Sector Conduct Authority (FSCA) investigation in 2023 showed that Gwamanda, an Al Jama-ah councillor, operated the illegal business in 2012 then disappeared when his clients came looking for their money.

The victim, who opened the case against Gwamanda in January, told the police she took out a funeral policy with Gwamanda’s company, Ithemba Lama Afrika, which was based in Soweto. However, when she tried to visit the offices later, she found that the company had moved. 

“She did her own investigation and found other victims. She was told that the two directors had committed suicide after failing to pay money back to investors,” reads the police report. “Investors were under the impression that both directors had died, only to see one suspect appearing on TV as the mayor of Johannesburg.”

TimesLIVE