Former Joburg mayor, Dr Mpho Phalatse, welcomed the arrest of Joburg MMC for community development Kabelo Gwamanda, who was charged for allegedly swindling Soweto residents.
IOL reported on Sunday that Gwamanda, who is an Al Jama-ah councillor, was arrested in connection with an alleged funeral policy scam which he allegedly ran from 2011 through his company, Ithemba Lama Afrika.
It is alleged that the former mayor conned innocent Soweto residents into the scheme, where they paid monthly payments for funeral insurance.
He operated the business from 2011 and then allegedly ran away when policyholders tried to claim from the scheme.
Phalatse initially led the charge against Gwamanda, raising the alarm that Gwamanda was accused by Soweto residents of defrauding the poor community members.
Reacting to the arrest of Gwamanda, the former Democratic Alliance (DA) leader in Joburg told broadcaster Newzroom Afrika that justice has been partially served.
“There has been justice served, to some extent. The wheels of justice continue to turn. I believe the former mayor is out on bail so we watch closely that development. This is definitely a step in the right direction,” she said.
“It has taken too long, I do not believe it should have taken this long. There is definitely some foul play. Firstly, there was compelling evidence … the Financial Sector Conduct Authority (FSCA) said this entire operation was illegal. That was last year already, that the findings were made. I understand the warrant of arrest was issued in May already – that is five months ago.”
She said as someone occupying public office and his whereabouts are known at times, Gwamanda could not have been evading the police.
“He was still mayor from May till August – from the time when his warrant of arrest was issued. Why was he not arrested then? Why was he not arrested when he resigned as mayor. That begs the question, what else is happening behind the scenes?” Phalatse asked.
Phalatse was ousted as Joburg mayor in January 2023 and was replaced by Al Jama-ah councillor Thapelo Ahmad. After Ahmad’s tenure as Joburg’s number one resident, he was replaced by Gwamanda.
“It was upon the news that he was now Johannesburg mayor that some of the victims became aware of where he is, and what he had actually been doing. One of them recorded a voice note,” Phalatse told the television station.
“It was circulating in the community of Protea Glen where the scheme was prevalent. One of our activists in the area, who also happens to a former councillor made me aware of this, I was then DA caucus leader and we were leading the main opposition n council.”
IOL reported on Monday that Gwamanda has spoken about his widely reported arrest.
In a short video shared by Gwamanda’s X page, the former mayor casually addresses the issue of his arrest, speaking to an unidentified interviewer whose voice is heard but the interviewer is not visible in the video.
The woman interviewer asks: “We were told you were arrested?”
Gwamanda responded saying: “You know, in South Africa as a country, growing up black, it’s a possibility that none of us can avoid — regardless of the path you choose, whether you choose to serve or to engage in nefarious activities”.
“The fact of the matter is that the relationship that South Africans have with law enforcement is a relationship that needs to be worked on very strongly, so that we understand what each of our roles are in this undertaking,” he said.
“But I am here at home. I cannot swim, there is a storm coming in the City of Johannesburg. Thank you very much.”
In the earlier segment of the video, Gwamanda appealed to Joburg residents to exercise caution, given the severe weather characterised by heavy rains experienced in Gauteng and other parts of South Africa on Sunday.
IOL