City of Johannesburg Mayor Kabelo Gwamanda is under fire as ActionSA demands accountability following revelations that he operated an illicit funeral scheme without the required registration.
The Financial Sector Conduct Authority (FSCA) confirmed to the media that Gwamanda’s scheme was unauthorised, leaving residents, particularly the city’s poorest, in a state of financial vulnerability.
Media reports indicate that Gwamanda is currently under investigation for fraud at the Protea Glen Police Station in Soweto, Johannesburg. Allegedly posing as a financial services provider, he is accused of misappropriating funds entrusted to him by unsuspecting residents who believed they were investing in funeral insurance.
In a statement on Monday, ActionSA condemned the mayor’s actions and questioned his ability to address the purported exploitation of vulnerable residents during his short time in office. The party asserted that Gwamanda’s alleged fraudulent activities should not be overlooked and must be promptly addressed to uphold ethical governance and protect the rights of the citizens he is meant to serve.
“Our resolve to proceed with this motion of no confidence amid the Speaker’s decision is to clearly show which political parties are complicit in shielding Gwamanda from accountability by having to answer why he illegally took money from the poorest residents of the city – the very people he is supposed to serve,” said ActionSA Johannesburg caucus leader, Funzi Ngobeni.
This is not the first time the mayor has been accused of wrongdoing. Soon after his election, the DA publicly accused Gwamanda of being a criminal.
Mpho Phalatse, a member of the DA and former mayor, claimed to possess evidence connecting Gwamanda to fraudulent activities through his company, iThemba Lama Afrika.
Just two weeks ago, ActionSA took action filing a motion of no confidence against the mayor after he failed to address the allegations during his inaugural State of the City Address.
Ngobeni, at the time, voiced concerns about the deteriorating state of service delivery in Johannesburg. Issues such as potholes, power outages, and water shortages were already plaguing the city.
He argued that Gwamanda’s alleged involvement in fraudulent activities only worsened the situation.
Gwamanda, a member of the Al Jama-ah party, was elected with the support of the ANC, EFF, and several minority parties in the 270-seat Joburg council. Despite the mounting allegations, Gwamanda has evaded media opportunities to address the accusations, fueling further speculation about his alleged involvement in fraudulent activities.
In addition to the fraud allegations, ActionSA has criticised Gwamanda for his lack of a clear vision to restore good governance and effective service delivery in the city. Ngobeni emphasised that Johannesburg residents have been left to fend for themselves while the ANC-EFF coalition appoints a compromised candidate to remain in power.
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