Johannesburg - New City of Joburg mayor Kabelo Gwamanda has had a rocky start to his mayorship, with the DA in the city giving him 48 hours to respond to allegations of fraud.
The DA said it would be reporting allegations of fraud related to a funeral scheme that scammed dozens of people in Soweto that Gwamanda was allegedly running.
According to the DA, Gwamanda and his business partner ran an investment company and funeral scheme that vanished before beneficiaries could receive their payouts.
The Star understands that Ithemba Lama Afrika had offices in Soweto, and many trusting community members were contributing to both the investment wing of the company and the funeral scheme. Some of the beneficiaries have come out on social media demanding their money from Gwamanda after he was elected mayor of the City of Joburg on Friday.
DA caucus leader Mpho Phalatse demanded that Gwamanda hold a media briefing to explain himself to the residents of Johannesburg.
"The allegations circulating on social media suggest that our newly elected executive mayor may have flouted the financial laws of this country and swindled and scammed members of the public. It is alleged that Kabelo Gwamanda, through his entity, iThemba Lama Afrika, scammed innocent residents into investing in a funeral or investment scheme.
“However, the investors were left hanging dry when it was time to claim their benefits. It would be a tragedy for the 6 million citizens of Johannesburg to be subjected to such questionable and dubious leadership," Phalatse said.
The Star contacted Gwamanda for comment, and written questions were sent to both himself and his party, Al-Jama-ah. However, this publication did not receive a response.
News reports suggested that the mayor’s office was still drafting a response to the allegations.
Gwamanda and his mayoral committee were expected to hit the ground running this week. The MMCs on Gwamanda’s mayoral committee are the same ones that served on former mayor Thapelo Amad’s committee.
"We wish to express our sincere apologies for the anxiety and instability the recent events in the city have caused the residents of Johannesburg," Gwamanda said in a statement.
He said the Government of Local Unity would do its best to ensure the best service delivery to residents of Johannesburg.
"We assure you that this government of local unity is committed to maintaining a stable, functional, responsive, and service-oriented government for the city.
“The stability and efficient functioning of the city are a priority to us, and we will strive to at all times maintain decorum, commitment, and diligence in leading the city," said Gwamanda.
The Star