The Democratic Alliance (DA) is calling on the City of Johannesburg to institute an investigation into the activities of former mayor Kabelo Gwamanda, after he was arrested for fraud which allegedly happened before his tenure.
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.
Speaking to broadcaster Newzroom Afrika, DA Johannesburg caucus leader, Belinda Kayser-Echeozonjoku said the City of Joburg should examine Gwamanda’s conduct while he presided over the affairs of South Africa’s economic capital.
“We are writing to the executive mayor (Dada Morero) to probe the serious allegations and that is where the starting point is for us. He (Gwamanda) has been executive mayor for more than a year after Thapelo Ahmad resigned. We want to also investigate what kind of agreements and where he put his signature on, anything that has to do with documentation of agreements on behalf of the city,” she said.
“As you know, being the executive mayor, a lot of times you got to sit and have agreements with people, memoranda of understanding. How much damage could he have possibly caused, everything that he has been involved in should be investigated, including now as the MMC for community development.”
Kayser-Echeozonjoku said Gwamanda should step aside until he is cleared or gets convicted on the fraud allegations swirling around him.
Earlier on Monday, IOL also reported that former Joburg mayor, Dr Mpho Phalatse, has welcomed the arrest of Gwamanda. He has since been released on bail.
Phalatse initially led the charge against Gwamanda, raising the alarm that Gwamanda was accused by Soweto residents of defrauding the poor community members.
IOL