Scam victims want ex-mayor Gwamanda to pay back their money

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By Palesa Matlala

  • Former Joburg mayor Kabelo Gwamanda faces fraud charges for allegedly running an illegal funeral scheme in Soweto.
  • Victims lost their savings in a scheme that targeted poor families with promises of affordable funeral cover.

Angry Soweto residents who lost money in an alleged funeral policy scam want former Johannesburg mayor Kabelo Gwamanda to pay them back.

Gwamanda appeared at the Protea Magistrate’s Court on Tuesday, facing fraud charges.

After court, he claimed he hadn’t fooled anyone and wasn’t formally charged because there was no charge sheet.

But Salamena Moose, 56, tells a different story. She took out a policy with Gwamanda’s iThemba Lama Afrika funeral scheme in 2011 after her son joined his youth programme in Soweto.

“When I heard about the funeral policy, I was interested because it was affordable compared to other funeral schemes. My son spoke well of Kabelo, and because I could put a face behind the name, I trusted him—only to be scammed,” said Moose.

She paid for a year until hearing rumours that one of the scheme’s owners had died.

“I took it as a rumour because we were unsure, and I continued to pay for another three months. My son told me he heard a similar rumour. I tried contacting iThemba Lama Afrika, but the number was not going through,” she said.

The Sunday Times reports that a Financial Sector Conduct Authority investigation found Gwamanda ran an illegal business and disappeared when clients came looking for him.

Moose stopped paying in early 2012 when she realised she’d been scammed. “I am angry because I trusted him and never imagined that I would be defrauded by another black person,” she said.

But Gwamanda claims his company was registered and that he’s innocent.

“I have nothing to hide. I live in Soweto, and my mother’s house is in Soweto. If I am guilty, her house would have been burned down by now,” he told the media outside court.

“I have a picture of myself in a holding cell, and maybe once the case is concluded, I will release it,” said Gwamanda.

Moose has lost hope of getting her money back but wants the Al Jama-ah councillor to take responsibility for his actions.

Gwamanda’s bail was extended. He must return to court on 25 February 2025.

Pictured above: Kabelo Gwamanda.

Source: Palesa Matlala