---
title: "Joburg mayor puts MMC Kabelo Gwamanda on special leave following arrest on fraud charges"
description: "The mayoral committee member will be placed on special leave with immediate effect following his arrest last week in connection with a fraudulent funeral insurance scheme."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "NEWSFLASH"
author: "Victoria O’Regan"
author_url: "https://www.dailymaverick.co.za/author/victoria-oregan-3-2-2/"
canonical_url: "https://www.dailymaverick.co.za/article/2024-10-22-joburg-mayor-puts-mmc-gwamanda-on-special-leave-following-arrest/"
published: "2024-10-22T16:27:15"
updated: "2024-10-23T05:09:17"
lang: "en-ZA"
word_count: 508
---

# Joburg mayor puts MMC Kabelo Gwamanda on special leave following arrest on fraud charges

> The mayoral committee member will be placed on special leave with immediate effect following his arrest last week in connection with a fraudulent funeral insurance scheme.

By Victoria O’Regan · Published 22 October 2024, 18:27 SAST · Updated 23 October 2024, 07:09 SAST

## Key points
- Johannesburg mayor Dada Morero has put the city's community development MMC, Kabelo Gwamanda, on special leave following his arrest for allegedly pulling a funeral insurance scam.
- Johannesburg Mayor Dada Morero places MMC Kabelo Gwamanda on special leave amid fraud allegations tied to a funeral insurance scam.
- Gwamanda's arrest stems from a 2011-2012 Ponzi scheme, with charges amounting to R12,000; he was released on R2,000 bail.
- Morero invokes ANC's step-aside rule, emphasizing the need for integrity and accountability in governance.
- Gwamanda plans to focus on resolving his legal issues during his leave, asserting commitment to address the allegations responsibly.

## Content

Johannesburg mayor Dada Morero placed the City’s member of the mayoral committee (MMC) for community development and his predecessor, Kabelo Gwamanda, on special leave with immediate effect on Tuesday, 22 October.

This comes after Morero said on Monday, 21 October [that the fraud charges](https://www.dailymaverick.co.za/article/2024-10-21-joburg-mayor-invokes-anc-step-aside-rule-after-al-jama-ah-member-gwamandas-arrest/) against the Al Jama-ah councillor are enough for the ANC’s internal step-aside rule to kick in. This rule is an internal policy of the ANC, which requires members charged with corruption or other serious crimes to voluntarily step aside from executive roles or face suspension.

**Read more:**[Joburg mayor invokes ANC step-aside rule after Al Jama-ah member Gwamanda’s arrest](https://www.dailymaverick.co.za/article/2024-10-21-joburg-mayor-invokes-anc-step-aside-rule-after-al-jama-ah-member-gwamandas-arrest/)

Gwamanda [was arrested](https://www.dailymaverick.co.za/article/2024-10-20-former-joburg-mayor-kabelo-gwamanda-arrested-for-alleged-funeral-ponzi-scheme/) on Friday, 18 October for allegedly swindling Soweto residents in a funeral insurance scam that he ran in 2011 and 2012. He was arrested after a victim of his alleged Ponzi scheme opened a case at the Protea Glen police station in Soweto, the Sunday Times reported.

He appeared in the Protea Magistrates’ Court on Friday, on charges of fraud amounting to R12,000 in connection with the case, and was ordered to pay R2,000 bail.

An investigation by the Financial Sector Conduct Authority in 2023 found that Gwamanda disappeared in 2012 when his clients came looking for their money. He has previously defended himself against allegations of dubious dealings in connection with his company, the iThemba Lama Afrika funeral scheme.

Morero met Gwamanda on Tuesday morning, to receive his counsel and address the allegations of fraud.

“The severity of these allegations demands a proactive response to protect the integrity of the office of the executive mayor,” said Morero.

“In line with the City’s commitment to integrity, good governance and accountability, I have decided to place MMC Gwamanda on special leave, effective immediately, and relieve him of all his executive duties.”

> [#JoburgUpdates](https://twitter.com/hashtag/JoburgUpdates?src=hash&ref_src=twsrc%5Etfw)
>
> JUST IN - MMC for Community Development, Cllr Kabelo Gwamanda placed on special leave ^GZ [pic.twitter.com/ARglqwsm5G](https://t.co/ARglqwsm5G)
>
> — City of Joburg (@CityofJoburgZA) [October 22, 2024](https://twitter.com/CityofJoburgZA/status/1848716429643636843?ref_src=twsrc%5Etfw)

He added that the allegations would be referred to the council speaker, ActionSA’s Nobuhle Mthembu, “who will handle the matter according to the legislated processes and rules of the council”.

**Read more:**[Goodbye Mayor Kabelo, hello new face of Eau de Incompetence](https://www.dailymaverick.co.za/article/2024-08-19-goodbye-kabelo-gwamanda-hello-new-face-of-eau-de-incompetence/)

Morero said he would appoint an acting MMC for community development during Gwamanda’s special leave.

“The City of Johannesburg remains committed to upholding the highest standards of governance and integrity and will not tolerate any behaviour that may compromise the trust of our citizens,” he said.

In a statement posted to X, Gwamanda said he would be taking special leave to allow him “to focus on resolving the personal legal matters that require \[his\] full attention”.

“I am committed to addressing these matters swiftly and responsibly,” he said.

> \[READ\]: “I deemed it important to notify the public that following some of the skewed media reportings and in the interest of the public and stakeholders, I will be taking leave to allow me to focus on resolving the personal legal matters that require my full attention.” [pic.twitter.com/R6Y7Vf2cwe](https://t.co/R6Y7Vf2cwe)
>
> — MMC Kabelo Gwamanda (@KabeloGwamanda) [October 22, 2024](https://twitter.com/KabeloGwamanda/status/1848723428594925817?ref_src=twsrc%5Etfw)

**DM**