The National Prosecuting Authority has withdrawn fraud charges against Kabelo Gwamanda
- The NPA has provisionally withdrawn fraud charges against former Johannesburg Mayor Kabelo Gwamanda, related to a funeral policy scam from 2011-2012.
- The charges were dropped on February 25, 2025, as the state couldn’t issue a trial-ready certificate, but they could be reinstated if new evidence emerges.
- Gwamanda, a councillor for Al Jama-ah, was arrested in October 2024, faced political pressure, and was removed from his MMC position, adding complexity to his political career.
- An unexpected detail is that some victims thought Gwamanda had died, only to see him later as mayor, highlighting the scam’s impact on public trust.
The National Prosecuting Authority (NPA) has provisionally withdrawn fraud charges against Kabelo Gwamanda
Kabelo Gwamanda served as Johannesburg’s mayor for a year before being removed and later appointed as the Member of the Mayoral Committee (MMC) for community development in August 2024. He was accused of defrauding Soweto residents through a funeral policy scam operated by his company, Ithemba Lama Africa, where residents paid premiums but couldn’t claim benefits.
Recent Developments
On February 25, 2025, at 12:23 PM SAST, the National Prosecutions Authority (NPA) made a significant announcement regarding former Johannesburg Mayor Kabelo Gwamanda, provisionally withdrawing fraud charges against him. This decision marks a pivotal moment in a case that has drawn considerable public and political attention, centered around allegations of a funeral policy scam from over a decade ago. This report provides a comprehensive overview, including background details, legal implications, political fallout, and victim perspectives, ensuring a thorough understanding of the situation.
Implications
This development allows Gwamanda to continue his political career without immediate legal threats, but it raises questions about the NPA’s handling of such cases and the vetting of political figures.
Background and Allegations
Kabelo Gwamanda, a councillor for the Al Jama-ah party, served as Johannesburg’s mayor for approximately one year before his removal, after which he was appointed as the Member of the Mayoral Committee (MMC) for community development in August 2024. The fraud charges stem from activities between 2011 and 2012, when Gwamanda allegedly operated a scam through his company, Ithemba Lama Africa, targeting Soweto residents. The scheme involved selling funeral policies, with victims paying monthly premiums, but the company reportedly failed to pay out claims, leaving many in financial distress during times of need.
The scam came to light in July 2023 when the Financial Sector Conduct Authority (FSCA) confirmed investigations into complaints against Ithemba Lama Africa and Gwamanda (State withdraws fraud charges against former Joburg mayor Gwamanda). A victim opened a case with the Protea Glen police in January 2024, leading to Gwamanda’s arrest in October 2024 (Former Joburg mayor Kabelo Gwamanda arrested for alleged scam). Reports indicate that some victims believed Gwamanda and his business partner had died, only to later see him on television as mayor, underscoring the scam’s impact on public trust (‘Dead’ former mayor Kabelo Gwamanda arrested over funeral policy scam – report).
Victim experiences highlight the personal toll. One victim, Lefu Lebitsa, claimed a loss of R21,000, having invested R2,000 with a promise of R20,000 by 2014, which never materialized (Fraud-accused former Joburg mayor Kabelo Gwamanda booted from MMC position). Another victim, who lost their mother in 2015, described the experience as “heartbreaking,” forced to borrow money for burial costs after the policy failed to pay out (Former Johannesburg Mayor Kabelo Gwamanda Arrested for Alleged Funeral Policy Scam).
Legal Proceedings and NPA’s Decision
The legal proceedings saw Gwamanda and his co-accused, Mduduzi Zondo, appear briefly in the Protea magistrate’s court on February 25, 2025. The NPA’s decision to provisionally withdraw the charges was based on their inability to issue a trial-ready certificate, a requirement to proceed to trial, indicating insufficient evidence or readiness at this stage (NPA drops fraud charges against former Joburg mayor Gwamanda). The term “provisionally withdrawn” means the charges are not permanently dropped; the NPA can reinstate them if new evidence emerges, as seen in similar South African cases where charges were temporarily suspended pending further investigation (Rape charge provisionally withdrawn).
Gwamanda reacted to the withdrawal by posting a video on his X account, stating, “We just concluded what would seem to be a tedious process,” and in court, he claimed, “The case being provisionally withdrawn is on the basis of there being no evidence that points to the fact that I would have defrauded anyone. There is no solid case in point that they can use,” suggesting he viewed the case as weak and politically motivated (State withdraws fraud charges against former Joburg mayor Gwamanda).
Political and Public Reaction
The arrest and subsequent charges triggered significant political fallout. Various parties, including ActionSA and the Democratic Alliance (DA), called for Gwamanda’s removal from his MMC position, citing the severity of the allegations (Parties ask Joburg mayor to remove Kabelo Gwamanda as MMC). Johannesburg Mayor Dada Morero placed Gwamanda on special leave in October 2024, and by November 10, 2024, officially removed him, appointing Tebogo Nkonkou as his replacement to ensure uninterrupted service delivery (Joburg mayor dismisses MMC Kabelo Gwamanda over fraud accusations). Al Jama-ah criticized this decision as “unilateral” and “in bad faith,” arguing for consultation, reflecting coalition tensions (‘We only learned of this through the media’: Al Jama-ah slams ‘reckless decision’ over Gwamanda).
Public and political discourse also touched on vetting processes, with COSATU in Gauteng questioning how Gwamanda passed vetting given the allegations, calling for his resignation to allow law enforcement to work unimpeded (COSATU questions vetting process following former Jhb Mayor’s arrest). This case has raised broader questions about governance and integrity in Johannesburg’s political landscape.
Timeline of Key Events
To provide clarity, here is a timeline of significant events related to this case:
| Date | Event |
|---|---|
| 2011-2012 | Gwamanda allegedly runs funeral policy scam through Ithemba Lama Africa. |
| July 2023 | FSCA confirms investigation into complaints against Gwamanda and company. |
| October 2024 | Gwamanda arrested, charged with fraud, and placed on special leave as MMC. |
| November 2024 | Removed from MMC position by Mayor Morero, replaced by Tebogo Nkonkou. |
| February 25, 2025 | NPA provisionally withdraws fraud charges due to inability to issue trial-ready certificate. |
Implications and Future Outlook
The provisional withdrawal of charges allows Gwamanda to continue his political career without immediate legal threats, but it does not close the case. The possibility of reinstatement, coupled with the political damage from his removal and public perception, could affect his future in politics. This incident has also sparked debates on the effectiveness of the NPA in prosecuting such cases and the need for robust vetting processes for political candidates, potentially influencing future governance practices in Johannesburg.
