Kabelo Gwamanda, the current Johannesburg mayor, faced serious allegations soon after his appointment in May 2023. Residents of Soweto accused him of running a fraudulent investment scheme through his company, iThemba Lama Afrika, which reportedly promised returns via funeral services but left many investors without their money. The accusations claim that Gwamanda defrauded individuals by operating what has been described as a Ponzi scheme.

Gwamanda has denied all accusations, challenging those who claim to be defrauded to take legal action. However, the Democratic Alliance (DA) has pushed for investigations, questioning his trustworthiness given Johannesburg’s significant budget. The Financial Sector Conduct Authority (FSCA) also launched a formal investigation into the matter to determine if any financial laws were violated, though this does not necessarily imply guilt. Despite these allegations, Gwamanda has remained in office and continues to deny wrongdoing, labeling the claims as politically motivated.

Kabe