The National Prosecuting Authority (NPA) has provisionally withdrawn fraud charges against former Johannesburg mayor Kabelo Gwamanda and his co-accused, Mduduzi Zondo.
Kabelo Gwamanda a free man, for now, NPA reveals
The charges stemmed from allegations that the two defrauded Soweto residents through a funeral policy scheme operated between 2011 and 2012.
Speaking outside the Protea Magistrates’ Court on Tuesday morning, Gwamanda maintained that the case against him was politically motivated.
“The state had no choice but to withdraw the charges because, as I indicated previously, there’s no evidence that points to activities of fraud. It is an issue of a politically motivated attack,” he said.
The NPA’s decision to withdraw the case at this stage does not necessarily mean an acquittal. A provisional withdrawal means the charges can be reinstated should new evidence emerge.
However, for now, Gwamanda is no longer facing legal proceedings.
Despite this, the former mayor expressed frustration over the impact the allegations have had on his career.
“I have been removed from an executive position, prevented from serving my people, and [they] tried by all means to discredit the political party that gave me an opportunity to contribute to society,” he stated.
Gwamanda was arrested in October 2024 after evading capture for several months. The fraud allegations centred around his company, Ithemba Lama Afrika, which reportedly sold funeral policies to Soweto residents. When policyholders attempted to claim benefits, they allegedly discovered the company had ceased operations.
Some claimants were even falsely informed that the company’s directors had died by suicide.
The fraud case against Gwamanda surfaced in 2023 when a victim of the alleged scam recognised him as Johannesburg’s mayor. This led to an investigation by the Financial Sector Conduct Authority (FSCA), which found that Gwamanda had been running an unregistered insurance business. The probe prompted his eventual arrest.
During his time as an MMC in Johannesburg, Gwamanda was placed on special leave, a move that allowed him to continue receiving his salary and benefits.
While on leave, his compensation reportedly ranged between R1.3 million and R1.6 million annually, covering housing, transport, medical aid, and pension contributions.
With the charges provisionally dropped, questions remain about Gwamanda’s political future.
The NPA has not ruled out the possibility of reopening the case, should further evidence be presented. The City of Johannesburg has yet to comment on whether he will be reinstated in any official capacity.
