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.

Former Joburg mayor Kabelo Gwamanda has been placed on special leave following his arrest on Friday for allegedly scamming Soweto residents in a fraudulent funeral insurance scheme. On Tuesday, the political management committee in the City of Johannesburg Metro convened to discuss the fraud charges against Gwamanda.

Kabelo Gwamanda was arrested and charged with fraud and corruption for allegedly defrauding people through a burial scheme.

The former mayor is accused of deceiving vulnerable citizens of Soweto into enrolling in a funeral insurance program that required them to pay monthly premiums.

The Democratic Alliance (DA) in Johannesburg has raised concerns that the African National Congress (ANC) may have been aware of fraud allegations against former mayor Kabelo Gwamanda before his appointment.

Johannesburg Mayor Dada Morero says fraud charges against Al Jama-ah’s Kabelo Gwamanda are enough for the ANC’s step-aside rule to kick in. But he hasn’t asked Gwamanda to step aside as an MMC just yet.