FSCA confirms investigation into Kabelo Gwamanda, iThemba Lama Afrika

The Financial Sector Conduct Authority (FSCA) has confirmed the investigation into iThemba Lama Afrika and City of Joburg mayor Kabelo Gwamanda.

“This confirmation follows increased media interest in the matter. The investigation is currently ongoing, and as such no further details can be shared at this time. The FSCA emphasises that the existence of an investigation should not be construed as a statement or indication that any person has indeed contravened a financial sector law,” said the FSCA in a statement on Monday.

“The purpose of the investigation is to establish whether such a contravention has occurred. Once the investigation is concluded, the Authority will inform the public of the outcome of the matter.”

Gwamanda vs DA

The FSCA’s investigation follows allegations by former Joburg mayor Mpho Phalatse last month, where she accused Gwamanda of flouting the financial laws of the country, swindled and scammed members of the public.

“It is alleged that Cllr Kabelo Gwamanda, through his entity iThemba Lama Afrika, scammed innocent residents into investing in a funeral/investment scheme. However, the investors were left hanging dry when it was time to claim their benefits,” said Phalatse in a statement.

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“It is for these reasons that the Democratic Alliance in Johannesburg will be bringing these allegations to the attention of the SAPS for further investigation along with a victim of this scheme.”

The DA further gave Gwamanda 48 hours to hold a media briefing to provide “clarity” on the allegations and assure South Africans he will not interfere with the investigation into the matter.

‘Cheap politicking’

In response, Al Jama-ah gave the DA 48 hours to retract the allegations it made against Gwamanda or face legal action.

The unshaken Al Jama-ah said the DA should have gone straight to the police to report the mayor instead of sharing the allegations on social media.

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“The mayor is a law-abiding citizen and it is in this breath that we would like to provide the DA with the address to the nearest police station in Hillbrow, seeing that they have confused social media for the actual police station,” it said.

The party slammed the allegations against Gwamanda as “unfounded, false and a calculated attempt to manipulate and interrupt the spheres of governance from delivering quality services to residents by attacking its strategic political head in the city”.

“We are disappointed at the level at which the DA in opposition, when defeated politically, resort to cheap politicking and a failed attempt to defame the character of the newly elected mayor even before he has stepped into his office,” it said.

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“The mayor remains focused and will not be distracted nor deterred from his main responsibilities in putting his residents first to deliver an improved quality of services to the residents in the City of Johannesburg together with his coalition partners in the government of local unity.

“Gwamanda is looking forward to rolling up his sleeves from this week as he embarks on a mammoth task to focus on improving the quality of lives of the residents in the City of Johannesburg and boosting the city’s economy while ensuring that political stability is maintained.”

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