This is how former Joburg mayor allegedly scammed Sowetans: Victims describe Gwamanda’s swindling tactics

A Soweto man who was scammed, allegedly by the former mayor of Johannesburg Kabelo Gwamanda, says he was promised great wealth and financial freedom.

Gwamanda, a member of the mayoral committee (MMC) for Community Development in the City of Johannesburg, is currently on special leave. This is after he was arrested for fraud related to his investment in Ithemba Lama Afrika, a funeral insurance company.

Sold empty dreams

One of Gwamanda’s alleged victims, Lefu Lebitsa, told The Citizen on Tuesday that he had lost R21 000.

Lebitsa said Gwamanda and his business partner told him that he would make R20 000 at the end of 2014 if he invested a once-off R2 000.

“I was excited about the opportunity of growing my money, so I agreed to invest.”

ALSO READ: ‘Dead’ former mayor Kabelo Gwamanda arrested over funeral policy scam – report

He said after he was introduced to the investment product, he was told that the company was growing, and he could enjoy great wealth by becoming a shareholder.

“They then told me that the shares were R19 000 and I was excited about being part of the business.”

Lebitsa said he was then taken to the bank by Gwamanda and his business partner, where he deposited R21 000.

“Things were great. They would fetch me and make me feel like a business partner and I would have lunches with them.”

‘They stopped taking my calls’

However, things took a turn a few months later.

“I was no longer able to get in touch with them on the phone and they were not fetching me like they used to.”

Lebitsa said he then started to look for the Ithemba Lama Afriaka executives at their homes in Protea North, Soweto.

“Each time I went to their houses I could not find him. I was told that they are busy.”

Reality dawned on Lebitsa months later when he realised that he would not get his money back.

“My sister told me that many people were complaining, even those that are supposed to get funeral payouts.”

‘They gave us R300 to bury my sister’

Maserame Lerotha, another victim, told eNCA that she was only paid R300 when she claimed her funeral insurance payout in 2013.

The policy was expected to pay R10 000 after she lost her sister.

“I took my sister’s body back home and the only money I got was R300. They told me it’s for cooldrinks. They said I would get the rest on my way home,” she said.

ALSO READ: MMC Kabelo Gwamanda placed on special leave amid fraud charges

Targeting the poor

The Citizen understands that Gwamanda targeted working individuals around the township in areas such as Mapetla and Protea South.

One of his company’s alleged victims told the Sunday Times that she was surprised to see him being elected as mayor a decade after Ithemba Lama Afrika collapsed.

Former Johannesburg mayor Mpho Phalatse described the scam as being “huge” and targeting the working class.

Numerous attempts by The Citizen to get comment from Gwamanda and his political party Al Jama-ah were unsuccessful.

In 2023, Gwamanda denied that he had scammed the victims, describing the allegations against him as a DA plot.

His party has not taken steps against him despite his arrest last week Friday.

ALSO READ: Fuming Mashaba: ANC won’t take my call on Gwamanda