ZIYAKHALA! Jozi Mayor in 'Ponzi' scheme SAGA!
Kabelo Gwamanda said the company existed when he was younger, and all was done accordingly.
CITY of Joburg Mayor Kabelo Gwamanda has his job cut out for him.
If he is not being accused of running a Ponzi scheme or facing a motion of no confidence from opponents in the council, his level of education is being questioned.
On Monday, 19 June, the Financial Sector Conduct Authority (FSCA) confirmed that they're investigating a complaint received about the Joburg mayor.
Gwamanda has been accused of running a fraudulent funeral scheme through his Ithemba Lama Afrika business.
In a statement, the FSCA stated that the confirmation of their investigation follows increased media interest in the matter.
They stated that the investigations were ongoing and, as such, no further details could be shared.
"The FSCA emphasises that the existence of an investigation should not be considered as a statement or indication that any person has indeed contravened a financial sector law. 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," said FSCA.
The allegation came to light when the Democratic Alliance (DA) caucus leader in Joburg, Mpho Phalatse, accused Gwamanda of being part of a funeral scheme that ripped off many people in Soweto.
These allegations were made days after Gwamanda's election.
Meanwhile, ActionSA is baying for his blood and according to the party's provincial leader, Funzi Ngobeni, Gwamanda has a case to answer pertaining to the allegations.
He has also called for him to be removed as the executive mayor.
"ActionSA, a party committed to ethical leadership, refuses to allow Mayor Gwamanda to get away with defrauding our residents and will therefore proceed to hold him accountable by way of a MONC (motion of no confidence), which the Speaker has since decided to not table at this month's programming committee," he said.
Gwamanda has previously described the allegations as politically motivated.
He said Ithemba Lama Afrika was a company that existed when he was younger, and all was done accordingly.
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