Africa-Press – South-Africa. The Financial Sector Conduct Authority (FSCA) confirmed it was investigating the allegations made against Johannesburg mayor Kabelo Gwamanda’s business, iThemba Lama Afrika.
The business was accused of scamming Soweto residents via a funeral insurance scheme.
Gwamanda and the ANC denied the allegations, which were made by the DA’s Mpho Phalatse.
Confirming its decision to probe the allegations, the FSCA released a statement on Monday.
It said the announcement did not indicate that “any person has indeed contravened a financial sector law”.The statement read:
The FSCA said the investigation aimed to confirm whether the allegations were true.
It would not disclose any information relating to the case – and would share its findings once it concluded.
News24 previously reported that the ANC, who backed and chose Gwamanda as a mayoral candidate, maintained the mayor had met the minimum requirements and had been vetted.
Opposition parties had been using the scandal to apply political pressure in an attempt to remove Gwamanda from office. ActionSA’s Johannesburg caucus leader, Funzi Ngobeni, said the FSCA’s decision to investigate the mayor emphasised the need for a motion of no confidence.
Ngobeni said: “ActionSA believes the Financial Sector Conduct Authority’s confirmation that the City of Johannesburg mayor Kabelo Gwamanda’s funeral scheme was not registered, and therefore illegal, obviates the need for a motion of no confidence against him.”
The party filed its motion on 7 June, saying it would not allow Gwamanda to get away with defrauding residents and would hold him accountable.
The statement read: “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, which the Speaker has since decided not to table at this month’s programming committee.”
Ngobeni added that ActionSA would engage with other opposition parties to “ensure that the office of the first citizen of the great City is occupied only by men and women of integrity who will put the interests of the residents first.”
Thus far, the motion has received the backing of FF Plus, ACDP, IFP and UIM.
For More News And Analysis About South-Africa Follow Africa-Press
