Former Johannesburg mayor Kabelo Gwamanda has been arrested in connection with an alleged funeral policy scam that he ran in Soweto more than a decade ago.

Police arrested Gwamanda on Friday. According to the warrant of arrest, Gwamanda, who is now MMC for community development, was arrested after a victim of his alleged scam opened a case at Protea Glen police station.

Gwamanda is alleged to have conned unsuspecting Soweto residents in a scheme in which they made monthly payments for funeral insurance. A Financial Sector Conduct Authority (FSCA) investigation last year revealed that Gwamanda — who is an Al Jama-ah councillor — operated the illegal business in 2012 and then disappeared when his clients sought their money.

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