The mayor of the City of Johannesburg, Dada Morero, has placed former mayor and MMC for Community Development on special leave with immediate effect.

ADRESSING ALLEGATIONS

 Morero met with Kabelo Gwamanda to address the reported allegations of fraud that have surfaced in the public domain.

Gwamanda is accused of allegedly running an insurance scam from 2011 through his company, Ithemba Lama Afrika. He is accused of luring unsuspecting Soweto residents into the scheme, where they paid monthly payments for funeral insurance.

"The severity of these allegations demands a proactive response to protect the integrity of the Office of the Executive Mayor," said Mayor Morero.

"In line with the City's commitment to integrity, good governance and accountability, I have decided to place MMC Gwamanda on special leave effective immediately and relieve him of all his executive duties," said Morero.

TO BE REPLACED

Morero said the allegations will be referred to the Speaker of Council, who will handle the matter according to the legislated processes and rules of the council.

"Both administrative and political leadership must uphold their oath of office, guided by the code of conduct and ethics in serving the public office.

In order to ensure uninterrupted service delivery, I will appoint an Acting MMC for Community Development during MMC Gwamanda?s special leave."

He said the City of Johannesburg remains committed to upholding the highest standards of governance and integrity and will not tolerate any behaviour that may compromise the trust of our citizens.