Former Johannesburg mayor, Kabelo Gwamanda has been arrested for allegedly scamming residents in an alleged funeral policy scam.

Gwamanda handed himself over to the police on Friday following an investigation by the Financial Sector Conduct Authority (FSCA).

Gwamanda, who is also an Al-Jama-ah councillor is alleged to have run a scam where his business, iThemba Lama Afrika conned unsuspecting Soweto residents in a scheme where they make monthly payments for funeral insurance.

The illegal business has been in operation since 2012 and then disappeared when his clients came looking for their money.

Gauteng police spokesperson Colonel Dimakatso Nevhuhulwi confirmed that Gwamanda’s matter is already before the courts.