OLYMPIA, Wash. — Washington state officials say a recent audit that found an estimated $37 million in questionable child care subsidy payments did not uncover reportable fraud, even as lawmakers and the public press for answers about how the money was distributed.
The Washington Department of Children, Youth and Families (DCYF) said it has not referred the audit findings to the Office of Fraud and Accountability (OFA), and added that the cases did not rise to the level of suspected fraud or intentional deception.
“An overpayment does not automatically mean fraud,” the agency wrote in an email to KOMO News. “The [State Auditor’s Office] and DCYF did not find anything that needed to be referred to the [OFA].”
State Auditor Pat McCarthy told KOMO News last Monday that auditors did not find any “conclusions of fraud,” but said that if DCYF has concerns, it can forward any findings to the…
CLICK HERE to read the FULL DCYF says no reportable fraud linked to state audit – KOMO News article.
THE TUTUKA POWER STATION PROCUREMENT FRAUD (ESKOM)
Date: August 29, 2025 Perpetrator: Jessie Phindile Kubheka (Supplier Director)
Case Description: As part of the ongoing “cleaning up” of Eskom, Jessie Phindile Kubheka was sentenced to 12 years (with 5 years suspended) for defrauding the Tutuka Power Station. The case involved a sophisticated procurement syndicate that exploited Eskom’s emergency repair protocols. Kubheka’s company was contracted to deliver three high-specification containers for the power station. Only one container was ever delivered, and even that single unit failed to meet the required safety and technical specifications.
Despite the lack of delivery, Kubheka issued grossly inflated invoices, defrauding the utility of approximately R2.6 million. The Middelburg Specialised Commercial Crimes Court ordered Kubheka to repay the full amount. This case is significant because it marks a shift in Eskom’s strategy toward “naming and shaming” suppliers and pursuing full asset recovery. It serves as a stark warning to contractors that the 2026 climate of “Zero Tolerance” for state-owned enterprise (SOE) fraud is backed by active judicial enforcement.
Link to Original: Eskom Official – Tutuka Fraud Sentencing