Federal agents say they executed criminal search warrants at two Twin Cities stores on Thursday as part of an investigation into $2.1 million of Supplemental Nutrition Assistance Program fraud.
Twenty other stores were part of the investigation and are suspected of violating the SNAP program; they were issued administrative charging letters, according to the U.S. Department of Agriculture.
The probe — called “Operation Cold SNAP” — started in February. The USDA says that as part of the schemes, retailers would exchange taxpayer-funded SNAP benefits for cash or other items.
“They bring the card into the store and instead of buying an eligible food item, which is what SNAP is for, they exchange the benefits of that card for cash, for money. And then the retailer will take that money on the card, spend it,” USDA Inspector General John Walk said.
In the past, the USDA has said the…
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