A former senior federal official pleaded guilty Tuesday to defrauding the government of about $194 million, using invented classified programs to buy 298 gold bars, four luxury South Florida properties, watches and two BMWs.
David J. Rush of Ashburn, Virginia, pleaded guilty to one count of wire fraud in federal court in Alexandria, after reaching a tentative plea deal in September. Under the final agreement, he owes at least $195.4 million in restitution. The fraud caused $193.6 million in losses, according to court documents, and $1.8 million in private charter flights he billed to the government.
Rush held senior executive posts and a TS/SCI clearance at an agency the filings call “Government Agency 1.” CIA Director John Ratcliffe said the CIA referred the case to the FBI after an internal investigation “identified potential crimes.”
“David Rush abused his position and…
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