CHICAGO (WLS) — Federal prosecutors have dropped all charges against two defendants in a hospital COVID-19 fraud case after their attorneys raised allegations of prosecutorial misconduct, prompting sharp questions from the judge overseeing the case.
Before granting the government’s motion to dismiss, U.S. District Judge Sharon Johnson Coleman sought explanations from prosecutors during a hearing Friday at the Dirksen Federal Building, expressing frustration with leadership at the U.S. Attorney’s Office.
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The case centers on alleged fraud tied to COVID-19 testing at Loretto Hospital during the pandemic. Defendants were indicted for submitting fraudulent claims related to that testing, but attorneys for two of them raised concerns about misconduct before the grand jury that returned the indictments.
As a result, prosecutors moved to…
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