The Justice Department on Thursday announced criminal charges against 15 people in Minnesota accused of defrauding Medicaid and several other state-run social services programs of more than $90 million.
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“The fraud here in Minnesota is shocking,” said Assistant Attorney General Colin McDonald during a press conference in Minneapolis. “This is not the end of our work.”
Top officials, including Health Secretary Robert F. Kennedy Jr. and Centers for Medicare and Medicaid Services Administrator Mehmet Oz, joined McDonald in Minneapolis to announce the charges.
The defendants are also accused of defrauding programs meant to provide housing and meals for those in need, as well as services for disabled people and autistic children, according to McDonald.
He accused two of the people of defrauding…
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