CHARLESTON, S.C. (WCSC) — A South Carolina businessman pleaded guilty in federal court in Massachusetts to misusing COVID funds.
David Breen, 54, pleaded guilty to one count of theft of government property and misappropriation of COVID-19 funds for personal use.
The U.S. Department of Justice said he spent more than $1.2 million in Economic Injury and Disaster Loan funds that he obtained from the U.S. Small Business Administration to build a home and purchase motor vehicles. The SBA provided loans to small businesses that suffered economic injury because of the COVID-19 pandemic.
He applied for Economic Injury and Disaster Loan funds in March 2022 on behalf of “Fun Zone,” an entity through which he operated “Pinz,” a bowling alley and entertainment venue in Milford, Massachusetts. Breen entered into a loan agreement with the SBA in which he agreed to use the loan proceeds as working…
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