Yesterday with Secretary Kennedy, I zeroed in on one of the ugliest fraud magnets in Medicaid. In New York, a program meant to care for the vulnerable has been twisted into a fraud-soaked jobs scheme, with roughly 250,000 enrollees, about 400,000 caregivers, and spending that exploded from $2.5 billion in 2019 to an estimated $12 billion in 2025. If New York’s Medicaid spending matched the national average, the savings would be almost $43 billion. That is why I introduced the Combating Deceptive Practices in Assistance Programs Act of 2026 to put real guardrails back in place.
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CLICK HERE to read the FULL New Schweikert Bill Takes Aim at Medicaid Fraud article.
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