An independent financial review presented to the Fullerton City Council on Monday concluded that the city’s $2.9 million accounting error and the disappearance of roughly $10 million in unassigned fund balance were the product of bookkeeping mistakes, weak financial governance, and unclear budget presentation — not fraud. But the firm that conducted the review, Grant Thornton Advisors LLC, was explicit, in both its presentation and its written report, that it was never asked to look for fraud in the first place.
A Review, Not an Investigation
According to Grant Thornton’s engagement materials, the City of Fullerton hired the firm under a Statement of Work dated April 30, 2026, to analyze specific accounting transactions and budget items from the fiscal year ending June 30, 2025. The scope was to determine whether those transactions were conducted at arm’s length, complied with…
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