RALEIGH, N.C. (WTVD) — North Carolina lawmakers pressed state officials Thursday during a high-stakes hearing on Jones Street over an ongoing Medicaid shortfall and allegations of fraud.
Attorney General Jeff Jackson and North Carolina Department of Health and Human Services Secretary Dev Sangvai were questioned about possible fraud, and the process for investigating fraud, as lawmakers remain at an impasse over the funding in the absence of a new state budget.
State health officials said they need an additional $319 million for this year’s Medicaid rebase, which they say is necessary to keep pace with rising costs and enrollment. Governor Josh Stein has also called on lawmakers to pass additional funding for Medicaid.
But some lawmakers argue the numbers presented by the administration do not add up. During the hearing, legislators noted that North Carolina ranks near the top…
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