“Through the ALEC Government Efficiency Coalition, you’ll find resources to root out waste, fraud, and abuse in your state.”
ALEC Senior Vice President of Policy Lee Schalk recently appeared on The Schilling Show to discuss ongoing efforts at the federal and state levels — and at ALEC — to reduce government waste, fraud, and abuse.
The conversation started with Schilling asking listeners at home for a general overview of ALEC as an organization and its general principles.
“Our core principles, our guiding North Star, are the principles of limited government, free markets, and federalism,” Schalk emphasized.
“In our view, it was the states that created the federal government, not the other way around, and those principles guide everything that we do from a policy perspective.”
He explained further how ALEC brings lawmakers together from across the country to exchange ideas and best…
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