The Trump administration on Tuesday widened its efforts to stamp out Medicaid fraud, at least in its fifth state this year, calling on Florida officials to share information on how they identify, prevent, and address bad actors in their state program.
Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz, MD, MBA, had previously sent similar requests to New York, Minnesota, Maine, and California in what has been a growing, Trump administration-wide initiative to crack down on fraud, waste, and abuse.
The letter to Florida Gov. Ron DeSantis and other state leaders is the first such request that Oz has announced to a Republican-led state as the administration seeks to convey that fraud won’t be accepted regardless of political leadership.
It comes a day after President Donald Trump signed an executive order to create an anti-fraud task force across federal benefit…
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