29 August 2025

Tutuka Power Station Fraud: Supplier Gets 12-Year Suspended Sentence, Must Repay R2.6M to Eskom

The Middelburg Specialised Commercial Crimes Court has sentenced Jessie Phindile Kubheka, a supplier linked to the Tutuka Power Station fraud case, to a 12-year suspended sentence and ordered her to repay R2.6 million to Eskom. The ruling, delivered on 22 August 2025, marks what Eskom calls a "landmark step" in its fight against organized crime within the utility.

Details of the Sentencing

Kubheka, who served as a director and majority shareholder in one of the companies implicated in the fraud scheme, received:

• A 12-year sentence for fraud, suspended for five years with conditions
• A four-year sentence for money laundering, also suspended for five years
• An order to repay R2,595,000 to Eskom

The Fraud Scheme

According to court documents, the case dates back to 2020 when Eskom's internal investigations uncovered a syndicate operating at Tutuka Power Station. The scheme involved:

• Billing for three containers supposedly delivered to the power station
• Only one container was actually delivered, and it failed to meet Eskom's specifications
• Massive price inflation - containers valued at approximately R60,000 each were invoiced at significantly higher amounts
• A total fraudulent payment of R2,595,000 through these inflated invoices

Eskom's Anti-Corruption Drive

Eskom Group Chief Executive Dan Marokane emphasized the utility's stance on corruption: "Our commitment to eliminating corruption remains unwavering and these developments send a clear message: fraud and corruption will not be tolerated."

As part of its anti-corruption strategy, Eskom has consolidated its investigative functions into the Group Investigations and Security (GIS) Division, which now reports directly to the Group Chief Executive. This division works closely with the National Joint Operational and Intelligence Structure (NATJOINTS) Energy Safety and Security Committee.

Outlook

This sentencing comes at a critical time for Eskom as it continues to stabilize operations after the prolonged loadshedding crisis of previous years. Corruption and fraud at power stations have been identified as contributing factors to operational inefficiencies that plagued the utility during its worst periods.

While this case represents progress in addressing corruption, the suspended nature of the sentence raises questions about whether penalties are sufficiently deterrent. The recovery of funds is significant, however, as Eskom continues to face financial challenges despite operational improvements.

Reporting Corruption

Eskom has called on employees and the public to report any knowledge of fraud, theft, or illegal electricity sales through:

• The Eskom Crime Line: 0800 11 27 22
• WhatsApp: 081 333 3323

Reports can be made anonymously.

Key Terms Explained

• Suspended Sentence: A legal ruling where the convicted person doesn't serve jail time as long as they comply with certain conditions for a specified period.
• NATJOINTS: The National Joint Operational and Intelligence Structure - a coordination body for security and law enforcement operations across South Africa.
• GIS Division: Eskom's newly consolidated Group Investigations and Security Division, focused on investigating and preventing fraud, corruption and security breaches within the utility.