ESKOM SERVICE PROVIDER SENTENCED FOR FRAUD AND MONEY LAUNDERING

01 September 2025

ESKOM SERVICE PROVIDER SENTENCED FOR FRAUD AND MONEY LAUNDERING

Middelburg, Mpumalanga – The Mpumalanga Specialised Commercial Crimes Court has sentenced Phindile Jessie Kubheka (62) to 16 years’ imprisonment, wholly suspended for five years, after she pleaded guilty to charges of fraud and money laundering involving Eskom’s Thuthuka Power Station. Kubheka, a director of Umnandi Catering & Accommodation and Ronny Grass Cutting (Pty) Ltd, was also a signatory on both companies’ bank accounts.

In March 2020, Eskom contracted her to supply one oil storage container and two weighbridge information storage containers customised for use as offices at a total cost of R2.5 million. However, she only delivered one standard container valued at approximately R60 000, while submitting an invoice for three containers, which Eskom paid in full. Investigations later revealed that Kubheka had inflated the costs by R939 550.00. In aggravation of sentence, Senior State Advocate Derrick Mashego argued that the offence was carefully planned, motivated by greed, and caused significant financial prejudice to Eskom and the fiscus.

In mitigation, Kubheka expressed remorse, citing her retirement status, personal tragedies, and admitted to using proceeds of the crime to purchase a luxury vehicle. The court imposed an effective sentence of 12 years for fraud and 4 years for money laundering, wholly suspended for five years. In addition, under Section 300 of the Criminal Procedure Act 51 of 1977, Kubheka was ordered to repay R1,656,000 to Eskom within five years, in monthly instalments of R30,000 until the amount is fully settled.

The National Prosecuting Authority (NPA) reiterates that serious commercial crimes threaten South Africa’s economic stability and compromise Eskom’s ability to provide reliable electricity. The NPA remains resolute in adopting an aggressive stance in prosecuting those who undermine the country’s resources through corruption and fraud. Ends.

Issued by:

Monica Nyuswa

Regional Spokesperson:

NPA Mpumalanga

Tel: 013 045 0625 

Cell: 076 485 5446

Email: mnyuswa@npa.gov.za