Lottery bosses turned to Condition Stability Company to analyze leaks

Lottery bosses turned to Condition Stability Company to analyze leaks

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Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Security Agency (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s enterprise secretary at some time listed media studies she explained ended up based on “stolen” information within an affidavit for that SSA.
The SSA did investigate. It discovered the data was not a matter of point out safety and which the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to expose it.
A new board and management has because taken around the NLC and So far have taken actions to finish corruption at the institution.
A Condition Protection Company (SSA) investigation uncovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for exposure with the media.

The probe into intended “facts protection breaches and sabotage of NLC functions” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by presently suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the safety agency’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to analyze the purpose of NLC personnel inside the alleged leaking of data, and Nene, in her affidavit determined particular media and experiences that she claimed concerned these leaks.

During the letter outlining its findings, the SSA explained to the NLC that although preserving state facts was “a lawful crucial targeted at preserving the sovereignty and integrity from the state” this only applied to appropriately categorized details.

Although it did not say so immediately, the SSA findings implied that the allegedly leaked info did not tumble into this group.

Appreciably, the SSA designed it obvious that the need to protect condition details “doesn't reduce any particular person from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation uncovered that the NLC information and facts associated with the alleged breach was “delicate and privileged in mother nature, but not labeled in terms of the prescripts in the Minimum amount Info Safety Criteria (Pass up)”.

“The leakage from the pertinent sensitive official NLC info for the media isn't going to pose a risk to national security,” the SSA stated, adding which the affect on the breaches was reputational.

The SSA report identified “no evidence of the factual and incriminating nature versus any on the suspected NLC workers that could be determined from the knowledge and info interrogated”.

It also stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide enough motive to acquire this kind of exposed from the media”.

Conspiracy claims
In 2020, Nevhutanda told MPs through a session of Parliament’s trade, market and Levels of competition portfolio committee that there was “a conspiracy” during which information and facts “stolen” from the NLC was sent to the US, where he claimed it had been getting bought to fund a smear campaign versus the NLC.

He was repeating identical claims he experienced previously designed in Parliament, which integrated advertisement hominem assaults on GroundUp which reporter but was cautious not to name both.

“I arrived in this article On this August household last year and noted to honourable associates that information regarding our beneficiaries has long been stolen and set in a single condition in the united states,” he informed MPs.

“We referred to as within the State Stability Agency to come look into the make any difference for the reason that we have been obtaining experiences that our data is producing revenue for media platforms and journalists,” he explained. “There has been chat, of course from one particular resource, a single media, that spoke Substantially about proactive-funding,” Nevhutanda stated (referring to GroundUp), but failed to explain to MPs the SSA investigation were concluded Pretty much a calendar year before.

Proactive funding was at the guts of your looting of the lottery. It facet-stepped the traditional grant system. The NLC could by itself discover a task to fund and appoint a non-income organisation to oversee it.

After Nevhutanda to start with instructed Parliament in 2018 that he had questioned the SSA to investigate the meant breach, the South African National Editors Discussion board issued a press release declaring that his remarks mirrored “an especially perilous Perspective where by the media is getting blamed with the NLC’s inherent issues”.

“In lieu of investigating why millions cannot be accounted for, the NLC has rather tried to cast doubt on the integrity from the journalists involved and it has questioned the SSA to research their sources.”

Proactive projects made secret
Stability flaws determined inside the NLC grant funding method throughout the SSA’s investigation, surface to are employed being an excuse with the NLC to remove all proactive-funded assignments from its central grants system.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘secret’ and assignments ended up faraway from the grant funding system and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Office, Govt Supervisor Lawful as a way to safeguard [the] facts,” Nene stated in her affidavit.

“There was a great deal of interior dialogue, with lots of back and forth, about what to do to plug the alleged leaks”, a source, who was inside a senior place with the NLC at enough time, advised GroundUp. “In the long run, the decision was taken to remove all the proactive projects within the process and limit access to A few men and women”.

Some in that handful of individuals were being implicated in corruption.

Maselwa, who resigned with the NLC numerous years in the past, has been implicated in corruption involving lottery cash. He received R4.3-million from lottery cash allotted to construct a library and museum advanced in Kuruman (see Taung Cultural Music and Arts Expo) which he utilised to make a home in an upmarket gated growth in Pretoria. The residence is among quite a few compensated for with lottery resources which were frozen once the Asset Forfeiture Device acquired a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by previous President Jacob Zuma in 2009 and was near substantial-ups while in the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their view.

Also implicated are previous board members William Huma, who resigned just after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has due to the fact died.

Whenever a new administration, including the full board and executive, took above in the NLC in late 2022 and early 2023, they learned a “chaotic mess” during the documentation concerning proactive funding, much of which was paper-based. Key paperwork have been missing. Files held for safekeeping by doc storage firm Metrofile were signed out and in no way returned.

The NLC was able to Recuperate copies of some ผล หวย ลาว documents from its Mimecast email archiving procedure as well as laptops in their assistants and assistance staff.

Information studies
In his one December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave issue doable details stability breaches plus the unauthorised use and/or dissemination of confidential details received due to performing Formal capabilities within the Commission by NLC workers. The routines are intended to undermine the integrity in the Commission while disrupting the efficient functions [of your NLC] and producing insurmountable reputational damage for the Fee as being the custodian of personal information entrusted to it by its beneficiaries.”

His ask for for your SSA to analyze was supported in an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.

Nene is at the moment facing a disciplinary inquiry immediately after she was unsuccessful in legal action to set aside conclusions of irregular expenditure on her watch.

The purpose of her affidavit, Nene claimed, was “to record the activities which transpired regarding information and facts security breaches in the National Lotteries Commission”.

She outlined different news reports which she claimed were the results of such “breaches” (see at the conclusion of this text).

Nene explained that a whistle-blower approached the NLC alleging that one among its staff, Sello Qhino, experienced “presented her classified NLC Information and facts and persistently encouraged her to deliver the information to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded tasks in Kuruman just after attempts to boost The problem internally were being ignored, was subsequently fired.

Referring to an 18 November 2018 report during the Every day Dispatch in regards to the misappropriation of Lottery cash, Nene reported which the NLC discovered after which you can suspended Zintle Rungqu. She was an staff during the NLC’s East London office, who was the partner as well as mom of whistleblower Mzukise Makatse’s three children.

Rungqu and Makatse consider Rungqu was punished mainly because Makatse blew the whistle. She was suspended and charged internally, While using the NLC shelling out R470,000 on lawyers to depict it, but was found not guilty and permitted to return to operate.

“The typical Consider these articles is always that [they contain] classified info associated with proactive funding initiatives,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out of the family members residence to take the warmth off her and his small children. Facing homelessness, he moved into an office within an empty manufacturing unit belonging to a colleague.

Equally Makatse and Qhino are participating in an NLC reparation procedure meant to recognise the harm some people suffered with the palms with the NLC. Apologies and, occasionally, monetary compensation are expected.

“Some individuals were truly affected very negatively by this … This is really distressing,” NLC Commissioner Jodi Scholtz instructed the Day-to-day Maverick final year.

“I fulfilled several these people. It absolutely was just so heart-wrenching that their total lives are actually turned upside down,” reported Scholtz.

Amongst Those people she met have been Qhino and Makatse.

Safe platform essential for whistleblowers
The SSA uncovered the absence at the time of a correct channel for whistleblowers to report corruption led them to turn on the media.

“Failure to have a committed anti-corruption channel will end in staff members presenting such cases beyond the NLC,” the SSA reported in its conclusions.

“Supplied the magnitude of corruption in condition institutions, it continues to be important that it makes sure that the NLC complies with all security prescripts Which its target is on ensuring that unlawful and irregular conduct is sufficiently mitigated towards and by making sure an satisfactory channel for whistle-blowers to report untoward perform with no being intimidated.”

It advisable which the NLC establish a “Risk-free channel” for workers to provide information on any “untoward action” that could not prevent or discourage staff from blowing the whistle. A whistle-blowers coverage, based upon the Shielded Disclosures Act twenty five of 2000, is a requirement.”

Media reports Nene outlined
A ten December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Fitness Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and operator with the Limpopo Mirror, to reveal NLC corruption. “The article experienced factors of data not offered in the public domain, thus raising worry on internal Data security breaches. The allegations while in the media were being independently investigated,” Nene mentioned. “Having said that, workers to blame for divulging categorised info have but being discovered”;
A 28 January 2018 posting published by the Dally Dispatch “citing many allegations in the Limpopo Mirror post published on ten December 2017 and also a new allegation associated with a former staff with the name of Mzukisi Makatse. He was billed and summarily dismissed for your danger induced towards the organisation.”
A sixteen November 2018 post during the Lowvelder in regards to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite receiving R27-million in lottery grants, the rehab has never been accomplished. “The Lowvelder posting contained classified details with regard to NLC plan, boosting further more concerns of internal info security breaches,” Nene said in her affidavit. “The prima facie proof with regards to these allegations did not warrant an independent Investigation, however [it] highlighted the heightened information stability pitfalls inside the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Main Treatment, a hijacked NPO. Nene stated GroundUp experienced confirmed in its story that it absolutely was determined by leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Access to Data) ask for for specifics with regard to the undertaking, she claimed