Lottery bosses turned to Point out Protection Agency to research leaks

Lottery bosses turned to Point out Protection Agency to research leaks

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Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Security Agency (SSA) in December 2018 to research the leaking of paperwork that uncovered lottery corruption.
The NLC’s business secretary at time stated media reports she mentioned have been according to “stolen” details in an affidavit for the SSA.
The SSA did investigate. It found the data was not a make a difference of state protection and the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to expose it.
A brand new board and administration has considering that taken more than the NLC and Up to now have taken measures to finish corruption at the institution.
A Condition Stability Agency (SSA) investigation located which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied sufficient motive” for publicity because of the media.

The probe into meant “info safety breaches and sabotage of NLC operations” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” results and recommendations.
Nevhutanda requested the SSA to investigate the purpose of NLC team during the alleged leaking of data, and Nene, in her affidavit determined distinct media and studies that she claimed involved these leaks.

In the letter outlining its conclusions, the SSA informed the NLC that while preserving state data was “a authorized vital aimed toward shielding the sovereignty and integrity with the condition” this only placed on appropriately categorized information.

Even though it didn't say so straight, the SSA conclusions implied the allegedly leaked information didn't slide into this group.

Considerably, the SSA designed it apparent that the necessity to guard state information and facts “isn't going to stop any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation observed that the NLC details linked to the alleged breach was “delicate and privileged in nature, but not classified in terms of the prescripts from the Minimal Data Protection Criteria (Pass up)”.

“The leakage of your applicable delicate official NLC info towards the media doesn't pose a danger to nationwide security,” the SSA reported, incorporating that the effects on the breaches was reputational.

The SSA report discovered “no proof of the factual and incriminating character against any on the suspected NLC employees that would be identified from the knowledge and details interrogated”.

Furthermore, it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does offer ample motive to own these uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, industry and Competitors portfolio committee that there was “a conspiracy” by which information “stolen” from the NLC was despatched towards the US, where he claimed it had been becoming bought to fund a smear campaign versus the NLC.

He was repeating related promises he had Earlier made in Parliament, which provided advert hominem attacks on GroundUp and this reporter but was watchful not to call possibly.

“I arrived here In this particular August household past year and noted to honourable associates that details about our beneficiaries has become stolen and place in one state in the usa,” he explained to MPs.

“We identified as to the Condition Security Company to come back consider the matter because we have been acquiring experiences that our facts is producing revenue for media platforms and journalists,” he mentioned. “There have been discuss, certainly from a single supply, a person media, that spoke Significantly about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't tell MPs that the SSA investigation were completed Virtually a yr previously.

Proactive funding was at the heart from the looting in the lottery. It facet-stepped the normal grant method. The NLC could by itself discover a job to fund and appoint a non-gain organisation to supervise it.

After Nevhutanda initial told Parliament in 2018 that he experienced requested the SSA to research the supposed breach, the South African Countrywide Editors Forum issued a statement saying that his remarks mirrored “an especially hazardous attitude where by the media is currently being blamed for your NLC’s inherent problems”.

“In lieu of investigating why hundreds of thousands can not be accounted for, the NLC has rather tried to Solid doubt about the integrity in the journalists included and has requested the SSA to research their sources.”

Proactive initiatives built magic formula
Safety flaws determined from the NLC grant funding process during the SSA’s investigation, appear to are already made use of as an justification with the NLC to eliminate all proactive-funded assignments from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘solution’ and jobs ended up removed from the grant funding technique and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Business office, Govt Supervisor Legal in an effort to safeguard [the] information,” Nene explained in her affidavit.

“There was loads of inner dialogue, with numerous back and forth, about what to do to plug the alleged leaks”, a supply, who was inside of a senior position in the NLC at time, instructed GroundUp. “In the end, the decision was taken to eliminate all the proactive tasks from your procedure and Restrict usage of a handful of folks”.

Some in that handful of individuals ended up implicated in corruption.

Maselwa, who resigned within the NLC various a long time back, is implicated in corruption involving lottery resources. He obtained R4.3-million from lottery cash allotted to construct a library and museum elaborate in Kuruman (see Taung Cultural Music and Arts Expo) which he employed to develop a house within an upmarket gated advancement in Pretoria. The property is one of various paid for with lottery funds which were frozen after the Asset Forfeiture Device obtained a preservation buy in December 2022.

The politically-connected Nevhutanda, who was appointed given that the NLC board chairperson by former President Jacob Zuma in 2009 and was near to higher-ups during the ANC leadership, former NLC former Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated within the corruption which overcome the NLC on their check out.

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

When a new administration, such as the full board and govt, took about for the NLC in late 2022 and early 2023, they learned a “chaotic mess” while in the documentation associated with proactive funding, Significantly of which was paper-primarily based. Vital paperwork were missing. Data files held for safekeeping by document storage enterprise Metrofile had been signed out and never returned.

The NLC was in the position to recover copies of some ตรวจ paperwork from its Mimecast email archiving procedure plus the laptops of their assistants and aid personnel.

Information studies
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave concern attainable information security breaches plus the unauthorised use and/or dissemination of private information obtained because of undertaking Formal features during the Fee by NLC workforce. The activities are meant to undermine the integrity of your Fee even though disrupting the powerful features [from the NLC] and creating insurmountable reputational hurt to your Commission as the custodian of non-public details entrusted to it by its beneficiaries.”

His ask for to the SSA to investigate was supported in an affidavit by suspended NLC company secretary, Nomphumelelo Nene.

Nene is at this time dealing with a disciplinary inquiry just after she was unsuccessful in legal action to set aside conclusions of irregular expenditure on her watch.

The objective of her affidavit, Nene claimed, was “to record the activities which transpired associated with information and facts stability breaches at the Countrywide Lotteries Fee”.

She mentioned many information stories which she claimed ended up the final results of those “breaches” (see at the end of this short article).

Nene stated that a whistle-blower approached the NLC alleging that one of its workforce, Sello Qhino, had “provided her labeled NLC Info and persistently inspired her to provide the knowledge to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded initiatives in Kuruman following makes an attempt to boost The difficulty internally had been dismissed, was subsequently fired.

Referring to an eighteen November 2018 posting within the Everyday Dispatch with regard to the misappropriation of Lottery resources, Nene said which the NLC discovered and then suspended Zintle Rungqu. She was an employee during the NLC’s East London office, who was the partner as well as mom of whistleblower Mzukise Makatse’s three small children.

Rungqu and Makatse believe that Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, Along with the NLC paying R470,000 on legal professionals to symbolize it, but was uncovered not guilty and allowed to return to operate.

“The common Consider these content is the fact that [they entail] categorised information referring to proactive funding assignments,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out with the spouse and children dwelling to go ahead and take heat off her and his young children. Going through homelessness, he moved into an Business office in an vacant manufacturing facility belonging to a friend.

Both Makatse and Qhino are taking part in an NLC reparation method intended to recognise the hurt a number of people suffered for the fingers of your NLC. Apologies and, sometimes, financial compensation are envisioned.

“Some folks were being actually afflicted extremely negatively by this … This is de facto distressing,” NLC Commissioner Jodi Scholtz told the Everyday Maverick very last 12 months.

“I achieved two or three these individuals. It was just so coronary heart-wrenching that their full life are turned the wrong way up,” stated Scholtz.

Among the Those people she achieved were being Qhino and Makatse.

Safe platform necessary for whistleblowers
The SSA discovered the absence at time of a correct channel for whistleblowers to report corruption led them to show on the media.

“Failure to possess a dedicated anti-corruption channel will result in workers presenting this sort of instances outside of the NLC,” the SSA claimed in its conclusions.

“Specified the magnitude of corruption in state institutions, it continues to be crucial that it makes sure that the NLC complies with all protection prescripts Which its emphasis is on making sure that unlawful and irregular perform is adequately mitigated towards and by guaranteeing an enough channel for whistle-blowers to report untoward carry out without becoming intimidated.”

It encouraged that the NLC build a “Protected channel” for employees to supply information on any “untoward activity” that could not avert or discourage staff members from blowing the whistle. A whistle-blowers plan, determined by the Shielded Disclosures Act twenty five of 2000, can be a necessity.”

Media reports Nene mentioned
A ten December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Physical fitness Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and proprietor of the Limpopo Mirror, to expose NLC corruption. “The write-up had things of data not accessible in the public area, thus boosting issue on inside Information and facts stability breaches. The allegations in the media were being independently investigated,” Nene mentioned. “On the other hand, personnel to blame for divulging categorized information have still being identified”;
A 28 January 2018 posting revealed from the Dally Dispatch “citing a lot of allegations from your Limpopo Mirror short article published on 10 December 2017 in addition to a new allegation concerning a former personnel from the title of Mzukisi Makatse. He was charged and summarily dismissed with the threat caused to the organisation.”
A sixteen November 2018 short article during the Lowvelder in regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has described how, Regardless of receiving R27-million in lottery grants, the rehab hasn't been concluded. “The Lowvelder report contained categorized information concerning NLC coverage, raising further more problems of internal facts safety breaches,” Nene stated in her affidavit. “The prima facie proof regarding these allegations didn't warrant an unbiased Investigation, even so [it] highlighted the heightened details stability risks inside the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Primary Care, a hijacked NPO. Nene said GroundUp had verified in its Tale that it absolutely was according to leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Promotion of Usage of Information and facts) ask for for facts concerning the project, she reported