Lottery bosses turned to Condition Safety Agency to research leaks

Lottery bosses turned to Condition Safety Agency to research leaks

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Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Protection Company (SSA) in December 2018 to research the leaking of documents that exposed lottery corruption.
The NLC’s organization secretary at enough time mentioned media reviews she reported had been based on “stolen” details within an affidavit with the SSA.
The SSA did examine. It located the knowledge was not a matter of point out protection and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for your media to expose it.
A fresh board and management has considering that taken around the NLC and To date have taken measures to finish corruption for the institution.
A State Stability Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for publicity from the media.

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

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the security company’s “private” results and suggestions.
Nevhutanda requested the SSA to research the role of NLC staff members from the alleged leaking of information, and Nene, in her affidavit identified specific media and studies that she claimed involved these leaks.

During the letter outlining its findings, the SSA explained to the NLC that when guarding state information was “a legal crucial targeted at shielding the sovereignty and integrity with the condition” this only placed on correctly labeled details.

Even though it didn't say so right, the SSA findings implied which the allegedly leaked details did not fall into this group.

Significantly, the SSA manufactured it crystal clear that the need to defend point out information “will not stop any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation located that the NLC details involved with the alleged breach was “delicate and privileged in character, but not classified when it comes to the prescripts with the Bare minimum Information and facts Safety Requirements (Miss out on)”.

“The leakage in the relevant sensitive Formal NLC information and facts to the media does not pose a danger to countrywide protection,” the SSA explained, including which the impression on the breaches was reputational.

The SSA report discovered “no proof of a factual and incriminating character towards any with the suspected NLC staff that could be determined from the knowledge and data interrogated”.

Additionally, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does supply enough motive to get these uncovered inside the media”.

Conspiracy statements
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, market and Levels of competition portfolio committee that there was “a conspiracy” in which info “stolen” from your NLC was sent towards the US, exactly where he claimed it absolutely was staying offered to fund a smear marketing campaign in opposition to the NLC.

He was repeating equivalent claims he had previously designed in Parliament, which incorporated ad hominem assaults on GroundUp and this reporter but was cautious not to call either.

“I came right here in this August home last year and noted to honourable users that information regarding our beneficiaries is stolen and set in a single state in America,” he informed MPs.

“We referred to as to the Point out Protection Agency to come consider the make a difference since we are getting reports that our information and facts is building income for media platforms and journalists,” he mentioned. “There have been chat, needless to say from one supply, a person media, that spoke Considerably about proactive-funding,” Nevhutanda reported (referring to GroundUp), but failed to explain to MPs which the SSA investigation were completed Virtually a 12 months previously.

Proactive funding was at the guts of your looting of the lottery. It facet-stepped the traditional grant process. The NLC could alone identify a project to fund and appoint a non-profit organisation to oversee it.

Right after Nevhutanda to start with informed Parliament in 2018 that he had asked the SSA to analyze the intended breach, the South African Countrywide Editors Forum issued a statement indicating that his remarks reflected “an extremely unsafe Frame of mind the place the media is staying blamed for that NLC’s inherent difficulties”.

“Instead of investigating why tens of millions can't be accounted for, the NLC has instead attempted to Forged question within the integrity of your journalists involved and has requested the SSA to research their resources.”

Proactive jobs produced mystery
Protection flaws discovered inside the NLC grant funding technique throughout the SSA’s investigation, surface to are already employed as an excuse because of the NLC to remove all proactive-funded initiatives from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding tasks was heightened to ‘key’ and initiatives ended up faraway from the grant funding process and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Workplace, Govt Manager Authorized in an effort to safeguard [the] data,” Nene reported in her affidavit.

“There was lots of inside dialogue, with a lot of back and forth, about what to do to plug the alleged leaks”, a source, who was inside a senior place for the NLC at enough time, instructed GroundUp. “Ultimately, the decision was taken to remove the many proactive jobs from the method and limit use of a handful of men and women”.

Some in that handful of individuals were implicated in corruption.

Maselwa, who resigned in the NLC various a long time in the past, continues to be implicated in corruption involving lottery funds. He been given R4.3-million from lottery resources allotted to create a library and museum complicated in Kuruman (see Taung Cultural New music and Arts Expo) which he utilized to make a dwelling in an upmarket gated development in Pretoria. The house is among several paid for with lottery funds that were frozen after the Asset Forfeiture Unit obtained a preservation order in December 2022.

The politically-connected Nevhutanda, who was appointed as being the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to high-ups within the ANC Management, previous NLC previous Commissioner Thabang Mampane, and ex-chief functioning officer Phillemon Letwaba, have all been implicated from the corruption which confused the NLC on their check out.

Also implicated are former board associates William Huma, who resigned following he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got because died.

Each time a new administration, including the total board and government, took about within the NLC in late 2022 and early 2023, they discovered a “chaotic mess” in the documentation referring to proactive funding, A lot of which was paper-based. Key paperwork had been lacking. Information held for safekeeping by doc storage corporation Metrofile had been signed out and hardly ever returned.

The NLC was in the position to Recuperate copies of some ตรวจ รางวัล documents from its Mimecast electronic mail archiving procedure as well as laptops of their assistants and assistance team.

News reports
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem probable data security breaches along with the unauthorised use and/or dissemination of private details received on account of executing official features during the Fee by NLC workers. The routines are intended to undermine the integrity on the Commission even though disrupting the powerful features [on the NLC] and triggering insurmountable reputational damage towards the Fee as being the custodian of non-public details entrusted to it by its beneficiaries.”

His ask for for that SSA to investigate was supported within an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is at present facing a disciplinary inquiry immediately after she was unsuccessful in legal motion to put aside findings of irregular expenditure on her look at.

The goal of her affidavit, Nene mentioned, was “to history the occasions which transpired regarding information security breaches with the Nationwide Lotteries Commission”.

She shown many information stories which she claimed were being the effects of such “breaches” (see at the conclusion of this information).

Nene reported that a whistle-blower approached the NLC alleging that amongst its staff members, Sello Qhino, had “supplied her categorised NLC Facts and persistently encouraged her to deliver the information to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded jobs in Kuruman soon after tries to raise The problem internally were being dismissed, was subsequently fired.

Referring to an 18 November 2018 posting within the Day-to-day Dispatch concerning the misappropriation of Lottery money, Nene explained the NLC determined after which you can suspended Zintle Rungqu. She was an staff in the NLC’s East London Place of work, who was the spouse as well as the mother of whistleblower Mzukise Makatse’s a few little ones.

Rungqu and Makatse imagine Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, While using the NLC paying out R470,000 on lawyers to stand for it, but was located not responsible and allowed to return to operate.

“The prevalent Consider these content is usually that [they contain] categorised facts regarding proactive funding initiatives,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out in the family members home to go ahead and take warmth off her and his little ones. Going through homelessness, he moved into an Workplace within an vacant factory belonging to a colleague.

Each Makatse and Qhino are taking part in an NLC reparation process intended to recognise the damage some people suffered on the palms with the NLC. Apologies and, occasionally, financial payment are envisioned.

“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 a number of these people. It absolutely was just so heart-wrenching that their full lives are actually turned upside down,” reported Scholtz.

Amongst Those people she met ended up 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 possess a committed anti-corruption channel will bring about employees presenting such circumstances outside of the NLC,” the SSA claimed in its results.

“Specified the magnitude of corruption in point out establishments, it remains essential that it ensures that the NLC complies with all security prescripts and that its concentration is on making sure that unlawful and irregular carry out is sufficiently mitigated in opposition to and by making certain an suitable channel for whistle-blowers to report untoward carry out without getting intimidated.”

It suggested that the NLC establish a “Harmless channel” for workers to offer information on any “untoward action” that will not prevent or discourage staff members from blowing the whistle. A whistle-blowers policy, based on the Secured Disclosures Act 25 of 2000, is actually a requirement.”

Media studies Nene listed
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Exercise Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and operator in the Limpopo Mirror, to reveal NLC corruption. “The report experienced things of data not available in the general public area, thus increasing problem on internal Information stability breaches. The allegations during the media ended up independently investigated,” Nene mentioned. “Nonetheless, workers accountable for divulging categorised details have however being identified”;
A 28 January 2018 short article published with the Dally Dispatch “citing numerous allegations from your Limpopo Mirror short article posted on ten December 2017 along with a new allegation associated with a former personnel with the title of Mzukisi Makatse. He was charged and summarily dismissed to the risk triggered for the organisation.”
A 16 November 2018 article in the Lowvelder regarding the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of receiving R27-million in lottery grants, the rehab has not been finished. “The Lowvelder posting contained categorized information with regard to NLC policy, elevating further more considerations of inside information safety breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened information security dangers within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Key Care, a hijacked NPO. Nene mentioned GroundUp had verified in its story that it absolutely was dependant on leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Entry to Information) ask for for particulars concerning the challenge, she mentioned