Lottery bosses turned to Condition Security Agency to investigate leaks

Lottery bosses turned to Condition Security Agency to investigate leaks

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Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Condition Stability Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s business secretary at time detailed media stories she claimed ended up based on “stolen” information within an affidavit to the SSA.
The SSA did investigate. It uncovered the knowledge was not a make any difference of condition stability and the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to show it.
A whole new board and administration has due to the fact taken more than the NLC and To date have taken steps to end corruption on the establishment.
A Point out Stability Company (SSA) investigation located that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished ample motive” for publicity because of the media.

The probe into intended “information and facts security breaches and sabotage of NLC functions” was undertaken just after then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to analyze.

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the safety agency’s “confidential” findings and recommendations.
Nevhutanda asked the SSA to research the position of NLC staff inside the alleged leaking of information, and Nene, in her affidavit discovered distinct media and reviews that she claimed involved these leaks.

During the letter outlining its results, the SSA informed the NLC that while defending condition information was “a authorized vital aimed at safeguarding the sovereignty and integrity of your point out” this only placed on correctly categorised information.

Even though it didn't say so instantly, the SSA conclusions implied the allegedly leaked facts did not fall into this category.

Significantly, the SSA made it apparent that the need to shield point out data “will not prevent any unique from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation discovered the NLC information involved with the alleged breach was “delicate and privileged in nature, but not labeled regarding the prescripts of your Minimal Data Protection Standards (Skip)”.

“The leakage in the appropriate sensitive official NLC info for the media will not pose a risk to national stability,” the SSA reported, incorporating the influence of the breaches was reputational.

The SSA report uncovered “no evidence of the factual and incriminating character against any with the suspected NLC personnel that may be discovered from the information and details interrogated”.

What's more, it mentioned that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does present enough motive to possess these uncovered in the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs through a session of Parliament’s trade, field and Competitors portfolio committee that there was “a conspiracy” during which details “stolen” from your NLC was sent to the US, where by he claimed it had been currently being sold to fund a smear marketing campaign in opposition to the NLC.

He was repeating comparable promises he had Beforehand created in Parliament, which included advertisement hominem assaults on GroundUp and this reporter but was watchful not to call either.

“I came in this article On this August dwelling final 12 months and claimed to honourable members that details about our beneficiaries has become stolen and set in a single condition in the united states,” he instructed MPs.

“We termed on the Point out Protection Agency to come consider the make a difference simply because we are having stories that our data is producing money for media platforms and journalists,” he claimed. “There's been talk, not surprisingly from a single resource, a single media, that spoke much about proactive-funding,” Nevhutanda explained (referring to GroundUp), but didn't tell MPs that the SSA investigation had been concluded almost a yr previously.

Proactive funding was at the center on the looting of your lottery. It facet-stepped the traditional grant system. The NLC could alone detect a challenge to fund and appoint a non-profit organisation to supervise it.

Soon after Nevhutanda initially advised Parliament in 2018 that he had requested the SSA to research the meant breach, the South African Nationwide Editors Discussion board issued an announcement declaring that his remarks reflected “a very risky Frame of mind exactly where the media is remaining blamed to the NLC’s inherent problems”.

“Rather then investigating why thousands and thousands cannot be accounted for, the NLC has alternatively made an effort to Forged question around the integrity in the journalists included and has questioned the SSA to research their resources.”

Proactive assignments built key
Security flaws discovered from the NLC grant funding method over the SSA’s investigation, show up to are actually made use of as an excuse through the NLC to remove all proactive-funded jobs from its central grants process.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘mystery’ and assignments were being removed from the grant funding method and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Place of work, Executive Manager Authorized so as to safeguard [the] information and facts,” Nene reported in her affidavit.

“There was loads of interior discussion, with plenty of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was inside a senior position for the NLC at time, told GroundUp. “In the long run, the decision was taken to get rid of all of the proactive initiatives in the process and limit entry to a handful of people today”.

Some in that handful of individuals have been implicated in corruption.

Maselwa, who resigned from the NLC numerous several years in the past, has long been implicated in corruption involving lottery funds. He obtained R4.3-million from lottery funds allotted to make a library and museum complex in Kuruman (see Taung Cultural Music and Arts Expo) which he used to build a house within an upmarket gated growth in Pretoria. The house is one of various paid out for with lottery funds which were frozen after the Asset Forfeiture Unit obtained a preservation buy 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 superior-ups while in the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated in the corruption which overwhelmed the NLC on their enjoy.

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

Each time a new administration, including the complete board and executive, took more than in the NLC in late 2022 and early 2023, they found a “chaotic mess” in the documentation concerning proactive funding, A great deal of which was paper-based mostly. Important files have been lacking. Information held for safekeeping by doc storage organization Metrofile were signed out and never ever returned.

The NLC was able to Get well copies of some ตรวจ paperwork from its Mimecast email archiving system as well as laptops of their assistants and support staff members.

News stories
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem probable details protection breaches and the unauthorised use and/or dissemination of confidential data attained on account of carrying out official functions within the Commission by NLC workers. The routines are intended to undermine the integrity from the Commission while disrupting the effective capabilities [with the NLC] and resulting in insurmountable reputational damage towards the Fee since the custodian of personal information and facts entrusted to it by its beneficiaries.”

His request with the SSA to research was supported within an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.

Nene is presently struggling with a disciplinary inquiry right after she was unsuccessful in lawful motion to set aside findings of irregular expenditure on her look at.

The goal of her affidavit, Nene stated, was “to file the situations which transpired relating to details safety breaches with the Nationwide Lotteries Commission”.

She detailed a variety of news reviews which she claimed had been the outcomes of such “breaches” (see at the conclusion of this information).

Nene claimed 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 assignments in Kuruman after attempts to boost The difficulty internally were dismissed, was subsequently fired.

Referring to an 18 November 2018 short article in the Everyday Dispatch with regard to the misappropriation of Lottery resources, Nene claimed that the NLC discovered then suspended Zintle Rungqu. She was an employee from the NLC’s East London Workplace, who was the husband or wife as well as the mom of whistleblower Mzukise Makatse’s a few youngsters.

Rungqu and Makatse believe that Rungqu was punished simply because Makatse blew the whistle. She was suspended and charged internally, Together with the NLC expending R470,000 on legal professionals to represent it, but was discovered not guilty and permitted to return to operate.

“The popular Think about these article content is that [they contain] categorised facts referring to proactive funding projects,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out of the household household to go ahead and take heat off her and his little ones. Struggling with homelessness, he moved into an office within an empty factory belonging to a friend.

Both of those Makatse and Qhino are taking part in an NLC reparation approach intended to recognise the hurt many people experienced within the palms in the NLC. Apologies and, occasionally, fiscal payment are expected.

“Some folks have been seriously impacted extremely negatively by this … This is actually distressing,” NLC Commissioner Jodi Scholtz informed the Every day Maverick past 12 months.

“I fulfilled several these people. It had been just so heart-wrenching that their complete life have been turned upside down,” mentioned Scholtz.

Amid All those she fulfilled ended up Qhino and Makatse.

Safe and sound platform essential for whistleblowers
The SSA located the absence at time of a proper channel for whistleblowers to report corruption led them to show on the media.

“Failure to have a devoted anti-corruption channel will bring about staff members presenting these circumstances beyond the NLC,” the SSA claimed in its findings.

“Supplied the magnitude of corruption in state establishments, it continues to be vital that it makes certain that the NLC complies with all security prescripts Which its concentrate is on making certain that unlawful and irregular carry out is adequately mitigated versus and by ensuring an satisfactory channel for whistle-blowers to report untoward conduct devoid of staying intimidated.”

It recommended which the NLC build a “Harmless channel” for workers to offer information on any “untoward exercise” that may not protect against or discourage staff members from blowing the whistle. A whistle-blowers policy, depending on the Shielded Disclosures Act 25 of 2000, is really a prerequisite.”

Media reviews Nene mentioned
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to show NLC corruption. “The write-up had things of data not available in the general public area, therefore elevating concern on internal Info security breaches. The allegations during the media were being independently investigated,” Nene claimed. “Even so, personnel to blame for divulging categorized information have still to become discovered”;
A 28 January 2018 post released by the Dally Dispatch “citing quite a few allegations in the Limpopo Mirror write-up released on ten December 2017 and a new allegation referring to a former worker through the name of Mzukisi Makatse. He was charged and summarily dismissed for your risk brought on for the organisation.”
A 16 November 2018 posting during the Lowvelder regarding the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Despite obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder write-up contained categorised details when it comes to NLC coverage, boosting more fears of internal facts security breaches,” Nene mentioned in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened info safety hazards inside the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene claimed GroundUp experienced confirmed in its Tale that it had been determined by leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Information) ask for for specifics regarding the project, she claimed