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 National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Stability Company (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s corporation secretary at some time mentioned media reports she stated had been according to “stolen” information within an affidavit to the SSA.
The SSA did look into. It uncovered the knowledge was not a subject of state safety and the “prevalence of alleged corruption and irregularities” gave “enough motive” for that media to show it.
A whole new board and administration has due to the fact taken about the NLC and To date have taken measures to finish corruption in the establishment.
A Point out Security Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied ample motive” for exposure through 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 investigate.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” results and recommendations.
Nevhutanda questioned the SSA to investigate the job of NLC staff members inside the alleged leaking of data, and Nene, in her affidavit recognized unique media and reviews that she claimed included these leaks.

Within the letter outlining its results, the SSA instructed the NLC that whilst shielding point out information was “a legal essential targeted at preserving the sovereignty and integrity of the point out” this only placed on properly categorized data.

Although it didn't say so instantly, the SSA results implied that the allegedly leaked info didn't drop into this category.

Significantly, the SSA built it obvious that the need to guard state information and facts “will not prevent any particular person from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation observed which the NLC details involved with the alleged breach was “delicate and privileged in mother nature, although not classified with regards to the prescripts with the Minimum amount Information Security Requirements (Skip)”.

“The leakage in the pertinent sensitive Formal NLC information and facts into the media won't pose a menace to national stability,” the SSA claimed, incorporating that the impression in the breaches was reputational.

The SSA report discovered “no proof of a factual and incriminating character against any on the suspected NLC workers which could be recognized 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 sufficient motive to own these types of uncovered in the media”.

Conspiracy claims
In 2020, Nevhutanda told MPs throughout a session of Parliament’s trade, business and Competitiveness portfolio committee that there was “a conspiracy” through which details “stolen” in the NLC was despatched on the US, the place he claimed it was remaining offered to fund a smear marketing campaign in opposition to the NLC.

He was repeating similar statements he experienced Formerly built in Parliament, which incorporated advert hominem assaults on GroundUp and this reporter but was mindful not to call possibly.

“I arrived here In this particular August dwelling final yr and documented to honourable customers that specifics of our beneficiaries has been stolen and set in a single condition in the united states,” he advised MPs.

“We named about the State Security Company to come back consider the matter because we have been receiving studies that our data is generating funds for media platforms and journalists,” he explained. “There's been converse, obviously from one source, just one media, that spoke much about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but failed to tell MPs that the SSA investigation had been accomplished Practically a yr earlier.

Proactive funding was at the center of your looting from the lottery. It side-stepped the normal grant approach. The NLC could by itself detect a project to fund and appoint a non-earnings organisation to oversee it.

Just after Nevhutanda 1st explained to Parliament in 2018 that he experienced requested the SSA to research the supposed breach, the South African Countrywide Editors Forum issued a statement indicating that his remarks reflected “an extremely unsafe Mindset wherever the media is getting blamed for that NLC’s inherent issues”.

“Rather then investigating why hundreds of thousands can't be accounted for, the NLC has as a substitute made an effort to Forged question to the integrity of your journalists associated and it has requested the SSA to investigate their resources.”

Proactive jobs built top secret
Stability flaws determined inside the NLC grant funding method throughout the SSA’s investigation, surface to are actually utilised as an excuse by the NLC to get rid of all proactive-funded projects from its central grants technique.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘top secret’ and tasks 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, Executive Supervisor Lawful in order to safeguard [the] info,” Nene stated in her affidavit.

“There was plenty of internal dialogue, with many forwards and backwards, about what to do to plug the alleged leaks”, a resource, who was inside of a senior placement on the NLC at the time, instructed GroundUp. “Ultimately, the choice was taken to remove the many proactive assignments from the technique and Restrict access to a handful of people today”.

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

Maselwa, who resigned from the NLC numerous yrs back, continues to be implicated in corruption involving lottery money. He acquired R4.3-million from lottery money allocated to construct a library and museum sophisticated in Kuruman (see Taung Cultural Audio and Arts Expo) which he utilised to create a residence in an upmarket gated development in Pretoria. The assets is among various compensated for with lottery resources which were frozen once the Asset Forfeiture Device received a preservation buy in December 2022.

The politically-linked Nevhutanda, who was appointed since the NLC board chairperson by former President Jacob Zuma in 2009 and was close to high-ups in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated within the corruption which confused the NLC on their watch.

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, that has since died.

Each time a new administration, such as the whole board and government, took over on the NLC in late 2022 and early 2023, they found out a “chaotic mess” inside the documentation regarding proactive funding, much of which was paper-primarily based. Essential paperwork ended up missing. Information held for safekeeping by document storage organization Metrofile had been signed out and in no way returned.

The NLC was capable of Recuperate copies of some ตา ว จ หวย files from its Mimecast e-mail archiving process and also the laptops of their assistants and assist staff.

Information reports
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave concern feasible details safety breaches as well as the unauthorised use and/or dissemination of confidential info attained on account of undertaking official capabilities while in the Commission by NLC workforce. The functions are intended to undermine the integrity with the Commission when disrupting the powerful capabilities [in the NLC] and causing insurmountable reputational damage into the Commission since the custodian of private information entrusted to it by its beneficiaries.”

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

Nene is presently going through a disciplinary inquiry immediately after she was unsuccessful in lawful action to set aside findings of irregular expenditure on her view.

The purpose of her affidavit, Nene stated, was “to document the occasions which transpired relating to information stability breaches with the National Lotteries Fee”.

She detailed several news studies which she claimed were being the outcomes of these “breaches” (see at the end of this informative article).

Nene mentioned that a whistle-blower approached the NLC alleging that one among its personnel, Sello Qhino, experienced “delivered her labeled NLC Details and persistently inspired her to offer the data to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded initiatives in Kuruman immediately after tries to raise The problem internally were overlooked, was subsequently fired.

Referring to an 18 November 2018 posting while in the Every day Dispatch concerning the misappropriation of Lottery cash, Nene reported which the NLC identified then suspended Zintle Rungqu. She was an staff from the NLC’s East London office, who was the partner along with the mom of whistleblower Mzukise Makatse’s three little ones.

Rungqu and Makatse believe Rungqu was punished since Makatse blew the whistle. She was suspended and billed internally, While using the NLC paying out R470,000 on lawyers to represent it, but was observed not guilty and allowed to return to operate.

“The typical Consider these posts is the fact [they include] labeled info concerning proactive funding tasks,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out with the family house to take the warmth off her and his small children. Facing homelessness, he moved into an office within an empty factory belonging to an acquaintance.

Both equally Makatse and Qhino are participating in an NLC reparation procedure meant to recognise the harm some people experienced in the arms in the NLC. Apologies and, occasionally, economic payment are expected.

“Some men and women were being truly influenced pretty negatively by this … This is actually unpleasant,” NLC Commissioner Jodi Scholtz instructed the Day by day Maverick last year.

“I met a few these folks. It was just so heart-wrenching that their full life are turned the wrong way up,” mentioned Scholtz.

Amongst those she achieved have been Qhino and Makatse.

Protected System essential for whistleblowers
The SSA identified the absence at some time of a correct channel for whistleblowers to report corruption led them to show towards the media.

“Failure to possess a focused anti-corruption channel will lead to workforce presenting this sort of conditions outside of the NLC,” the SSA mentioned in its results.

“Specified the magnitude of corruption in point out establishments, it continues to be essential that it ensures that the NLC complies with all safety prescripts and that its concentrate is on ensuring that illegal and irregular perform is sufficiently mitigated in opposition to and by making certain an satisfactory channel for whistle-blowers to report untoward conduct without remaining intimidated.”

It proposed the NLC establish a “Safe and sound channel” for employees to deliver information on any “untoward exercise” that will not reduce or discourage personnel from blowing the whistle. A whistle-blowers plan, determined by the Shielded Disclosures Act 25 of 2000, is often a need.”

Media reviews Nene stated
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Exercise Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and proprietor on the Limpopo Mirror, to reveal NLC corruption. “The write-up had components of data not available in the general public domain, thus increasing problem on interior Information and facts protection breaches. The allegations inside the media were independently investigated,” Nene claimed. “Even so, workers chargeable for divulging categorized information and facts have but to generally be identified”;
A 28 January 2018 report posted through the Dally Dispatch “citing quite a few allegations within the Limpopo Mirror article printed on 10 December 2017 as well as a new allegation associated with a former worker through the name of Mzukisi Makatse. He was billed and summarily dismissed with the menace brought about on the organisation.”
A 16 November 2018 article during the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite getting R27-million in lottery grants, the rehab hasn't been finished. “The Lowvelder posting contained categorized information and facts regarding NLC plan, raising even more fears of internal data protection breaches,” Nene reported in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, however [it] highlighted the heightened info security risks within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Principal Care, a hijacked NPO. Nene said GroundUp experienced confirmed in its Tale that it had been depending on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Promotion of Use of Data) ask for for information regarding the project, she claimed