Lottery bosses turned to Point out Safety Agency to research leaks

Lottery bosses turned to Point out Safety Agency to research leaks

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Previous Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Protection Company (SSA) in December 2018 to analyze the leaking of paperwork that uncovered lottery corruption.
The NLC’s enterprise secretary at the time outlined media reviews she mentioned had been based upon “stolen” facts in an affidavit for the SSA.
The SSA did look into. It located the information wasn't a issue of state protection and that the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to reveal it.
A brand new board and administration has given that taken around the NLC and To this point have taken actions to finish corruption at the institution.
A Condition Safety 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 supposed “info security breaches and sabotage of NLC operations” was carried out immediately after then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by presently 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 purpose of NLC workers in the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and experiences that she claimed involved these leaks.

While in the letter outlining its conclusions, the SSA told the NLC that even though preserving state info was “a legal vital directed at defending the sovereignty and integrity of the point out” this only applied to properly categorized information and facts.

Although it didn't say so directly, the SSA results implied which the allegedly leaked facts didn't tumble into this classification.

Considerably, the SSA produced it very clear that the necessity to protect state data “doesn't protect against any particular person from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation observed the NLC information and facts linked to the alleged breach was “sensitive and privileged in mother nature, but not categorized with regard to the prescripts on the Least Details Security Criteria (Miss out on)”.

“The leakage on the relevant delicate Formal NLC information into the media will not pose a risk to national security,” the SSA claimed, incorporating that the impact with the breaches was reputational.

The SSA report observed “no evidence of a factual and incriminating mother nature in opposition to any of the suspected NLC staff members that can be discovered from the information and facts 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 types of uncovered in the media”.

Conspiracy claims
In 2020, Nevhutanda told MPs in the course of a session of Parliament’s trade, market and Levels of competition portfolio committee that there was “a conspiracy” wherein facts “stolen” with the NLC was sent to the US, where by he claimed it had been being marketed to fund a smear campaign from the NLC.

He was repeating comparable promises 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 last yr and documented to honourable customers that information regarding our beneficiaries has long been stolen and set in a single condition in America,” he informed MPs.

“We known as around the State Stability Agency to return take a look at the subject mainly because we're having stories that our information is generating revenue for media platforms and journalists,” he claimed. “There's been speak, of course from a person supply, one media, that spoke Substantially about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't tell MPs the SSA investigation were completed Just about a year earlier.

Proactive funding was at the center of your looting from the lottery. It aspect-stepped the conventional grant course of action. The NLC could alone identify a venture to fund and appoint a non-earnings organisation to oversee it.

Right after Nevhutanda 1st advised Parliament in 2018 that he had asked the SSA to analyze the intended breach, the South African Nationwide Editors Forum issued a press release expressing that his remarks reflected “an extremely perilous Frame of mind in which the media is becoming blamed for that NLC’s inherent difficulties”.

“Instead of investigating why thousands and thousands cannot be accounted for, the NLC has as a substitute tried to cast doubt to the integrity from the journalists concerned and has requested the SSA to analyze their resources.”

Proactive jobs produced key
Protection flaws determined from the NLC grant funding process during the SSA’s investigation, appear to have been used being an justification 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 initiatives was heightened to ‘top secret’ and assignments have been removed from the grant funding program and preserved manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Business office, Govt Supervisor Authorized so that you can safeguard [the] information,” Nene stated in her affidavit.

“There was lots of internal dialogue, with a great deal of back and forth, about how to proceed to plug the alleged leaks”, a resource, who was inside a senior place at the NLC at some time, explained to GroundUp. “Eventually, the decision was taken to eliminate all the proactive initiatives through the method and Restrict access to a handful of people”.

Some in that handful of men and women had been implicated in corruption.

Maselwa, who resigned with the NLC a number of yrs ago, continues to be implicated in corruption involving lottery cash. He obtained R4.3-million from lottery resources allotted to build a library and museum intricate in Kuruman (see Taung Cultural Tunes and Arts Expo) which he made use of to make a dwelling within an upmarket gated growth in Pretoria. The house is one of quite a few paid out for with lottery funds which were frozen following the Asset Forfeiture Device acquired a preservation get in December 2022.

The politically-linked Nevhutanda, who was appointed as the NLC board chairperson by former President Jacob Zuma in 2009 and was near substantial-ups in the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated from the corruption which overwhelmed the NLC on their look at.

Also implicated are previous board customers William Huma, who resigned following 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, including the whole board and executive, took above with the NLC in late 2022 and early 2023, they found out a “chaotic mess” during the documentation concerning proactive funding, A great deal of which was paper-centered. Critical paperwork had been lacking. Documents held for safekeeping by document storage enterprise Metrofile had been signed out and never returned.

The NLC was ready to Recuperate copies of some หวย วัน นี้ files from its Mimecast e mail archiving technique along with the laptops of their assistants and aid staff members.

News stories
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave issue attainable info protection breaches and the unauthorised use and/or dissemination of confidential information and facts obtained because of undertaking Formal capabilities within the Commission by NLC staff. The functions are meant to undermine the integrity with the Fee though disrupting the powerful capabilities [on 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 corporation secretary, Nomphumelelo Nene.

Nene is currently dealing with a disciplinary inquiry soon after she was unsuccessful in authorized action to put aside conclusions of irregular expenditure on her check out.

The goal of her affidavit, Nene claimed, was “to report the functions which transpired associated with details security breaches at the Nationwide Lotteries Commission”.

She mentioned several news stories which she claimed had been the results of those “breaches” (see at the conclusion of this post).

Nene said that a whistle-blower approached the NLC alleging that considered one of its employees, Sello Qhino, had “presented her categorised NLC Info and persistently encouraged her to supply the knowledge to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded assignments in Kuruman just after tries to lift The problem internally have been dismissed, was subsequently fired.

Referring to an 18 November 2018 post within the Daily Dispatch concerning the misappropriation of Lottery resources, Nene claimed the NLC identified after which you can suspended Zintle Rungqu. She was an worker within the NLC’s East London Business, who was the associate and also the mother of whistleblower Mzukise Makatse’s a few kids.

Rungqu and Makatse believe that Rungqu was punished simply because Makatse blew the whistle. She was suspended and charged internally, While using the NLC investing R470,000 on attorneys to depict it, but was observed not responsible and permitted to return to operate.

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

When Runqu was suspended, Makatse moved out from the family dwelling to take the warmth off her and his little ones. Dealing with homelessness, he moved into an office in an vacant factory belonging to a buddy.

Both Makatse and Qhino are participating in an NLC reparation course of action intended to recognise the harm a lot of people experienced at the hands in the NLC. Apologies and, sometimes, fiscal payment are predicted.

“Some men and women have been genuinely impacted really negatively by this … This is absolutely painful,” NLC Commissioner Jodi Scholtz told the Day by day Maverick very last yr.

“I achieved a handful of these men and women. It was just so heart-wrenching that their whole lives happen to be turned the wrong way up,” said Scholtz.

Between These she fulfilled were being Qhino and Makatse.

Protected System desired for whistleblowers
The SSA discovered the absence at enough time of a suitable channel for whistleblowers to report corruption led them to show into the media.

“Failure to possess a dedicated anti-corruption channel will result in workers presenting these kinds of scenarios outside of the NLC,” the SSA mentioned in its findings.

“Offered the magnitude of corruption in state establishments, it stays vital that it ensures that the NLC complies with all stability prescripts and that its concentrate is on making sure that illegal and irregular perform is adequately mitigated against and by guaranteeing an sufficient channel for whistle-blowers to report untoward carry out with out remaining intimidated.”

It advised which the NLC establish a “Risk-free channel” for workers to deliver information on any “untoward action” that will not protect against or discourage employees from blowing the whistle. A whistle-blowers coverage, based upon the Protected Disclosures Act twenty five of 2000, is usually a need.”

Media stories Nene shown
A ten December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Health Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and operator of your Limpopo Mirror, to reveal NLC corruption. “The report experienced factors of knowledge not out there in the general public domain, thus boosting issue on internal Details stability breaches. The allegations while in the media were independently investigated,” Nene explained. “Having said that, workforce to blame for divulging classified details have nevertheless to be recognized”;
A 28 January 2018 posting printed because of the Dally Dispatch “citing many allegations with the Limpopo Mirror article revealed on ten December 2017 along with a new allegation regarding a previous employee by the identify of Mzukisi Makatse. He was charged and summarily dismissed with the menace prompted into the organisation.”
A sixteen November 2018 short article in the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Regardless of acquiring R27-million in lottery grants, the rehab has not been done. “The Lowvelder post contained labeled information and facts with regard to NLC policy, elevating additional fears of inner information and facts safety breaches,” Nene claimed 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 info protection pitfalls within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene reported GroundUp had confirmed in its Tale that it had been determined by leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Marketing of Access to Information) ask for for facts with regard to the challenge, she explained