Lottery bosses turned to Condition Security Agency to research leaks

Lottery bosses turned to Condition Security Agency to research leaks

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Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Protection 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 reported were being depending on “stolen” details in an affidavit for the SSA.
The SSA did look into. It located the knowledge wasn't a subject of state stability and the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to show it.
A different board and management has since taken in excess of the NLC and thus far have taken measures to end corruption for the establishment.
A State Safety Agency (SSA) investigation located 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 just after then-NLC board chairperson Alfred Nevhutanda wrote to the SSA in December 2018 requesting it to analyze.

Here's

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “confidential” findings and proposals.
Nevhutanda asked the SSA to analyze the part of NLC staff from the alleged leaking of information, and Nene, in her affidavit determined specific media and studies that she claimed associated these leaks.

Within the letter outlining its results, the SSA explained to the NLC that while safeguarding point out information and facts was “a legal crucial aimed toward shielding the sovereignty and integrity with the point out” this only placed on properly categorized info.

Even though it didn't say so right, the SSA results implied which the allegedly leaked information and facts did not fall into this classification.

Appreciably, the SSA manufactured it distinct that the necessity to safeguard point out data “doesn't reduce any specific from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation identified the NLC information associated with the alleged breach was “sensitive and privileged in character, although not categorised when it comes to the prescripts in the Least Information and facts Stability Standards (Skip)”.

“The leakage from the pertinent sensitive Formal NLC info on the media would not pose a danger to national safety,” the SSA claimed, including which the impression on the breaches was reputational.

The SSA report identified “no evidence of the factual and incriminating mother nature towards any from the suspected NLC personnel that may be identified from the information and knowledge interrogated”.

In addition, it said that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does supply enough motive to acquire such uncovered within the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, sector and Level of competition portfolio committee that there was “a conspiracy” in which information and facts “stolen” within the NLC was despatched towards the US, where he claimed it absolutely was getting sold to fund a smear campaign against the NLC.

He was repeating very similar claims he had Earlier produced in Parliament, which involved ad hominem attacks on GroundUp and this reporter but was thorough not to call either.

“I came right here With this August house final yr and documented to honourable customers that specifics of our beneficiaries has long been stolen and set in a single condition in the united states,” he informed MPs.

“We referred to as within the State Stability Agency to come look into the make any difference mainly because we're getting stories that our details is generating dollars for media platforms and journalists,” he mentioned. “There have been discuss, certainly from a single resource, one media, that spoke Considerably about proactive-funding,” Nevhutanda reported (referring to GroundUp), but failed to inform MPs the SSA investigation had been accomplished Just about a calendar year before.

Proactive funding was at the center with the looting with the lottery. It aspect-stepped the conventional grant approach. The NLC could by itself determine a venture to fund and appoint a non-revenue organisation to supervise it.

Immediately after Nevhutanda 1st informed Parliament in 2018 that he experienced asked the SSA to analyze the supposed breach, the South African Countrywide Editors Forum issued an announcement saying that his remarks reflected “an extremely risky Mindset wherever the media is becoming blamed to the NLC’s inherent problems”.

“As opposed to investigating why thousands and thousands can not be accounted for, the NLC has instead tried to cast question over the integrity of the journalists involved and it has requested the SSA to investigate their resources.”

Proactive jobs built solution
Protection flaws recognized within the NLC grant funding system in the SSA’s investigation, show up to have already been used being an justification through the NLC to eliminate all proactive-funded tasks from its central grants procedure.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘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] information,” Nene stated in her affidavit.

“There was lots of internal dialogue, with a great deal of backwards and forwards, about what to do to plug the alleged leaks”, a supply, who was inside of a senior posture at the NLC at the time, told GroundUp. “In the end, the choice was taken to eliminate the many proactive initiatives through the program and limit entry to A few folks”.

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

Maselwa, who resigned in the NLC many yrs in the past, is implicated in corruption involving lottery funds. He acquired R4.three-million from lottery money allotted to create a library and museum sophisticated in Kuruman (see Taung Cultural Songs and Arts Expo) which he made use of to construct a property in an upmarket gated progress in Pretoria. The property is among various paid for with lottery cash which were frozen once the Asset Forfeiture Device received a preservation get in December 2022.

The politically-connected Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was near significant-ups from the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated during the corruption which confused the NLC on their observe.

Also implicated are former board associates William Huma, who resigned soon after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have given that died.

Each time a new administration, such as the whole board and govt, took over at the NLC in late 2022 and early 2023, they discovered a “chaotic mess” from the documentation associated with proactive funding, Substantially of which was paper-centered. Critical paperwork were being missing. Documents held for safekeeping by doc storage business Metrofile were signed out and by no means returned.

The NLC was capable to Get better copies of some ตรวจ หวย รัฐบาล documents from its Mimecast e-mail archiving procedure and also the laptops of their assistants and help staff members.

Information stories
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave worry attainable facts protection breaches as well as the unauthorised use and/or dissemination of confidential information received because of carrying out Formal features in the Commission by NLC employees. The things to do are intended to undermine the integrity with the Commission even though disrupting the efficient features [of your NLC] and leading to insurmountable reputational hurt to the Commission since the custodian of private information entrusted to it by its beneficiaries.”

His request for your SSA to research was supported in an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.

Nene is now facing a disciplinary inquiry after she was unsuccessful in legal motion to set aside findings of irregular expenditure on her view.

The purpose of her affidavit, Nene said, was “to history the gatherings which transpired associated with details security breaches for the National Lotteries Fee”.

She detailed various news reports which she claimed ended up the outcomes of those “breaches” (see at the conclusion of this text).

Nene stated that a whistle-blower approached the NLC alleging that considered one of its workers, Sello Qhino, had “presented her categorised NLC Information and persistently encouraged her to provide the information to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded projects in Kuruman following attempts to lift The difficulty internally ended up dismissed, was subsequently fired.

Referring to an 18 November 2018 article in the Day by day Dispatch with regard to the misappropriation of Lottery cash, Nene mentioned which the NLC recognized and after that suspended Zintle Rungqu. She was an staff inside the NLC’s East London Workplace, who was the lover and also the mother of whistleblower Mzukise Makatse’s a few kids.

Rungqu and Makatse imagine Rungqu was punished 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 allowed to return to operate.

“The popular Think about these articles is that [they involve] categorised facts regarding proactive funding assignments,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out of the spouse and children property to take the heat off her and his children. Experiencing homelessness, he moved into an Place of work 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 lots of people experienced in the fingers on the NLC. Apologies and, sometimes, economical payment are envisioned.

“Some people today were being really affected pretty 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 the wrong way up,” said Scholtz.

Amid those she satisfied were being Qhino and Makatse.

Protected System desired for whistleblowers
The SSA identified the absence at enough time of an appropriate channel for whistleblowers to report corruption led them to show to the media.

“Failure to have a dedicated anti-corruption channel will lead to personnel presenting these conditions beyond the NLC,” the SSA claimed in its results.

“Presented the magnitude of corruption in condition institutions, it continues to be important that it makes sure that the NLC complies with all safety prescripts Which its concentration is on making certain that unlawful and irregular carry out is sufficiently mitigated in opposition to and by ensuring an suitable channel for whistle-blowers to report untoward conduct without the need of currently being intimidated.”

It recommended the NLC build a “Protected channel” for workers to deliver info on any “untoward activity” that might not reduce or discourage workers from blowing the whistle. A whistle-blowers coverage, based upon the Shielded Disclosures Act twenty five of 2000, is a requirement.”

Media reviews Nene detailed
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Physical fitness Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor from the Limpopo Mirror, to show NLC corruption. “The short article had elements of knowledge not obtainable in the general public domain, thus raising worry on internal Facts security breaches. The allegations during the media had been independently investigated,” Nene claimed. “Nevertheless, staff members accountable for divulging categorized facts have yet to become recognized”;
A 28 January 2018 report released because of the Dally Dispatch “citing various allegations from the Limpopo Mirror article posted on ten December 2017 and also a new allegation regarding a former staff because of the title of Mzukisi Makatse. He was billed and summarily dismissed for that risk caused to your organisation.”
A 16 November 2018 short article inside the Lowvelder concerning 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 never been accomplished. “The Lowvelder posting contained classified details concerning NLC plan, raising additional worries of inside facts protection breaches,” Nene claimed in her affidavit. “The prima facie proof regarding these allegations did not warrant an unbiased Investigation, having said that [it] highlighted the heightened information and facts stability challenges inside the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Major Treatment, a hijacked NPO. Nene claimed GroundUp had verified in its story that it had been according to leaked NLC files. This was despite the NLC rejecting a PAIA (Marketing of Usage of Data) ask for for particulars about the undertaking, she reported