Lottery bosses turned to Point out Stability Company to investigate leaks

Lottery bosses turned to Point out Stability Company to investigate leaks

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Former National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Condition Safety Agency (SSA) in December 2018 to research the leaking of documents that uncovered lottery corruption.
The NLC’s firm secretary at time outlined media stories she mentioned have been based on “stolen” information and facts in an affidavit with the SSA.
The SSA did look into. It uncovered the data was not a issue of state security and the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to reveal it.
A fresh board and management has due to the fact taken about the NLC and Up to now have taken actions to end corruption in the institution.
A State Security Company (SSA) investigation uncovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered enough motive” for exposure by the media.

The probe into supposed “information and facts safety breaches and sabotage of NLC functions” was carried out following then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by at present suspended NLC corporation secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “confidential” findings and recommendations.
Nevhutanda asked the SSA to research the part of NLC workers while in the alleged leaking of knowledge, and Nene, in her affidavit determined unique media and experiences that she claimed included these leaks.

Within the letter outlining its conclusions, the SSA instructed the NLC that though defending condition details was “a lawful essential aimed toward shielding the sovereignty and integrity in the point out” this only applied to appropriately labeled information.

Even though it didn't say so right, the SSA results implied that the allegedly leaked information and facts didn't tumble into this group.

Appreciably, the SSA built it clear that the need to guard condition details “doesn't prevent any unique from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation uncovered that the NLC information and facts associated with the alleged breach was “sensitive and privileged in mother nature, but not labeled regarding the prescripts on the Bare minimum Information Security Criteria (Pass up)”.

“The leakage from the relevant sensitive official NLC details to your media doesn't pose a danger to national stability,” the SSA explained, introducing the impact in the breaches was reputational.

The SSA report found “no evidence of a factual and incriminating mother nature against any in the suspected NLC staff members that would be recognized from the information and info interrogated”.

In addition it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does provide enough motive to have this kind of exposed within the media”.

Conspiracy promises
In 2020, Nevhutanda instructed MPs during a session of Parliament’s trade, business and Competitors portfolio committee that there was “a conspiracy” in which information and facts “stolen” through the NLC was despatched on the US, wherever he claimed it was being bought to fund a smear campaign in opposition to the NLC.

He was repeating related claims he had previously produced in Parliament, which integrated advertisement hominem assaults on GroundUp which reporter but was mindful not to call either.

“I came below With this August property past 12 months and described to honourable associates that information about our beneficiaries has been stolen and set in a single condition in the united states,” he informed MPs.

“We termed to the Condition Stability Agency to return explore the make a difference simply because we are acquiring studies that our information and facts is building funds for media platforms and journalists,” he said. “There's been speak, of course from a single source, just one media, that spoke A great deal about proactive-funding,” Nevhutanda stated (referring to GroundUp), but failed to notify MPs that the SSA investigation were completed almost a calendar year earlier.

Proactive funding was at the guts in the looting of your lottery. It aspect-stepped the traditional grant process. The NLC could itself discover a challenge to fund and appoint a non-profit organisation to oversee it.

Following Nevhutanda very first told Parliament in 2018 that he had questioned the SSA to analyze the meant breach, the South African National Editors Forum issued an announcement expressing that his remarks mirrored “an extremely unsafe Mindset where the media is staying blamed for your NLC’s inherent complications”.

“In lieu of investigating why thousands and thousands can't be accounted for, the NLC has in its place tried to cast doubt over the integrity on the journalists included and has questioned the SSA to investigate their sources.”

Proactive jobs built solution
Security flaws discovered from the NLC grant funding method over the SSA’s investigation, look to are already used being an justification from the NLC to get rid of all proactive-funded jobs from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding tasks was heightened to ‘magic formula’ and initiatives had been faraway from the grant funding technique and preserved manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business office, Executive Manager Legal to be able to safeguard [the] information,” Nene claimed in her affidavit.

“There was plenty of interior dialogue, with lots of backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was inside a senior situation in the NLC at some time, instructed GroundUp. “Ultimately, the decision was taken to remove every one of the proactive assignments with the procedure and limit entry to a handful of folks”.

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

Maselwa, who resigned within the NLC many a long time back, is implicated in corruption involving lottery resources. He obtained R4.3-million from lottery cash allotted to construct a library and museum complex in Kuruman (see Taung Cultural Songs and Arts Expo) which he applied to construct a household in an upmarket gated growth in Pretoria. The assets is among numerous paid out for with lottery cash that were frozen after the Asset Forfeiture Unit obtained a preservation order in December 2022.

The politically-related Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to substantial-ups while in the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated in the corruption which confused the NLC on their check out.

Also implicated are former board members William Huma, who resigned after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got due to the fact died.

Each time a new administration, including the total board and govt, took more than within the NLC in late 2022 and early 2023, they learned a “chaotic mess” while in the documentation relating to proactive funding, Substantially of which was paper-based. Crucial paperwork were being lacking. Files held for safekeeping by document storage corporation Metrofile had been signed out and never ever returned.

The NLC was capable to Recuperate copies of some lottovip documents from its Mimecast e-mail archiving technique plus the laptops in their assistants and aid team.

News studies
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave concern achievable data safety breaches plus the unauthorised use and/or dissemination of confidential details received because of undertaking official features from the Commission by NLC workforce. The pursuits are meant to undermine the integrity in the Fee whilst disrupting the productive capabilities [with the NLC] and creating insurmountable reputational damage into the Commission since the custodian of non-public details entrusted to it by its beneficiaries.”

His ask for with the SSA to analyze was supported in an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.

Nene is at the moment experiencing a disciplinary inquiry following she was unsuccessful in authorized motion to set aside results of irregular expenditure on her watch.

The objective of her affidavit, Nene reported, was “to report the gatherings which transpired regarding data safety breaches in the Countrywide Lotteries Commission”.

She mentioned a variety of news experiences which she claimed have been the outcomes of such “breaches” (see at the end of this informative article).

Nene said that a whistle-blower approached the NLC alleging that considered one of its workers, Sello Qhino, had “offered her categorized NLC Data and persistently inspired her to offer the knowledge to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded jobs in Kuruman after attempts to lift The problem internally have been dismissed, was subsequently fired.

Referring to an 18 November 2018 article during the Each day Dispatch about the misappropriation of Lottery money, Nene reported that the NLC recognized and after that suspended Zintle Rungqu. She was an worker from the NLC’s East London office, who was the spouse as well as mom of whistleblower Mzukise Makatse’s a few children.

Rungqu and Makatse imagine Rungqu was punished simply because Makatse blew the whistle. She was suspended and billed internally, Using the NLC shelling out R470,000 on legal professionals to characterize it, but was found not responsible and permitted to return to work.

“The frequent factor in these articles or blog posts is always that [they require] categorized details relating to proactive funding jobs,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out from the spouse and children house to take the heat off her and his children. Dealing with homelessness, he moved into an Business office within an empty manufacturing facility belonging to a colleague.

Both equally Makatse and Qhino are participating in an NLC reparation course of action meant to recognise the hurt some people suffered at the arms on the NLC. Apologies and, in some instances, economic payment are anticipated.

“Some folks have been actually afflicted quite negatively by this … This is basically distressing,” NLC Commissioner Jodi Scholtz advised the Daily Maverick previous 12 months.

“I achieved a couple of these folks. It had been just so heart-wrenching that their total life are actually turned the other way up,” reported Scholtz.

Among the Those people she achieved ended up Qhino and Makatse.

Safe and sound platform required for whistleblowers
The SSA found the absence at some time of a suitable channel for whistleblowers to report corruption led them to turn into the media.

“Failure to possess a devoted anti-corruption channel will result in workforce presenting these circumstances beyond the NLC,” the SSA explained in its conclusions.

“Provided the magnitude of corruption in point out establishments, it remains very important that it ensures that the NLC complies with all safety prescripts Which its target is on making sure that illegal and irregular conduct is adequately mitigated versus and by ensuring an satisfactory channel for whistle-blowers to report untoward carry out with no staying intimidated.”

It encouraged that the NLC establish a “Harmless channel” for workers to provide info on any “untoward activity” that will not prevent or discourage workforce from blowing the whistle. A whistle-blowers coverage, according to the Secured Disclosures Act 25 of 2000, is often a requirement.”

Media studies Nene mentioned
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Conditioning Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to reveal NLC corruption. “The short article experienced aspects of knowledge not readily available in the general public domain, thereby boosting issue on inside Data protection breaches. The allegations while in the media have been independently investigated,” Nene explained. “Even so, personnel liable for divulging classified information and facts have still for being identified”;
A 28 January 2018 report published through the Dally Dispatch “citing a lot of allegations from the Limpopo Mirror report published on 10 December 2017 plus a new allegation regarding a previous personnel with the title of Mzukisi Makatse. He was charged and summarily dismissed for your threat caused to the organisation.”
A sixteen November 2018 short article from the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder post contained categorised details when it comes to NLC coverage, raising even more issues of inside information stability breaches,” Nene mentioned in her affidavit. “The prima facie proof regarding these allegations did not warrant an unbiased Investigation, even so [it] highlighted the heightened information safety challenges throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Key Treatment, a hijacked NPO. Nene said GroundUp had verified in its Tale that it absolutely was dependant on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Info) ask for for information about the challenge, she claimed