Lottery bosses turned to State Stability Company to analyze leaks

Lottery bosses turned to State Stability Company to analyze leaks

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Former Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Point out Safety Agency (SSA) in December 2018 to research the leaking of paperwork that exposed lottery corruption.
The NLC’s corporation secretary at enough time detailed media reports she explained have been dependant on “stolen” information and facts in an affidavit for your SSA.
The SSA did look into. It located the knowledge wasn't a make any difference of state safety and which the “prevalence of alleged corruption and irregularities” gave “ample motive” for the media to show it.
A completely new board and administration has since taken in excess of the NLC and To date have taken measures to end corruption in the establishment.
A State Safety Company (SSA) investigation discovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for exposure with the media.

The probe into intended “facts protection breaches and sabotage of NLC operations” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to research the function of NLC employees in the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and experiences that she claimed involved these leaks.

From the letter outlining its conclusions, the SSA informed the NLC that even though protecting state information and facts was “a legal vital aimed at defending the sovereignty and integrity with the point out” this only placed on correctly categorised info.

Although it did not say so immediately, the SSA findings implied that the allegedly leaked info didn't tumble into this group.

Appreciably, the SSA manufactured it obvious that the need to protect state facts “isn't going to avoid any person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation identified which the NLC details linked to the alleged breach was “sensitive and privileged in character, although not classified concerning the prescripts from the Least Information Security Criteria (Pass up)”.

“The leakage of the pertinent sensitive official NLC data on the media will not pose a threat to countrywide safety,” the SSA stated, introducing the influence of your breaches was reputational.

The SSA report located “no proof of a factual and incriminating nature from any from the suspected NLC staff members that might be determined from the data and info interrogated”.

It also stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does give enough motive to possess these kinds of exposed while in the media”.

Conspiracy statements
In 2020, Nevhutanda advised MPs through a session of Parliament’s trade, marketplace and competition portfolio committee that there was “a conspiracy” in which information and facts “stolen” with the NLC was sent to the US, exactly where he claimed it absolutely was currently being sold to fund a smear marketing campaign against the NLC.

He was repeating identical claims he experienced Beforehand created in Parliament, which bundled ad hominem attacks on GroundUp and this reporter but was mindful not to call either.

“I came below Within this August household previous calendar year and described to honourable users that information about our beneficiaries continues to be stolen and put in one point out in America,” he told MPs.

“We called to the Point out Protection Agency to come explore the subject simply because we are finding experiences that our data is building revenue for media platforms and journalists,” he reported. “There's been converse, needless to say from just one supply, 1 media, that spoke much about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but failed to tell MPs which the SSA investigation had been concluded Virtually a calendar year previously.

Proactive funding was at the center of the looting of your lottery. It aspect-stepped the normal grant process. The NLC could by itself detect a project to fund and appoint a non-profit organisation to supervise it.

Right after Nevhutanda initially explained to Parliament in 2018 that he had questioned the SSA to research the supposed breach, the South African Nationwide Editors Discussion board issued a press release expressing that his remarks mirrored “a very unsafe Frame of mind exactly where the media is remaining blamed for that NLC’s inherent complications”.

“Rather then investigating why thousands and thousands cannot be accounted for, the NLC has in its place made an effort to Solid doubt to the integrity on the journalists included and has questioned the SSA to research their sources.”

Proactive initiatives built solution
Stability flaws recognized within the NLC grant funding system throughout the SSA’s investigation, look to happen to be applied being an justification through the NLC to remove all proactive-funded initiatives from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘magic formula’ and tasks ended up removed from the grant funding process and managed manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Place of work, Government Supervisor Lawful as a way to safeguard [the] information,” Nene explained in her affidavit.

“There was loads of interior dialogue, with numerous forwards and backwards, about how to proceed to plug the alleged leaks”, a supply, who was in the senior posture for the NLC at enough time, advised GroundUp. “In the end, the choice was taken to eliminate the many proactive tasks from the technique and limit entry to A few individuals”.

Some in that handful of individuals were being implicated in corruption.

Maselwa, who resigned from your NLC quite a few many years in the past, has long been implicated in corruption involving lottery funds. He gained R4.three-million from lottery resources allotted to make a library and museum complex in Kuruman (see Taung Cultural Music and Arts Expo) which he utilized to construct a home within an upmarket gated development in Pretoria. The home is one of several compensated for with lottery money that were frozen after the Asset Forfeiture Device acquired a preservation order in December 2022.

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

Also implicated are former board associates William Huma, who resigned just after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has considering the fact that died.

Each time a new administration, such as the complete board and govt, took more than with the NLC in late 2022 and early 2023, they discovered a “chaotic mess” within the documentation associated with proactive funding, Significantly of which was paper-based mostly. Essential documents were lacking. Documents held for safekeeping by document storage organization Metrofile had been signed out and never returned.

The NLC was able to Get well copies of some ตรวจ files from its Mimecast e mail archiving process as well as laptops in their assistants and assist workers.

Information stories
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave worry achievable facts stability breaches as well as unauthorised use and/or dissemination of confidential details obtained because of doing Formal features within the Fee by NLC workers. The activities are intended to undermine the integrity of your Commission while disrupting the productive functions [on the NLC] and causing insurmountable reputational harm to the Commission since the custodian of non-public information and facts entrusted to it by its beneficiaries.”

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

Nene is presently going through a disciplinary inquiry just after she was unsuccessful in authorized motion to set aside conclusions of irregular expenditure on her enjoy.

The purpose of her affidavit, Nene said, was “to file the situations which transpired concerning data stability breaches on the Nationwide Lotteries Commission”.

She detailed different information reviews which she claimed were being the outcome of those “breaches” (see at the conclusion of this informative article).

Nene reported that a whistle-blower approached the NLC alleging that one among its employees, Sello Qhino, experienced “delivered her categorized NLC Details and persistently encouraged her to deliver the data to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded projects in Kuruman soon after tries to boost the issue internally were being disregarded, was subsequently fired.

Referring to an 18 November 2018 article while in the Every day Dispatch about the misappropriation of Lottery money, Nene claimed which the NLC identified after which you can suspended Zintle Rungqu. She was an worker during the NLC’s East London Place of work, who was the lover and the mom of whistleblower Mzukise Makatse’s three young children.

Rungqu and Makatse consider Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, With all the NLC spending R470,000 on legal professionals to stand for it, but was observed not guilty and permitted to return to work.

“The common Consider these content articles is the fact that [they require] categorized facts referring to proactive funding jobs,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out of your family members residence to take the heat off her and his youngsters. Going through homelessness, he moved into an Business office in an empty factory belonging to a pal.

Each Makatse and Qhino are taking part in an NLC reparation course of action intended to recognise the hurt lots of people endured in the arms in the NLC. Apologies and, in some cases, money compensation are predicted.

“Some people ended up truly influenced very negatively by this … This is de facto painful,” NLC Commissioner Jodi Scholtz advised the Day by day Maverick last yr.

“I satisfied two or three these people. It absolutely was just so coronary heart-wrenching that their full life are actually turned the other way up,” reported Scholtz.

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

Risk-free platform needed for whistleblowers
The SSA discovered the absence at some time of a proper channel for whistleblowers to report corruption led them to turn to your media.

“Failure to have a focused anti-corruption channel will cause personnel presenting this sort of situations outside of the NLC,” the SSA mentioned in its conclusions.

“Specified the magnitude of corruption in condition establishments, it stays very important that it makes sure that the NLC complies with all protection prescripts and that its focus is on guaranteeing that unlawful and irregular perform is adequately mitigated in opposition to and by ensuring an enough channel for whistle-blowers to report untoward carry out without becoming intimidated.”

It suggested that the NLC build a “Harmless channel” for workers to supply information on any “untoward exercise” that might not stop or discourage workforce from blowing the whistle. A whistle-blowers policy, based on the Secured Disclosures Act 25 of 2000, is often a requirement.”

Media studies Nene listed
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Health Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to show NLC corruption. “The short article experienced things of knowledge not offered in the public area, thus elevating problem on internal Information and facts protection breaches. The allegations while in the media had been independently investigated,” Nene said. “Having said that, personnel answerable for divulging classified data have however being identified”;
A 28 January 2018 report posted from the Dally Dispatch “citing a lot of allegations from the Limpopo Mirror report revealed on 10 December 2017 and also a new allegation concerning a previous staff from the name of Mzukisi Makatse. He was billed and summarily dismissed for that menace induced on the organisation.”
A 16 November 2018 article during the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has described how, in spite of obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder post contained labeled info concerning NLC policy, elevating further more issues of inner facts stability breaches,” Nene stated in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an independent Investigation, even so [it] highlighted the heightened information and facts stability threats throughout the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene explained GroundUp experienced confirmed in its story that it absolutely was dependant on leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Entry to Information) ask for for specifics concerning the challenge, she explained