Lottery bosses turned to Condition Safety Agency to investigate leaks

Lottery bosses turned to Condition Safety Agency to investigate leaks

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Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the State Safety Agency (SSA) in December 2018 to research the leaking of paperwork that exposed lottery corruption.
The NLC’s corporation secretary at some time mentioned media reports she said were depending on “stolen” details in an affidavit for that SSA.
The SSA did examine. It discovered the data was not a matter of condition security and the “prevalence of alleged corruption and irregularities” gave “ample motive” to the media to show it.
A different board and management has considering the fact that taken above the NLC and Up to now have taken actions to end corruption at the institution.
A Point out Security Company (SSA) investigation observed the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for exposure because of the media.

The probe into meant “facts security breaches and sabotage of NLC operations” was carried out after then-NLC board chairperson Alfred Nevhutanda wrote to the SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by at present suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “private” conclusions and suggestions.
Nevhutanda asked the SSA to analyze the purpose of NLC staff members from the alleged leaking of knowledge, and Nene, in her affidavit recognized unique media and studies that she claimed included these leaks.

While in the letter outlining its conclusions, the SSA instructed the NLC that even though protecting condition info was “a legal critical targeted at preserving the sovereignty and integrity of your point out” this only placed on properly categorized info.

Although it didn't say so right, the SSA findings implied which the allegedly leaked information and facts did not fall into this group.

Appreciably, the SSA manufactured it distinct that the necessity to safeguard point out details “does not avert any person from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation found that the NLC facts linked to the alleged breach was “delicate and privileged in nature, but not classified with regard to the prescripts of the Minimal Details Safety Specifications (Overlook)”.

“The leakage on the appropriate sensitive Formal NLC information and facts to your media isn't going to pose a risk to countrywide protection,” the SSA stated, introducing the influence of your breaches was reputational.

The SSA report located “no proof of a factual and incriminating character towards any with the suspected NLC staff which could be identified 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 provide ample motive to get these kinds of exposed while in the media”.

Conspiracy statements
In 2020, Nevhutanda instructed MPs all through a session of Parliament’s trade, field and competition portfolio committee that there was “a conspiracy” in which information “stolen” within the NLC was sent towards the US, where he claimed it had been becoming bought to fund a smear campaign from the NLC.

He was repeating comparable statements he experienced Formerly designed in Parliament, which incorporated advertisement hominem assaults on GroundUp which reporter but was cautious not to name both.

“I came below Within this August residence very last calendar year and claimed to honourable users that information about our beneficiaries continues to be stolen and put in a single point out in the united states,” he advised MPs.

“We named about the State Security Company to come look into the make any difference mainly because we're getting experiences that our data is generating income for media platforms and journalists,” he stated. “There was speak, not surprisingly from 1 supply, a person media, that spoke A lot about proactive-funding,” Nevhutanda explained (referring to GroundUp), but didn't convey to MPs which the SSA investigation were completed Nearly a year earlier.

Proactive funding was at the heart in the looting from the lottery. It side-stepped the normal grant procedure. The NLC could itself recognize a challenge to fund and appoint a non-revenue organisation to supervise it.

After Nevhutanda initially told Parliament in 2018 that he had questioned the SSA to analyze the intended breach, the South African National Editors Discussion board issued a statement indicating that his remarks reflected “a very harmful Mind-set exactly where the media is staying blamed for the NLC’s inherent difficulties”.

“Rather than investigating why hundreds of thousands can't be accounted for, the NLC has as a substitute made an effort to Forged question about the integrity on the journalists included and has asked the SSA to analyze their resources.”

Proactive assignments created key
Security flaws discovered from the NLC grant funding process in the course of the SSA’s investigation, seem to have been applied as an excuse via the NLC to get rid of all proactive-funded jobs from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘key’ and initiatives were removed from the grant funding program and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Workplace, Executive Manager Lawful in order to safeguard [the] info,” Nene stated in her affidavit.

“There was lots of internal dialogue, with a lot of backwards and forwards, about how to proceed to plug the alleged leaks”, a supply, who was in the senior situation within the NLC at some time, explained to GroundUp. “Eventually, the choice was taken to get rid of each of the proactive tasks in the system and Restrict entry to A few persons”.

Some in that handful of individuals were implicated in corruption.

Maselwa, who resigned with the NLC many many years in the past, continues to be implicated in corruption involving lottery cash. He obtained R4.3-million from lottery resources allocated to create a library and museum elaborate in Kuruman (see Taung Cultural Songs and Arts Expo) which he utilised to make a house in an upmarket gated growth in Pretoria. The residence is among quite a few compensated for with lottery resources which were frozen following the Asset Forfeiture Unit acquired a preservation purchase 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 to substantial-ups while in the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated inside the corruption which overwhelmed the NLC on their own view.

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, who has due to the fact died.

Whenever a new administration, such as the full board and executive, took in excess of at the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” during the documentation relating to proactive funding, Significantly of which was paper-dependent. Critical files were being lacking. Documents held for safekeeping by document storage firm Metrofile had been signed out and in no way returned.

The NLC was capable of Recuperate copies of some ตรวจ หวย ล่าสุด files from its Mimecast email archiving technique and the laptops in their assistants and support employees.

News reviews
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave concern possible information stability breaches plus the unauthorised use and/or dissemination of confidential details obtained due to doing official features within the Fee by NLC staff. The activities are intended to undermine the integrity of your Commission when disrupting the efficient features [of the NLC] and triggering insurmountable reputational hurt to the Commission because the custodian of non-public information and facts entrusted to it by its beneficiaries.”

His ask for for the SSA to investigate was supported in an affidavit by suspended NLC business secretary, Nomphumelelo Nene.

Nene is at present going through a disciplinary inquiry immediately after she was unsuccessful in authorized action to set aside conclusions of irregular expenditure on her enjoy.

The objective of her affidavit, Nene mentioned, was “to document the occasions which transpired relating to information and facts protection breaches in the Countrywide Lotteries Commission”.

She mentioned a variety of information reviews which she claimed were being the outcome of such “breaches” (see at the end of this text).

Nene stated that a whistle-blower approached the NLC alleging that one among its employees, Sello Qhino, had “presented her labeled NLC Information and facts and persistently inspired her to provide the information to GroundUp”.

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

Referring to an eighteen November 2018 posting from the Day-to-day Dispatch in regards to the misappropriation of Lottery money, Nene said the NLC identified after which you can suspended Zintle Rungqu. She was an worker in the NLC’s East London Office environment, who was the spouse as well as mother of whistleblower Mzukise Makatse’s 3 small children.

Rungqu and Makatse think Rungqu was punished mainly because Makatse blew the whistle. She was suspended and billed internally, Using the NLC paying R470,000 on attorneys to characterize it, but was uncovered not responsible and permitted to return to work.

“The frequent factor in these content articles is always that [they entail] classified info relating to proactive funding tasks,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out of the family members dwelling to take the heat off her and his kids. Struggling with homelessness, he moved into an Office environment within an vacant factory belonging to a pal.

Equally Makatse and Qhino are participating in an NLC reparation system meant to recognise the damage lots of people endured within the palms in the NLC. Apologies and, in some instances, economical compensation are expected.

“Some folks ended up seriously influenced incredibly negatively by this … This is admittedly distressing,” NLC Commissioner Jodi Scholtz instructed the Day-to-day Maverick previous year.

“I achieved several these men and women. It was just so coronary heart-wrenching that their whole life happen to be turned the other way up,” mentioned Scholtz.

Among the Individuals she achieved had been Qhino and Makatse.

Harmless platform necessary for whistleblowers
The SSA observed the absence at the time of a proper channel for whistleblowers to report corruption led them to turn on the media.

“Failure to possess a committed anti-corruption channel will end in employees presenting this kind of circumstances outside of the NLC,” the SSA stated in its findings.

“Given the magnitude of corruption in point out 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 conduct is adequately mitigated against and by making sure an satisfactory channel for whistle-blowers to report untoward perform with no becoming intimidated.”

It proposed that the NLC create a “safe channel” for employees to offer info on any “untoward exercise” that will not avert or discourage workforce from blowing the whistle. A whistle-blowers policy, depending on the Safeguarded Disclosures Act twenty five of 2000, is often a need.”

Media experiences Nene mentioned
A ten December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Fitness Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and owner of your Limpopo Mirror, to reveal NLC corruption. “The write-up experienced aspects of information not out there in the public area, thereby increasing concern on inside Information protection breaches. The allegations in the media have been independently investigated,” Nene said. “Even so, workforce answerable for divulging categorised info have but being discovered”;
A 28 January 2018 posting published from the Dally Dispatch “citing many allegations from your Limpopo Mirror write-up printed on ten December 2017 in addition to a new allegation concerning a former employee by the title of Mzukisi Makatse. He was charged and summarily dismissed with the risk brought on into the organisation.”
A 16 November 2018 posting while in the Lowvelder in regards to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite receiving R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder posting contained classified data concerning NLC plan, raising additional considerations of inner data protection breaches,” Nene explained in her affidavit. “The prima facie evidence with regard to these allegations didn't warrant an impartial Investigation, on the other hand [it] highlighted the heightened facts safety dangers throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Most important Care, a hijacked NPO. Nene said GroundUp experienced verified in its story that it absolutely was determined by leaked NLC documents. This was despite the NLC rejecting a PAIA (Advertising of Entry to Facts) request for information concerning the job, she said