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 Commission (NLC) board chairperson Alfred Nevhutanda asked the Point out Security Agency (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s corporation secretary at enough time mentioned media reports she said were determined by “stolen” data 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 different board and management has considering the fact that taken above the NLC and Up to now have taken measures to end corruption with the establishment.
A Point out Stability Company (SSA) investigation discovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented sufficient motive” for publicity because of the media.

The probe into meant “information and facts stability breaches and sabotage of NLC functions” was undertaken soon after then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to research.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” findings and proposals.
Nevhutanda requested the SSA to analyze the position of NLC employees during the alleged leaking of information, and Nene, in her affidavit determined particular media and stories that she claimed associated these leaks.

Inside the letter outlining its results, the SSA explained to the NLC that whilst shielding point out information was “a legal essential aimed toward shielding the sovereignty and integrity with the point out” this only applied to appropriately classified information.

Even though it didn't say so right, the SSA findings implied which the allegedly leaked facts did not tumble into this group.

Drastically, the SSA created it clear that the necessity to shield point out info “would not avert any individual from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation uncovered that the NLC data linked to the alleged breach was “delicate and privileged in nature, but not categorized regarding the prescripts with the Minimum Info Security Specifications (Overlook)”.

“The leakage in the appropriate sensitive Formal NLC information and facts into the media won't pose a menace to national stability,” the SSA explained, including which the affect from the breaches was reputational.

The SSA report uncovered “no evidence of a factual and incriminating mother nature towards any with the suspected NLC employees that could be determined from the data and info interrogated”.

In addition, it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does give ample motive to obtain these kinds of exposed during the media”.

Conspiracy statements
In 2020, Nevhutanda informed MPs during a session of Parliament’s trade, marketplace and Levels of competition portfolio committee that there was “a conspiracy” in which facts “stolen” in the NLC was sent towards the US, the place he claimed it had been getting sold to fund a smear campaign against the NLC.

He was repeating identical claims he had previously manufactured in Parliament, which included advertisement hominem assaults on GroundUp which reporter but was cautious not to name both.

“I arrived here In this particular August dwelling last yr and documented to honourable customers that specifics of our beneficiaries has been stolen and set in a single condition in the united states,” he advised MPs.

“We named about the Condition Security Company to come back explore the make a difference simply because we've been receiving reports that our information and facts is creating cash for media platforms and journalists,” he reported. “There's been communicate, naturally from one source, just one media, that spoke A lot about proactive-funding,” Nevhutanda explained (referring to GroundUp), but didn't convey to MPs that the SSA investigation were completed Virtually a 12 months previously.

Proactive funding was at the center on the looting on the lottery. It aspect-stepped the conventional grant method. The NLC could itself determine a project to fund and appoint a non-profit organisation to supervise it.

Soon after Nevhutanda 1st informed Parliament in 2018 that he experienced asked the SSA to analyze the intended breach, the South African Countrywide Editors Forum issued a press release stating that his remarks mirrored “a particularly perilous Perspective where by the media is getting blamed with the NLC’s inherent issues”.

“In lieu of investigating why millions can not be accounted for, the NLC has as an alternative attempted to cast doubt around the integrity in the journalists concerned and has questioned the SSA to analyze their sources.”

Proactive tasks created key
Security flaws discovered during the NLC grant funding process in the course of the SSA’s investigation, seem to have been made use of as an justification from the NLC to get rid of all proactive-funded projects from its central grants process.

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

“There was plenty of internal dialogue, with many forwards and backwards, about what to do to plug the alleged leaks”, a source, who was inside of a senior situation on the NLC at the time, instructed GroundUp. “Ultimately, the choice was taken to get rid of every one of the proactive assignments from your method and Restrict use of a handful of individuals”.

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

Maselwa, who resigned from your NLC several yrs ago, has long been implicated in corruption involving lottery money. He been given R4.3-million from lottery cash allotted to construct a library and museum advanced in Kuruman (see Taung Cultural Music and Arts Expo) which he utilised to make a residence in an upmarket gated progress in Pretoria. The property is one of a number of paid for with lottery money that were frozen after the Asset Forfeiture Unit obtained a preservation get in December 2022.

The politically-related Nevhutanda, who was appointed given that the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to large-ups inside the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated while in the corruption which overwhelmed the NLC on their own look at.

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

Any time a new administration, such as the overall board and government, took above for the NLC in late 2022 and early 2023, they found a “chaotic mess” from the documentation relating to proactive funding, Significantly of which was paper-based mostly. Essential paperwork had been lacking. Data files held for safekeeping by document storage company Metrofile were signed out and in no way returned.

The NLC was in a position to Recuperate copies of some หวย ลาว ล่าสุด files from its Mimecast email archiving process plus the laptops of their assistants and assistance employees.

News reports
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave concern probable info protection breaches and also the unauthorised use and/or dissemination of confidential data obtained due to carrying out official functions while in the Fee by NLC staff members. The things to do are meant to undermine the integrity of your Fee when disrupting the helpful capabilities [on the NLC] and triggering insurmountable reputational damage towards the Fee since the custodian of personal information and facts entrusted to it by its beneficiaries.”

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

Nene is at the moment facing a disciplinary inquiry just after she was unsuccessful in legal action to put aside conclusions of irregular expenditure on her observe.

The objective of her affidavit, Nene said, was “to file the gatherings which transpired relating to details safety breaches for the Countrywide Lotteries Fee”.

She shown several information studies which she claimed have been the outcome of those “breaches” (see at the end of this informative article).

Nene stated that a whistle-blower approached the NLC alleging that certainly one of its employees, Sello Qhino, experienced “offered her categorised NLC Facts and persistently encouraged her to offer the information to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded tasks in Kuruman just after attempts to boost The difficulty internally were dismissed, was subsequently fired.

Referring to an eighteen November 2018 posting inside the Day-to-day Dispatch about the misappropriation of Lottery funds, Nene mentioned that the NLC recognized then suspended Zintle Rungqu. She was an worker inside the NLC’s East London Business office, who was the associate as well as the mother of whistleblower Mzukise Makatse’s a few young children.

Rungqu and Makatse feel Rungqu was punished since Makatse blew the whistle. She was suspended and billed internally, Together with the NLC investing R470,000 on lawyers to symbolize it, but was located not responsible and allowed to return to work.

“The typical factor in these posts is [they include] classified information concerning proactive funding initiatives,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out from the family household to take the warmth off her and his youngsters. Struggling with homelessness, he moved into an Office environment within an empty manufacturing facility belonging to a friend.

Equally Makatse and Qhino are taking part in an NLC reparation process meant to recognise the hurt some individuals endured for the arms of the NLC. Apologies and, in some instances, fiscal payment are predicted.

“Some persons were being definitely afflicted pretty negatively by this … This is really distressing,” NLC Commissioner Jodi Scholtz explained to the Each day Maverick previous yr.

“I met two or three these persons. It was just so coronary heart-wrenching that their entire life are already turned upside down,” claimed Scholtz.

Amongst Those people she met ended up Qhino and Makatse.

Secure platform wanted for whistleblowers
The SSA discovered 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 devoted anti-corruption channel will lead to personnel presenting these types of cases beyond the NLC,” the SSA said in its conclusions.

“Specified the magnitude of corruption in point out establishments, it remains essential that it makes certain that the NLC complies with all protection prescripts and that its concentrate is on making sure that illegal and irregular conduct is sufficiently mitigated towards and by making sure an ample channel for whistle-blowers to report untoward conduct devoid of getting intimidated.”

It proposed the NLC create a “Secure channel” for employees 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 outlined
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 in the Limpopo Mirror, to expose NLC corruption. “The posting had components of data not offered in the public domain, thus elevating issue on inner Information protection breaches. The allegations in the media have been independently investigated,” Nene said. “Even so, employees answerable for divulging categorised information have but to get determined”;
A 28 January 2018 posting published by the Dally Dispatch “citing many allegations from your Limpopo Mirror write-up printed on ten December 2017 and a new allegation concerning a previous worker by the identify of Mzukisi Makatse. He was charged and summarily dismissed with the menace brought on into the organisation.”
A 16 November 2018 article from 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 not been concluded. “The Lowvelder article contained categorized data in terms of NLC policy, raising more worries of inside facts stability breaches,” Nene reported in her affidavit. “The prima facie proof regarding these allegations did not warrant an independent Investigation, however [it] highlighted the heightened information and facts stability pitfalls inside the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Major Treatment, a hijacked NPO. Nene explained GroundUp had verified in its Tale that it had been based on leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Marketing of Usage of Details) ask for for particulars with regards to the venture, she claimed