Lottery bosses turned to State Safety Agency to research leaks

Lottery bosses turned to State Safety Agency to research leaks

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Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Stability Agency (SSA) in December 2018 to investigate the leaking of paperwork that uncovered lottery corruption.
The NLC’s business secretary at time shown media experiences she stated had been dependant on “stolen” information within an affidavit with the SSA.
The SSA did examine. It located the knowledge was not a matter of point out safety and that the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to show it.
A different board and management has since taken around the NLC and So far have taken steps to end corruption with the establishment.
A State Safety Company (SSA) investigation found that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished enough motive” for publicity from the media.

The probe into intended “facts stability breaches and sabotage of NLC functions” was carried out immediately 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 this time suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the security company’s “private” findings and recommendations.
Nevhutanda questioned the SSA to research the function of NLC staff from the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and reports that she claimed included these leaks.

Within the letter outlining its results, the SSA explained to the NLC that even though protecting condition facts was “a lawful crucial targeted at preserving the sovereignty and integrity from the state” this only applied to appropriately classified data.

Even though it didn't say so directly, the SSA conclusions implied which the allegedly leaked information and facts didn't tumble into this class.

Noticeably, the SSA manufactured it obvious that the necessity to shield point out information and facts “does not reduce any person from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation discovered which the NLC information involved with the alleged breach was “delicate and privileged in nature, although not classified in terms of the prescripts of your Bare minimum Information and facts Security Specifications (Pass up)”.

“The leakage of the appropriate delicate Formal NLC information and facts into the media won't pose a menace to national stability,” the SSA claimed, including which the impression in the breaches was reputational.

The SSA report found “no proof of a factual and incriminating character versus any in the suspected NLC employees that would be identified from the information and facts interrogated”.

In addition, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does provide ample motive to get these uncovered from the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, industry and Opposition portfolio committee that there was “a conspiracy” during which info “stolen” from the NLC was despatched for the US, exactly where he claimed it absolutely was getting sold to fund a smear campaign against the NLC.

He was repeating very similar claims he had Beforehand 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 described to honourable customers that specifics of our beneficiaries has long been stolen and set in a single condition in America,” he informed MPs.

“We known as around the Point out Protection Agency to return check into the subject due to the fact we are having studies that our info is making cash for media platforms and journalists,” he reported. “There's been converse, needless to say from a person source, a single media, that spoke A great deal about proactive-funding,” Nevhutanda stated (referring to GroundUp), but did not notify MPs the SSA investigation were concluded Pretty much a calendar year before.

Proactive funding was at the guts of your looting of your lottery. It facet-stepped the conventional grant approach. The NLC could by itself determine a venture 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 supposed breach, the South African Countrywide Editors Forum issued an announcement indicating that his remarks reflected “an incredibly hazardous Angle in which the media is staying blamed for the NLC’s inherent troubles”.

“Rather than investigating why hundreds of thousands cannot be accounted for, the NLC has alternatively attempted to Solid doubt within the integrity on the journalists concerned and has questioned the SSA to analyze their sources.”

Proactive tasks produced magic formula
Stability flaws determined while in the NLC grant funding method during the SSA’s investigation, show up to are already utilized 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 ‘top secret’ and tasks have been faraway from the grant funding procedure and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Office, Govt Supervisor Lawful in order to safeguard [the] details,” Nene mentioned in her affidavit.

“There was loads of inside discussion, with plenty of forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was within a senior position on the NLC at time, told GroundUp. “In the end, the choice was taken to eliminate every one of the proactive projects from your technique and Restrict usage of A few folks”.

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

Maselwa, who resigned from your NLC several years back, is implicated in corruption involving lottery cash. He received R4.3-million from lottery money allotted to construct a library and museum advanced in Kuruman (see Taung Cultural Music and Arts Expo) which he employed to develop a dwelling within an upmarket gated development in Pretoria. The home is one of many compensated for with lottery funds which were frozen following the Asset Forfeiture Unit received a preservation get in December 2022.

The politically-related Nevhutanda, who was appointed given that the NLC board chairperson by former President Jacob Zuma in 2009 and was near to higher-ups in the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated from the corruption which confused the NLC on their observe.

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

Every time a new administration, such as the total board and government, took above on the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation referring to proactive funding, Significantly of which was paper-based. Vital paperwork were missing. Data files held for safekeeping by document storage company Metrofile had been signed out and never returned.

The NLC was in the position to recover copies of some หวย ลาว ออก วัน นี้ สด files from its Mimecast electronic mail archiving technique as well as the laptops in their assistants and assist employees.

Information reviews
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave issue achievable information safety breaches plus the unauthorised use and/or dissemination of private details received on account of performing official functions within the Commission by NLC staff. The pursuits are intended to undermine the integrity on the Commission although disrupting the successful functions [from the NLC] and creating insurmountable reputational hurt to your Commission as the custodian of private data entrusted to it by its beneficiaries.”

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

Nene is presently struggling with a disciplinary inquiry soon after she was unsuccessful in lawful motion to set aside results of irregular expenditure on her check out.

The purpose of her affidavit, Nene explained, was “to history the occasions which transpired associated with information and facts stability breaches in the National Lotteries Commission”.

She listed numerous news reports which she claimed were the results of such “breaches” (see at the conclusion of this information).

Nene reported that a whistle-blower approached the NLC alleging that considered one of its personnel, Sello Qhino, had “offered her labeled NLC Information and facts and persistently inspired her to deliver the data to GroundUp”.

Qhino, who blew the whistle with 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 18 November 2018 article in the Day by day Dispatch about the misappropriation of Lottery cash, Nene mentioned that the NLC determined after which suspended Zintle Rungqu. She was an staff while in the NLC’s East London Workplace, who was the husband or wife as well as the mom of whistleblower Mzukise Makatse’s a few youngsters.

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

“The frequent factor in these content articles is [they include] classified information relating to proactive funding jobs,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out on the loved ones home to go ahead and take warmth off her and his little ones. Dealing with homelessness, he moved into an Business in an vacant manufacturing unit belonging to a pal.

Both of those Makatse and Qhino are participating in an NLC reparation approach meant to recognise the harm a number of people endured within the hands from the NLC. Apologies and, in some instances, money payment are predicted.

“Some persons were being definitely afflicted incredibly negatively by this … This is admittedly distressing,” NLC Commissioner Jodi Scholtz instructed the Day-to-day Maverick final year.

“I fulfilled several these folks. 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 discovered the absence at enough time of a suitable channel for whistleblowers to report corruption led them to show into the media.

“Failure to have a dedicated anti-corruption channel will lead to staff 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 emphasis is on making certain that unlawful and irregular carry out is sufficiently mitigated from and by ensuring an suitable channel for whistle-blowers to report untoward conduct without currently being intimidated.”

It suggested the NLC build a “Protected channel” for workers to deliver info on any “untoward activity” that might not protect against or discourage workers from blowing the whistle. A whistle-blowers policy, determined by the Shielded Disclosures Act twenty five of 2000, is usually a need.”

Media reports Nene outlined
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Health and fitness Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and owner of the Limpopo Mirror, to show NLC corruption. “The report had things of knowledge not available in the general public area, therefore boosting problem on interior Details stability breaches. The allegations inside the media ended up independently investigated,” Nene stated. “Having said that, staff responsible for divulging categorised info have yet to generally be determined”;
A 28 January 2018 post posted with the Dally Dispatch “citing numerous allegations through the Limpopo Mirror article printed on 10 December 2017 and also a new allegation concerning a previous staff by the identify of Mzukisi Makatse. He was billed and summarily dismissed for that menace brought about into the organisation.”
A sixteen November 2018 report from the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder write-up contained categorised data with regards to NLC coverage, raising further more worries of internal information and facts security breaches,” Nene said in her affidavit. “The prima facie proof regarding these allegations didn't warrant an unbiased Investigation, on the other hand [it] highlighted the heightened details protection risks inside the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Primary Care, a hijacked NPO. Nene mentioned GroundUp had confirmed in its story that it absolutely was depending on leaked NLC documents. This was despite the NLC rejecting a PAIA (Advertising of Use of Information) ask for for specifics with regards to the task, she stated