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 Company (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s enterprise secretary at some time outlined media studies she claimed ended up depending on “stolen” details in an affidavit with the SSA.
The SSA did examine. It identified 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 brand new board and administration has considering that taken over the NLC and To this point have taken steps to finish corruption in the institution.
A Condition Stability Company (SSA) investigation found that 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's

Nevhutanda’s letter,
an affidavit by now suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” results and proposals.
Nevhutanda requested the SSA to analyze the position of NLC workers in the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and experiences that she claimed involved these leaks.

While in the letter outlining its conclusions, the SSA told the NLC that even though protecting state details was “a authorized critical directed at protecting the sovereignty and integrity of the state” this only placed on correctly categorised details.

Even though it did not say so right, the SSA findings implied which the allegedly leaked information did not drop into this class.

Considerably, the SSA made it crystal clear that the necessity to protect condition information and facts “would not reduce any specific from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation discovered the NLC details involved in the alleged breach was “sensitive and privileged in nature, but not categorized concerning the prescripts with the Minimum Info Protection Specifications (Overlook)”.

“The leakage in the appropriate sensitive official NLC details to the media will not pose a threat to countrywide protection,” the SSA reported, adding the impact from the breaches was reputational.

The SSA report discovered “no proof of a factual and incriminating mother nature towards any of your suspected NLC staff members that can be discovered from the information and details interrogated”.

In addition it stated that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does present enough motive to have these kinds of uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs throughout a session of Parliament’s trade, market and Level of competition portfolio committee that there was “a conspiracy” wherein information and facts “stolen” with the NLC was sent towards the US, where he claimed it had been getting sold to fund a smear marketing campaign towards the NLC.

He was repeating identical statements he experienced previously designed in Parliament, which incorporated advert hominem assaults on GroundUp and this reporter but was thorough not to call possibly.

“I came in this article In this particular August home very last year and described to honourable users that details about our beneficiaries has actually been stolen and put in one condition in the united states,” he instructed MPs.

“We called within the Condition Safety Agency to come explore the subject mainly because we have been finding stories that our data is creating funds for media platforms and journalists,” he mentioned. “There has been talk, certainly from just one supply, one media, that spoke Substantially about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't explain to MPs which the SSA investigation had been concluded Nearly a 12 months before.

Proactive funding was at the heart on the looting of your lottery. It side-stepped the normal grant approach. The NLC could alone identify a venture to fund and appoint a non-income organisation to supervise it.

Just after Nevhutanda first told Parliament in 2018 that he experienced questioned the SSA to research the intended breach, the South African National Editors Forum issued a press release expressing that his remarks reflected “an especially harmful attitude where by the media is staying blamed to the NLC’s inherent issues”.

“Instead of investigating why tens of millions cannot be accounted for, the NLC has in its place tried to Solid question around the integrity on the journalists associated and has asked the SSA to research their resources.”

Proactive jobs produced mystery
Protection flaws determined during the NLC grant funding system throughout the SSA’s investigation, seem to are already utilised as an excuse by the NLC to eliminate all proactive-funded initiatives from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘solution’ and assignments were faraway from the grant funding program and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Workplace, Government Manager Legal in order to safeguard [the] facts,” Nene mentioned in her affidavit.

“There was plenty of interior dialogue, with a great deal of back and forth, about how to proceed to plug the alleged leaks”, a source, who was inside of a senior posture with the NLC at some time, told GroundUp. “In the end, the choice was taken to eliminate all the proactive tasks with the technique and limit access to A few persons”.

Some in that handful of individuals were implicated in corruption.

Maselwa, who resigned through the NLC a number of yrs in the past, has been implicated in corruption involving lottery funds. He obtained R4.3-million from lottery resources allocated to build a library and museum complicated in Kuruman (see Taung Cultural Music and Arts Expo) which he applied to create a dwelling in an upmarket gated development in Pretoria. The home is one of various paid out for with lottery cash that were frozen after the Asset Forfeiture Device received a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to superior-ups in the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated inside the corruption which overwhelmed the NLC on their own enjoy.

Also implicated are former board associates William Huma, who resigned following he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got given that died.

Every time a new administration, such as the overall board and govt, took around within the NLC in late 2022 and early 2023, they discovered a “chaotic mess” in the documentation relating to proactive funding, Significantly of which was paper-primarily based. Important files ended up missing. Documents held for safekeeping by document storage enterprise Metrofile had been signed out and never returned.

The NLC was ready to Recuperate copies of some หวย หุ้น ช่อง 9 วัน นี้ documents from its Mimecast email archiving system as well as the laptops of their assistants and assist team.

Information stories
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave problem achievable data safety breaches and also the unauthorised use and/or dissemination of private information and facts received because of performing Formal functions from the Commission by NLC workforce. The pursuits are meant to undermine the integrity in the Fee whilst disrupting the helpful functions [on the NLC] and causing insurmountable reputational harm on the Fee as the custodian of personal data entrusted to it by its beneficiaries.”

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

Nene is currently dealing with a disciplinary inquiry right after she was unsuccessful in legal motion to put aside results of irregular expenditure on her observe.

The purpose of her affidavit, Nene said, was “to history the gatherings which transpired regarding details security breaches for the National Lotteries Fee”.

She detailed various news experiences which she claimed have been the results of these “breaches” (see at the conclusion of this short article).

Nene claimed that a whistle-blower approached the NLC alleging that certainly one of its personnel, Sello Qhino, experienced “provided her classified NLC Details and persistently encouraged her to supply the information to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded tasks in Kuruman right after attempts to raise The difficulty internally were being overlooked, was subsequently fired.

Referring to an 18 November 2018 write-up within the Daily Dispatch about the misappropriation of Lottery resources, Nene explained 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 believe that Rungqu was punished simply because Makatse blew the whistle. She was suspended and charged internally, Along with the NLC spending R470,000 on lawyers to symbolize it, but was located not guilty and allowed to return to work.

“The typical factor in these posts is the fact that [they involve] classified information and facts regarding proactive funding assignments,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out from the family dwelling to take the warmth off her and his youngsters. Facing homelessness, he moved into an Office environment in an empty manufacturing unit belonging to a friend.

Equally Makatse and Qhino are taking part in an NLC reparation procedure meant to recognise the hurt many people endured for the arms of the NLC. Apologies and, in some cases, economic compensation are expected.

“Some people had been actually impacted extremely negatively by this … This is basically painful,” NLC Commissioner Jodi Scholtz told the Day by day Maverick very last yr.

“I achieved a handful of these men and women. It was just so heart-wrenching that their whole lives happen to be turned the wrong way up,” stated Scholtz.

Between These she fulfilled were being Qhino and Makatse.

Protected System desired for whistleblowers
The SSA identified 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 dedicated anti-corruption channel will lead to personnel presenting these conditions beyond the NLC,” the SSA claimed in its results.

“Presented the magnitude of corruption in state institutions, it continues to be critical that it makes sure that the NLC complies with all security prescripts Which its emphasis is on ensuring that unlawful and irregular conduct is sufficiently mitigated towards and by making sure an ample channel for whistle-blowers to report untoward perform with no becoming intimidated.”

It encouraged that the NLC set up a “Safe and sound channel” for workers to supply information on any “untoward action” that may not stop or discourage personnel from blowing the whistle. A whistle-blowers plan, based on the Protected Disclosures Act 25 of 2000, is really a necessity.”

Media reviews Nene detailed
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 owner of the Limpopo Mirror, to show NLC corruption. “The report had things of knowledge not available in the general public area, thereby boosting concern on inside Info protection breaches. The allegations in the media have been independently investigated,” Nene reported. “Nonetheless, workforce accountable for divulging labeled information and facts have however to become discovered”;
A 28 January 2018 report published by the Dally Dispatch “citing a lot of allegations in the Limpopo Mirror posting released on 10 December 2017 in addition to a new allegation associated with a former personnel via the identify of Mzukisi Makatse. He was billed and summarily dismissed with the menace prompted into the organisation.”
A sixteen November 2018 short article during the Lowvelder with regard to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, in spite of obtaining R27-million in lottery grants, the rehab has never been completed. “The Lowvelder posting contained categorized information and facts regarding NLC plan, elevating further more considerations of inside information and facts security breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations did not warrant an independent Investigation, however [it] highlighted the heightened details safety pitfalls in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Key Treatment, a hijacked NPO. Nene reported GroundUp experienced verified in its Tale that it absolutely was depending on leaked NLC documents. This was despite the NLC rejecting a PAIA (Advertising of Entry to Data) request for details regarding the venture, she said