Lottery bosses turned to Point out Protection Company to research leaks

Lottery bosses turned to Point out Protection Company to research leaks

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Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned 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 stated media reports she stated had been determined by “stolen” data in an affidavit for the SSA.
The SSA did look into. It located the information wasn't a subject of state protection and that the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to reveal it.
A fresh board and administration has given that taken around the NLC and So far have taken actions to finish corruption at the institution.
A State Safety Company (SSA) investigation uncovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied ample motive” for exposure from the media.

The probe into supposed “details safety breaches and sabotage of NLC operations” was carried out just after then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to analyze.

Here is

Nevhutanda’s letter,
an affidavit by presently suspended NLC business secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and recommendations.
Nevhutanda questioned the SSA to investigate the job of NLC staff members inside the alleged leaking of data, and Nene, in her affidavit identified distinct media and reports that she claimed concerned these leaks.

During the letter outlining its findings, the SSA informed the NLC that when guarding state data was “a authorized vital directed at protecting the sovereignty and integrity from the state” this only placed on properly categorized details.

Although it didn't say so specifically, the SSA results implied that the allegedly leaked information and facts did not fall into this classification.

Appreciably, the SSA created it distinct that the necessity to guard state facts “won't avoid any personal from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation located that the NLC details associated with the alleged breach was “sensitive and privileged in mother nature, but not categorised concerning the prescripts from the Least Details Stability Expectations (Skip)”.

“The leakage from the applicable delicate official NLC facts into the media would not pose a menace to national stability,” the SSA claimed, including which the affect from the breaches was reputational.

The SSA report found “no evidence of the factual and incriminating nature from any from the suspected NLC staff members that might be discovered from the information and knowledge interrogated”.

Additionally, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide ample motive to possess these kinds of exposed while in the media”.

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

He was repeating comparable promises he experienced Formerly built in Parliament, which incorporated advert hominem assaults on GroundUp and this reporter but was mindful not to call possibly.

“I arrived here In this particular August household past year and noted to honourable associates that details about our beneficiaries has actually been stolen and place in one state in America,” he told MPs.

“We called on the Point out Safety Agency to return investigate the issue since we've been receiving reports that our information and facts is creating money for media platforms and journalists,” he claimed. “There has been chat, obviously from just one resource, 1 media, that spoke Substantially about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to explain to MPs the SSA investigation had been accomplished Just about a calendar year before.

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

Right after Nevhutanda initial told Parliament in 2018 that he had questioned the SSA to research the meant breach, the South African Nationwide Editors Discussion board issued a statement expressing that his remarks reflected “a very harmful Mind-set exactly where the media is staying blamed for the NLC’s inherent troubles”.

“Rather then investigating why millions cannot be accounted for, the NLC has alternatively attempted to Solid doubt within the integrity in the journalists concerned and has questioned the SSA to research their sources.”

Proactive tasks produced magic formula
Stability flaws recognized while in the NLC grant funding technique in the SSA’s investigation, surface to have been made use of being an excuse from the NLC to eliminate all proactive-funded jobs from its central grants process.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘solution’ and tasks were removed from the grant funding system and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Workplace, Government Supervisor Lawful as a way to safeguard [the] information and facts,” Nene stated in her affidavit.

“There was a great deal of inside dialogue, with lots of back and forth, about what to do to plug the alleged leaks”, a source, who was inside a senior placement with the NLC at enough time, advised GroundUp. “Ultimately, the decision was taken to eliminate many of the proactive projects through the method and limit entry to A few individuals”.

Some in that handful of folks had been implicated in corruption.

Maselwa, who resigned with the NLC quite a few several years back, has long been implicated in corruption involving lottery money. He obtained R4.3-million from lottery cash allotted to create a library and museum sophisticated in Kuruman (see Taung Cultural New music and Arts Expo) which he utilized to construct a home in an upmarket gated progress in Pretoria. The house is one of several paid for with lottery cash that were frozen after the Asset Forfeiture Device attained a preservation buy in December 2022.

The politically-linked Nevhutanda, who was appointed as being the NLC board chairperson by former President Jacob Zuma in 2009 and was near substantial-ups within the ANC Management, previous NLC previous Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated during the corruption which overwhelmed the NLC on their look at.

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

Any time a new administration, such as the overall board and govt, took about for the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation associated with proactive funding, Significantly of which was paper-primarily based. Vital paperwork were lacking. Files held for safekeeping by document storage enterprise Metrofile had been signed out and hardly ever returned.

The NLC was in the position to recover copies of some luckyvip77 files from its Mimecast e-mail archiving program and also the laptops in their assistants and help staff.

News experiences
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave worry possible data stability breaches as well as the unauthorised use and/or dissemination of private information and facts obtained because of doing Formal features from the Fee by NLC staff members. The things to do are meant to undermine the integrity in the Fee whilst disrupting the productive functions [in the NLC] and producing insurmountable reputational harm on the Fee given that the custodian of personal info entrusted to it by its beneficiaries.”

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

Nene is at this time struggling with a disciplinary inquiry after she was unsuccessful in lawful motion to set aside findings of irregular expenditure on her check out.

The goal of her affidavit, Nene explained, was “to file the activities which transpired relating to information and facts protection breaches in the Countrywide Lotteries Commission”.

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

Nene said that a whistle-blower approached the NLC alleging that one among its workforce, Sello Qhino, had “offered her labeled NLC Facts and persistently inspired her to offer the data to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded assignments in Kuruman soon after makes an attempt 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 cash, Nene stated which the NLC recognized and after that suspended Zintle Rungqu. She was an personnel within the NLC’s East London Business, who was the spouse as well as mother of whistleblower Mzukise Makatse’s three little ones.

Rungqu and Makatse believe Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and billed internally, with the NLC investing R470,000 on lawyers to symbolize it, but was located not guilty and allowed to return to operate.

“The popular Think about these article content is usually that [they require] labeled data referring to proactive funding projects,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out with the loved ones home to take the warmth off her and his youngsters. Facing homelessness, he moved into an Office environment within an empty manufacturing facility belonging to an acquaintance.

The two Makatse and Qhino are taking part in an NLC reparation procedure intended to recognise the damage a lot of people experienced at the hands from the NLC. Apologies and, in some instances, fiscal compensation are anticipated.

“Some men and women ended up seriously influenced really negatively by this … This is basically unpleasant,” NLC Commissioner Jodi Scholtz told the Day by day Maverick very last yr.

“I achieved a handful of these folks. It was just so heart-wrenching that their full lives are actually turned the wrong way up,” reported Scholtz.

Amongst Those people she met have been Qhino and Makatse.

Safe platform essential for whistleblowers
The SSA uncovered the absence at the time of a correct channel for whistleblowers to report corruption led them to turn on the media.

“Failure to possess a committed anti-corruption channel will end in staff members presenting such cases beyond the NLC,” the SSA reported in its conclusions.

“Supplied the magnitude of corruption in condition institutions, it continues to be critical that it makes sure that the NLC complies with all security prescripts Which its target is on ensuring that illegal and irregular perform is adequately mitigated against and by guaranteeing an sufficient channel for whistle-blowers to report untoward carry out without having remaining intimidated.”

It advised which the NLC establish a “Protected channel” for workers to deliver info on any “untoward activity” that might not protect against or discourage employees from blowing the whistle. A whistle-blowers policy, depending on the Safeguarded Disclosures Act 25 of 2000, is often a prerequisite.”

Media stories Nene stated
A ten December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Exercise Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor in the Limpopo Mirror, to show NLC corruption. “The short article had features of knowledge not accessible in the general public domain, therefore boosting problem on inside Details protection breaches. The allegations within the media ended up independently investigated,” Nene said. “Even so, workforce liable for divulging labeled information and facts have yet to become recognized”;
A 28 January 2018 report revealed because of the Dally Dispatch “citing a lot of allegations with the Limpopo Mirror short article released on 10 December 2017 as well as a new allegation referring to a previous worker from the identify of Mzukisi Makatse. He was charged and summarily dismissed for the menace triggered to the organisation.”
A sixteen 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 acquiring R27-million in lottery grants, the rehab has never been accomplished. “The Lowvelder posting contained classified details with regard to NLC plan, boosting further issues of inner details safety breaches,” Nene mentioned in her affidavit. “The prima facie evidence with regards to these allegations didn't warrant an impartial Investigation, nonetheless [it] highlighted the heightened details security threats in the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Principal Care, a hijacked NPO. Nene claimed GroundUp had verified in its Tale that it had been based on leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Promotion of Use of Info) request for aspects regarding the challenge, she stated