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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Former National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda questioned the Condition Security Company (SSA) in December 2018 to research the leaking of files that exposed lottery corruption.
The NLC’s corporation secretary at time listed media stories she stated were being based on “stolen” info in an affidavit for the SSA.
The SSA did examine. It identified the information wasn't a issue of state protection and which the “prevalence of alleged corruption and irregularities” gave “enough motive” for the media to reveal it.
A brand new board and management has due to the fact taken over the NLC and To this point have taken measures to finish corruption in the institution.
A Point out Stability Company (SSA) investigation observed the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented ample motive” for publicity because of the media.

The probe into intended “information safety breaches and sabotage of NLC operations” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to analyze.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to research the function of NLC team from the alleged leaking of information, and Nene, in her affidavit determined specific media and studies that she claimed associated these leaks.

Within the letter outlining its results, the SSA explained to the NLC that whilst shielding point out information was “a legal crucial aimed at guarding the sovereignty and integrity with the condition” this only applied to appropriately classified data.

Even though it didn't say so right, the SSA conclusions implied the allegedly leaked info didn't fall into this group.

Considerably, the SSA built it distinct that the need to defend condition data “would not reduce any person from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation discovered the NLC data associated with the alleged breach was “delicate and privileged in character, but not labeled regarding the prescripts in the Minimal Information and facts Safety Expectations (Overlook)”.

“The leakage of the suitable delicate Formal NLC information and facts towards the media isn't going to pose a menace to national safety,” the SSA explained, incorporating the effect on the breaches was reputational.

The SSA report observed “no evidence of the factual and incriminating character against any with the suspected NLC workforce that might be identified from the information and data interrogated”.

In addition, it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does offer sufficient motive to have these kinds of uncovered in the media”.

Conspiracy claims
In 2020, Nevhutanda advised MPs during a session of Parliament’s trade, market and Level of competition portfolio committee that there was “a conspiracy” by which details “stolen” from your NLC was sent towards the US, exactly where he claimed it absolutely was remaining marketed to fund a smear campaign against the NLC.

He was repeating identical statements he had Earlier created in Parliament, which integrated advertisement hominem attacks on GroundUp and this reporter but was careful not to name both.

“I arrived listed here in this August property last calendar year and documented to honourable members that information regarding our beneficiaries continues to be stolen and place in a single state in the united states,” he explained to MPs.

“We referred to as to the Point out Security Agency to come investigate the make any difference simply because we're receiving stories that our information and facts is building revenue for media platforms and journalists,” he said. “There have been communicate, certainly from a person supply, a single media, that spoke Significantly about proactive-funding,” Nevhutanda stated (referring to GroundUp), but didn't explain to MPs that the SSA investigation had been completed Just about a yr previously.

Proactive funding was at the heart on the looting of the lottery. It aspect-stepped the traditional grant procedure. The NLC could by itself detect a venture to fund and appoint a non-financial gain organisation to supervise it.

Following Nevhutanda 1st instructed Parliament in 2018 that he experienced questioned the SSA to research the intended breach, the South African Nationwide Editors Forum issued a statement stating that his remarks reflected “an extremely harmful Mindset exactly where the media is being blamed for the NLC’s inherent complications”.

“In lieu of investigating why thousands and thousands cannot be accounted for, the NLC has in its place attempted to Forged doubt to the integrity in the journalists associated and has requested the SSA to analyze their resources.”

Proactive tasks built key
Protection flaws discovered within the NLC grant funding technique in the SSA’s investigation, appear to have already been applied being an excuse through the NLC to get rid of all proactive-funded assignments from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding projects was heightened to ‘secret’ and initiatives ended up removed from the grant funding method and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Executive Supervisor Legal so as to safeguard [the] facts,” Nene mentioned in her affidavit.

“There was loads of internal dialogue, with lots of backwards and forwards, about how to proceed to plug the alleged leaks”, a supply, who was inside of a senior position in the NLC at enough time, advised GroundUp. “Ultimately, the choice was taken to get rid of the many proactive assignments from your method and limit usage of a handful of folks”.

Some in that handful of individuals were implicated in corruption.

Maselwa, who resigned with the NLC many decades ago, has been implicated in corruption involving lottery money. He gained R4.three-million from lottery resources allotted to build a library and museum intricate in Kuruman (see Taung Cultural Tunes and Arts Expo) which he utilized to create a property within an upmarket gated development in Pretoria. The home is one of several compensated for with lottery cash that were frozen after the Asset Forfeiture Device acquired a preservation order in December 2022.

The politically-related Nevhutanda, who was appointed as being the NLC board chairperson by former President Jacob Zuma in 2009 and was near large-ups within the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their enjoy.

Also implicated are previous board associates William Huma, who resigned immediately after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has due to the fact died.

Any time a new administration, such as the entire board and executive, took more than on the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation regarding proactive funding, Substantially of which was paper-dependent. Essential documents were lacking. Information held for safekeeping by doc storage firm Metrofile had been signed out and never returned.

The NLC was ready to Recuperate copies of some ตรวจ หวย ย้อน หลัง paperwork from its Mimecast e-mail archiving method and also the laptops in their assistants and guidance workers.

Information stories
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave worry feasible information and facts safety breaches as well as unauthorised use and/or dissemination of confidential data attained as a result of doing Formal capabilities in the Commission by NLC workers. The pursuits are intended to undermine the integrity on the Fee when disrupting the helpful capabilities [with the NLC] and resulting in insurmountable reputational damage for the Commission as the custodian of private facts entrusted to it by its beneficiaries.”

His request for the SSA to analyze was supported in an affidavit by suspended NLC company secretary, Nomphumelelo Nene.

Nene is now going through a disciplinary inquiry following she was unsuccessful in lawful motion to set aside results of irregular expenditure on her check out.

The goal of her affidavit, Nene claimed, was “to report the gatherings which transpired regarding data safety breaches at the Nationwide Lotteries Commission”.

She stated a variety of information stories which she claimed had been the effects of these “breaches” (see at the conclusion of this informative article).

Nene reported that a whistle-blower approached the NLC alleging that one among its employees, Sello Qhino, had “presented her categorised NLC Info and persistently encouraged her to supply the knowledge to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded jobs in Kuruman after attempts to raise the issue internally were being disregarded, was subsequently fired.

Referring to an eighteen November 2018 short article from the Each day Dispatch with regard to the misappropriation of Lottery cash, Nene mentioned that the NLC determined then suspended Zintle Rungqu. She was an employee from the NLC’s East London Business office, who was the companion as well as mother of whistleblower Mzukise Makatse’s 3 children.

Rungqu and Makatse imagine Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Together with the NLC spending R470,000 on lawyers to symbolize it, but was observed not responsible and allowed to return to work.

“The widespread Consider these content is usually that [they contain] labeled facts regarding proactive funding assignments,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out from the family dwelling to go ahead and take warmth off her and his little ones. Going through homelessness, he moved into an office within an vacant factory belonging to an acquaintance.

The two Makatse and Qhino are taking part in an NLC reparation procedure meant to recognise the hurt some people suffered with the palms with the NLC. Apologies and, occasionally, monetary compensation are expected.

“Some people had been truly affected extremely negatively by this … This is actually painful,” NLC Commissioner Jodi Scholtz explained to the Each day Maverick previous yr.

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

Amid those 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 staff presenting these kinds of scenarios beyond the NLC,” the SSA explained in its results.

“Provided the magnitude of corruption in state establishments, it stays critical that it ensures that the NLC complies with all stability prescripts and that its concentrate is on ensuring that unlawful and irregular conduct is adequately mitigated against and by guaranteeing an satisfactory channel for whistle-blowers to report untoward perform without having being intimidated.”

It advisable which the NLC set up a “Safe and sound channel” for workers to provide information on any “untoward action” that may not stop or discourage personnel from blowing the whistle. A whistle-blowers plan, dependant 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 proprietor from the Limpopo Mirror, to show NLC corruption. “The report had features of knowledge not accessible in the public domain, thus elevating problem on internal Facts safety breaches. The allegations while in the media were being independently investigated,” Nene explained. “Nonetheless, staff members responsible for divulging classified details have however to get determined”;
A 28 January 2018 write-up published by the Dally Dispatch “citing a lot of allegations within the Limpopo Mirror posting printed on 10 December 2017 and also a new allegation relating to a previous staff from the title of Mzukisi Makatse. He was charged and summarily dismissed to the risk triggered into the organisation.”
A 16 November 2018 post within the Lowvelder with regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, in spite of acquiring R27-million in lottery grants, the rehab has not been completed. “The Lowvelder short article contained classified information and facts with regard to NLC policy, increasing further worries of interior info protection breaches,” Nene said in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an independent Investigation, on the other hand [it] highlighted the heightened information and facts stability risks inside the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Primary Care, a hijacked NPO. Nene mentioned GroundUp had confirmed in its Tale that it absolutely was based on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Information) ask for for particulars regarding the undertaking, she explained