Lottery bosses turned to Condition Protection Company to analyze leaks

Lottery bosses turned to Condition Protection Company to analyze leaks

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Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the State Safety Agency (SSA) in December 2018 to research the leaking of documents that exposed lottery corruption.
The NLC’s firm secretary at enough time shown media stories she claimed ended up dependant on “stolen” information and facts within an affidavit for your SSA.
The SSA did look into. It observed the knowledge 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 brand new board and administration has given that taken around the NLC and So far have taken actions to finish corruption within the institution.
A State Safety Agency (SSA) investigation located the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered enough motive” for exposure by the media.

The probe into supposed “info protection breaches and sabotage of NLC functions” was carried out following then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to research.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise 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 employees during 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 instructed the NLC that while safeguarding condition information and facts was “a lawful imperative geared toward defending the sovereignty and integrity on the condition” this only applied to correctly categorised facts.

Even though it did not say so instantly, the SSA conclusions implied the allegedly leaked info didn't drop into this category.

Noticeably, the SSA designed it very clear that the necessity to defend point out data “doesn't protect against any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered the NLC facts involved in the alleged breach was “sensitive and privileged in nature, but not categorized with regard to the prescripts of your Minimum Details Safety Specifications (Overlook)”.

“The leakage on the appropriate sensitive Formal NLC information and facts to your media won't pose a risk to national protection,” the SSA mentioned, adding the influence of your breaches was reputational.

The SSA report located “no proof of a factual and incriminating character against any with the suspected NLC workers which could be identified from the knowledge and details interrogated”.

Furthermore, it said that “the prevalence of alleged corruption and irregularities throughout 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 advised MPs for the duration of a session of Parliament’s trade, marketplace and Level of competition portfolio committee that there was “a conspiracy” wherein facts “stolen” through the NLC was sent into the US, the place he claimed it was remaining offered to fund a smear marketing campaign towards the NLC.

He was repeating identical claims he experienced Beforehand created in Parliament, which bundled ad hominem attacks on GroundUp and this reporter but was thorough not to call possibly.

“I came right here With this August dwelling last yr and documented to honourable associates that information regarding our beneficiaries has actually been stolen and set in one state in America,” he told MPs.

“We called on the Point out Safety Agency to come back investigate the make a difference simply because we've been acquiring reports that our facts is producing revenue for media platforms and journalists,” he explained. “There has been chat, of course from one particular resource, one media, that spoke Considerably about proactive-funding,” Nevhutanda reported (referring to GroundUp), but didn't tell MPs that the SSA investigation had been finished Practically a 12 months previously.

Proactive funding was at the center in the looting on the lottery. It aspect-stepped the normal grant procedure. The NLC could itself detect a challenge to fund and appoint a non-financial gain organisation to oversee it.

Following Nevhutanda first explained to Parliament in 2018 that he had questioned the SSA to investigate the meant breach, the South African Countrywide Editors Forum issued a press release indicating that his remarks reflected “an extremely harmful Mindset exactly where the media is currently being blamed to the NLC’s inherent issues”.

“As an alternative to investigating why thousands and thousands can not be accounted for, the NLC has rather made an effort to Forged question to the integrity with the journalists associated and has asked the SSA to research their sources.”

Proactive tasks created mystery
Safety flaws recognized inside the NLC grant funding program in the course of the SSA’s investigation, surface to are already utilized being an excuse because of the NLC to remove all proactive-funded jobs from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘mystery’ and jobs had been faraway from the grant funding procedure and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business, Govt Supervisor Lawful in order to safeguard [the] info,” Nene stated in her affidavit.

“There was plenty of inner dialogue, with many forwards and backwards, about what to do to plug the alleged leaks”, a source, who was inside of a senior situation with the NLC at the time, instructed GroundUp. “Ultimately, the choice was taken to remove many of the proactive assignments from the process and Restrict entry to A few people”.

Some in that handful of individuals were being implicated in corruption.

Maselwa, who resigned in the 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 home in an upmarket gated growth in Pretoria. The residence is among quite a few compensated for with lottery resources which were frozen once the Asset Forfeiture Unit acquired 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 near significant-ups from the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-chief functioning officer Phillemon Letwaba, have all been implicated from the corruption which overwhelmed the NLC on their own observe.

Also implicated are previous board customers William Huma, who resigned right after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got because died.

Any time a new administration, including the total board and govt, took more than with the NLC in late 2022 and early 2023, they discovered a “chaotic mess” inside the documentation regarding proactive funding, much of which was paper-primarily based. Essential paperwork have been missing. Information held for safekeeping by document storage organization Metrofile had been signed out and by no means returned.

The NLC was in a position to recover copies of some หุ้น ชอง 9 paperwork from its Mimecast electronic mail archiving system along with the laptops in their assistants and guidance team.

Information experiences
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave worry doable facts protection breaches as well as the unauthorised use and/or dissemination of confidential information attained because of carrying out Formal functions during the Commission by NLC employees. The functions are intended to undermine the integrity on the Fee although disrupting the effective functions [with the NLC] and creating insurmountable reputational damage into the Fee because the custodian of non-public facts entrusted to it by its beneficiaries.”

His ask for for the SSA to investigate was supported in an affidavit by suspended NLC organization secretary, Nomphumelelo Nene.

Nene is at the moment experiencing a disciplinary inquiry just after she was unsuccessful in lawful motion to set aside findings of irregular expenditure on her watch.

The goal of her affidavit, Nene claimed, was “to report the functions which transpired associated with info stability breaches for the National Lotteries Fee”.

She outlined many news experiences which she claimed had been the effects 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 “delivered her classified NLC Details and persistently encouraged her to supply the knowledge to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded assignments in Kuruman soon after makes an attempt to raise the issue internally were disregarded, was subsequently fired.

Referring to an eighteen November 2018 report while in the Everyday Dispatch in regards to the misappropriation of Lottery funds, Nene reported the NLC identified after which you can suspended Zintle Rungqu. She was an worker in the NLC’s East London Office environment, who was the spouse as well as mother of whistleblower Mzukise Makatse’s 3 small children.

Rungqu and Makatse feel Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, With all the NLC paying out R470,000 on legal professionals to stand for it, but was found not guilty and permitted to return to operate.

“The popular Think about these article content is that [they contain] categorised facts regarding proactive funding assignments,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out of the spouse and children property to take the warmth off her and his kids. Struggling with homelessness, he moved into an Business office within an empty manufacturing facility belonging to an acquaintance.

The two Makatse and Qhino are taking part in an NLC reparation process intended to recognise the harm a lot of people experienced for the arms with the NLC. Apologies and, sometimes, monetary payment are expected.

“Some people today had been definitely affected quite negatively by this … This is absolutely agonizing,” NLC Commissioner Jodi Scholtz advised the Daily Maverick previous calendar year.

“I met several these individuals. It was just so heart-wrenching that their complete life are actually turned the wrong way up,” explained Scholtz.

Amongst those she achieved were Qhino and Makatse.

Safe System required for whistleblowers
The SSA discovered the absence at some time of a suitable channel for whistleblowers to report corruption led them to show into the media.

“Failure to possess a devoted anti-corruption channel will result in workforce presenting these kinds of instances beyond the NLC,” the SSA mentioned in its conclusions.

“Provided the magnitude of corruption in point out institutions, it remains very important that it ensures that the NLC complies with all protection prescripts Which its aim is on ensuring that illegal and irregular conduct is sufficiently mitigated against and by ensuring an adequate channel for whistle-blowers to report untoward perform without being intimidated.”

It recommended which the NLC create a “Protected channel” for workers to offer information on any “untoward action” that will not prevent or discourage staff members from blowing the whistle. A whistle-blowers policy, based on the Safeguarded Disclosures Act twenty five of 2000, is actually a need.”

Media reviews Nene stated
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner from the Limpopo Mirror, to expose NLC corruption. “The write-up had factors of knowledge not obtainable in the public area, therefore elevating problem on internal Information and facts stability breaches. The allegations from the media have been independently investigated,” Nene mentioned. “Nevertheless, workforce chargeable for divulging categorized information have nevertheless to become determined”;
A 28 January 2018 article revealed by the Dally Dispatch “citing several allegations within the Limpopo Mirror post revealed on 10 December 2017 and also a new allegation concerning a previous staff by the name of Mzukisi Makatse. He was billed and summarily dismissed with the menace brought about to your organisation.”
A sixteen November 2018 report inside the Lowvelder with regards to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite getting R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder post contained categorised details when it comes to NLC coverage, boosting more fears of internal facts stability breaches,” Nene stated in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, on the other hand [it] highlighted the heightened information security dangers within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene explained GroundUp had confirmed in its Tale that it had been depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Information and facts) request for particulars concerning the challenge, she explained