Lottery bosses turned to State Safety Agency to research leaks

Lottery bosses turned to State Safety Agency to research leaks

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Former Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda questioned the State Stability Agency (SSA) in December 2018 to analyze the leaking of files that exposed lottery corruption.
The NLC’s firm secretary at some time detailed media reports she explained had been depending on “stolen” information and facts within an affidavit for your SSA.
The SSA did examine. It uncovered the data was not a make any difference of point out safety and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” with the media to expose it.
A completely new board and management has due to the fact taken in excess of the NLC and To date have taken actions to end corruption with the establishment.
A Point out Stability Company (SSA) investigation uncovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered enough motive” for publicity via the media.

The probe into meant “information protection breaches and sabotage of NLC functions” was undertaken just after 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 firm secretary Nompumelelo Nene supporting the ask for, and
the security company’s “private” results and suggestions.
Nevhutanda questioned the SSA to research the part of NLC employees while in the alleged leaking of data, and Nene, in her affidavit identified particular media and studies that she claimed included these leaks.

While in the letter outlining its results, the SSA informed the NLC that while guarding state details was “a legal vital geared toward guarding the sovereignty and integrity of your condition” this only placed on correctly categorized details.

Although it didn't say so immediately, the SSA findings implied which the allegedly leaked information didn't slide into this classification.

Noticeably, the SSA made it distinct that the necessity to shield point out data “won't avoid any individual from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation observed that the NLC details linked to the alleged breach was “sensitive and privileged in character, but not categorized concerning the prescripts of your Least Details Protection Expectations (Skip)”.

“The leakage with the related delicate Formal NLC details to your media would not pose a danger to national security,” the SSA reported, incorporating which the influence of the breaches was reputational.

The SSA report found “no evidence of the factual and incriminating nature versus any from the suspected NLC workforce that can be determined from the knowledge and facts interrogated”.

What's more, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide ample motive to own such exposed from the media”.

Conspiracy statements
In 2020, Nevhutanda explained to MPs all through a session of Parliament’s trade, sector and Opposition portfolio committee that there was “a conspiracy” during which info “stolen” from the NLC was sent on the US, where he claimed it absolutely was staying sold to fund a smear campaign towards the NLC.

He was repeating very similar promises he experienced Earlier built in Parliament, which incorporated ad hominem assaults on GroundUp and this reporter but was mindful not to call both.

“I arrived listed here On this August residence past yr and claimed to honourable customers that information regarding our beneficiaries has long been stolen and place in one condition in the usa,” he advised MPs.

“We called within the Point out Safety Company to come take a look at the issue since we are obtaining reviews that our information is creating money for media platforms and journalists,” he mentioned. “There was converse, obviously from a person supply, a person media, that spoke much about proactive-funding,” Nevhutanda said (referring to GroundUp), but didn't notify MPs the SSA investigation had been completed almost a 12 months previously.

Proactive funding was at the heart with the looting in the lottery. It facet-stepped the conventional grant process. The NLC could itself establish a undertaking to fund and appoint a non-profit organisation to supervise it.

After Nevhutanda initially explained to Parliament in 2018 that he experienced asked the SSA to research the meant breach, the South African Countrywide Editors Discussion board issued an announcement stating that his remarks mirrored “a very unsafe Frame of mind the place the media is being blamed for your NLC’s inherent problems”.

“Instead of investigating why hundreds of thousands can not be accounted for, the NLC has as a substitute attempted to Solid question to the integrity with the journalists concerned and it has asked the SSA to research their resources.”

Proactive initiatives produced secret
Security flaws recognized inside the NLC grant funding program in the SSA’s investigation, seem to are actually utilized as an excuse through the NLC to get rid of all proactive-funded tasks from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding tasks was heightened to ‘top secret’ and projects had been removed from the grant funding system and managed manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Business, Government Supervisor Authorized so that you can safeguard [the] data,” Nene claimed in her affidavit.

“There was a great deal of internal dialogue, with a great deal of backwards and forwards, about how to proceed to plug the alleged leaks”, a supply, who was inside of a senior placement with the NLC at some time, instructed GroundUp. “In the end, the decision was taken to eliminate all the proactive projects with the technique and Restrict use of A few persons”.

Some in that handful of men and women had been implicated in corruption.

Maselwa, who resigned in the NLC many several years in the past, has been implicated in corruption involving lottery resources. He gained R4.3-million from lottery resources allotted to develop a library and museum elaborate in Kuruman (see Taung Cultural New music and Arts Expo) which he employed to build a house in an upmarket gated advancement in Pretoria. The assets is one of numerous compensated for with lottery money which were frozen after the Asset Forfeiture Device acquired a preservation purchase in December 2022.

The politically-linked Nevhutanda, who was appointed as the NLC board chairperson by former President Jacob Zuma in 2009 and was close to substantial-ups in the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated within the corruption which confused the NLC on their check out.

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

Every time a new administration, such as the entire board and government, took over with the NLC in late 2022 and early 2023, they discovered a “chaotic mess” while in the documentation relating to proactive funding, Considerably of which was paper-centered. Important paperwork have been missing. Files held for safekeeping by doc storage company Metrofile were signed out and under no circumstances returned.

The NLC was ready to Get well copies of some หวย ลาว วัน นี้ files from its Mimecast email archiving method plus the laptops of their assistants and assistance staff.

Information studies
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave issue attainable facts protection breaches as well as the unauthorised use and/or dissemination of confidential details obtained due to doing Formal functions from the Commission by NLC employees. The pursuits are meant to undermine the integrity of the Commission even though disrupting the effective features [with the NLC] and creating insurmountable reputational harm on the Commission because the custodian of personal info entrusted to it by its beneficiaries.”

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

Nene is currently facing a disciplinary inquiry following she was unsuccessful in legal action to set aside conclusions of irregular expenditure on her look at.

The purpose of her affidavit, Nene stated, was “to history the activities which transpired concerning information and facts safety breaches at the Nationwide Lotteries Fee”.

She outlined many news studies which she claimed were being the final results of these “breaches” (see at the conclusion of this post).

Nene claimed that a whistle-blower approached the NLC alleging that among its personnel, Sello Qhino, had “supplied her categorised NLC Facts and persistently encouraged her to deliver the knowledge to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded projects in Kuruman after tries to lift the issue internally were disregarded, was subsequently fired.

Referring to an 18 November 2018 article from the Every day Dispatch concerning the misappropriation of Lottery funds, Nene explained which the NLC identified then suspended Zintle Rungqu. She was an personnel from the NLC’s East London office, who was the companion plus the mother of whistleblower Mzukise Makatse’s three kids.

Rungqu and Makatse think Rungqu was punished because Makatse blew the whistle. She was suspended and billed internally, Along with the NLC shelling out R470,000 on lawyers to signify it, but was discovered not responsible and permitted to return to work.

“The typical Think about these articles or blog posts is the fact that [they contain] classified information and facts associated with proactive funding jobs,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out of the spouse and children residence to go ahead and take heat off her and his children. Going through homelessness, he moved into an office within an vacant manufacturing unit belonging to a friend.

Both equally Makatse and Qhino are taking part in an NLC reparation approach meant to recognise the harm a lot of people experienced for the fingers in the NLC. Apologies and, in some instances, monetary payment are anticipated.

“Some people today had been definitely affected incredibly negatively by this … This is basically agonizing,” NLC Commissioner Jodi Scholtz told the Everyday Maverick very last calendar year.

“I achieved a couple of these people. It was just so coronary heart-wrenching that their full life have been turned upside down,” said Scholtz.

Among the Those people she fulfilled have been Qhino and Makatse.

Protected System desired for whistleblowers
The SSA located the absence at time of an appropriate channel for whistleblowers to report corruption led them to turn to the media.

“Failure to have a focused anti-corruption channel will cause employees presenting these instances outside of the NLC,” the SSA said in its results.

“Specified the magnitude of corruption in condition establishments, it continues to be critical that it makes certain that the NLC complies with all security prescripts and that its emphasis is on making sure that unlawful and irregular conduct is adequately mitigated from and by making sure an satisfactory channel for whistle-blowers to report untoward carry out without currently being intimidated.”

It proposed which the NLC build a “Harmless channel” for workers to supply information on any “untoward exercise” that could not protect against or discourage staff members from blowing the whistle. A whistle-blowers coverage, based upon the Safeguarded Disclosures Act 25 of 2000, is usually a prerequisite.”

Media reviews Nene listed
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Health Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to reveal NLC corruption. “The article had components of knowledge not out there in the general public area, therefore elevating concern on inner Facts stability breaches. The allegations from the media ended up independently investigated,” Nene claimed. “However, personnel responsible for divulging labeled details have however to generally be discovered”;
A 28 January 2018 report released with the Dally Dispatch “citing many allegations within the Limpopo Mirror write-up released on ten December 2017 and a new allegation referring to a former personnel because of the identify of Mzukisi Makatse. He was billed and summarily dismissed with the risk brought about into the organisation.”
A sixteen November 2018 article within the Lowvelder with regards to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has described how, Regardless of getting R27-million in lottery grants, the rehab has never been done. “The Lowvelder article contained categorised data with regards to NLC plan, elevating further concerns of inside info security breaches,” Nene explained in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an unbiased Investigation, on the other hand [it] highlighted the heightened details safety pitfalls throughout the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Principal Treatment, a hijacked NPO. Nene claimed GroundUp experienced confirmed in its story that it was determined by leaked NLC documents. This was despite the NLC rejecting a PAIA (Advertising of Use of Details) request for details concerning the project, she said