Lottery bosses turned to Point out Safety Agency to research leaks

Lottery bosses turned to Point out Safety Agency to research leaks

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Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the State Protection Agency (SSA) in December 2018 to analyze the leaking of documents that exposed lottery corruption.
The NLC’s firm secretary at some time listed media studies she reported were determined by “stolen” facts within an affidavit to the SSA.
The SSA did investigate. It located the knowledge was not a matter of point out safety and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for your media to expose it.
A whole new board and management has given that taken over the NLC and To date have taken measures to end corruption at the establishment.
A State Stability Agency (SSA) investigation located that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied enough motive” for exposure by the media.

The probe into intended “facts stability breaches and sabotage of NLC functions” was carried out after then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to investigate.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the security agency’s “confidential” findings and proposals.
Nevhutanda questioned the SSA to research the function of NLC employees in the alleged leaking of knowledge, and Nene, in her affidavit identified unique media and studies that she claimed associated these leaks.

Inside the letter outlining its results, the SSA told the NLC that although preserving state data was “a lawful imperative geared toward safeguarding the sovereignty and integrity of your point out” this only placed on correctly categorised information.

Although it didn't say so directly, the SSA conclusions implied the allegedly leaked data did not tumble into this group.

Drastically, the SSA created it distinct that the necessity to safeguard state info “will not avoid any personal from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation uncovered that the NLC data involved in the alleged breach was “sensitive and privileged in character, although not classified when it comes to the prescripts in the Minimum amount Facts Safety Specifications (Pass up)”.

“The leakage with the pertinent sensitive official NLC data on the media won't pose a danger to nationwide safety,” the SSA mentioned, adding which the impression of the breaches was reputational.

The SSA report observed “no proof of the factual and incriminating character towards any from the suspected NLC employees that might be identified from the data and data interrogated”.

Furthermore, it mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does present ample motive to possess these kinds of uncovered while in the media”.

Conspiracy promises
In 2020, Nevhutanda told MPs all through a session of Parliament’s trade, marketplace and Competitors portfolio committee that there was “a conspiracy” during which facts “stolen” from your NLC was sent to your US, exactly where he claimed it had been remaining bought to fund a smear marketing campaign against the NLC.

He was repeating identical promises he had Earlier produced in Parliament, which involved ad hominem attacks on GroundUp which reporter but was careful not to name both.

“I arrived in this article On this August household last year and noted to honourable associates that specifics of our beneficiaries has become stolen and set in a single condition in the united states,” he advised MPs.

“We named about the State Security Company to come back explore the make a difference simply because we've been finding studies that our info is building income for media platforms and journalists,” he said. “There was speak, certainly from one particular source, just one media, that spoke Considerably about proactive-funding,” Nevhutanda stated (referring to GroundUp), but did not tell MPs the SSA investigation were finished Just about a year previously.

Proactive funding was at the center of your looting in the lottery. It aspect-stepped the traditional grant system. The NLC could itself recognize a task to fund and appoint a non-gain organisation to supervise it.

Just after Nevhutanda first told Parliament in 2018 that he experienced questioned the SSA to analyze the intended breach, the South African National Editors Discussion board issued a press release declaring that his remarks reflected “an extremely perilous Mind-set the place the media is getting blamed for the NLC’s inherent challenges”.

“As an alternative to investigating why hundreds of thousands can not be accounted for, the NLC has as an alternative made an effort to Forged doubt about the integrity of your journalists involved and has requested the SSA to research their resources.”

Proactive jobs made key
Protection flaws determined during the NLC grant funding system throughout the SSA’s investigation, seem to have already been employed as an justification because of the NLC to get rid of all proactive-funded assignments from its central grants method.

“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘mystery’ and tasks were removed from the grant funding system and preserved manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Place of work, Govt Manager Legal so that you can safeguard [the] details,” Nene reported in her affidavit.

“There was lots of inner dialogue, with many forwards and backwards, about what to do to plug the alleged leaks”, a source, who was inside a senior place with the NLC at enough time, instructed GroundUp. “In the long run, the decision was taken to remove each of the proactive tasks in the system and Restrict use of a handful of people today”.

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

Maselwa, who resigned in the NLC quite a few several years ago, has become implicated in corruption involving lottery money. He acquired R4.three-million from lottery money allotted to build a library and museum advanced in Kuruman (see Taung Cultural Audio and Arts Expo) which he utilised to develop a residence within an upmarket gated growth in Pretoria. The property is one of several paid for with lottery cash that were frozen once the Asset Forfeiture Unit attained a preservation buy in December 2022.

The politically-linked Nevhutanda, who was appointed given that the NLC board chairperson by former President Jacob Zuma in 2009 and was close to significant-ups from the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their check out.

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

When a new administration, such as the overall board and govt, took more than with the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” during the documentation regarding proactive funding, Significantly of which was paper-dependent. Important paperwork were being lacking. Files held for safekeeping by document storage organization Metrofile had been signed out and by no means returned.

The NLC was in the position to Get well copies of some ltpbet paperwork from its Mimecast e mail archiving method along with the laptops of their assistants and guidance staff members.

News reviews
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave concern achievable information stability breaches along with the unauthorised use and/or dissemination of private data acquired due to executing Formal capabilities in the Fee by NLC employees. The actions are intended to undermine the integrity from the Commission while disrupting the effective capabilities [on the NLC] and triggering insurmountable reputational harm towards the Fee since the custodian of personal information and facts entrusted to it by its beneficiaries.”

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

Nene is presently struggling with a disciplinary inquiry soon after she was unsuccessful in lawful motion to set aside findings of irregular expenditure on her enjoy.

The goal of her affidavit, Nene stated, was “to file the gatherings which transpired relating to info safety breaches on the Nationwide Lotteries Commission”.

She outlined different news reports which she claimed were being the effects of such “breaches” (see at the end of this text).

Nene explained that a whistle-blower approached the NLC alleging that one among its staff, Sello Qhino, experienced “presented her classified NLC Facts and persistently encouraged her to offer the information to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded tasks in Kuruman immediately after attempts to raise The problem internally ended up disregarded, was subsequently fired.

Referring to an 18 November 2018 write-up from the Daily Dispatch in regards to the misappropriation of Lottery cash, Nene claimed the NLC determined and afterwards suspended Zintle Rungqu. She was an personnel while in the NLC’s East London Office environment, who was the lover along with the mother of whistleblower Mzukise Makatse’s a few young children.

Rungqu and Makatse feel Rungqu was punished since Makatse blew the whistle. She was suspended and billed internally, Together with the NLC investing R470,000 on attorneys to signify it, but was observed not responsible and allowed to return to work.

“The prevalent Think about these content articles is usually that [they include] categorized facts concerning proactive funding projects,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out in the household household to take the heat off her and his kids. Facing homelessness, he moved into an office within an empty manufacturing unit belonging to a colleague.

Both equally Makatse and Qhino are participating in an NLC reparation process intended to recognise the hurt a lot of people suffered for the hands on the NLC. Apologies and, in some cases, fiscal payment are expected.

“Some men and women were being truly impacted incredibly negatively by this … This is really painful,” NLC Commissioner Jodi Scholtz informed the Day-to-day Maverick very last 12 months.

“I fulfilled several these persons. It had been just so heart-wrenching that their whole life are turned the wrong way up,” mentioned Scholtz.

Among those she fulfilled had been Qhino and Makatse.

Safe System required for whistleblowers
The SSA uncovered the absence at time of an appropriate channel for whistleblowers to report corruption led them to turn to your media.

“Failure to have a devoted anti-corruption channel will end in workers presenting these instances outside of the NLC,” the SSA explained in its results.

“Specified the magnitude of corruption in point out establishments, it continues to be crucial that it ensures that the NLC complies with all security prescripts Which its aim is on making sure that unlawful and irregular carry out is adequately mitigated against and by making sure an suitable channel for whistle-blowers to report untoward carry out without having becoming intimidated.”

It suggested which the NLC set up a “safe channel” for workers to provide information on any “untoward exercise” that might not prevent or discourage staff members from blowing the whistle. A whistle-blowers policy, determined by the Protected Disclosures Act 25 of 2000, is often a need.”

Media reviews Nene shown
A ten December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Physical 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 article experienced things of knowledge not offered in the public area, therefore raising issue on inner Info stability breaches. The allegations from the media had been independently investigated,” Nene said. “On the other hand, workers responsible for divulging categorized information and facts have but to generally be identified”;
A 28 January 2018 report released by the Dally Dispatch “citing several allegations through the Limpopo Mirror posting posted on ten December 2017 and a new allegation relating to a previous personnel because of the title of Mzukisi Makatse. He was charged and summarily dismissed for the danger prompted to your organisation.”
A 16 November 2018 post in the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite getting R27-million in lottery grants, the rehab hasn't been finished. “The Lowvelder posting contained categorized facts with regards to NLC coverage, boosting additional worries of interior information safety breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations did not warrant an impartial Investigation, even so [it] highlighted the heightened data protection pitfalls inside the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene mentioned GroundUp had verified in its story that it absolutely was based upon leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Promotion of Usage of Data) request for facts in regards to the project, she claimed