Lottery bosses turned to State Stability Company to analyze leaks

Lottery bosses turned to State Stability Company to analyze leaks

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Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Security Agency (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s firm secretary at some time outlined media stories she reported were being based upon “stolen” facts in an affidavit for the SSA.
The SSA did look into. It observed the knowledge wasn't a subject of state stability and the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to expose it.
A different board and management has considering the fact that taken in excess of the NLC and Up to now have taken measures to end corruption with the establishment.
A State Safety Agency (SSA) investigation located which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided enough motive” for publicity by the media.

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

Here is

Nevhutanda’s letter,
an affidavit by at present suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the security company’s “private” conclusions and proposals.
Nevhutanda questioned the SSA to investigate the purpose of NLC employees within the alleged leaking of information, and Nene, in her affidavit identified distinct media and experiences that she claimed involved these leaks.

While in the letter outlining its results, the SSA instructed the NLC that whilst defending condition data was “a authorized critical aimed toward safeguarding the sovereignty and integrity in the state” this only applied to properly categorized info.

Even though it didn't say so right, the SSA findings implied which the allegedly leaked data did not tumble into this group.

Drastically, the SSA created it clear that the need to secure state information and facts “isn't going to prevent any specific from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered the NLC information involved with the alleged breach was “delicate and privileged in mother nature, but not categorized in terms of the prescripts in the Least Information and facts Safety Expectations (Miss out on)”.

“The leakage with the suitable sensitive official NLC information into the media won't pose a risk to national protection,” the SSA said, introducing that the impact of your breaches was reputational.

The SSA report located “no evidence of the factual and incriminating nature from any in the suspected NLC employees that would be determined from the data and data interrogated”.

What's more, it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does offer ample motive to get these kinds of exposed while in the media”.

Conspiracy statements
In 2020, Nevhutanda explained to MPs throughout a session of Parliament’s trade, business and Opposition portfolio committee that there was “a conspiracy” by which information “stolen” from the NLC was sent to the US, where by he claimed it had been being offered to fund a smear marketing campaign towards the NLC.

He was repeating similar statements he experienced previously manufactured in Parliament, which included ad hominem attacks on GroundUp and this reporter but was very careful not to call possibly.

“I came in this article Within this August property very last calendar year and claimed to honourable users that specifics of our beneficiaries has been stolen and set in a single condition in the united states,” he informed MPs.

“We referred to as within the State Protection Agency to return investigate the issue since we've been receiving reports that our facts is producing revenue for media platforms and journalists,” he said. “There's been communicate, needless to say from a person source, a single media, that spoke Substantially about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to inform MPs the SSA investigation had been finished almost a year earlier.

Proactive funding was at the guts of your looting of your lottery. It facet-stepped the conventional grant approach. The NLC could itself identify a project to fund and appoint a non-gain organisation to supervise it.

Right after Nevhutanda very first advised Parliament in 2018 that he had asked the SSA to analyze the intended breach, the South African National Editors Discussion board issued a statement indicating that his remarks reflected “an extremely hazardous Perspective wherever the media is getting blamed with the NLC’s inherent challenges”.

“Rather then investigating why millions cannot be accounted for, the NLC has rather made an effort to Solid question on the integrity on the journalists associated and has questioned the SSA to research their resources.”

Proactive projects created mystery
Protection flaws identified within the NLC grant funding method in the course of the SSA’s investigation, look to have been utilised as an excuse with the NLC to remove all proactive-funded tasks from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘mystery’ and tasks were being removed from the grant funding procedure and managed manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business office, Executive Supervisor Authorized in order to safeguard [the] information,” Nene said in her affidavit.

“There was a great deal of inside dialogue, with many back and forth, about what to do to plug the alleged leaks”, a source, who was in the senior posture within the NLC at enough time, instructed GroundUp. “In the long run, the choice was taken to remove each of the proactive initiatives with the method and Restrict use of A few people”.

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

Maselwa, who resigned within the NLC numerous yrs back, has become implicated in corruption involving lottery resources. He received R4.3-million from lottery money allocated to create a library and museum elaborate in Kuruman (see Taung Cultural New music and Arts Expo) which he used to construct a dwelling within an upmarket gated progress in Pretoria. The property is one of several compensated for with lottery resources which were frozen following 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 to large-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 check out.

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

Each time a new administration, including the total board and government, took above on the NLC in late 2022 and early 2023, they identified a “chaotic mess” inside the documentation referring to proactive funding, Significantly of which was paper-primarily based. Key paperwork had been lacking. Files held for safekeeping by doc storage business Metrofile were signed out and in no way returned.

The NLC was in a position to Get well copies of some หวย ออก paperwork from its Mimecast e-mail archiving system as well as laptops of their assistants and support team.

News stories
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry possible information and facts safety breaches as well as unauthorised use and/or dissemination of private details received due to performing Formal capabilities in the Commission by NLC workers. The routines are intended to undermine the integrity from the Commission though disrupting the effective capabilities [with the NLC] and resulting in insurmountable reputational damage on the Commission as the custodian of private details entrusted to it by its beneficiaries.”

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

Nene is now going through a disciplinary inquiry after she was unsuccessful in authorized motion to put aside conclusions of irregular expenditure on her view.

The objective of her affidavit, Nene reported, was “to record the functions which transpired regarding information safety breaches for the Nationwide Lotteries Commission”.

She shown several news studies which she claimed had been the outcome of these “breaches” (see at the conclusion of this short article).

Nene explained that a whistle-blower approached the NLC alleging that one of its staff, Sello Qhino, experienced “delivered her classified NLC Info and persistently encouraged her to supply the information to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded jobs in Kuruman after tries to lift The problem internally have been dismissed, was subsequently fired.

Referring to an eighteen November 2018 short article from the Day-to-day Dispatch with regards to the misappropriation of Lottery money, Nene said the NLC identified after which you can suspended Zintle Rungqu. She was an worker during the NLC’s East London Business office, who was the companion plus the mom of whistleblower Mzukise Makatse’s three little ones.

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

“The widespread Consider these articles or blog posts is the fact [they entail] categorized details referring to proactive funding projects,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out on the loved ones house to go ahead and take warmth off her and his young children. Dealing with homelessness, he moved into an Place of work within an vacant factory belonging to a colleague.

Both Makatse and Qhino are participating in an NLC reparation course of action intended to recognise the harm a number of people experienced at the hands from the NLC. Apologies and, in some instances, money payment are predicted.

“Some persons ended up seriously influenced quite negatively by this … This is absolutely unpleasant,” NLC Commissioner Jodi Scholtz informed the Every day Maverick last 12 months.

“I fulfilled several these people. It absolutely was just so heart-wrenching that their full lives have been turned the wrong way up,” said Scholtz.

Amid those she satisfied 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 remains vital that it makes certain that the NLC complies with all safety prescripts and that its aim is on making certain that illegal and irregular perform is sufficiently mitigated against and by ensuring an satisfactory channel for whistle-blowers to report untoward carry out with no staying intimidated.”

It encouraged which the NLC create a “Safe and sound channel” for employees to deliver information on any “untoward exercise” that may not protect against or discourage staff from blowing the whistle. A whistle-blowers plan, dependant on the Guarded Disclosures Act 25 of 2000, is often a requirement.”

Media reports Nene stated
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Conditioning Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and proprietor of your Limpopo Mirror, to show NLC corruption. “The article experienced components of information not readily available in the general public area, thus raising concern on interior Information and facts protection breaches. The allegations inside the media have been independently investigated,” Nene mentioned. “Nevertheless, employees chargeable for divulging categorized information and facts have however for being discovered”;
A 28 January 2018 posting released from the Dally Dispatch “citing various allegations through the Limpopo Mirror article printed on 10 December 2017 and also a new allegation relating to a former employee through the title of Mzukisi Makatse. He was charged and summarily dismissed for your risk prompted towards the organisation.”
A 16 November 2018 article in the Lowvelder in regards to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Despite getting R27-million in lottery grants, the rehab hasn't been concluded. “The Lowvelder article contained classified information in terms of NLC coverage, increasing more concerns of inner information and facts security breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an independent Investigation, on the other hand [it] highlighted the heightened info security risks inside the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Major Treatment, a hijacked NPO. Nene claimed GroundUp experienced verified in its story that it absolutely was dependant on leaked NLC files. This was despite the NLC rejecting a PAIA (Promotion of Usage of Information and facts) request for information regarding the undertaking, she stated