Lottery bosses turned to Point out Security Agency to research leaks

Lottery bosses turned to Point out Security Agency to research leaks

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Former Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Stability Company (SSA) in December 2018 to research the leaking of documents that uncovered lottery corruption.
The NLC’s business secretary at some time detailed media experiences she said had been dependant on “stolen” information in an affidavit for that SSA.
The SSA did investigate. It discovered the knowledge was not a subject of condition protection and which the “prevalence of alleged corruption and irregularities” gave “ample motive” to the media to reveal it.
A brand new board and administration has because taken about the NLC and So far have taken measures to finish corruption for the institution.
A Point out Safety Company (SSA) investigation discovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered enough motive” for exposure by the media.

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

Here is

Nevhutanda’s letter,
an affidavit by presently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security agency’s “private” findings and suggestions.
Nevhutanda requested the SSA to research the part of NLC personnel within the alleged leaking of data, and Nene, in her affidavit discovered distinct media and studies that she claimed concerned these leaks.

In the letter outlining its findings, the SSA explained to the NLC that while protecting condition info was “a lawful imperative directed at preserving the sovereignty and integrity in the condition” this only applied to properly categorized information and facts.

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

Drastically, the SSA designed it crystal clear that the need to defend point out details “does not avoid any individual from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation observed the NLC details linked to the alleged breach was “delicate and privileged in character, although not categorised regarding the prescripts of your Minimum Data Security Benchmarks (Skip)”.

“The leakage with the relevant delicate official NLC details on the media does not pose a threat to national security,” the SSA said, adding which the effects of your breaches was reputational.

The SSA report found “no proof of a factual and incriminating mother nature against any of your suspected NLC employees that might be identified from the information and details interrogated”.

In addition, it mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does give sufficient motive to get this kind of uncovered within the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs for the duration of a session of Parliament’s trade, field and competition portfolio committee that there was “a conspiracy” during which facts “stolen” from your NLC was despatched to your US, the place he claimed it had been staying marketed to fund a smear campaign from the NLC.

He was repeating comparable statements he had Earlier made in Parliament, which incorporated advertisement hominem assaults on GroundUp and this reporter but was watchful not to name possibly.

“I came here Within this August house very last yr and noted to honourable users that specifics of our beneficiaries has become stolen and put in a single state in the united states,” he explained to MPs.

“We known as over the State Protection Company to come back investigate the make a difference simply because we've been having studies that our information and facts is creating revenue for media platforms and journalists,” he said. “There have been communicate, certainly from one particular resource, a person media, that spoke much about proactive-funding,” Nevhutanda explained (referring to GroundUp), but did not convey to MPs the SSA investigation were concluded Virtually a year before.

Proactive funding was at the center from the looting of your lottery. It aspect-stepped the traditional grant method. The NLC could by itself establish a challenge to fund and appoint a non-earnings organisation to oversee it.

Following Nevhutanda initially told Parliament in 2018 that he had questioned the SSA to research the intended breach, the South African Nationwide Editors Discussion board issued a statement expressing that his remarks reflected “an incredibly perilous Frame of mind where the media is currently being blamed with the NLC’s inherent issues”.

“Rather then investigating why hundreds of thousands can't be accounted for, the NLC has as an alternative made an effort to cast question over the integrity with the journalists concerned and it has requested the SSA to research their resources.”

Proactive jobs made top secret
Protection flaws determined while in the NLC grant funding program over the SSA’s investigation, seem to happen to be applied as an justification from the NLC to get rid of all proactive-funded assignments from its central grants system.

“In or about 21 December 2019, the classification of all pro-actively funding tasks was heightened to ‘mystery’ and initiatives were faraway from the grant funding program and preserved manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Office, Govt Supervisor Lawful so as to safeguard [the] facts,” Nene reported in her affidavit.

“There was a lot of internal dialogue, with a great deal of backwards and forwards, about what to do to plug the alleged leaks”, a supply, who was in the senior place within the NLC at some time, advised GroundUp. “In the long run, the decision was taken to eliminate every one of the proactive projects from your process and Restrict entry to a handful of folks”.

Some in that handful of men and women were being implicated in corruption.

Maselwa, who resigned within the NLC various several years ago, has actually been implicated in corruption involving lottery money. He received R4.3-million from lottery funds allocated to make a library and museum advanced in Kuruman (see Taung Cultural Audio and Arts Expo) which he used to create a dwelling in an upmarket gated growth in Pretoria. The property is one of various compensated for with lottery funds which were frozen once the Asset Forfeiture Device obtained a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near high-ups within the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated from the corruption which overcome the NLC on their check out.

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

Every time a new administration, including the complete board and govt, took around on the NLC in late 2022 and early 2023, they found out a “chaotic mess” within the documentation associated with proactive funding, much of which was paper-dependent. Vital documents were being lacking. Documents held for safekeeping by document storage firm Metrofile had been signed out and never returned.

The NLC was capable to Get well copies of some ตรวจ รางวัล paperwork from its Mimecast e-mail archiving technique as well as laptops in their assistants and assist personnel.

News reviews
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave worry achievable information protection breaches as well as the unauthorised use and/or dissemination of private data obtained due to carrying out official features within the Fee by NLC personnel. The pursuits are meant to undermine the integrity from the Commission even though disrupting the effective functions [on the NLC] and producing insurmountable reputational hurt towards the Commission because the custodian of private information and facts entrusted to it by its beneficiaries.”

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

Nene is at this time experiencing a disciplinary inquiry soon after she was unsuccessful in authorized motion to set aside findings of irregular expenditure on her check out.

The purpose of her affidavit, Nene claimed, was “to record the functions which transpired referring to facts stability breaches in the Nationwide Lotteries Commission”.

She shown many information reports which she claimed were the outcomes of these “breaches” (see at the end of this text).

Nene reported that a whistle-blower approached the NLC alleging that one of its workers, Sello Qhino, had “supplied her classified NLC Info and persistently inspired her to supply the data to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded tasks in Kuruman right after attempts to lift the issue internally had been disregarded, was subsequently fired.

Referring to an 18 November 2018 post during the Day-to-day Dispatch with regards to the misappropriation of Lottery funds, Nene mentioned which the NLC discovered then suspended Zintle Rungqu. She was an staff in the NLC’s East London Workplace, who was the companion as well as the mother of whistleblower Mzukise Makatse’s three youngsters.

Rungqu and Makatse imagine Rungqu was punished mainly because Makatse blew the whistle. She was suspended and billed internally, with the NLC spending R470,000 on attorneys to characterize it, but was uncovered not guilty and allowed to return to operate.

“The prevalent Think about these articles is [they involve] categorised facts associated with proactive funding projects,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out in the family members household to go ahead and take warmth off her and his youngsters. Experiencing homelessness, he moved into an Workplace in an vacant factory belonging to a friend.

Equally Makatse and Qhino are taking part in an NLC reparation course of action meant to recognise the damage some individuals endured within the arms with the NLC. Apologies and, sometimes, economic compensation are expected.

“Some people were being definitely impacted very negatively by this … This is admittedly unpleasant,” NLC Commissioner Jodi Scholtz instructed the Every day Maverick previous year.

“I fulfilled a number of these folks. It had been just so coronary heart-wrenching that their whole lives are already turned the other way up,” reported Scholtz.

Among People she fulfilled were being Qhino and Makatse.

Harmless System wanted for whistleblowers
The SSA observed the absence at enough time of a proper channel for whistleblowers to report corruption led them to show towards the media.

“Failure to possess a focused anti-corruption channel will end in staff presenting these situations beyond the NLC,” the SSA stated in its results.

“Offered the magnitude of corruption in condition establishments, it continues to be critical that it ensures that the NLC complies with all stability prescripts Which its emphasis is on making sure that unlawful and irregular perform is adequately mitigated towards and by guaranteeing an enough channel for whistle-blowers to report untoward perform with out staying intimidated.”

It recommended which the NLC establish a “Harmless channel” for workers to offer information on any “untoward activity” that may not reduce or discourage workforce from blowing the whistle. A whistle-blowers coverage, determined by the Guarded Disclosures Act twenty five of 2000, is a need.”

Media studies Nene listed
A 10 December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Health Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to reveal NLC corruption. “The report experienced things of data not available in the public area, therefore elevating problem on inner Data safety breaches. The allegations within the media were independently investigated,” Nene reported. “On the other hand, personnel answerable for divulging classified facts have however being identified”;
A 28 January 2018 report posted from the Dally Dispatch “citing a lot of allegations within the Limpopo Mirror post released on ten December 2017 in addition to a new allegation relating to a previous staff via the identify of Mzukisi Makatse. He was billed and summarily dismissed for that menace induced for the organisation.”
A 16 November 2018 article in the Lowvelder in regards to 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 accomplished. “The Lowvelder article contained labeled info concerning NLC coverage, increasing additional worries of interior info protection breaches,” Nene reported in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, nonetheless [it] highlighted the heightened data protection pitfalls in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene claimed GroundUp had confirmed in its Tale that it had been determined by leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Information) ask for for specifics concerning the challenge, she explained