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 Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Protection Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s organization secretary at time shown media stories she reported were being according to “stolen” info within an affidavit for that SSA.
The SSA did investigate. It discovered the data was not a matter of condition security and which the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to expose it.
A completely new board and management has since taken in excess of the NLC and thus far have taken measures to finish corruption within the institution.
A State Safety Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied ample motive” for exposure through the media.

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

Here's

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to research the function of NLC team while in the alleged leaking of data, and Nene, in her affidavit recognized unique media and reviews that she claimed included these leaks.

In the letter outlining its findings, the SSA instructed the NLC that though defending condition information and facts was “a lawful imperative geared toward safeguarding the sovereignty and integrity on the condition” this only applied to appropriately classified information.

Even though it did not say so immediately, the SSA findings implied which the allegedly leaked facts did not tumble into this group.

Drastically, the SSA produced it clear that the need to protect condition information “won't avoid any unique from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation observed that the NLC details linked to the alleged breach was “delicate and privileged in mother nature, but not classified regarding the prescripts of your Minimum Info Security Benchmarks (Pass up)”.

“The leakage on the suitable delicate official NLC information and facts to your media isn't going to pose a risk to national protection,” the SSA said, introducing the influence of your breaches was reputational.

The SSA report identified “no evidence of the factual and incriminating character versus any with the suspected NLC personnel that might be discovered from the data and information interrogated”.

Additionally, it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does give ample motive to have this kind of exposed in the media”.

Conspiracy claims
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, industry and competition portfolio committee that there was “a conspiracy” during which info “stolen” within the NLC was sent for the US, wherever he claimed it absolutely was currently being offered to fund a smear campaign towards the NLC.

He was repeating similar promises he experienced previously manufactured in Parliament, which integrated advertisement hominem assaults on GroundUp which reporter but was cautious not to name both.

“I arrived in this article On this August household past year and reported to honourable associates that details about our beneficiaries has become stolen and place in one state in America,” he told MPs.

“We known as on the Point out Protection Agency to return take a look at the make any difference for the reason that we have been obtaining experiences that our data is producing revenue for media platforms and journalists,” he explained. “There has been chat, of course from just one resource, a single media, that spoke A great deal about proactive-funding,” Nevhutanda stated (referring to GroundUp), but failed to explain to MPs the SSA investigation were done Nearly a year earlier.

Proactive funding was at the heart from the looting from the lottery. It side-stepped the normal grant process. The NLC could alone detect a challenge to fund and appoint a non-gain organisation to supervise it.

Right after Nevhutanda initial explained to Parliament in 2018 that he had asked the SSA to research the meant breach, the South African Nationwide Editors Discussion board issued an announcement indicating that his remarks reflected “an incredibly hazardous Angle in which the media is remaining blamed for your NLC’s inherent challenges”.

“Instead of investigating why hundreds of thousands can't be accounted for, the NLC has as a substitute made an effort to Forged question to the integrity of your journalists associated and it has requested the SSA to investigate their sources.”

Proactive jobs built top secret
Protection flaws recognized within the NLC grant funding method during the SSA’s investigation, show up to are already utilized being an excuse with the NLC to remove all proactive-funded assignments from its central grants system.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘magic formula’ and assignments were being removed from the grant funding program and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Place of work, Executive Manager Legal to be able to safeguard [the] details,” Nene explained in her affidavit.

“There was a great deal of inner discussion, with many forwards and backwards, about what to do to plug the alleged leaks”, a source, who was inside of a senior situation on 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 ended up implicated in corruption.

Maselwa, who resigned from the NLC many decades back, continues to be implicated in corruption involving lottery money. He acquired R4.3-million from lottery money allocated to construct a library and museum sophisticated in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to construct a home in an upmarket gated progress in Pretoria. The home is one of many paid for with lottery money that were frozen following the Asset Forfeiture Device acquired a preservation purchase in December 2022.

The politically-linked Nevhutanda, who was appointed since the NLC board chairperson by former President Jacob Zuma in 2009 and was near to superior-ups inside the ANC Management, former NLC previous Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated during the corruption which confused the NLC on their check out.

Also implicated are former board users William Huma, who resigned just after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got due to the fact died.

Any time a new administration, such as the entire board and executive, took around in the NLC in late 2022 and early 2023, they found a “chaotic mess” from the documentation associated with proactive funding, A great deal of which was paper-based. Important documents were being lacking. Files held for safekeeping by doc storage business Metrofile had been signed out and never returned.

The NLC was capable of recover copies of some หวย รัฐบาล paperwork from its Mimecast e mail archiving program along with the laptops of their assistants and aid team.

Information stories
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave worry achievable data protection breaches and also the unauthorised use and/or dissemination of private info received due to performing Formal capabilities within the Commission by NLC workers. The routines are intended to undermine the integrity from the Commission while disrupting the efficient capabilities [of your NLC] and producing insurmountable reputational damage for the Fee as being the custodian of non-public info entrusted to it by its beneficiaries.”

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

Nene is at this time dealing with a disciplinary inquiry after she was unsuccessful in authorized motion to put aside findings of irregular expenditure on her observe.

The goal of her affidavit, Nene said, was “to document the gatherings which transpired concerning info safety breaches with the Nationwide Lotteries Commission”.

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

Nene said that a whistle-blower approached the NLC alleging that amongst its workforce, Sello Qhino, had “provided her labeled NLC Details and persistently inspired her to supply the knowledge to GroundUp”.

Qhino, who blew the whistle on a series of dodgy lottery-funded jobs in Kuruman soon after tries to raise the issue 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 which the NLC identified after which suspended Zintle Rungqu. She was an personnel during the NLC’s East London Workplace, who was the companion and also the mom of whistleblower Mzukise Makatse’s 3 kids.

Rungqu and Makatse believe Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, with the NLC expending R470,000 on lawyers to stand for it, but was identified not responsible and permitted to return to work.

“The frequent Think about these posts is the fact [they contain] classified details regarding proactive funding jobs,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out from the loved ones residence to take the warmth off her and his children. Struggling with homelessness, he moved into an Business within an empty manufacturing unit belonging to a colleague.

Equally Makatse and Qhino are participating in an NLC reparation process meant to recognise the harm lots of people suffered within the fingers of your NLC. Apologies and, in some instances, economical compensation are anticipated.

“Some people today had been seriously afflicted extremely negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz explained to the Daily Maverick final yr.

“I met a number of these folks. It was just so heart-wrenching that their full life are already turned the wrong way up,” stated Scholtz.

Among Those people she fulfilled had been Qhino and Makatse.

Safe platform 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 bring about staff presenting these types of instances outside of the NLC,” the SSA claimed in its conclusions.

“Given the magnitude of corruption in state institutions, it remains vital that it makes sure that the NLC complies with all safety prescripts and that its target is on making certain that illegal and irregular perform is sufficiently mitigated from and by making certain an satisfactory channel for whistle-blowers to report untoward conduct without remaining intimidated.”

It encouraged that the NLC build a “Safe and sound channel” for employees to offer information on any “untoward action” that would not protect against or discourage staff from blowing the whistle. A whistle-blowers plan, depending on the Secured Disclosures Act twenty five of 2000, is actually a prerequisite.”

Media reports Nene detailed
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Physical fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner of the Limpopo Mirror, to expose NLC corruption. “The article experienced things of knowledge not offered in the public area, therefore elevating issue on inside Details security breaches. The allegations during the media ended up independently investigated,” Nene mentioned. “However, staff members liable for divulging categorised details have nonetheless for being determined”;
A 28 January 2018 article printed because of the Dally Dispatch “citing numerous allegations from your Limpopo Mirror report released on ten December 2017 in addition to a new allegation concerning a previous personnel because of the title of Mzukisi Makatse. He was charged and summarily dismissed for the danger brought about 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 short article contained classified facts when it comes to NLC coverage, boosting additional worries of interior info safety breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, on the other hand [it] highlighted the heightened information and facts stability threats in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Main Treatment, a hijacked NPO. Nene claimed GroundUp had confirmed in its Tale that it was based on leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Entry to Information) ask for for particulars about the task, she stated