Lottery bosses turned to Point out Safety Agency to research leaks

Lottery bosses turned to Point out Safety Agency to research leaks

Blog Article

Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Safety Agency (SSA) in December 2018 to research the leaking of paperwork that exposed lottery corruption.
The NLC’s company secretary at the time outlined media studies she explained ended up based on “stolen” information within an affidavit to the SSA.
The SSA did investigate. It found the data was not a matter of condition security and 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 about the NLC and thus far have taken actions to finish corruption at 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 “details safety breaches and sabotage of NLC functions” was undertaken just after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to investigate.

Here's

Nevhutanda’s letter,
an affidavit by at present suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the safety company’s “private” findings and proposals.
Nevhutanda asked the SSA to analyze the purpose of NLC staff members within the alleged leaking of knowledge, and Nene, in her affidavit determined precise media and experiences that she claimed associated these leaks.

Within the letter outlining its results, the SSA explained to the NLC that though protecting condition information was “a legal essential directed at shielding the sovereignty and integrity of 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 fall into this group.

Appreciably, the SSA manufactured it very clear that the necessity to safeguard point out data “doesn't protect against any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered the NLC information and facts associated with the alleged breach was “sensitive and privileged in character, but not labeled when it comes to the prescripts on the Least Information and facts Stability Standards (MISS)”.

“The leakage of the related delicate Formal NLC data on the media will not pose a threat to countrywide safety,” the SSA stated, introducing the influence of your breaches was reputational.

The SSA report located “no proof of a factual and incriminating mother nature against any with the suspected NLC workers which could be recognized from the knowledge and details interrogated”.

Furthermore, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does offer ample motive to own these uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda instructed MPs all through a session of Parliament’s trade, field and Competitors portfolio committee that there was “a conspiracy” by which info “stolen” from the NLC was despatched for the US, exactly where he claimed it absolutely was getting bought to fund a smear campaign versus the NLC.

He was repeating related promises he had Earlier produced in Parliament, which involved ad hominem attacks on GroundUp and this reporter but was thorough not to call possibly.

“I arrived right here With this August house last yr and documented to honourable customers that information regarding our beneficiaries has long been stolen and set in a single state in America,” he informed MPs.

“We known as around the Point out Protection Agency to come back explore the issue mainly because we have been acquiring reviews that our info is generating revenue for media platforms and journalists,” he claimed. “There was speak, of course from just one source, a person media, that spoke Considerably about proactive-funding,” Nevhutanda stated (referring to GroundUp), but did not tell MPs that the SSA investigation were done Virtually a 12 months before.

Proactive funding was at the heart in the looting on the lottery. It facet-stepped the traditional grant process. The NLC could itself recognize a task to fund and appoint a non-financial gain organisation to supervise it.

Immediately after Nevhutanda to start with explained to Parliament in 2018 that he experienced asked the SSA to research the supposed breach, the South African Countrywide Editors Discussion board issued a statement indicating that his remarks reflected “a particularly harmful Perspective the place the media is currently being blamed for your NLC’s inherent difficulties”.

“Rather than investigating why tens of millions cannot be accounted for, the NLC has alternatively made an effort to cast doubt over the integrity from the journalists concerned and has requested the SSA to research their resources.”

Proactive assignments built secret
Security flaws discovered during the NLC grant funding procedure in the SSA’s investigation, show up to are utilised being an excuse via the NLC to remove all proactive-funded initiatives from its central grants method.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘magic formula’ and initiatives were being removed from the grant funding program and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Workplace, Executive Supervisor Lawful in order to safeguard [the] information,” Nene stated in her affidavit.

“There was lots of internal dialogue, with numerous backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was in the senior place at the NLC at enough time, informed GroundUp. “Eventually, the decision was taken to eliminate each of the proactive jobs from your procedure and limit use of A few individuals”.

Some in that handful of men and women ended up implicated in corruption.

Maselwa, who resigned in the NLC many decades back, has been implicated in corruption involving lottery funds. He obtained R4.3-million from lottery funds allotted to build a library and museum complex in Kuruman (see Taung Cultural Music and Arts Expo) which he used to build a house within an upmarket gated growth in Pretoria. The house is among various paid for with lottery resources that were frozen once the Asset Forfeiture Unit attained a preservation purchase in December 2022.

The politically-related Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to significant-ups inside the ANC Management, previous NLC previous Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated from the corruption which confused the NLC on their observe.

Also implicated are former board customers William Huma, who resigned just after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have because died.

Whenever a new administration, including the whole board and executive, took over within the NLC in late 2022 and early 2023, they found out a “chaotic mess” during the documentation regarding proactive funding, Substantially of which was paper-based mostly. Important files have been lacking. Information held for safekeeping by doc storage business Metrofile were signed out and by no means returned.

The NLC was ready to Recuperate copies of some fox888 documents from its Mimecast electronic mail archiving technique as well as the laptops in their assistants and assist employees.

Information reports
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave worry feasible facts stability breaches as well as the unauthorised use and/or dissemination of private information and facts obtained as a result of executing official functions inside the Commission by NLC staff. The pursuits are intended to undermine the integrity in the Commission while disrupting the effective capabilities [with the NLC] and creating insurmountable reputational damage into the Fee because the custodian of non-public facts entrusted to it by its beneficiaries.”

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

Nene is presently dealing with a disciplinary inquiry right after she was unsuccessful in legal motion to put aside results of irregular expenditure on her observe.

The purpose of her affidavit, Nene said, was “to history the gatherings which transpired associated with info stability breaches with the National Lotteries Commission”.

She listed several news studies which she claimed were the final results of such “breaches” (see at the end of this article).

Nene mentioned that a whistle-blower approached the NLC alleging that amongst its workers, Sello Qhino, had “presented her labeled NLC Information and facts and persistently inspired her to deliver the data to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded initiatives in Kuruman just after makes an attempt to boost the issue internally were disregarded, was subsequently fired.

Referring to an eighteen November 2018 report inside the Every day Dispatch concerning the misappropriation of Lottery resources, Nene explained that the NLC determined after which suspended Zintle Rungqu. She was an staff inside the NLC’s East London office, who was the associate and the mother of whistleblower Mzukise Makatse’s 3 small children.

Rungqu and Makatse think Rungqu was punished mainly because Makatse blew the whistle. She was suspended and billed internally, Using the NLC paying R470,000 on attorneys to depict it, but was observed not responsible and permitted to return to work.

“The frequent factor in these posts is the fact that [they involve] categorised information and facts regarding proactive funding assignments,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out of your relatives residence to go ahead and take heat off her and his small children. Going through homelessness, he moved into an Workplace in an vacant manufacturing unit belonging to a buddy.

Both of those Makatse and Qhino are participating in an NLC reparation approach meant to recognise the hurt some individuals suffered within the fingers in the NLC. Apologies and, in some cases, economical payment are anticipated.

“Some individuals ended up seriously influenced really negatively by this … This is absolutely unpleasant,” NLC Commissioner Jodi Scholtz instructed the Everyday Maverick previous 12 months.

“I achieved a couple of these folks. It had been just so heart-wrenching that their complete lives are already turned the other way up,” claimed Scholtz.

Between Those people she fulfilled had been Qhino and Makatse.

Secure System essential for whistleblowers
The SSA located the absence at the time of a proper channel for whistleblowers to report corruption led them to show on the media.

“Failure to possess a devoted anti-corruption channel will result in staff presenting this sort of cases outside of the NLC,” the SSA stated in its findings.

“Supplied the magnitude of corruption in point out establishments, it remains important that it makes certain that the NLC complies with all stability prescripts Which its focus is on ensuring that unlawful and irregular perform is sufficiently mitigated from and by guaranteeing an ample channel for whistle-blowers to report untoward carry out without having getting intimidated.”

It suggested which the NLC create a “Risk-free channel” for workers to offer information on any “untoward activity” that would not avoid or discourage staff from blowing the whistle. A whistle-blowers plan, based upon the Protected Disclosures Act twenty five of 2000, is actually a need.”

Media studies Nene mentioned
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Exercise Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator of the Limpopo Mirror, to expose NLC corruption. “The post had components of information not accessible in the public area, therefore raising issue on inside Facts stability breaches. The allegations from the media have been independently investigated,” Nene stated. “However, staff members to blame for divulging classified facts have however to generally be recognized”;
A 28 January 2018 short article published with the Dally Dispatch “citing various allegations in the Limpopo Mirror report released on ten December 2017 in addition to a new allegation relating to a previous staff by the identify of Mzukisi Makatse. He was billed and summarily dismissed for that menace induced on the organisation.”
A 16 November 2018 article during the Lowvelder concerning the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder write-up contained categorised details in terms of NLC coverage, increasing further worries of interior information safety breaches,” Nene claimed in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, however [it] highlighted the heightened info security dangers within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Key Treatment, a hijacked NPO. Nene mentioned GroundUp had verified in its story that it was based on leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Entry to Info) ask for for specifics concerning the challenge, she explained