Lottery bosses turned to Point out Protection Company to research leaks

Lottery bosses turned to Point out Protection Company to research leaks

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Previous National 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 organization secretary at enough time stated media reports she mentioned had been dependant on “stolen” information and facts within an affidavit for that SSA.
The SSA did examine. It identified the information wasn't a subject of condition security and the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to reveal it.
A fresh board and administration has due to the fact taken above the NLC and Up to now have taken measures to finish corruption at the institution.
A Condition Stability Agency (SSA) investigation identified the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for exposure with the media.

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

Here's

Nevhutanda’s letter,
an affidavit by currently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security company’s “private” findings and recommendations.
Nevhutanda questioned the SSA to investigate the role of NLC team from the alleged leaking of knowledge, and Nene, in her affidavit discovered distinct media and reports that she claimed included these leaks.

Within the letter outlining its results, the SSA told the NLC that even though protecting state facts was “a lawful essential aimed toward safeguarding the sovereignty and integrity in the point out” this only placed on properly classified information.

Even though it didn't say so immediately, the SSA conclusions implied the allegedly leaked information did not drop into this group.

Significantly, the SSA made it distinct that the need to guard point out info “isn't going to reduce any individual from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation found that the NLC info linked to the alleged breach was “sensitive and privileged in character, but not labeled in terms of the prescripts in the Least Information and facts Stability Standards (MISS)”.

“The leakage from the related sensitive Formal NLC facts to your media isn't going to pose a risk to countrywide stability,” the SSA explained, including which the affect from the breaches was reputational.

The SSA report uncovered “no evidence of the factual and incriminating nature in opposition to any of the suspected NLC staff members that might be determined from the data and info interrogated”.

It also stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does present enough motive to have this sort of exposed inside the media”.

Conspiracy statements
In 2020, Nevhutanda advised MPs for the duration of a session of Parliament’s trade, marketplace and Level of competition portfolio committee that there was “a conspiracy” wherein information and facts “stolen” with the NLC was sent to the US, where by he claimed it had been becoming bought to fund a smear campaign from the NLC.

He was repeating equivalent promises he had Formerly built in Parliament, which provided advert hominem assaults on GroundUp and this reporter but was mindful not to call possibly.

“I arrived here In this particular August dwelling last year and noted to honourable associates that information regarding our beneficiaries has long been stolen and set in a single condition in America,” he told MPs.

“We known as on the Point out Protection Agency to return check into the issue due to the fact we are having studies that our info is building funds for media platforms and journalists,” he said. “There was talk, not surprisingly from 1 supply, just one media, that spoke A lot about proactive-funding,” Nevhutanda explained (referring to GroundUp), but didn't convey to MPs that the SSA investigation were completed Virtually a yr previously.

Proactive funding was at the heart from the looting in the lottery. It side-stepped the normal grant process. The NLC could alone establish a job to fund and appoint a non-financial gain organisation to oversee it.

Following Nevhutanda first instructed Parliament in 2018 that he had questioned the SSA to investigate the meant breach, the South African National Editors Discussion board issued a press release declaring that his remarks mirrored “an especially perilous Perspective where by the media is getting blamed for that NLC’s inherent issues”.

“As an alternative to investigating why tens of millions can not be accounted for, the NLC has rather tried to cast question on the integrity of the journalists involved and it has requested the SSA to research their sources.”

Proactive jobs built top secret
Protection flaws recognized in the NLC grant funding procedure over the SSA’s investigation, look to are already utilised as an justification because of the NLC to get rid of all proactive-funded tasks from its central grants method.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘magic formula’ and projects have been removed from the grant funding process and managed manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Office, Government Supervisor Legal so as to safeguard [the] information,” Nene said in her affidavit.

“There was loads of inner dialogue, with a lot of back and forth, about how to proceed to plug the alleged leaks”, a resource, who was within a senior position for the NLC at some time, told GroundUp. “In the end, the choice was taken to eliminate many of the proactive initiatives within the procedure and Restrict access to a handful of individuals”.

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

Maselwa, who resigned with the NLC various yrs in the past, continues to be implicated in corruption involving lottery resources. He obtained R4.three-million from lottery resources allocated to create a library and museum advanced in Kuruman (see Taung Cultural New music and Arts Expo) which he utilized to construct a property in an upmarket gated advancement in Pretoria. The home is among several paid for with lottery resources which were frozen following the Asset Forfeiture Unit obtained a preservation get in December 2022.

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

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

Any time a new administration, such as the entire board and government, took in excess of within the NLC in late 2022 and early 2023, they found out a “chaotic mess” during the documentation concerning proactive funding, Substantially of which was paper-dependent. Essential documents were being lacking. Information held for safekeeping by doc storage firm Metrofile had been signed out and hardly ever returned.

The NLC was in the position to recover copies of some สลาก กิน รัฐบาล paperwork from its Mimecast e-mail archiving program and also the laptops in their assistants and assist employees.

Information studies
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry achievable information safety breaches as well as unauthorised use and/or dissemination of confidential facts obtained because of doing Formal capabilities within the Commission by NLC personnel. The things to do are meant to undermine the integrity of your Fee whilst disrupting the helpful functions [of the NLC] and leading to insurmountable reputational damage for the Commission as the custodian of private details entrusted to it by its beneficiaries.”

His request for that SSA to investigate was supported within an affidavit by suspended NLC business secretary, Nomphumelelo Nene.

Nene is now going through a disciplinary inquiry following 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 on the Nationwide Lotteries Commission”.

She detailed several information studies which she claimed have been the outcome of those “breaches” (see at the end of this informative article).

Nene stated that a whistle-blower approached the NLC alleging that one of its workforce, Sello Qhino, experienced “supplied her categorised NLC Data and persistently encouraged her to supply the data to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded projects in Kuruman immediately after attempts to raise The problem internally were being ignored, was subsequently fired.

Referring to an 18 November 2018 report during the Every day Dispatch with regards to the misappropriation of Lottery resources, Nene said that the NLC identified and after that suspended Zintle Rungqu. She was an employee within the NLC’s East London Workplace, who was the companion and also the mom of whistleblower Mzukise Makatse’s 3 youngsters.

Rungqu and Makatse think Rungqu was punished because Makatse blew the whistle. She was suspended and billed internally, Using the NLC expending R470,000 on attorneys to stand for it, but was identified not responsible and permitted to return to work.

“The widespread Think about these posts is the fact [they involve] categorized data concerning proactive funding projects,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out in the household household to go ahead and take heat off her and his small children. Experiencing homelessness, he moved into an Workplace within an vacant factory belonging to a buddy.

Both of those Makatse and Qhino are participating in an NLC reparation approach meant to recognise the hurt many people endured for the arms of your NLC. Apologies and, in some cases, monetary compensation are expected.

“Some people had been truly affected very negatively by this … This is really distressing,” NLC Commissioner Jodi Scholtz instructed the Day-to-day Maverick final calendar year.

“I fulfilled a number of these individuals. It had been just so heart-wrenching that their complete life are turned upside down,” explained Scholtz.

Among People she achieved had been Qhino and Makatse.

Harmless System necessary for whistleblowers
The SSA observed the absence at some time of a proper channel for whistleblowers to report corruption led them to turn towards the media.

“Failure to have a devoted anti-corruption channel will cause staff members presenting these types of conditions beyond the NLC,” the SSA claimed in its results.

“Presented the magnitude of corruption in condition institutions, it continues to be important that it makes sure that the NLC complies with all security prescripts Which its emphasis is on ensuring that unlawful and irregular conduct is sufficiently mitigated towards and by making sure an ample channel for whistle-blowers to report untoward perform with no becoming intimidated.”

It encouraged that the NLC set up a “Safe and sound channel” for employees to supply information on any “untoward action” that may not stop or discourage personnel from blowing the whistle. A whistle-blowers plan, dependant on the Protected Disclosures Act 25 of 2000, is really a requirement.”

Media reviews Nene detailed
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Health and fitness Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and operator of your Limpopo Mirror, to expose NLC corruption. “The short article had elements of knowledge not accessible in the public domain, thereby boosting problem on interior Data stability breaches. The allegations within the media had been independently investigated,” Nene explained. “Having said that, workforce accountable for divulging classified facts have but for being recognized”;
A 28 January 2018 post released from the Dally Dispatch “citing a lot of allegations with the Limpopo Mirror write-up released on ten December 2017 and a new allegation referring to a former personnel through the title of Mzukisi Makatse. He was billed and summarily dismissed for that risk brought on into 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, Regardless of receiving R27-million in lottery grants, the rehab has not been finished. “The Lowvelder report contained labeled information and facts with regard to NLC plan, increasing further worries of inside data protection breaches,” Nene said in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an independent Investigation, having said that [it] highlighted the heightened data stability risks inside the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Key Treatment, a hijacked NPO. Nene explained GroundUp experienced verified in its story that it absolutely was based on leaked NLC files. This was despite the NLC rejecting a PAIA (Promotion of Use of Details) ask for for facts about the task, she stated