Lottery bosses turned to State Stability Company to investigate leaks

Lottery bosses turned to State Stability Company to investigate leaks

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Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Condition Security Agency (SSA) in December 2018 to analyze the leaking of documents that exposed lottery corruption.
The NLC’s corporation secretary at some time outlined media stories she reported ended up according to “stolen” data within an affidavit with the SSA.
The SSA did investigate. It discovered the knowledge was not a subject of condition stability and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” to the media to show it.
A brand new board and administration has considering the fact that taken over the NLC and thus far have taken steps to end corruption at the establishment.
A State Security Company (SSA) investigation uncovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied sufficient motive” for publicity through the media.

The probe into meant “data protection breaches and sabotage of NLC operations” was carried out immediately 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 currently suspended NLC company secretary Nompumelelo Nene supporting the request, and
the security agency’s “private” findings and proposals.
Nevhutanda asked the SSA to analyze the function of NLC staff members during the alleged leaking of data, and Nene, in her affidavit discovered distinct media and experiences that she claimed involved these leaks.

Inside the letter outlining its results, the SSA advised the NLC that though safeguarding state information and facts was “a lawful crucial geared toward defending the sovereignty and integrity on the state” this only placed on properly classified information.

Although it didn't say so instantly, the SSA findings implied which the allegedly leaked facts didn't fall into this group.

Noticeably, the SSA produced it apparent that the need to defend point out details “isn't going to prevent any particular person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation found which the NLC information involved in the alleged breach was “delicate and privileged in nature, although not classified regarding the prescripts of the Minimum amount Details Security Standards (Pass up)”.

“The leakage on the related sensitive official NLC data to the media isn't going to pose a menace to national stability,” the SSA mentioned, including the affect of your breaches was reputational.

The SSA report found “no proof of the factual and incriminating character in opposition to any with the suspected NLC staff members which could be determined from the information and information interrogated”.

In addition, it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does give ample motive to acquire this sort of uncovered inside the media”.

Conspiracy promises
In 2020, Nevhutanda informed MPs all through a session of Parliament’s trade, market and competition portfolio committee that there was “a conspiracy” through which info “stolen” with the NLC was despatched towards the US, exactly where he claimed it was currently being marketed to fund a smear marketing campaign towards the NLC.

He was repeating related claims he had Beforehand designed in Parliament, which bundled advert hominem assaults on GroundUp and this reporter but was very careful not to name possibly.

“I came here Within this August dwelling very last yr and claimed to honourable associates that specifics of our beneficiaries continues to be stolen and place in a single state in the usa,” he told MPs.

“We identified as around the Condition Protection Company to come investigate the make any difference since we're receiving experiences that our data is generating funds for media platforms and journalists,” he claimed. “There have been discuss, not surprisingly from a person supply, one particular media, that spoke A great deal about proactive-funding,” Nevhutanda reported (referring to GroundUp), but didn't explain to MPs the SSA investigation were concluded Virtually a year previously.

Proactive funding was at the guts on the looting of the lottery. It facet-stepped the normal grant approach. The NLC could alone recognize a challenge to fund and appoint a non-earnings organisation to supervise it.

Following Nevhutanda very first instructed Parliament in 2018 that he had questioned the SSA to analyze the intended breach, the South African Countrywide Editors Discussion board issued a statement stating that his remarks mirrored “an especially dangerous Mindset where the media is currently being blamed with the NLC’s inherent issues”.

“In lieu of investigating why tens of millions can't be accounted for, the NLC has as a substitute made an effort to Solid question around the integrity from the journalists involved and it has asked the SSA to analyze their resources.”

Proactive projects built secret
Stability flaws discovered during the NLC grant funding procedure over the SSA’s investigation, seem to happen to be applied being an excuse because of the NLC to get rid of all proactive-funded projects from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘solution’ and initiatives had been faraway from the grant funding procedure and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Place of work, Executive Manager Authorized so as to safeguard [the] facts,” Nene explained in her affidavit.

“There was a lot of internal dialogue, with lots of forwards and backwards, about how to proceed to plug the alleged leaks”, a source, who was in a very senior place for the NLC at the time, advised GroundUp. “In the long run, the decision was taken to get rid of the many proactive projects in the program and limit usage of A few folks”.

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

Maselwa, who resigned through the NLC many several years in the past, has actually been implicated in corruption involving lottery resources. He gained R4.3-million from lottery resources allotted to develop a library and museum advanced in Kuruman (see Taung Cultural Audio and Arts Expo) which he utilized to make a home in an upmarket gated development in Pretoria. The property is among several compensated for with lottery resources that were frozen after the Asset Forfeiture Device acquired a preservation order in December 2022.

The politically-related Nevhutanda, who was appointed as being the NLC board chairperson by former President Jacob Zuma in 2009 and was near large-ups inside the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated in the corruption which confused the NLC on their look at.

Also implicated are previous board members William Huma, who resigned just after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has considering that died.

Every time a new administration, such as the overall board and government, took in excess of with the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation referring to proactive funding, Significantly of which was paper-based. Key paperwork were lacking. Files held for safekeeping by doc storage business Metrofile were signed out and by no means returned.

The NLC was able to Recuperate copies of some หวย วัน นี้ files from its Mimecast e mail archiving program and also the laptops in their assistants and help employees.

Information reviews
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry feasible information and facts safety breaches as well as unauthorised use and/or dissemination of confidential data attained as a result of undertaking Formal capabilities within the Commission by NLC personnel. The things to do are meant to undermine the integrity of your Fee though disrupting the effective functions [of your NLC] and causing insurmountable reputational hurt into the Fee since the custodian of personal info entrusted to it by its beneficiaries.”

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

Nene is at present facing a disciplinary inquiry just after she was unsuccessful in authorized motion to put aside findings of irregular expenditure on her enjoy.

The purpose of her affidavit, Nene explained, was “to history the activities which transpired regarding information safety breaches with the Nationwide Lotteries Fee”.

She stated many information reports which she claimed were the outcomes of these “breaches” (see at the conclusion of this short article).

Nene stated that a whistle-blower approached the NLC alleging that among its workers, Sello Qhino, experienced “furnished her labeled NLC Details and persistently inspired her to offer the data to GroundUp”.

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

Referring to an 18 November 2018 posting within the Each day Dispatch concerning the misappropriation of Lottery money, Nene claimed which the NLC discovered and then suspended Zintle Rungqu. She was an employee within the NLC’s East London Place of work, who was the spouse along with the mother of whistleblower Mzukise Makatse’s three children.

Rungqu and Makatse consider Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, Together with the NLC investing R470,000 on legal professionals to depict it, but was discovered not responsible and permitted to return to work.

“The prevalent factor in these content is the fact that [they require] classified details regarding proactive funding projects,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out with the family property to go ahead and take heat off her and his children. Dealing with homelessness, he moved into an Place of work in an empty manufacturing facility belonging to a friend.

Both equally Makatse and Qhino are taking part in an NLC reparation course of action intended to recognise the damage a lot of people endured on the arms of your NLC. Apologies and, in some instances, money compensation are envisioned.

“Some persons had been definitely impacted incredibly negatively by this … This is basically agonizing,” NLC Commissioner Jodi Scholtz told the Everyday Maverick very last calendar year.

“I achieved a few these folks. It had been just so coronary heart-wrenching that their whole lives are already turned the wrong way up,” explained Scholtz.

Between People she fulfilled have been Qhino and Makatse.

Risk-free platform required for whistleblowers
The SSA discovered the absence at the time of an appropriate channel for whistleblowers to report corruption led them to turn to the media.

“Failure to possess a dedicated anti-corruption channel will end in staff presenting this sort of cases beyond the NLC,” the SSA reported in its findings.

“Presented the magnitude of corruption in point out institutions, it stays important that it ensures that the NLC complies with all security prescripts and that its emphasis is on guaranteeing that unlawful and irregular carry out is adequately mitigated in opposition to and by guaranteeing an ample channel for whistle-blowers to report untoward carry out with no currently being intimidated.”

It advisable that the NLC establish a “safe channel” for workers to offer information on any “untoward action” that will not prevent or discourage staff members from blowing the whistle. A whistle-blowers policy, dependant on the Guarded Disclosures Act twenty five of 2000, is really a prerequisite.”

Media reports Nene detailed
A ten December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Exercise Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to reveal NLC corruption. “The short article experienced aspects of knowledge not offered in the public area, thus increasing concern on interior Information and facts protection breaches. The allegations while in the media had been independently investigated,” Nene said. “Having said that, personnel answerable for divulging classified data have however being identified”;
A 28 January 2018 report posted through the Dally Dispatch “citing a lot of allegations from the Limpopo Mirror post revealed on 10 December 2017 and also a new allegation concerning a previous personnel because of the title of Mzukisi Makatse. He was charged and summarily dismissed to the risk triggered towards the organisation.”
A sixteen November 2018 posting from the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder post contained labeled info concerning NLC policy, elevating further more considerations of inside information and facts security breaches,” Nene mentioned in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, on the other hand [it] highlighted the heightened information and facts stability threats throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Principal Care, a hijacked NPO. Nene stated GroundUp experienced verified in its story that it absolutely was based upon leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Entry to Information) ask for for specifics concerning the challenge, she explained