Lottery bosses turned to State Stability Company to analyze leaks

Lottery bosses turned to State Stability Company to analyze leaks

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Previous Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Stability Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s organization secretary at time shown media experiences she reported were being according to “stolen” info within an affidavit for that SSA.
The SSA did examine. It discovered 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 new board and management has since taken in excess of the NLC and thus far have taken actions to end corruption within the institution.
A State Safety Agency (SSA) investigation located the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for publicity by the media.

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

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the security agency’s “private” findings and proposals.
Nevhutanda requested the SSA to analyze the purpose of NLC staff members within the alleged leaking of information, and Nene, in her affidavit recognized certain media and stories that she claimed included these leaks.

While in the letter outlining its findings, the SSA instructed the NLC that whilst guarding state info was “a lawful very important aimed toward safeguarding the sovereignty and integrity of your point out” this only applied to appropriately classified info.

Although it did not say so directly, the SSA conclusions implied which the allegedly leaked information and facts did not tumble into this category.

Considerably, the SSA made it crystal clear that the necessity to shield point out data “doesn't reduce any specific from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation observed which the NLC details involved with the alleged breach was “delicate and privileged in mother nature, but not categorized in terms of the prescripts from the Bare minimum Facts Stability Standards (MISS)”.

“The leakage from the pertinent sensitive Formal NLC facts into the media would not pose a menace to national stability,” the SSA claimed, including which the impression in the breaches was reputational.

The SSA report discovered “no proof of a factual and incriminating character from any on the suspected NLC employees that would be identified from the knowledge and facts interrogated”.

Furthermore, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does offer ample motive to get these uncovered from 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” in which information “stolen” within the NLC was despatched towards the US, where he claimed it had been becoming bought to fund a smear campaign versus the NLC.

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

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

“We known as around the Point out Protection Agency to come take a look at the make any difference mainly because we're getting stories that our details is generating dollars for media platforms and journalists,” he stated. “There was speak, not surprisingly from 1 supply, a person media, that spoke A lot about proactive-funding,” Nevhutanda explained (referring to GroundUp), but didn't convey to MPs which the SSA investigation were completed Nearly a yr earlier.

Proactive funding was at the heart of the looting from the lottery. It side-stepped the traditional grant system. The NLC could alone discover a task to fund and appoint a non-income organisation to oversee it.

After Nevhutanda initially advised Parliament in 2018 that he experienced requested the SSA to analyze the intended breach, the South African Countrywide Editors Forum issued an announcement saying that his remarks reflected “an extremely risky Mindset where by the media is currently being blamed for the NLC’s inherent challenges”.

“In lieu of investigating why millions can not be accounted for, the NLC has as a substitute made an effort to Solid question over the integrity with the journalists concerned and has requested the SSA to research their resources.”

Proactive assignments designed magic formula
Safety flaws determined within the NLC grant funding procedure throughout the SSA’s investigation, surface to have already been made use of as an justification via the NLC to remove all proactive-funded tasks from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding projects was heightened to ‘secret’ and assignments have been faraway from the grant funding process and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Business, Executive Supervisor Authorized so that you can safeguard [the] information,” Nene stated in her affidavit.

“There was a lot of inside dialogue, with lots of backwards and forwards, about what to do to plug the alleged leaks”, a source, who was in a senior posture within the NLC at time, told GroundUp. “Eventually, the decision was taken to eliminate each of the proactive projects with the method and Restrict usage of a handful of men and women”.

Some in that handful of people had been implicated in corruption.

Maselwa, who resigned with the NLC a number of several years in the past, has long been implicated in corruption involving lottery funds. He obtained R4.3-million from lottery money allocated to build a library and museum sophisticated in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to create a residence in an upmarket gated development in Pretoria. The assets is among numerous paid for with lottery cash that were frozen once the Asset Forfeiture Unit attained a preservation buy in December 2022.

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

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

When a new administration, including the entire board and executive, took over at the NLC in late 2022 and early 2023, they found a “chaotic mess” within the documentation relating to proactive funding, much of which was paper-centered. Critical paperwork were missing. Data files held for safekeeping by document storage company Metrofile were signed out and by no means returned.

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

Information reports
In his one December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave worry feasible facts security breaches as well as the unauthorised use and/or dissemination of private information and facts obtained as a result of executing official features while in the Fee by NLC staff members. The things to do are meant to undermine the integrity with the Commission although disrupting the powerful features [from the NLC] and creating insurmountable reputational hurt to your Commission as the custodian of non-public details entrusted to it by its beneficiaries.”

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

Nene is now going through a disciplinary inquiry after she was unsuccessful in legal action to put aside conclusions of irregular expenditure on her view.

The objective of her affidavit, Nene reported, was “to record the functions which transpired regarding information security breaches in the National Lotteries Commission”.

She outlined different news reports which she claimed were the results of such “breaches” (see at the conclusion of this text).

Nene explained that a whistle-blower approached the NLC alleging that one among its workers, Sello Qhino, experienced “presented her classified NLC Facts and persistently encouraged her to offer the information to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded tasks in Kuruman just after attempts to boost The problem internally were being ignored, was subsequently fired.

Referring to an 18 November 2018 short article during the Every day Dispatch with regards to the misappropriation of Lottery cash, Nene reported which the NLC discovered after which you can suspended Zintle Rungqu. She was an staff from the NLC’s East London Business, who was the husband or wife plus the mother of whistleblower Mzukise Makatse’s a few little ones.

Rungqu and Makatse imagine Rungqu was punished since Makatse blew the whistle. She was suspended and billed internally, Along with the NLC paying R470,000 on legal professionals to symbolize it, but was found not guilty and allowed to return to operate.

“The common Consider these article content is [they entail] categorised information referring to proactive funding assignments,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out of your family house to go ahead and take warmth off her and his little ones. Experiencing homelessness, he moved into an Office environment in an vacant manufacturing facility belonging to a buddy.

The two Makatse and Qhino are participating in an NLC reparation process meant to recognise the harm some people endured in the arms in the NLC. Apologies and, occasionally, fiscal payment are expected.

“Some folks have been seriously influenced pretty negatively by this … This is absolutely agonizing,” NLC Commissioner Jodi Scholtz informed the Every day Maverick past yr.

“I met a few these individuals. It was just so heart-wrenching that their entire lives are actually turned upside down,” reported Scholtz.

Amongst All those she fulfilled ended up Qhino and Makatse.

Safe platform needed for whistleblowers
The SSA uncovered the absence at enough time of a suitable channel for whistleblowers to report corruption led them to turn to the media.

“Failure to possess a committed anti-corruption channel will cause personnel presenting these types of circumstances beyond the NLC,” the SSA explained in its conclusions.

“Presented the magnitude of corruption in point out institutions, it stays vital that it makes certain that the NLC complies with all stability prescripts and that its concentration is on ensuring that illegal and irregular carry out is adequately mitigated versus and by ensuring an satisfactory channel for whistle-blowers to report untoward conduct without having remaining intimidated.”

It suggested which the NLC build a “Secure channel” for workers to deliver information on any “untoward activity” that would not stop or discourage staff from blowing the whistle. A whistle-blowers policy, based on the Protected Disclosures Act twenty five of 2000, can be a requirement.”

Media stories Nene detailed
A ten December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Physical fitness Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and owner on the Limpopo Mirror, to show NLC corruption. “The article had aspects of data not offered in the general public area, thereby elevating problem on inner Information stability breaches. The allegations in the media had been independently investigated,” Nene claimed. “On the other hand, staff responsible for divulging categorised information and facts have nonetheless to get recognized”;
A 28 January 2018 report published via the Dally Dispatch “citing quite a few allegations from the Limpopo Mirror write-up released on 10 December 2017 in addition to a new allegation referring to a former personnel because of the name of Mzukisi Makatse. He was charged and summarily dismissed to the menace brought about to your organisation.”
A sixteen November 2018 short article during the Lowvelder in regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Regardless of receiving R27-million in lottery grants, the rehab has never been done. “The Lowvelder posting contained labeled data regarding NLC policy, increasing further fears of inner information safety breaches,” Nene stated in her affidavit. “The prima facie proof with regard to these allegations did not warrant an independent Investigation, having said that [it] highlighted the heightened details safety challenges within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Primary Care, a hijacked NPO. Nene explained GroundUp had confirmed in its Tale that it was depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Entry to Details) ask for for aspects about the challenge, she explained