Lottery bosses turned to State Safety Agency to research leaks

Lottery bosses turned to State Safety Agency to research leaks

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Former Nationwide 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 enough time mentioned media reports she mentioned had been based upon “stolen” facts in an affidavit for your SSA.
The SSA did look into. It observed the information wasn't a subject of state protection and that the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to reveal it.
A fresh board and administration has due to the fact taken above the NLC and thus far have taken actions to finish corruption in the institution.
A Point out Security Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for publicity via the media.

The probe into meant “info safety breaches and sabotage of NLC operations” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the security company’s “confidential” conclusions and proposals.
Nevhutanda requested the SSA to analyze the purpose of NLC personnel inside the alleged leaking of information, and Nene, in her affidavit determined particular media and experiences that she claimed concerned these leaks.

In the letter outlining its results, the SSA explained to the NLC that although preserving state data was “a lawful crucial aimed toward preserving the sovereignty and integrity of the state” this only applied to appropriately classified info.

Although it did not say so straight, the SSA results implied which the allegedly leaked data didn't tumble into this class.

Appreciably, the SSA created it clear that the necessity to secure state info “will not avoid any particular person from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation observed which the NLC information and facts involved in the alleged breach was “sensitive and privileged in nature, although not classified regarding the prescripts of the Bare minimum Info Safety Criteria (Skip)”.

“The leakage of your appropriate delicate official NLC data to the media doesn't pose a threat to countrywide protection,” the SSA mentioned, adding the effect 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”.

In addition it stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does give sufficient motive to obtain this kind of exposed within the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs in the course of a session of Parliament’s trade, market and Levels of competition portfolio committee that there was “a conspiracy” through which data “stolen” from your NLC was despatched on the US, in which he claimed it absolutely was staying sold to fund a smear marketing campaign against the NLC.

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

“I came right here With this August house final yr and documented to honourable associates that information regarding our beneficiaries has actually been stolen and set in one state in America,” he told MPs.

“We called on the Point out Safety Agency to come back investigate the make a difference simply because we've been receiving reports that our information and facts is creating money for media platforms and journalists,” he claimed. “There has been chat, obviously from just one resource, a single media, that spoke Substantially about proactive-funding,” Nevhutanda stated (referring to GroundUp), but failed to explain to MPs the SSA investigation had been concluded Pretty much a calendar year before.

Proactive funding was at the guts with the looting with the lottery. It aspect-stepped the conventional grant method. The NLC could itself identify a project to fund and appoint a non-gain organisation to supervise it.

Right after Nevhutanda initial told Parliament in 2018 that he experienced asked the SSA to research the meant breach, the South African Nationwide Editors Discussion board issued a statement expressing that his remarks mirrored “an especially dangerous Frame of mind where by the media is getting blamed for that NLC’s inherent issues”.

“In lieu of investigating why tens of millions can not be accounted for, the NLC has rather tried to cast question on the integrity of the journalists associated and it has requested the SSA to investigate their resources.”

Proactive jobs built solution
Protection flaws recognized in the NLC grant funding procedure over the SSA’s investigation, look to happen to be made use of as an justification from the NLC to eliminate all proactive-funded projects from its central grants technique.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘mystery’ and jobs had been removed from the grant funding process and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Place of work, Government Manager Legal as a way to safeguard [the] data,” Nene explained in her affidavit.

“There was a great deal of inner dialogue, with numerous backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was in a very senior placement within the NLC at the time, informed GroundUp. “Ultimately, the decision was taken to eliminate all the proactive assignments with the program and Restrict access to a handful of people today”.

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

Maselwa, who resigned from your NLC numerous a long time back, is implicated in corruption involving lottery funds. He acquired R4.3-million from lottery resources allocated to build a library and museum elaborate in Kuruman (see Taung Cultural Audio and Arts Expo) which he made use of to make a house in an upmarket gated enhancement in Pretoria. The assets is among various paid out for with lottery money that were frozen after the Asset Forfeiture Device received a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to higher-ups during the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated from the corruption which overwhelmed the NLC on their observe.

Also implicated are previous board customers William Huma, who resigned 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 full board and govt, took about for the NLC in late 2022 and early 2023, they learned a “chaotic mess” from the documentation regarding proactive funding, Substantially of which was paper-based mostly. Important files have been missing. Documents held for safekeeping by doc storage firm Metrofile were signed out and under no circumstances returned.

The NLC was capable to Get better copies of some สลาก กิน paperwork from its Mimecast email archiving procedure as well as laptops of their assistants and aid staff members.

News stories
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave problem probable details stability breaches and also the unauthorised use and/or dissemination of confidential facts attained as a result of executing official features while in the Commission by NLC personnel. The functions are meant to undermine the integrity on the Commission although disrupting the successful functions [of the NLC] and causing insurmountable reputational hurt on the Commission given that 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 enterprise secretary, Nomphumelelo Nene.

Nene is currently 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 regarding details security breaches for the National Lotteries Fee”.

She outlined many news experiences which she claimed have been the effects of these “breaches” (see at the conclusion of this short article).

Nene claimed that a whistle-blower approached the NLC alleging that certainly one of its personnel, Sello Qhino, experienced “delivered her classified NLC Info and persistently encouraged her to supply the information to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded tasks in Kuruman right after attempts to raise The difficulty internally ended up overlooked, was subsequently fired.

Referring to an 18 November 2018 post within the Daily Dispatch with regard to the misappropriation of Lottery cash, Nene mentioned which the NLC recognized and after that suspended Zintle Rungqu. She was an personnel within the NLC’s East London Business, who was the associate and the mother of whistleblower Mzukise Makatse’s 3 children.

Rungqu and Makatse feel Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, Using the NLC shelling out R470,000 on attorneys to characterize it, but was found not responsible and permitted to return to operate.

“The prevalent Consider these content is the fact [they require] categorized info relating to proactive funding projects,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out on the loved ones home to go ahead and take warmth off her and his young children. Facing homelessness, he moved into an Office environment in an empty manufacturing facility belonging to a friend.

Equally Makatse and Qhino are taking part in an NLC reparation method meant to recognise the hurt some individuals endured within the arms from the NLC. Apologies and, in some instances, money payment are predicted.

“Some people today were being really affected very negatively by this … This is actually painful,” NLC Commissioner Jodi Scholtz told the Day by day Maverick past 12 months.

“I satisfied a few these individuals. It had been just so heart-wrenching that their total lives have been turned the wrong way up,” stated Scholtz.

Between These she achieved had been Qhino and Makatse.

Safe and sound System necessary for whistleblowers
The SSA uncovered the absence at the time of a correct channel for whistleblowers to report corruption led them to turn to your media.

“Failure to possess a focused anti-corruption channel will result in staff presenting these conditions beyond the NLC,” the SSA reported in its conclusions.

“Supplied the magnitude of corruption in condition institutions, it remains very important that it makes certain that the NLC complies with all safety prescripts and that its aim is on guaranteeing that illegal and irregular perform is adequately mitigated versus and by guaranteeing an satisfactory channel for whistle-blowers to report untoward perform with no becoming intimidated.”

It encouraged that the NLC set up a “Harmless channel” for employees to offer info on any “untoward exercise” that will not protect against or discourage employees from blowing the whistle. A whistle-blowers policy, determined by the Shielded Disclosures Act twenty five of 2000, is a requirement.”

Media reports Nene detailed
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Health Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor in the Limpopo Mirror, to expose NLC corruption. “The posting experienced factors of data not readily available in the public area, thereby increasing concern on inside Info protection breaches. The allegations within the media have been independently investigated,” Nene said. “On the other hand, employees answerable for divulging categorised information have but being discovered”;
A 28 January 2018 article published by the Dally Dispatch “citing various allegations with the Limpopo Mirror write-up released on ten December 2017 along with a new allegation associated with a former worker with the title of Mzukisi Makatse. He was charged and summarily dismissed for your threat caused to the organisation.”
A sixteen November 2018 short article while in the Lowvelder with regard to 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 accomplished. “The Lowvelder post contained categorised details in terms of NLC policy, increasing further more considerations of inside information safety breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, nevertheless [it] highlighted the heightened data safety dangers in the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Main Care, a hijacked NPO. Nene said GroundUp had confirmed in its story that it absolutely was according to leaked NLC documents. This was despite the NLC rejecting a PAIA (Advertising of Usage of Information and facts) request for particulars with regards to the task, she mentioned