Lottery bosses turned to Condition Security Agency to research leaks

Lottery bosses turned to Condition Security Agency to research leaks

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Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Safety Company (SSA) in December 2018 to investigate the leaking of paperwork that exposed lottery corruption.
The NLC’s organization secretary at enough time listed media studies she claimed were being based upon “stolen” information and facts within an affidavit with the SSA.
The SSA did look into. It uncovered the knowledge wasn't a make any difference of point out protection and that the “prevalence of alleged corruption and irregularities” gave “enough motive” with the media to reveal it.
A different board and management has because taken around the NLC and To date have taken measures to finish corruption on the institution.
A Point out Protection Company (SSA) investigation observed the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided sufficient motive” for publicity from the media.

The probe into supposed “data stability breaches and sabotage of NLC functions” was undertaken right 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 now suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” findings and proposals.
Nevhutanda asked the SSA to analyze the position of NLC team while in the alleged leaking of data, and Nene, in her affidavit discovered certain media and reviews that she claimed involved these leaks.

During the letter outlining its results, the SSA informed the NLC that when protecting condition information was “a lawful critical geared toward protecting the sovereignty and integrity with the condition” this only placed on appropriately categorised data.

Although it did not say so straight, the SSA conclusions implied that the allegedly leaked info did not slide into this class.

Drastically, the SSA created it apparent that the necessity to safeguard condition info “won't protect against any individual from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation discovered which the NLC information and facts involved with the alleged breach was “delicate and privileged in mother nature, although not categorized concerning the prescripts of the Minimum Information and facts Stability Standards (Skip)”.

“The leakage in the applicable delicate official NLC data on the media would not pose a danger to nationwide safety,” the SSA mentioned, including which the affect in the breaches was reputational.

The SSA report discovered “no proof of a factual and incriminating mother nature towards any of your suspected NLC staff members that might be discovered from the information and facts interrogated”.

Furthermore, it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does supply sufficient motive to acquire such exposed within the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs through a session of Parliament’s trade, field and competition portfolio committee that there was “a conspiracy” by which info “stolen” from the NLC was despatched on the US, in which he claimed it was remaining offered to fund a smear marketing campaign in opposition to the NLC.

He was repeating comparable statements he experienced Formerly made in Parliament, which provided advert hominem attacks on GroundUp and this reporter but was very careful not to name either.

“I came in this article Within this August property past year and noted to honourable associates that information regarding our beneficiaries has long been stolen and set in a single condition in the united states,” he instructed MPs.

“We identified as to the Condition Safety Company to return investigate the issue since we are having stories that our details is generating dollars for media platforms and journalists,” he mentioned. “There have been discuss, obviously from just one source, a single media, that spoke A great deal about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but did not notify MPs which the SSA investigation were completed Virtually a 12 months previously.

Proactive funding was at the center on the looting with the lottery. It aspect-stepped the conventional grant approach. The NLC could by itself recognize a undertaking to fund and appoint a non-earnings organisation to oversee it.

After Nevhutanda to start with instructed Parliament in 2018 that he had questioned the SSA to research the meant breach, the South African Nationwide Editors Discussion board issued an announcement indicating that his remarks reflected “an extremely unsafe Mindset wherever the media is becoming blamed for that NLC’s inherent issues”.

“Rather then investigating why millions cannot be accounted for, the NLC has as a substitute made an effort to Forged question to the integrity of your journalists associated and it has requested the SSA to research their sources.”

Proactive projects produced magic formula
Security flaws discovered from the NLC grant funding technique in the course of the SSA’s investigation, seem to happen to be made use of as an justification with the NLC to remove all proactive-funded assignments from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘mystery’ and tasks have been faraway from the grant funding technique and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Office environment, Government Supervisor Authorized so as to safeguard [the] data,” Nene claimed in her affidavit.

“There was many internal discussion, with plenty of backwards and forwards, about how to proceed to plug the alleged leaks”, a supply, who was inside of a senior placement within the NLC at some time, informed GroundUp. “Ultimately, the decision was taken to get rid of many of the proactive projects from the procedure and limit usage of A few individuals”.

Some in that handful of people were being implicated in corruption.

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

The politically-connected Nevhutanda, who was appointed given that the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to high-ups inside the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-chief functioning officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their check out.

Also implicated are previous board members William Huma, who resigned just after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got since died.

Each time a new administration, including the total board and government, took about for the NLC in late 2022 and early 2023, they found out a “chaotic mess” in the documentation relating to proactive funding, A lot of which was paper-based. Vital paperwork have been missing. Information held for safekeeping by document storage company Metrofile were signed out and in no way returned.

The NLC was in a position to Get better copies of some ตรวจ สลาก documents from its Mimecast electronic mail archiving procedure plus the laptops of their assistants and support staff members.

News experiences
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave issue achievable information safety breaches as well as unauthorised use and/or dissemination of confidential data attained as a result of executing official features from the Fee by NLC workforce. The actions are intended to undermine the integrity in the Commission whilst disrupting the successful functions [from the NLC] and creating insurmountable reputational hurt into the Fee since the custodian of personal information entrusted to it by its beneficiaries.”

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

Nene is now going through a disciplinary inquiry after she was unsuccessful in authorized motion to set aside findings of irregular expenditure on her enjoy.

The purpose of her affidavit, Nene explained, was “to history the occasions which transpired associated with information and facts security breaches in the National Lotteries Commission”.

She detailed a variety of news studies which she claimed have been the outcome of these “breaches” (see at the end of this short article).

Nene stated that a whistle-blower approached the NLC alleging that certainly one of its employees, Sello Qhino, experienced “furnished her categorised NLC Facts and persistently encouraged her to provide the data to GroundUp”.

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

Referring to an eighteen November 2018 post while in the Daily Dispatch with regards to the misappropriation of Lottery funds, Nene stated the NLC recognized and afterwards suspended Zintle Rungqu. She was an staff during the NLC’s East London office, who was the companion and also the mother of whistleblower Mzukise Makatse’s a few young children.

Rungqu and Makatse imagine Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, with the NLC expending R470,000 on attorneys to symbolize it, but was identified not responsible and allowed to return to work.

“The common Consider these content articles is the fact that [they require] classified facts relating to proactive funding assignments,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out from the loved ones household to go ahead and take heat off her and his young children. Experiencing homelessness, he moved into an Business within an empty manufacturing facility belonging to a pal.

The two Makatse and Qhino are participating in an NLC reparation system meant to recognise the harm some individuals suffered for the fingers of the NLC. Apologies and, sometimes, monetary compensation are envisioned.

“Some men and women were genuinely afflicted extremely negatively by this … This is de facto distressing,” NLC Commissioner Jodi Scholtz advised the Day by day Maverick last yr.

“I fulfilled a handful of these individuals. It absolutely was just so coronary heart-wrenching that their total lives are already turned the wrong way up,” mentioned Scholtz.

Amongst These she met were being Qhino and Makatse.

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

“Failure to possess a dedicated anti-corruption channel will cause workers presenting these types of circumstances beyond the NLC,” the SSA stated in its results.

“Supplied the magnitude of corruption in point out institutions, it remains critical that it makes certain that the NLC complies with all stability prescripts Which its aim is on making sure that unlawful and irregular carry out is adequately mitigated in opposition to and by making certain an satisfactory channel for whistle-blowers to report untoward carry out with no currently being intimidated.”

It advisable the NLC set up a “Secure channel” for employees to deliver information on any “untoward exercise” that might not stop or discourage personnel from blowing the whistle. A whistle-blowers coverage, according to the Guarded Disclosures Act 25 of 2000, is a prerequisite.”

Media reviews Nene stated
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Health Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to expose NLC corruption. “The report experienced elements of information not out there in the public domain, thereby elevating concern on inner Data security breaches. The allegations inside the media had been independently investigated,” Nene stated. “Nevertheless, workers liable for divulging classified facts have nevertheless to become determined”;
A 28 January 2018 write-up published because of the Dally Dispatch “citing numerous allegations through the Limpopo Mirror article revealed on ten December 2017 plus a new allegation regarding a previous staff through the title of Mzukisi Makatse. He was billed and summarily dismissed to the menace caused towards the organisation.”
A 16 November 2018 report from the Lowvelder regarding the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has described how, in spite of getting R27-million in lottery grants, the rehab has not been finished. “The Lowvelder write-up contained categorized details with regard to NLC coverage, boosting even more issues of inside details stability breaches,” Nene mentioned in her affidavit. “The prima facie proof with regard to these allegations did not warrant an impartial Investigation, nevertheless [it] highlighted the heightened information and facts security pitfalls inside the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Principal Treatment, a hijacked NPO. Nene reported GroundUp experienced verified in its story that it had been based on leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Promotion of Usage of Information) ask for for information regarding the undertaking, she explained