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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Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the State Security Agency (SSA) in December 2018 to investigate the leaking of documents that uncovered lottery corruption.
The NLC’s business secretary at the time outlined media reviews she mentioned had been based upon “stolen” information in an affidavit for the SSA.
The SSA did investigate. It identified the knowledge wasn't a make any difference of state security and that the “prevalence of alleged corruption and irregularities” gave “ample motive” for your media to show it.
A whole new board and management has because taken about the NLC and thus far have taken measures to finish corruption on the establishment.
A State Safety Company (SSA) investigation uncovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented sufficient motive” for exposure with the media.

The probe into intended “facts stability breaches and sabotage of NLC functions” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to investigate.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” findings and proposals.
Nevhutanda asked the SSA to research the function of NLC staff members within the alleged leaking of knowledge, and Nene, in her affidavit discovered particular media and studies that she claimed associated these leaks.

In the letter outlining its findings, the SSA advised the NLC that when guarding state info was “a legal essential aimed toward safeguarding the sovereignty and integrity on the condition” this only applied to correctly categorized details.

Although it didn't say so right, the SSA findings implied the allegedly leaked info didn't drop into this classification.

Appreciably, the SSA manufactured it clear that the need to protect condition information and facts “will not reduce any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation found that the NLC facts linked to the alleged breach was “delicate and privileged in mother nature, although not categorised in terms of the prescripts from the Minimal Details Safety Specifications (Skip)”.

“The leakage from the related delicate official NLC info to the media would not pose a menace to national protection,” the SSA mentioned, introducing that the effects on the breaches was reputational.

The SSA report found “no evidence of the factual and incriminating mother nature towards any with the suspected NLC workers that would be discovered from the information and info interrogated”.

In addition it stated that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does give sufficient motive to own these uncovered while in the media”.

Conspiracy statements
In 2020, Nevhutanda informed MPs in the course of a session of Parliament’s trade, market and Competitiveness portfolio committee that there was “a conspiracy” during which info “stolen” from the NLC was sent to the US, where by he claimed it was remaining offered to fund a smear marketing campaign towards the NLC.

He was repeating identical claims he had Earlier built in Parliament, which incorporated advertisement hominem assaults on GroundUp which reporter but was very careful not to name either.

“I came right here In this particular August dwelling past calendar year and reported to honourable members that information about our beneficiaries continues to be stolen and put in a single condition in America,” he told MPs.

“We called over the Condition Security Company to come look into the subject due to the fact we are receiving experiences that our information and facts is making income for media platforms and journalists,” he claimed. “There's been discuss, not surprisingly from a single supply, 1 media, that spoke A great deal about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but failed to notify MPs which the SSA investigation had been done Just about a calendar year previously.

Proactive funding was at the center of the looting of your lottery. It aspect-stepped the traditional grant method. The NLC could by itself detect a project to fund and appoint a non-profit organisation to supervise it.

Immediately after Nevhutanda 1st advised Parliament in 2018 that he had requested the SSA to investigate the meant breach, the South African National Editors Discussion board issued a statement expressing that his remarks reflected “an extremely risky 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 alternatively made an effort to Solid doubt about the integrity with the journalists associated and it has requested the SSA to research their sources.”

Proactive projects produced secret
Stability flaws discovered from the NLC grant funding technique in the course of the SSA’s investigation, seem to happen to be used as an justification with the NLC to remove all proactive-funded initiatives from its central grants method.

“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 maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business, Govt Supervisor Lawful in order to safeguard [the] info,” Nene mentioned in her affidavit.

“There was a great deal of inner discussion, with plenty of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was inside a senior position within the NLC at enough time, informed GroundUp. “Eventually, the decision was taken to eliminate the many proactive tasks within the technique and Restrict entry to A few people”.

Some in that handful of men and women were being implicated in corruption.

Maselwa, who resigned from your NLC various years ago, has actually been implicated in corruption involving lottery resources. He been given R4.three-million from lottery resources allotted to build a library and museum complicated in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to construct a home within an upmarket gated development in Pretoria. The assets is one of numerous compensated for with lottery cash which were frozen once the Asset Forfeiture Device received a preservation buy in December 2022.

The politically-linked Nevhutanda, who was appointed as being the NLC board chairperson by former President Jacob Zuma in 2009 and was close to higher-ups within the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated while in the corruption which overwhelmed the NLC on their own look at.

Also implicated are former board customers William Huma, who resigned right after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have considering that died.

When a new administration, such as the entire board and executive, took about in the NLC in late 2022 and early 2023, they learned a “chaotic mess” within the documentation regarding proactive funding, A great deal of which was paper-primarily based. Crucial paperwork have been lacking. Documents held for safekeeping by doc storage firm Metrofile had been signed out and never ever returned.

The NLC was in the position to Get well copies of some ruay documents from its Mimecast e-mail archiving technique as well as laptops in their assistants and support workers.

News studies
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave problem attainable facts protection breaches along with the unauthorised use and/or dissemination of confidential info attained on account of doing official capabilities while in the Commission by NLC staff members. The pursuits are meant to undermine the integrity on the Commission even though disrupting the efficient features [from the NLC] and resulting in insurmountable reputational harm on the Fee as the custodian of non-public facts entrusted to it by its beneficiaries.”

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

Nene is at this time struggling with a disciplinary inquiry after she was unsuccessful in legal motion to put aside results of irregular expenditure on her look at.

The objective of her affidavit, Nene stated, was “to document the occasions which transpired relating to information and facts protection breaches on the National Lotteries Fee”.

She outlined many news reports which she claimed ended up the outcomes of such “breaches” (see at the end of this text).

Nene stated that a whistle-blower approached the NLC alleging that considered one of its workers, Sello Qhino, had “presented her categorised NLC Information and persistently encouraged her to supply the knowledge to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded jobs in Kuruman immediately after attempts to boost the issue internally were being disregarded, was subsequently fired.

Referring to an 18 November 2018 post inside the Day-to-day Dispatch about the misappropriation of Lottery money, Nene claimed which the NLC identified and afterwards suspended Zintle Rungqu. She was an personnel during the NLC’s East London office, who was the spouse along with the mom of whistleblower Mzukise Makatse’s 3 little ones.

Rungqu and Makatse consider Rungqu was punished mainly because Makatse blew the whistle. She was suspended and charged internally, Using the NLC spending R470,000 on attorneys to signify it, but was discovered not responsible and allowed to return to work.

“The popular factor in these articles is always that [they involve] categorized information and facts regarding proactive funding assignments,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out in the spouse and children home to take the warmth off her and his small children. Facing homelessness, he moved into an Workplace within an empty factory belonging to a friend.

Both Makatse and Qhino are taking part in an NLC reparation course of action intended to recognise the hurt a lot of people endured at the palms from the NLC. Apologies and, occasionally, fiscal payment are anticipated.

“Some persons had been definitely affected quite negatively by this … This is really painful,” NLC Commissioner Jodi Scholtz advised the Each day Maverick past year.

“I met a few these folks. It was just so heart-wrenching that their whole life are actually turned the other way up,” claimed Scholtz.

Between People she satisfied were Qhino and Makatse.

Safe System required for whistleblowers
The SSA found the absence at enough time of a correct channel for whistleblowers to report corruption led them to show towards the media.

“Failure to possess a dedicated anti-corruption channel will cause employees presenting these cases outside of the NLC,” the SSA claimed in its conclusions.

“Offered the magnitude of corruption in condition institutions, it stays important that it makes certain that the NLC complies with all stability prescripts Which its aim is on ensuring 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 conduct with out becoming intimidated.”

It recommended which the NLC set up a “Secure channel” for workers to supply info on any “untoward activity” that may not protect against or discourage staff from blowing the whistle. A whistle-blowers plan, depending on the Shielded Disclosures Act 25 of 2000, is often a requirement.”

Media studies Nene mentioned
A 10 December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Health and fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner from the Limpopo Mirror, to show NLC corruption. “The report had features of knowledge not accessible in the general public domain, therefore raising worry on internal Facts security breaches. The allegations from the media had been independently investigated,” Nene claimed. “Nevertheless, staff members accountable for divulging categorized facts have yet to become recognized”;
A 28 January 2018 report released via the Dally Dispatch “citing various allegations from the Limpopo Mirror article published on ten December 2017 and also a new allegation regarding a former employee via the title of Mzukisi Makatse. He was charged and summarily dismissed with the risk brought on into the organisation.”
A 16 November 2018 article from the Lowvelder in regards to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite receiving R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder article contained categorized data in terms of NLC policy, raising more worries of inside facts protection breaches,” Nene claimed in her affidavit. “The prima facie evidence regarding these allegations did not warrant an unbiased Investigation, having said that [it] highlighted the heightened facts protection hazards within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene stated GroundUp experienced confirmed in its Tale that it was based upon leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Advertising of Entry to Information and facts) request for aspects regarding the challenge, she stated