Lottery bosses turned to Condition Protection Agency to research leaks

Lottery bosses turned to Condition Protection Agency to research leaks

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Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Stability Agency (SSA) in December 2018 to research the leaking of paperwork that uncovered lottery corruption.
The NLC’s enterprise secretary at enough time mentioned media reports she mentioned have been based on “stolen” information within an affidavit for that SSA.
The SSA did examine. It identified the information wasn't a issue of state protection and which the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to show it.
A brand new board and administration has considering the fact that taken in excess of the NLC and So far have taken actions to finish corruption with the establishment.
A Point out Security Agency (SSA) investigation located the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided sufficient motive” for publicity with the media.

The probe into meant “info protection breaches and sabotage of NLC functions” was carried out immediately after then-NLC board chairperson Alfred Nevhutanda wrote to the SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the security agency’s “confidential” findings and proposals.
Nevhutanda asked the SSA to analyze the role of NLC staff within the alleged leaking of knowledge, and Nene, in her affidavit recognized specific media and reports that she claimed associated these leaks.

Within the letter outlining its conclusions, the SSA explained to the NLC that whilst guarding point out information and facts was “a authorized very important geared toward preserving the sovereignty and integrity in the state” this only placed on properly categorised details.

Although it didn't say so straight, the SSA findings implied that the allegedly leaked details did not drop into this class.

Noticeably, the SSA made it distinct that the necessity to guard condition information “would not prevent any individual from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation identified that the NLC info involved in the alleged breach was “delicate and privileged in nature, although not classified when it comes to the prescripts of your Bare minimum Information and facts Security Criteria (MISS)”.

“The leakage of your pertinent sensitive official NLC information to the media will not pose a risk to national security,” the SSA stated, adding that the impact with the breaches was reputational.

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

What's more, it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does present enough motive to have this sort of exposed while in the media”.

Conspiracy statements
In 2020, Nevhutanda advised MPs through a session of Parliament’s trade, field and competition portfolio committee that there was “a conspiracy” in which information “stolen” within the NLC was despatched for the US, exactly where he claimed it absolutely was currently being offered to fund a smear marketing campaign towards the NLC.

He was repeating similar statements he experienced Formerly built in Parliament, which incorporated advert hominem assaults on GroundUp and this reporter but was watchful not to call possibly.

“I came listed here During this August home previous 12 months and claimed to honourable members that information about our beneficiaries is stolen and place in one state in America,” he told MPs.

“We called on the Point out Protection Agency to return take a look at the make any difference mainly because we're getting experiences that our data is producing revenue for media platforms and journalists,” he explained. “There's been converse, certainly from a person supply, one particular media, that spoke A lot about proactive-funding,” Nevhutanda reported (referring to GroundUp), but didn't inform MPs that the SSA investigation were done Just about a 12 months previously.

Proactive funding was at the center of your looting of your lottery. It facet-stepped the traditional grant process. The NLC could alone detect a challenge to fund and appoint a non-financial gain organisation to oversee it.

Following Nevhutanda initial explained to Parliament in 2018 that he had questioned the SSA to research the intended breach, the South African Countrywide Editors Discussion board issued a statement expressing that his remarks mirrored “an especially perilous Mindset wherever the media is being blamed for the NLC’s inherent challenges”.

“Instead of investigating why tens of millions can't be accounted for, the NLC has instead attempted to Forged doubt about the integrity on the journalists associated and has requested the SSA to analyze their sources.”

Proactive tasks designed key
Safety flaws identified during the NLC grant funding system through the SSA’s investigation, show up to have already been made use of being an excuse via the NLC to get rid of all proactive-funded tasks from its central grants technique.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘secret’ and projects were removed from the grant funding procedure and managed manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Office, Government Manager Legal in an effort to safeguard [the] information and facts,” Nene reported in her affidavit.

“There was plenty of inner dialogue, with numerous back and forth, about what to do to plug the alleged leaks”, a source, who was inside of a senior place within the NLC at the time, explained to GroundUp. “In the long run, the decision was taken to get rid of every one of the proactive assignments in the system and limit access to a handful of people today”.

Some in that handful of individuals were implicated in corruption.

Maselwa, who resigned with the NLC a number of yrs back, has become implicated in corruption involving lottery resources. He received R4.3-million from lottery money allocated to develop a library and museum complex in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to create a residence in an upmarket gated advancement in Pretoria. The house is one of several compensated for with lottery resources that were frozen following the Asset Forfeiture Unit attained a preservation buy in December 2022.

The politically-connected Nevhutanda, who was appointed as the NLC board chairperson by former President Jacob Zuma in 2009 and was near significant-ups within the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated from the corruption which overwhelmed the NLC on their enjoy.

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 because died.

Each time a new administration, including the overall board and govt, took over at the NLC in late 2022 and early 2023, they discovered a “chaotic mess” within the documentation relating to proactive funding, A lot of which was paper-based. Key paperwork had been lacking. Information held for safekeeping by doc storage corporation Metrofile had been signed out and hardly ever returned.

The NLC was in the position to Recuperate copies of some ตรวจ หวย ลาว files from its Mimecast electronic mail archiving process as well as laptops of their assistants and assistance team.

News reports
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem probable data security breaches along with the unauthorised use and/or dissemination of private info received on account of executing Formal capabilities inside the Fee by NLC workforce. The routines are intended to undermine the integrity with the Fee while disrupting the effective functions [from the NLC] and leading to insurmountable reputational harm on the Commission as the custodian of personal information entrusted to it by its beneficiaries.”

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

Nene is now experiencing a disciplinary inquiry right after she was unsuccessful in lawful action to set aside conclusions of irregular expenditure on her view.

The objective of her affidavit, Nene reported, was “to document the gatherings which transpired relating to details protection breaches at the Nationwide Lotteries Fee”.

She outlined different news reviews which she claimed have been the outcome of those “breaches” (see at the end of this information).

Nene said that a whistle-blower approached the NLC alleging that certainly one of its workers, Sello Qhino, experienced “presented her classified NLC Facts and persistently inspired her to offer the data to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded tasks in Kuruman immediately after tries to boost The problem internally have been ignored, was subsequently fired.

Referring to an 18 November 2018 short article while in the Each day Dispatch regarding the misappropriation of Lottery funds, Nene said that the NLC identified then suspended Zintle Rungqu. She was an worker inside the NLC’s East London Place of work, who was the associate as well as mom of whistleblower Mzukise Makatse’s a few children.

Rungqu and Makatse feel Rungqu was punished mainly because Makatse blew the whistle. She was suspended and billed internally, With all the NLC shelling out R470,000 on lawyers to symbolize it, but was discovered not responsible and allowed to return to work.

“The typical Think about these content articles is [they include] classified information and facts regarding proactive funding projects,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out from the spouse and children house to take the heat off her and his young children. Struggling with homelessness, he moved into an office within an vacant factory belonging to a pal.

Each Makatse and Qhino are taking part in an NLC reparation course of action meant to recognise the harm a number of people suffered for the fingers of your NLC. Apologies and, in some instances, financial compensation are envisioned.

“Some folks were being genuinely impacted really negatively by this … This is admittedly distressing,” NLC Commissioner Jodi Scholtz explained to the Day by day Maverick past calendar year.

“I fulfilled a handful of these men and women. It was just so coronary heart-wrenching that their total lives have been turned the other way up,” mentioned Scholtz.

Among the People she met have been Qhino and Makatse.

Secure platform required for whistleblowers
The SSA observed the absence at the time of a correct channel for whistleblowers to report corruption led them to show into the media.

“Failure to have a dedicated anti-corruption channel will lead to personnel presenting these types of cases outside of the NLC,” the SSA said in its findings.

“Given the magnitude of corruption in state establishments, it stays important that it makes certain that the NLC complies with all security prescripts and that its target is on guaranteeing that unlawful and irregular perform is sufficiently mitigated against and by making sure an enough channel for whistle-blowers to report untoward carry out devoid of becoming intimidated.”

It advised the NLC set up a “Protected channel” for workers to deliver information on any “untoward activity” that might not prevent or discourage personnel from blowing the whistle. A whistle-blowers plan, depending on the Secured Disclosures Act 25 of 2000, is actually a prerequisite.”

Media stories Nene listed
A ten December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Health and fitness Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and owner of the Limpopo Mirror, to show NLC corruption. “The report had elements of knowledge not obtainable in the general public domain, thus raising worry on internal Information and facts safety breaches. The allegations during the media had been independently investigated,” Nene reported. “Nonetheless, workforce answerable for divulging categorised information have but being discovered”;
A 28 January 2018 posting published from the Dally Dispatch “citing several allegations through the Limpopo Mirror report revealed on 10 December 2017 along with a new allegation relating to a previous worker from the identify of Mzukisi Makatse. He was billed and summarily dismissed for your danger induced for the organisation.”
A sixteen November 2018 write-up within the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Regardless of acquiring R27-million in lottery grants, the rehab has never been accomplished. “The Lowvelder posting contained classified data concerning NLC policy, raising more worries of inside information and facts stability breaches,” Nene reported in her affidavit. “The prima facie proof with regards to these allegations did not warrant an independent Investigation, nevertheless [it] highlighted the heightened info security risks in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Most important Care, a hijacked NPO. Nene stated GroundUp experienced confirmed in its Tale that it was dependant on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Promotion of Use of Info) ask for for details with regards to the venture, she claimed