Lottery bosses turned to State Security Agency to investigate leaks

Lottery bosses turned to State Security Agency to investigate leaks

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Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Stability Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s organization secretary at time detailed media stories she claimed ended up dependant on “stolen” information and facts within an affidavit for your SSA.
The SSA did investigate. It uncovered the knowledge 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 brand new board and administration has given that taken around the NLC and So far have taken actions to finish corruption within the institution.
A State Safety Agency (SSA) investigation located which 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 soon after then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” results and recommendations.
Nevhutanda questioned the SSA to research the part of NLC workers within the alleged leaking of data, and Nene, in her affidavit recognized specific media and stories that she claimed involved these leaks.

From the letter outlining its findings, the SSA instructed the NLC that while shielding point out details was “a authorized very important geared toward shielding the sovereignty and integrity of your point out” this only placed on correctly categorised information.

Even though it didn't say so instantly, the SSA conclusions implied the allegedly leaked facts did not fall into this category.

Significantly, the SSA built it crystal clear that the need to shield point out data “doesn't protect against any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation observed the NLC information linked to the alleged breach was “sensitive and privileged in nature, but not categorised in terms of the prescripts with the Minimal Info Safety Specifications (MISS)”.

“The leakage of your appropriate delicate Formal NLC information on the media does not pose a threat to nationwide safety,” the SSA stated, adding that the effects with the breaches was reputational.

The SSA report located “no evidence of a factual and incriminating nature towards any from the suspected NLC staff that may be discovered from the knowledge and facts interrogated”.

In addition it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does supply enough motive to own this sort of uncovered within the media”.

Conspiracy promises
In 2020, Nevhutanda instructed MPs in the course of a session of Parliament’s trade, field and Levels of competition portfolio committee that there was “a conspiracy” by which data “stolen” within the NLC was despatched on the US, the place he claimed it was being bought to fund a smear campaign against the NLC.

He was repeating identical statements he experienced Formerly made in Parliament, which involved ad hominem assaults on GroundUp which reporter but was mindful not to call either.

“I came below On this August household last yr and described to honourable users that information about our beneficiaries is stolen and place in one condition in the united states,” he advised MPs.

“We named to the Condition Safety Agency to return take a look at the make any difference for the reason that we have been acquiring reports that our information and facts is making funds for media platforms and journalists,” he stated. “There have been discuss, of course from just one source, one particular media, that spoke A lot about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't inform MPs the SSA investigation had been concluded almost a year earlier.

Proactive funding was at the heart on the looting on the lottery. It aspect-stepped the conventional grant course of action. The NLC could by itself discover a task to fund and appoint a non-financial gain organisation to oversee it.

Right after Nevhutanda very first told Parliament in 2018 that he experienced requested the SSA to investigate the intended breach, the South African National Editors Discussion board issued a statement indicating that his remarks reflected “an extremely risky Perspective where by the media is currently being blamed with the NLC’s inherent troubles”.

“Instead of investigating why thousands and thousands can not be accounted for, the NLC has instead tried to cast doubt within the integrity on the journalists included and it has requested the SSA to research their sources.”

Proactive tasks produced key
Safety flaws identified in the NLC grant funding system during the SSA’s investigation, show up to are employed being an excuse by the NLC to get rid of all proactive-funded projects from its central grants process.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘secret’ and initiatives were removed from the grant funding technique and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Office environment, Govt Supervisor Lawful to be able to safeguard [the] details,” Nene explained in her affidavit.

“There was a great deal of inside discussion, with a lot of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was in the senior placement within the NLC at time, advised GroundUp. “In the end, the choice was taken to remove all the proactive initiatives from your system and limit use of a handful of persons”.

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

Maselwa, who resigned from the NLC several yrs ago, has been implicated in corruption involving lottery resources. He gained R4.3-million from lottery resources allocated to build a library and museum intricate in Kuruman (see Taung Cultural Music and Arts Expo) which he applied to build a property within an upmarket gated enhancement in Pretoria. The home is among many compensated for with lottery money that were frozen following the Asset Forfeiture Unit received a preservation get in December 2022.

The politically-related Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was near higher-ups in the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated while in the corruption which overcome the NLC on their own enjoy.

Also implicated are former board customers William Huma, who resigned right after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has since died.

Each time a new administration, including the overall board and govt, took more than on the NLC in late 2022 and early 2023, they found a “chaotic mess” inside the documentation associated with proactive funding, Substantially of which was paper-centered. Important documents were being lacking. Information held for safekeeping by document storage company Metrofile were signed out and never ever returned.

The NLC was capable to recover copies of some ตัว หวย paperwork from its Mimecast e mail archiving technique along with the laptops of their assistants and help workers.

News experiences
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave issue attainable details stability breaches plus the unauthorised use and/or dissemination of confidential data attained as a result of performing official capabilities during the Commission by NLC staff. The things to do are meant to undermine the integrity on the Fee when disrupting the efficient functions [from the NLC] and triggering insurmountable reputational damage on the Commission as being the custodian of non-public data entrusted to it by its beneficiaries.”

His request for your SSA to analyze was supported within an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.

Nene is at present dealing with a disciplinary inquiry following she was unsuccessful in lawful action to set aside conclusions of irregular expenditure on her look at.

The goal of her affidavit, Nene stated, was “to history the activities which transpired regarding information safety breaches within the National Lotteries Fee”.

She listed numerous news reports which she claimed were the results of such “breaches” (see at the conclusion of this article).

Nene reported that a whistle-blower approached the NLC alleging that one of its workforce, Sello Qhino, experienced “offered her classified NLC Information and persistently inspired her to provide the knowledge to GroundUp”.

Qhino, who blew the whistle on a series of dodgy lottery-funded tasks in Kuruman after tries to lift the issue internally were being dismissed, was subsequently fired.

Referring to an eighteen November 2018 article while in the Daily Dispatch in regards to the misappropriation of Lottery cash, Nene reported that the NLC identified and afterwards suspended Zintle Rungqu. She was an staff in the NLC’s East London Place of work, who was the lover plus the mother of whistleblower Mzukise Makatse’s three kids.

Rungqu and Makatse feel Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, with the NLC expending R470,000 on attorneys to symbolize it, but was found not responsible and permitted to return to work.

“The prevalent factor in these articles is the fact [they include] categorized information and facts relating to proactive funding assignments,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out of your loved ones property to go ahead and take heat off her and his young children. Experiencing homelessness, he moved into an Business in an empty factory belonging to a friend.

Each Makatse and Qhino are taking part in an NLC reparation system intended to recognise the hurt lots of people endured at the palms from the NLC. Apologies and, occasionally, fiscal payment are anticipated.

“Some people today had been definitely affected incredibly negatively by this … This is really unpleasant,” NLC Commissioner Jodi Scholtz advised the Day by day Maverick last year.

“I met a number of these folks. It had been just so heart-wrenching that their whole life are actually turned the wrong way up,” explained Scholtz.

Amongst These she achieved ended up Qhino and Makatse.

Risk-free platform wanted for whistleblowers
The SSA located the absence at the time of a suitable channel for whistleblowers to report corruption led them to show on the media.

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

“Specified the magnitude of corruption in state institutions, it remains essential that it ensures that the NLC complies with all safety prescripts and that its emphasis is on guaranteeing that illegal and irregular conduct is adequately mitigated against and by ensuring an adequate channel for whistle-blowers to report untoward perform devoid of staying intimidated.”

It encouraged that the NLC build a “Safe and sound channel” for employees to provide info on any “untoward activity” that may not avert or discourage staff from blowing the whistle. A whistle-blowers plan, according to the Secured Disclosures Act twenty five of 2000, is actually a prerequisite.”

Media experiences Nene outlined
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health 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 expose NLC corruption. “The write-up had factors of information not obtainable in the public area, thus increasing problem on internal Information stability breaches. The allegations from the media have been independently investigated,” Nene stated. “Nevertheless, employees responsible for divulging labeled data have however to generally be recognized”;
A 28 January 2018 short article published through the Dally Dispatch “citing a lot of allegations from the Limpopo Mirror post printed on 10 December 2017 as well as a new allegation regarding a former worker with the name of Mzukisi Makatse. He was charged and summarily dismissed for the danger prompted to your organisation.”
A 16 November 2018 write-up within the Lowvelder regarding the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of acquiring R27-million in lottery grants, the rehab has not been done. “The Lowvelder report contained categorised data in terms of NLC coverage, raising additional problems of inner information protection breaches,” Nene said in her affidavit. “The prima facie evidence with regard to these allegations didn't warrant an independent Investigation, having said that [it] highlighted the heightened details safety pitfalls throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Principal Care, a hijacked NPO. Nene mentioned GroundUp had verified in its Tale that it had been dependant on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Info) request for aspects concerning the project, she claimed