Lottery bosses turned to Condition Safety Agency to research leaks

Lottery bosses turned to Condition Safety Agency to research leaks

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Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the State Safety Company (SSA) in December 2018 to research the leaking of paperwork that uncovered lottery corruption.
The NLC’s enterprise secretary at enough time stated media stories she claimed were according to “stolen” info within an affidavit to the SSA.
The SSA did look into. It discovered the data wasn't a issue of condition stability and that the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to show it.
A brand new board and administration has because taken about the NLC and So far have taken steps to end corruption for the establishment.
A Condition Protection Agency (SSA) investigation discovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered sufficient motive” for publicity by the media.

The probe into meant “data protection breaches and sabotage of NLC operations” was undertaken following then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to investigate.

Here's

Nevhutanda’s letter,
an affidavit by at present suspended NLC company secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” findings and proposals.
Nevhutanda requested the SSA to investigate the position of NLC staff members while in the alleged leaking of knowledge, and Nene, in her affidavit determined distinct media and reviews that she claimed involved these leaks.

From the letter outlining its conclusions, the SSA informed the NLC that whilst safeguarding point out information was “a lawful imperative targeted at protecting the sovereignty and integrity on the point out” this only applied to properly categorized facts.

Although it didn't say so right, the SSA results implied the allegedly leaked details didn't fall into this classification.

Noticeably, the SSA manufactured it obvious that the necessity to shield point out info “would not avert any personal from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation identified that the NLC info associated with the alleged breach was “delicate and privileged in character, but not categorized regarding the prescripts of the Minimal Info Protection Standards (Skip)”.

“The leakage of the pertinent delicate Formal NLC facts on the media will not pose a danger to countrywide stability,” the SSA mentioned, adding the influence of the breaches was reputational.

The SSA report observed “no proof of the factual and incriminating character in opposition to any of your suspected NLC staff which could be identified from the knowledge and knowledge interrogated”.

Furthermore, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide enough motive to acquire these types of exposed during the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs all through a session of Parliament’s trade, market and Levels of competition portfolio committee that there was “a conspiracy” during which facts “stolen” through the NLC was sent for the US, exactly where he claimed it had been staying sold to fund a smear marketing campaign in opposition to the NLC.

He was repeating comparable statements he experienced previously designed in Parliament, which incorporated ad hominem assaults on GroundUp which reporter but was cautious not to name both.

“I came here Within this August property very last 12 months and described to honourable associates that information about our beneficiaries is stolen and put in a single state in the united states,” he advised MPs.

“We referred to as on the Condition Stability Agency to come consider the matter due to the fact we're acquiring reviews that our info is producing income for media platforms and journalists,” he said. “There's been converse, obviously from just one supply, just one media, that spoke Considerably about proactive-funding,” Nevhutanda explained (referring to GroundUp), but didn't notify MPs that the SSA investigation had been done Practically a 12 months before.

Proactive funding was at the center of the looting with the lottery. It facet-stepped the traditional grant procedure. The NLC could alone recognize a project to fund and appoint a non-financial gain organisation to supervise it.

Immediately after Nevhutanda first advised Parliament in 2018 that he experienced requested the SSA to analyze the supposed breach, the South African Countrywide Editors Discussion board issued an announcement declaring that his remarks mirrored “a particularly risky Mindset the place the media is being blamed to the NLC’s inherent complications”.

“As an alternative to investigating why tens of millions can not be accounted for, the NLC has instead tried to Solid question over the integrity of the journalists associated and has requested the SSA to research their sources.”

Proactive assignments manufactured mystery
Security flaws determined inside the NLC grant funding procedure in the SSA’s investigation, surface to happen to be utilized as an excuse because of the NLC to remove all proactive-funded assignments from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘top secret’ and jobs were being removed from the grant funding method and maintained manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business office, Govt Manager Legal in order to safeguard [the] information and facts,” Nene claimed in her affidavit.

“There was a great deal of interior dialogue, with lots of backwards and forwards, about how to proceed to plug the alleged leaks”, a source, who was in a very senior place at the NLC at time, explained to GroundUp. “In the end, the decision was taken to get rid of many of the proactive jobs in the system and Restrict access to A few persons”.

Some in that handful of men and women had been implicated in corruption.

Maselwa, who resigned from the NLC a number of a long time back, has been implicated in corruption involving lottery cash. He received R4.three-million from lottery funds allotted to create a library and museum complicated in Kuruman (see Taung Cultural Tunes and Arts Expo) which he utilized to develop a residence within an upmarket gated development in Pretoria. The property is one of numerous paid for with lottery money which were frozen after the Asset Forfeiture Unit acquired a preservation purchase in December 2022.

The politically-related Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to substantial-ups inside the ANC Management, former NLC previous Commissioner Thabang Mampane, and ex-chief functioning officer Phillemon Letwaba, have all been implicated while in the corruption which overwhelmed the NLC on their check out.

Also implicated are former board associates William Huma, who resigned just after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has considering the fact that died.

Each time a new administration, such as the entire board and executive, took about within the NLC in late 2022 and early 2023, they found a “chaotic mess” within the documentation associated with proactive funding, Substantially of which was paper-centered. Vital files were being lacking. Information held for safekeeping by document storage company Metrofile were signed out and in no way returned.

The NLC was in a position to recover copies of some ตรวจ ล้อ ต เต อ รี่ documents from its Mimecast email archiving program and also the laptops of their assistants and assist team.

Information experiences
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave concern doable data security breaches and the unauthorised use and/or dissemination of confidential facts acquired on account of doing Formal functions while in the Fee by NLC employees. The pursuits are meant to undermine the integrity with the Fee though disrupting the successful functions [in the NLC] and resulting in insurmountable reputational damage on the Commission because the custodian of personal details entrusted to it by its beneficiaries.”

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

Nene is at the moment going through a disciplinary inquiry soon after she was unsuccessful in legal motion to set aside conclusions of irregular expenditure on her enjoy.

The purpose of her affidavit, Nene said, was “to report the occasions which transpired concerning details protection breaches in the Nationwide Lotteries Commission”.

She stated various news reports which she claimed ended up the results of these “breaches” (see at the end of this text).

Nene reported that a whistle-blower approached the NLC alleging that certainly one of its workers, Sello Qhino, experienced “delivered her labeled NLC Details and persistently inspired her to offer the information to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded jobs in Kuruman soon after tries to raise The difficulty internally were dismissed, was subsequently fired.

Referring to an eighteen November 2018 article while in the Daily Dispatch with regards to the misappropriation of Lottery funds, Nene explained which the NLC identified and afterwards suspended Zintle Rungqu. She was an staff during the NLC’s East London Workplace, who was the spouse along with the mother of whistleblower Mzukise Makatse’s a few kids.

Rungqu and Makatse feel Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, Using the NLC investing R470,000 on lawyers to signify it, but was discovered not guilty and permitted to return to operate.

“The prevalent Consider these posts is the fact [they involve] classified details associated with proactive funding tasks,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out in the family members property to go ahead and take heat off her and his young children. Experiencing homelessness, he moved into an office in an empty factory belonging to a pal.

Both equally Makatse and Qhino are taking part in an NLC reparation system meant to recognise the hurt some individuals experienced in the fingers of the NLC. Apologies and, in some instances, fiscal compensation are expected.

“Some folks had been definitely impacted very negatively by this … This is admittedly unpleasant,” NLC Commissioner Jodi Scholtz instructed the Every day Maverick very last calendar year.

“I achieved a few these men and women. It had been just so coronary heart-wrenching that their whole lives are already turned the wrong way up,” claimed Scholtz.

Between those she achieved were Qhino and Makatse.

Safe System essential for whistleblowers
The SSA identified the absence at the time of an appropriate channel for whistleblowers to report corruption led them to turn to the media.

“Failure to possess a dedicated anti-corruption channel will bring about personnel presenting this kind of conditions outside of the NLC,” the SSA explained in its conclusions.

“Offered the magnitude of corruption in condition establishments, it stays very important that it ensures that the NLC complies with all security prescripts and that its concentrate is on making certain that illegal and irregular conduct is sufficiently mitigated against and by ensuring an adequate channel for whistle-blowers to report untoward perform without the need of being intimidated.”

It recommended which the NLC create a “Protected channel” for employees to deliver information on any “untoward exercise” that might not avoid or discourage employees from blowing the whistle. A whistle-blowers coverage, according to the Shielded Disclosures Act 25 of 2000, is often a requirement.”

Media studies Nene listed
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Physical fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to expose NLC corruption. “The post had aspects of data not available in the general public area, therefore elevating problem on internal Info security breaches. The allegations in the media were being independently investigated,” Nene claimed. “On the other hand, staff members to blame for divulging categorized information have still for being discovered”;
A 28 January 2018 write-up posted through the Dally Dispatch “citing a lot of allegations from the Limpopo Mirror report posted on ten December 2017 along with a new allegation associated with a former worker because of the title of Mzukisi Makatse. He was charged and summarily dismissed to the risk induced to your organisation.”
A 16 November 2018 write-up while in the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of acquiring R27-million in lottery grants, the rehab has not been completed. “The Lowvelder posting contained categorized info concerning NLC coverage, boosting additional fears of internal facts stability breaches,” Nene mentioned in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an independent Investigation, even so [it] highlighted the heightened facts stability risks within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Main Care, a hijacked NPO. Nene stated GroundUp experienced verified in its story that it was according to leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Advertising of Use of Data) request for aspects with regard to the challenge, she claimed