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 National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the Point out Stability Agency (SSA) in December 2018 to investigate the leaking of files that uncovered lottery corruption.
The NLC’s firm secretary at the time shown media studies she reported were according to “stolen” information and facts within an affidavit to the SSA.
The SSA did investigate. It observed the knowledge wasn't a make any difference of state security and which the “prevalence of alleged corruption and irregularities” gave “enough motive” for that media to reveal it.
A fresh board and management has since taken about the NLC and thus far have taken measures to end corruption in the institution.
A Point out Stability Agency (SSA) investigation identified that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered ample motive” for exposure by the media.

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

Here's

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “confidential” results and suggestions.
Nevhutanda requested the SSA to research the part of NLC staff members from the alleged leaking of data, and Nene, in her affidavit identified certain media and studies that she claimed included these leaks.

In the letter outlining its findings, the SSA informed the NLC that when shielding point out details was “a legal imperative targeted at guarding the sovereignty and integrity in the state” this only applied to properly categorized information.

Even though it didn't say so directly, the SSA conclusions implied the allegedly leaked facts did not drop into this group.

Considerably, the SSA manufactured it distinct that the need to safeguard point out information “will not avert any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation found which the NLC facts associated with the alleged breach was “delicate and privileged in character, but not categorised when it comes to the prescripts from the Minimum Information Protection Benchmarks (Miss out on)”.

“The leakage from the pertinent delicate official NLC facts for the media would not pose a risk to countrywide security,” the SSA mentioned, incorporating which the impression of the breaches was reputational.

The SSA report uncovered “no evidence of the factual and incriminating nature in opposition to any with the suspected NLC staff that can be discovered from the information and data interrogated”.

In addition it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does give ample motive to have these kinds of exposed during the media”.

Conspiracy claims
In 2020, Nevhutanda advised MPs through a session of Parliament’s trade, business and Competitors portfolio committee that there was “a conspiracy” where details “stolen” through the NLC was despatched into the US, where he claimed it was becoming sold to fund a smear campaign against the NLC.

He was repeating equivalent statements he had Earlier designed in Parliament, which bundled ad hominem assaults on GroundUp and this reporter but was cautious not to name either.

“I arrived in this article On this August property previous calendar year and documented to honourable users that specifics of our beneficiaries has actually been stolen and put in one point out in the usa,” he informed MPs.

“We identified as within the Condition Protection Company to come take a look at the make a difference since we've been getting reviews that our info is generating cash for media platforms and journalists,” he explained. “There's been talk, needless to say from just one supply, one particular media, that spoke Significantly about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't explain to MPs which the SSA investigation had been done Practically a calendar year previously.

Proactive funding was at the guts on the looting on the lottery. It aspect-stepped the traditional grant course of action. The NLC could itself establish a undertaking to fund and appoint a non-profit organisation to supervise it.

Soon after Nevhutanda initial explained to Parliament in 2018 that he had questioned the SSA to investigate the meant breach, the South African National Editors Discussion board issued a press release stating that his remarks mirrored “a very harmful Frame of mind wherever the media is becoming blamed for your NLC’s inherent problems”.

“Rather than investigating why tens of millions can't be accounted for, the NLC has alternatively made an effort to Forged question around the integrity in the journalists involved and it has asked the SSA to investigate their resources.”

Proactive projects produced secret
Stability flaws identified during the NLC grant funding program in the SSA’s investigation, look to have already been employed being an justification by the NLC to get rid of all proactive-funded tasks from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘solution’ and jobs were removed from the grant funding procedure and maintained manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Govt Manager Lawful as a way to safeguard [the] information and facts,” Nene said in her affidavit.

“There was plenty of internal dialogue, with a great deal of back and forth, about what to do to plug the alleged leaks”, a resource, who was in the senior placement at the NLC at enough time, informed GroundUp. “Eventually, the decision was taken to eliminate each of the proactive initiatives within the system and Restrict entry to a handful of men and women”.

Some in that handful of people were implicated in corruption.

Maselwa, who resigned within the NLC quite a few a long time back, has actually been implicated in corruption involving lottery money. He gained R4.three-million from lottery funds allocated to construct a library and museum intricate in Kuruman (see Taung Cultural Tunes and Arts Expo) which he made use of to make a house within an upmarket gated progress in Pretoria. The residence is one of numerous paid for with lottery funds that were frozen after the Asset Forfeiture Device received a preservation buy in December 2022.

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

Also implicated are previous board members William Huma, who resigned immediately after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have given that died.

Every time a new administration, such as the whole board and government, took around on the NLC in late 2022 and early 2023, they learned a “chaotic mess” from the documentation regarding proactive funding, Substantially of which was paper-dependent. Essential paperwork had been lacking. Files held for safekeeping by document storage organization Metrofile were signed out and never returned.

The NLC was capable to Get well copies of some ltpbet paperwork from its Mimecast e mail archiving system and the laptops in their assistants and support employees.

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 possible facts security breaches plus the unauthorised use and/or dissemination of private details received because of accomplishing Formal features in the Commission by NLC staff members. The activities are intended to undermine the integrity in the Commission even though disrupting the productive capabilities [of your NLC] and creating insurmountable reputational harm for the Commission because the custodian of personal information entrusted to it by its beneficiaries.”

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

Nene is now experiencing a disciplinary inquiry soon after she was unsuccessful in lawful action to put aside conclusions of irregular expenditure on her observe.

The goal of her affidavit, Nene stated, was “to report the events which transpired associated with facts stability breaches at the National Lotteries Commission”.

She outlined a variety of news stories which she claimed ended up the effects of such “breaches” (see at the end of this information).

Nene claimed that a whistle-blower approached the NLC alleging that amongst its staff members, Sello Qhino, had “offered her categorised NLC Facts and persistently encouraged her to deliver the information to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded initiatives in Kuruman right after tries to lift the issue internally ended up disregarded, was subsequently fired.

Referring to an 18 November 2018 report in the Everyday Dispatch with regard to the misappropriation of Lottery funds, Nene stated that the NLC recognized then suspended Zintle Rungqu. She was an personnel from the NLC’s East London Workplace, who was the partner plus the mom of whistleblower Mzukise Makatse’s 3 small children.

Rungqu and Makatse believe that Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Along with the NLC spending R470,000 on legal professionals to stand for it, but was uncovered not guilty and permitted to return to work.

“The typical Think about these content articles is the fact [they require] categorized information referring to proactive funding projects,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out on the family home to take the warmth off her and his children. Struggling with homelessness, he moved into an Business office within an vacant factory belonging to a buddy.

Equally Makatse and Qhino are participating in an NLC reparation system meant to recognise the damage a lot of people endured with the palms from the NLC. Apologies and, in some cases, financial compensation are envisioned.

“Some folks were being actually afflicted extremely negatively by this … This is really agonizing,” NLC Commissioner Jodi Scholtz informed the Each day Maverick final year.

“I achieved two or three these men and women. It absolutely was just so heart-wrenching that their entire life are already turned the other way up,” stated Scholtz.

Amongst All those she achieved were being Qhino and Makatse.

Protected System necessary for whistleblowers
The SSA observed the absence at enough time of a suitable channel for whistleblowers to report corruption led them to turn to your media.

“Failure to have a dedicated anti-corruption channel will result in workers presenting this sort of circumstances beyond the NLC,” the SSA explained in its findings.

“Specified the magnitude of corruption in state establishments, it continues to be critical that it makes certain that the NLC complies with all safety prescripts Which its concentration is on making certain that unlawful and irregular carry out is adequately mitigated versus and by ensuring an sufficient channel for whistle-blowers to report untoward carry out without having currently being intimidated.”

It advisable the NLC establish a “Secure channel” for workers to offer info on any “untoward action” that will not stop or discourage workers from blowing the whistle. A whistle-blowers plan, based upon the Guarded Disclosures Act twenty five of 2000, can be a requirement.”

Media reviews Nene stated
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Conditioning Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator of your Limpopo Mirror, to show NLC corruption. “The posting experienced things of knowledge not offered in the public domain, thus elevating concern on interior Facts safety breaches. The allegations within the media were being independently investigated,” Nene claimed. “Even so, workers accountable for divulging labeled info have nonetheless for being determined”;
A 28 January 2018 post revealed via the Dally Dispatch “citing many allegations through the Limpopo Mirror posting posted on ten December 2017 along with a new allegation referring to a former employee from the name of Mzukisi Makatse. He was billed and summarily dismissed for that menace induced on the organisation.”
A 16 November 2018 article during the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite obtaining R27-million in lottery grants, the rehab hasn't been accomplished. “The Lowvelder post contained labeled information with regard to NLC plan, elevating even further concerns of inner facts stability breaches,” Nene stated in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an independent Investigation, nonetheless [it] highlighted the heightened data safety pitfalls inside the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene explained GroundUp had verified in its story that it was based on leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Entry to Information) ask for for particulars about the job, she stated