Lottery bosses turned to Condition Protection Company to analyze leaks

Lottery bosses turned to Condition Protection Company to analyze leaks

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Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Security Agency (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s business secretary at enough time mentioned media experiences she stated ended up determined by “stolen” information in an affidavit to the SSA.
The SSA did examine. It located the data wasn't a subject of condition safety and that the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to reveal it.
A different board and administration has given that taken above the NLC and So far have taken steps to end corruption for the institution.
A State Protection Agency (SSA) investigation observed that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for exposure via the media.

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

Here is

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC business secretary Nompumelelo Nene supporting the request, and
the safety company’s “confidential” conclusions and proposals.
Nevhutanda questioned the SSA to investigate the function of NLC employees inside the alleged leaking of knowledge, and Nene, in her affidavit recognized certain media and reviews that she claimed concerned these leaks.

While in the letter outlining its findings, the SSA explained to the NLC that although guarding point out information was “a legal vital directed at safeguarding the sovereignty and integrity of the condition” this only placed on properly classified details.

Although it did not say so instantly, the SSA findings implied which the allegedly leaked information and facts didn't tumble into this category.

Substantially, the SSA made it clear that the necessity to defend point out facts “doesn't protect against any specific from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation identified the NLC information and facts involved with the alleged breach was “sensitive and privileged in nature, although not categorized with regard to the prescripts in the Minimum Data Security Criteria (Skip)”.

“The leakage on the relevant sensitive official NLC facts towards the media will not pose a risk to nationwide safety,” the SSA stated, including that the influence of the breaches was reputational.

The SSA report located “no evidence of the factual and incriminating character in opposition to any of your suspected NLC personnel that may be identified from the information and details interrogated”.

Additionally, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does supply sufficient motive to possess this sort of exposed within the media”.

Conspiracy claims
In 2020, Nevhutanda explained to MPs all through a session of Parliament’s trade, marketplace and Opposition portfolio committee that there was “a conspiracy” by which details “stolen” through the NLC was sent towards the US, exactly where he claimed it was remaining sold to fund a smear marketing campaign against the NLC.

He was repeating similar promises he experienced Formerly made in Parliament, which incorporated advertisement hominem attacks on GroundUp and this reporter but was mindful not to name possibly.

“I arrived below On this August household past calendar year and reported to honourable members that information about our beneficiaries has become stolen and set in one point out in the united states,” he advised MPs.

“We named around the Condition Protection Agency to return check into the issue because we're finding experiences that our information is generating money for media platforms and journalists,” he reported. “There have been talk, obviously from a single source, 1 media, that spoke Substantially about proactive-funding,” Nevhutanda reported (referring to GroundUp), but did not inform MPs which the SSA investigation had been concluded Virtually a yr previously.

Proactive funding was at the heart of your looting in the lottery. It facet-stepped the conventional grant approach. The NLC could by itself establish a task to fund and appoint a non-earnings organisation to supervise it.

Soon after Nevhutanda to start with advised Parliament in 2018 that he experienced asked the SSA to analyze the meant breach, the South African Countrywide Editors Discussion board issued a statement saying that his remarks reflected “an especially unsafe Mind-set where by the media is being blamed for your NLC’s inherent challenges”.

“Rather than investigating why tens of millions can not be accounted for, the NLC has in its place made an effort to cast question around the integrity of your journalists included and has requested the SSA to analyze their resources.”

Proactive assignments built mystery
Safety flaws identified in the NLC grant funding system in the SSA’s investigation, surface to are already made use of being an justification with the NLC to eliminate all proactive-funded assignments from its central grants process.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘secret’ and assignments were removed from the grant funding procedure and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business, Executive Supervisor Authorized so as to safeguard [the] facts,” Nene explained in her affidavit.

“There was plenty of internal dialogue, with numerous backwards and forwards, about how to proceed to plug the alleged leaks”, a resource, who was inside of a senior place at the NLC at the time, informed GroundUp. “Ultimately, the choice was taken to get rid of many of the proactive initiatives in the system and Restrict use of a handful of folks”.

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

Maselwa, who resigned from your NLC numerous a long time back, has been implicated in corruption involving lottery resources. He acquired R4.3-million from lottery resources allocated to make a library and museum advanced in Kuruman (see Taung Cultural Songs and Arts Expo) which he utilized to make a property in an upmarket gated development in Pretoria. The home is one of various compensated for with lottery cash that were frozen after the Asset Forfeiture Unit obtained a preservation order 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 from the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated during the corruption which overcome the NLC on their own enjoy.

Also implicated are former board members William Huma, who resigned after he was confronted with evidence 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 whole board and government, took more than for the NLC in late 2022 and early 2023, they found a “chaotic mess” during the documentation referring to proactive funding, much of which was paper-based mostly. Critical paperwork were being missing. Information held for safekeeping by document storage corporation Metrofile were signed out and in no way returned.

The NLC was ready to Get better copies of some ตรวจ ล้อ ต เต อ รี่ paperwork from its Mimecast electronic mail archiving program and also the laptops of their assistants and guidance team.

News reviews
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave worry attainable data safety breaches along with the unauthorised use and/or dissemination of confidential information received because of carrying out Formal features while in the Commission by NLC staff members. The activities are intended to undermine the integrity of your Fee although disrupting the helpful capabilities [in the NLC] and leading to insurmountable reputational hurt towards the Commission as being the custodian of private info entrusted to it by its beneficiaries.”

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

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

The purpose of her affidavit, Nene reported, was “to report the functions which transpired referring to information protection breaches at the Nationwide Lotteries Commission”.

She listed several news studies which she claimed were the outcome of such “breaches” (see at the end of this short article).

Nene claimed that a whistle-blower approached the NLC alleging that one among its workforce, Sello Qhino, had “offered her labeled NLC Information and facts and persistently inspired her to deliver the data to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded tasks in Kuruman right after attempts to lift The problem internally were disregarded, was subsequently fired.

Referring to an 18 November 2018 post in the Day by day Dispatch with regard to the misappropriation of Lottery cash, Nene said which the NLC discovered then suspended Zintle Rungqu. She was an staff while in the NLC’s East London Workplace, who was the lover and also the mother of whistleblower Mzukise Makatse’s three young children.

Rungqu and Makatse consider Rungqu was punished simply because Makatse blew the whistle. She was suspended and billed internally, While using the NLC paying out R470,000 on attorneys to signify it, but was discovered not responsible and permitted to return to work.

“The prevalent factor in these content is [they contain] classified data concerning proactive funding tasks,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out of the household dwelling to go ahead and take warmth off her and his children. Dealing with homelessness, he moved into an Business office in an empty manufacturing unit belonging to an acquaintance.

Both of those Makatse and Qhino are taking part in an NLC reparation approach intended to recognise the harm some people endured in the palms from the NLC. Apologies and, in some cases, economic compensation are anticipated.

“Some men and women ended up seriously influenced incredibly negatively by this … This is admittedly distressing,” NLC Commissioner Jodi Scholtz instructed the Each day Maverick very last yr.

“I met two or three these people today. It had been just so coronary heart-wrenching that their complete life are already turned upside down,” claimed Scholtz.

Amongst All those she met have been Qhino and Makatse.

Safe platform needed for whistleblowers
The SSA observed the absence at time of a proper channel for whistleblowers to report corruption led them to show for the media.

“Failure to have a focused anti-corruption channel will bring about workforce presenting these types of scenarios outside of the NLC,” the SSA explained in its conclusions.

“Provided the magnitude of corruption in point out establishments, it stays essential that it ensures that the NLC complies with all stability prescripts Which its focus is on making certain that illegal and irregular conduct is adequately mitigated against and by making certain an enough channel for whistle-blowers to report untoward perform with no getting intimidated.”

It recommended the NLC set up a “Harmless channel” for employees to supply information on any “untoward action” that would not stop or discourage workers from blowing the whistle. A whistle-blowers plan, based on the Guarded Disclosures Act 25 of 2000, is a prerequisite.”

Media stories Nene shown
A ten December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Conditioning Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and operator from the Limpopo Mirror, to reveal NLC corruption. “The post experienced features of knowledge not accessible in the public domain, thereby elevating worry on inside Information protection breaches. The allegations inside the media were independently investigated,” Nene stated. “Nevertheless, personnel chargeable for divulging categorised facts have still to generally be determined”;
A 28 January 2018 write-up published via the Dally Dispatch “citing quite a few allegations from the Limpopo Mirror write-up released on ten December 2017 as well as a new allegation regarding a previous employee by the title of Mzukisi Makatse. He was billed and summarily dismissed for that danger brought on on the organisation.”
A 16 November 2018 report from the Lowvelder with regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Despite obtaining R27-million in lottery grants, the rehab has not been completed. “The Lowvelder article contained labeled data regarding NLC policy, increasing more fears of inner facts safety breaches,” Nene said in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an unbiased Investigation, even so [it] highlighted the heightened information safety pitfalls in the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene explained GroundUp had confirmed in its story that it was according to leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Advertising of Use of Details) request for details in regards to the task, she stated