Lottery bosses turned to State Stability Company to investigate leaks

Lottery bosses turned to State Stability Company to investigate leaks

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Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Condition Protection Company (SSA) in December 2018 to investigate the leaking of documents that uncovered lottery corruption.
The NLC’s firm secretary at enough time detailed media studies she explained have been determined by “stolen” information and facts within an affidavit for that SSA.
The SSA did examine. It observed the information was not a make a difference of state safety and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for that media to expose it.
A completely new board and management has given that taken about the NLC and So far have taken measures to finish corruption on the establishment.
A Condition Protection Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for exposure because of the media.

The probe into meant “details safety breaches and sabotage of NLC operations” was carried out just after then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by presently suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “confidential” findings and proposals.
Nevhutanda requested the SSA to investigate the position of NLC staff members from the alleged leaking of knowledge, and Nene, in her affidavit identified precise media and studies that she claimed associated these leaks.

Inside the letter outlining its conclusions, the SSA explained to the NLC that whilst safeguarding condition information was “a legal critical geared toward protecting the sovereignty and integrity on the condition” this only applied to appropriately categorized details.

Although it didn't say so right, the SSA findings implied the allegedly leaked data didn't slide into this classification.

Considerably, the SSA built it apparent that the need to protect point out info “won't avoid any specific from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation uncovered which the NLC facts linked to the alleged breach was “sensitive and privileged in mother nature, but not categorized regarding the prescripts from the Minimum Info Safety Specifications (Skip)”.

“The leakage from the applicable delicate Formal NLC facts on the media would not pose a menace to national safety,” the SSA reported, adding that the affect on the breaches was reputational.

The SSA report found “no proof of a factual and incriminating mother nature from any from the suspected NLC workers that might be determined from the data and information interrogated”.

What's more, it mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does supply ample motive to acquire this sort of exposed during the media”.

Conspiracy claims
In 2020, Nevhutanda told MPs through a session of Parliament’s trade, industry and Competitors portfolio committee that there was “a conspiracy” in which information and facts “stolen” through the NLC was despatched towards the US, where by he claimed it was being sold to fund a smear campaign against the NLC.

He was repeating identical statements he had Earlier made in Parliament, which provided advertisement hominem attacks on GroundUp and this reporter but was cautious not to name both.

“I arrived right here in this August residence previous yr and noted to honourable associates that information regarding our beneficiaries is stolen and put in one point out in the usa,” he instructed MPs.

“We named about the State Security Agency to come back check into the matter for the reason that we are finding reports that our details is creating funds for media platforms and journalists,” he explained. “There's been speak, of course from a person supply, 1 media, that spoke much about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to explain to MPs which the SSA investigation had been accomplished Virtually a yr earlier.

Proactive funding was at the heart of your looting of your lottery. It aspect-stepped the conventional grant procedure. The NLC could by itself detect a task to fund and appoint a non-revenue organisation to supervise it.

After Nevhutanda to start with advised Parliament in 2018 that he experienced asked the SSA to research the intended breach, the South African Nationwide Editors Forum issued an announcement indicating that his remarks mirrored “an extremely hazardous Frame of mind wherever the media is currently being blamed for the NLC’s inherent complications”.

“Rather than investigating why thousands and thousands can not be accounted for, the NLC has as an alternative made an effort to cast question on the integrity with the journalists associated and has asked the SSA to research their sources.”

Proactive jobs created top secret
Security flaws determined in the NLC grant funding system over the SSA’s investigation, show up to have been made use of as an justification because of the NLC to get rid of all proactive-funded initiatives from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding projects was heightened to ‘secret’ and jobs were being removed from the grant funding procedure and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Office, Government Supervisor Authorized in order to safeguard [the] data,” Nene said in her affidavit.

“There was many inner discussion, with numerous back and forth, about what to do to plug the alleged leaks”, a supply, who was inside a senior posture in the NLC at time, informed GroundUp. “In the long run, the decision was taken to remove each of the proactive assignments through the technique and limit access to A few persons”.

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

Maselwa, who resigned from your NLC numerous a long time ago, has been implicated in corruption involving lottery money. He received R4.three-million from lottery money allotted to make a library and museum elaborate in Kuruman (see Taung Cultural Tunes and Arts Expo) which he used to make a home within an upmarket gated advancement in Pretoria. The property is one of various paid for with lottery resources that were frozen following the Asset Forfeiture Unit acquired a preservation buy in December 2022.

The politically-linked Nevhutanda, who was appointed given that the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to substantial-ups from the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated within the corruption which overcome the NLC on their observe.

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

Each time a new administration, including the full board and government, took over within the NLC in late 2022 and early 2023, they learned a “chaotic mess” inside the documentation concerning proactive funding, Considerably of which was paper-based. Essential files were lacking. Files held for safekeeping by doc storage enterprise Metrofile were signed out and by no means returned.

The NLC was capable of Get well copies of some lottovip files from its Mimecast electronic mail archiving program and also the laptops in their assistants and help employees.

News stories
In his one December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave concern attainable data safety breaches along with the unauthorised use and/or dissemination of confidential facts acquired because of undertaking Formal features while in the Fee by NLC workforce. The functions are meant to undermine the integrity from the Commission when disrupting the successful capabilities [in the NLC] and resulting in insurmountable reputational hurt towards the Commission because the custodian of personal details entrusted to it by its beneficiaries.”

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

Nene is at present going through a disciplinary inquiry just after she was unsuccessful in lawful action to put aside findings of irregular expenditure on her observe.

The goal of her affidavit, Nene reported, was “to history the events which transpired concerning details stability breaches on the National Lotteries Commission”.

She mentioned different information reviews which she claimed were being the outcome of those “breaches” (see at the conclusion of this post).

Nene claimed that a whistle-blower approached the NLC alleging that among its workforce, Sello Qhino, experienced “furnished her categorised NLC Details and persistently encouraged her to deliver the knowledge to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded tasks in Kuruman following tries to raise The difficulty internally have been ignored, was subsequently fired.

Referring to an eighteen November 2018 post within the Day by day Dispatch concerning the misappropriation of Lottery cash, Nene stated that the NLC determined after which suspended Zintle Rungqu. She was an personnel during the NLC’s East London Place of work, who was the lover and also the mother of whistleblower Mzukise Makatse’s three little ones.

Rungqu and Makatse think Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, Together with the NLC shelling out R470,000 on lawyers to signify it, but was found not responsible and permitted to return to work.

“The typical Think about these content is [they entail] classified information and facts associated with proactive funding assignments,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out with the family members residence to go ahead and take heat off her and his small children. Experiencing homelessness, he moved into an office in an empty manufacturing facility belonging to a colleague.

Each Makatse and Qhino are participating in an NLC reparation course of action meant to recognise the hurt some people experienced at the arms of the NLC. Apologies and, in some cases, economical payment are anticipated.

“Some men and women have been actually afflicted really negatively by this … This is basically painful,” NLC Commissioner Jodi Scholtz explained to the Everyday Maverick last 12 months.

“I achieved a few these people today. It was just so heart-wrenching that their whole lives are turned the other way up,” reported Scholtz.

Between Those people she achieved have been Qhino and Makatse.

Safe and sound System essential for whistleblowers
The SSA observed the absence at time of a proper channel for whistleblowers to report corruption led them to show towards the media.

“Failure to have a dedicated anti-corruption channel will bring about workers presenting these scenarios outside of the NLC,” the SSA reported in its results.

“Offered the magnitude of corruption in point out institutions, it continues to be important that it ensures that the NLC complies with all safety prescripts Which its aim is on guaranteeing that unlawful and irregular conduct is adequately mitigated versus and by making certain an adequate channel for whistle-blowers to report untoward conduct devoid of currently being intimidated.”

It recommended which the NLC establish a “safe channel” for workers to deliver info on any “untoward activity” that would not reduce or discourage employees from blowing the whistle. A whistle-blowers coverage, determined by the Guarded Disclosures Act twenty five of 2000, is often a necessity.”

Media experiences Nene detailed
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Fitness Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and operator in the Limpopo Mirror, to show NLC corruption. “The write-up had things of data not out there in the general public area, thus increasing worry on inside Information security breaches. The allegations from the media were being independently investigated,” Nene reported. “However, workers answerable for divulging categorized info have however to generally be recognized”;
A 28 January 2018 post posted with the Dally Dispatch “citing numerous allegations with the Limpopo Mirror post revealed on ten December 2017 along with a new allegation regarding a previous staff through the title of Mzukisi Makatse. He was billed and summarily dismissed for the risk triggered on the organisation.”
A 16 November 2018 report while in the Lowvelder concerning the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Despite getting R27-million in lottery grants, the rehab hasn't been done. “The Lowvelder short article contained categorized information and facts concerning NLC policy, boosting more concerns of inside information safety breaches,” Nene said in her affidavit. “The prima facie evidence with regards to these allegations didn't warrant an independent Investigation, on the other hand [it] highlighted the heightened info safety pitfalls in the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Main Treatment, a hijacked NPO. Nene stated 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 Entry to Data) request for aspects concerning the project, she reported