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 Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Safety Company (SSA) in December 2018 to analyze the leaking of documents that exposed lottery corruption.
The NLC’s enterprise secretary at some time outlined media studies she claimed were being depending on “stolen” facts in an affidavit to the SSA.
The SSA did investigate. It discovered the information wasn't a subject of condition security and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to show it.
A whole new board and management has because taken around the NLC and To this point have taken steps to end corruption for the establishment.
A State Protection Company (SSA) investigation discovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for exposure with the media.

The probe into meant “information security breaches and sabotage of NLC operations” was carried out following 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 presently suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the safety agency’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to analyze the position 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.

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

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

Significantly, the SSA made it apparent that the necessity to safeguard point out facts “isn't going to stop any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation found the NLC information and facts involved with the alleged breach was “delicate and privileged in character, although not classified regarding the prescripts of the Bare minimum Information Protection Requirements (Miss out on)”.

“The leakage in the suitable delicate Formal NLC information towards the media will not pose a danger to countrywide security,” the SSA mentioned, including the impression from the breaches was reputational.

The SSA report uncovered “no proof of the factual and incriminating character versus any with the suspected NLC staff that could be determined from the data and information interrogated”.

Additionally, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide ample motive to get these uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, industry and Opposition portfolio committee that there was “a conspiracy” during which info “stolen” in the NLC was despatched on the US, exactly where he claimed it absolutely was currently being sold to fund a smear marketing campaign against the NLC.

He was repeating identical claims he experienced Beforehand created in Parliament, which included ad hominem attacks on GroundUp which reporter but was careful not to name either.

“I came below in this August residence very last calendar year and claimed to honourable users that information about our beneficiaries continues to be stolen and put in a single point out in the usa,” he instructed MPs.

“We identified as about the Condition Security Company to come consider the matter for the reason that we have been obtaining experiences that our facts is producing dollars for media platforms and journalists,” he mentioned. “There have been discuss, of course from one particular resource, one media, that spoke Substantially about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to inform MPs the SSA investigation had been accomplished Just about a calendar year before.

Proactive funding was at the guts with the looting of your lottery. It facet-stepped the conventional grant approach. The NLC could by itself recognize a undertaking to fund and appoint a non-revenue organisation to supervise it.

Immediately after Nevhutanda 1st informed Parliament in 2018 that he experienced requested the SSA to analyze the intended breach, the South African Countrywide Editors Forum issued a press release stating that his remarks mirrored “a particularly perilous Perspective where by the media is getting blamed for that NLC’s inherent issues”.

“In lieu of investigating why millions cannot be accounted for, the NLC has as an alternative attempted to Solid doubt within the integrity in the journalists concerned and has asked the SSA to analyze their resources.”

Proactive assignments manufactured mystery
Safety flaws identified during the NLC grant funding process in the course of the SSA’s investigation, seem to have been applied as an justification from 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 Professional-actively funding tasks was heightened to ‘solution’ and projects have been faraway from the grant funding procedure and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Govt Supervisor Authorized so as to safeguard [the] info,” Nene claimed in her affidavit.

“There was a lot of inner discussion, with a great deal of forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was inside of a senior position in the NLC at the time, told GroundUp. “In the end, the choice was taken to eliminate many of the proactive initiatives with the technique and limit usage of a handful of individuals”.

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

Maselwa, who resigned from the NLC quite a few several years back, continues to be implicated in corruption involving lottery money. He obtained R4.three-million from lottery money allotted to develop a library and museum advanced in Kuruman (see Taung Cultural Music and Arts Expo) which he utilized to construct a house within an upmarket gated advancement in Pretoria. The house is among quite a few compensated for with lottery cash that were frozen following the Asset Forfeiture Unit acquired a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near superior-ups in 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 own observe.

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

Each time a new administration, such as the total board and executive, took over with the NLC in late 2022 and early 2023, they found out a “chaotic mess” from the documentation relating to proactive funding, Significantly of which was paper-centered. Vital files were being missing. Information held for safekeeping by document storage enterprise Metrofile were signed out and never ever returned.

The NLC was capable of recover copies of some ผล สลาก files from its Mimecast electronic mail archiving procedure as well as laptops of their assistants and help workers.

Information stories
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave concern doable details stability breaches and also the unauthorised use and/or dissemination of confidential information and facts obtained because of undertaking Formal capabilities in the Commission by NLC workers. The pursuits are meant to undermine the integrity on the Commission even though disrupting the powerful features [in the NLC] and triggering insurmountable reputational harm towards the Fee as being the custodian of non-public information entrusted to it by its beneficiaries.”

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

Nene is currently experiencing a disciplinary inquiry right after she was unsuccessful in lawful action to set aside results of irregular expenditure on her watch.

The objective of her affidavit, Nene claimed, was “to record the functions which transpired concerning details protection breaches for the Countrywide Lotteries Fee”.

She outlined many news experiences which she claimed have been the results of those “breaches” (see at the conclusion of this text).

Nene stated that a whistle-blower approached the NLC alleging that considered one of its workers, Sello Qhino, had “presented her categorised NLC Information and persistently encouraged her to supply the information to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded assignments in Kuruman immediately after tries to boost The problem internally had been dismissed, was subsequently fired.

Referring to an 18 November 2018 posting in the Day by day Dispatch about the misappropriation of Lottery cash, Nene mentioned that the NLC determined then suspended Zintle Rungqu. She was an employee from the NLC’s East London Business office, who was the partner plus the mom of whistleblower Mzukise Makatse’s three little ones.

Rungqu and Makatse think Rungqu was punished mainly because Makatse blew the whistle. She was suspended and billed internally, Using the NLC shelling out R470,000 on legal professionals to represent it, but was located not responsible and permitted to return to work.

“The prevalent Think about these articles is the fact that [they involve] classified information relating to proactive funding projects,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out of your relatives property to take the warmth off her and his young children. Dealing with homelessness, he moved into an Business in an vacant factory belonging to a colleague.

Each Makatse and Qhino are taking part in an NLC reparation process intended to recognise the damage some people endured within the hands in the NLC. Apologies and, sometimes, money payment are envisioned.

“Some individuals were being actually afflicted really negatively by this … This is admittedly painful,” NLC Commissioner Jodi Scholtz advised the Every day Maverick previous 12 months.

“I fulfilled two or three these individuals. It was just so coronary heart-wrenching that their full life are actually turned the other way up,” reported Scholtz.

Among Those people she fulfilled have been Qhino and Makatse.

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

“Failure to possess a devoted anti-corruption channel will result in personnel presenting these types of instances outside of the NLC,” the SSA said in its findings.

“Given the magnitude of corruption in point out establishments, it stays vital that it ensures that the NLC complies with all security prescripts Which its target is on ensuring that unlawful and irregular conduct is sufficiently mitigated versus and by guaranteeing an ample channel for whistle-blowers to report untoward conduct without the need of staying intimidated.”

It encouraged that the NLC build a “Protected channel” for workers to supply info on any “untoward exercise” that will not reduce or discourage staff from blowing the whistle. A whistle-blowers coverage, based on the Guarded Disclosures Act 25 of 2000, is usually a requirement.”

Media reviews Nene shown
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Physical fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and operator of the Limpopo Mirror, to show NLC corruption. “The short article had elements of data not readily available in the public area, thereby increasing concern on interior Details stability breaches. The allegations while in the media had been independently investigated,” Nene claimed. “Having said that, employees to blame for divulging classified data have yet for being determined”;
A 28 January 2018 posting published with the Dally Dispatch “citing quite a few allegations within the Limpopo Mirror article published on ten December 2017 in addition to a new allegation concerning a previous personnel with the name of Mzukisi Makatse. He was billed and summarily dismissed for that risk induced for the organisation.”
A 16 November 2018 posting from the Lowvelder with regards to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Regardless of acquiring R27-million in lottery grants, the rehab has never been accomplished. “The Lowvelder article contained categorized facts when it comes to NLC coverage, increasing further more issues of inner data protection breaches,” Nene claimed in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened info security risks throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene claimed GroundUp experienced confirmed in its story that it absolutely was based on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Promotion of Usage of Info) ask for for particulars concerning the job, she claimed