Lottery bosses turned to Condition Security Agency to investigate leaks

Lottery bosses turned to Condition Security Agency to investigate leaks

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Previous Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Stability Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s company secretary at the time outlined media reviews she mentioned have been based upon “stolen” facts in an affidavit for the SSA.
The SSA did look into. It located the information wasn't a issue of condition safety and that the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for that media to expose it.
A fresh board and administration has given that taken about the NLC and Up to now have taken actions to finish corruption with the institution.
A Condition Protection Company (SSA) investigation discovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished sufficient motive” for publicity because of the media.

The probe into meant “information and facts stability breaches and sabotage of NLC functions” was undertaken soon after 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 now suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the security agency’s “private” results and recommendations.
Nevhutanda requested the SSA to investigate the purpose of NLC personnel in the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and experiences that she claimed involved these leaks.

While in the letter outlining its conclusions, the SSA told the NLC that even though preserving point out info was “a authorized critical targeted at preserving the sovereignty and integrity of your point out” this only placed on properly categorized details.

Although it didn't say so specifically, the SSA results implied that the allegedly leaked information and facts didn't fall into this classification.

Appreciably, the SSA created it distinct that the necessity to safeguard point out details “does not avert any person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered the NLC facts involved in the alleged breach was “sensitive and privileged in nature, but not categorized with regard to the prescripts of your Minimum Info Security Specifications (Overlook)”.

“The leakage on the appropriate sensitive Formal NLC information and facts into the media won't pose a risk to national stability,” the SSA explained, adding which the effect of the breaches was reputational.

The SSA report observed “no evidence of a factual and incriminating mother nature in opposition to any of your suspected NLC personnel that may be determined from the data and information interrogated”.

In addition it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does supply sufficient motive to acquire such uncovered in the media”.

Conspiracy claims
In 2020, Nevhutanda told MPs throughout a session of Parliament’s trade, business 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 campaign against the NLC.

He was repeating very similar claims he had Earlier made in Parliament, which provided advert hominem attacks on GroundUp and this reporter but was watchful not to call possibly.

“I arrived right here In this particular August dwelling last yr and documented to honourable associates that information regarding our beneficiaries has actually been stolen and set in one state in America,” he told MPs.

“We known as around the Point out Protection Agency to return check into the issue since we are finding reviews that our information is making cash for media platforms and journalists,” he claimed. “There's been converse, needless to say from a person source, just one media, that spoke A great deal about proactive-funding,” Nevhutanda explained (referring to GroundUp), but didn't explain to MPs that the SSA investigation were done Practically a calendar year earlier.

Proactive funding was at the heart with the looting in the lottery. It aspect-stepped the traditional grant procedure. The NLC could itself determine a project to fund and appoint a non-profit organisation to supervise it.

Immediately after Nevhutanda initially advised Parliament in 2018 that he experienced requested the SSA to analyze the supposed breach, the South African Countrywide Editors Forum issued an announcement saying that his remarks reflected “an extremely unsafe attitude the place the media is remaining blamed for your NLC’s inherent challenges”.

“Instead of investigating why thousands and thousands can't be accounted for, the NLC has in its place made an effort to Forged question over the integrity of your journalists associated and it has requested the SSA to investigate their resources.”

Proactive jobs designed solution
Safety flaws identified in the NLC grant funding procedure over the SSA’s investigation, look to happen to be made use of 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 ‘top secret’ 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 office, Government Manager Authorized in an effort to safeguard [the] facts,” Nene claimed in her affidavit.

“There was lots of inner discussion, with numerous forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was in a senior place on the NLC at time, informed GroundUp. “Ultimately, the decision was taken to eliminate many of the proactive jobs with the technique and limit usage of A few folks”.

Some in that handful of people were being implicated in corruption.

Maselwa, who resigned through the NLC numerous decades in the past, has been implicated in corruption involving lottery cash. He received R4.3-million from lottery cash allotted to construct a library and museum elaborate in Kuruman (see Taung Cultural Songs and Arts Expo) which he applied to build a residence in an upmarket gated growth in Pretoria. The assets is among several paid for with lottery funds which were frozen once the Asset Forfeiture Device received a preservation buy in December 2022.

The politically-linked Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near significant-ups from the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-chief functioning officer Phillemon Letwaba, have all been implicated from the corruption which overwhelmed the NLC on their own look at.

Also implicated are former board customers William Huma, who resigned following he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has because died.

Every time a new administration, including the complete board and govt, took over with the NLC in late 2022 and early 2023, they found out a “chaotic mess” within the documentation associated with proactive funding, A great deal of which was paper-based. Crucial documents had been missing. Files held for safekeeping by doc storage enterprise Metrofile were signed out and hardly ever returned.

The NLC was ready to Get better copies of some หวย หุ้น documents from its Mimecast e-mail archiving process and the laptops of their assistants and assistance workers.

News reviews
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave concern possible information stability breaches plus the unauthorised use and/or dissemination of confidential info attained due to executing Formal features in the Commission by NLC employees. The functions are intended to undermine the integrity with the Fee even though disrupting the effective functions [with the NLC] and creating insurmountable reputational damage to your Fee as the custodian of non-public facts entrusted to it by its beneficiaries.”

His ask for with the SSA to analyze was supported within an affidavit by suspended NLC company secretary, Nomphumelelo Nene.

Nene is presently dealing with a disciplinary inquiry right after she was unsuccessful in legal motion to put aside results of irregular expenditure on her observe.

The purpose of her affidavit, Nene said, was “to history the situations which transpired regarding details security breaches for the National Lotteries Fee”.

She detailed various news experiences which she claimed have been the results of those “breaches” (see at the conclusion of this short article).

Nene explained that a whistle-blower approached the NLC alleging that one of its staff, Sello Qhino, experienced “furnished her categorised NLC Info and persistently encouraged her to provide the information to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded projects in Kuruman following attempts to lift The problem internally have been dismissed, was subsequently fired.

Referring to an eighteen November 2018 posting from the Day-to-day Dispatch in regards to the misappropriation of Lottery funds, Nene reported the NLC identified and afterwards suspended Zintle Rungqu. She was an worker during the NLC’s East London Place of work, who was the partner along with the mother of whistleblower Mzukise Makatse’s 3 children.

Rungqu and Makatse consider Rungqu was punished because Makatse blew the whistle. She was suspended and billed internally, With all the NLC paying R470,000 on attorneys to stand for it, but was located not responsible and allowed to return to work.

“The widespread Think about these article content is the fact [they require] categorized information and facts associated with proactive funding projects,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out from the relatives home to take the heat off her and his kids. Dealing with homelessness, he moved into an Place of work in an empty factory belonging to a colleague.

Both equally Makatse and Qhino are taking part in an NLC reparation system meant to recognise the damage many people endured for the hands of your NLC. Apologies and, occasionally, fiscal compensation are anticipated.

“Some persons were seriously affected quite negatively by this … This is really unpleasant,” NLC Commissioner Jodi Scholtz instructed the Daily Maverick final 12 months.

“I achieved a couple of these folks. It had been just so heart-wrenching that their complete lives are turned the wrong way up,” explained Scholtz.

Between All those she achieved were being Qhino and Makatse.

Harmless System required for whistleblowers
The SSA found the absence at enough time of a proper channel for whistleblowers to report corruption led them to turn into the media.

“Failure to have a committed anti-corruption channel will result in staff members presenting this kind of scenarios beyond the NLC,” the SSA stated in its results.

“Supplied the magnitude of corruption in point out establishments, it continues to be essential that it makes sure that the NLC complies with all safety prescripts and that its target is on making certain that illegal and irregular conduct is sufficiently mitigated versus and by making sure an enough channel for whistle-blowers to report untoward carry out without having getting intimidated.”

It suggested which the NLC set up a “Secure channel” for workers to supply info on any “untoward activity” that may not avert or discourage workers from blowing the whistle. A whistle-blowers coverage, according to the Secured Disclosures Act twenty five of 2000, is actually a prerequisite.”

Media reports Nene detailed
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Health Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and proprietor in the Limpopo Mirror, to reveal NLC corruption. “The write-up had components of information not available in the general public domain, thereby boosting problem on internal Information stability breaches. The allegations while in the media had been independently investigated,” Nene said. “Having said that, personnel liable for divulging categorised details have nonetheless for being discovered”;
A 28 January 2018 post revealed by the Dally Dispatch “citing several allegations through the Limpopo Mirror posting published on ten December 2017 along with a new allegation referring to a former employee by the identify of Mzukisi Makatse. He was billed and summarily dismissed for that risk triggered for the organisation.”
A 16 November 2018 posting from the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite getting R27-million in lottery grants, the rehab hasn't been finished. “The Lowvelder posting contained categorized information and facts regarding NLC plan, raising more fears of internal details protection breaches,” Nene reported in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, having said that [it] highlighted the heightened information security risks within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Principal Care, a hijacked NPO. Nene said GroundUp experienced confirmed in its Tale that it had been determined by leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Promotion of Usage of Facts) request for facts in regards to the venture, she reported