Lottery bosses turned to Point out Protection Company to analyze leaks

Lottery bosses turned to Point out Protection Company to analyze leaks

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Former National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda questioned the Point out Stability Agency (SSA) in December 2018 to analyze the leaking of documents that exposed lottery corruption.
The NLC’s firm secretary at some time outlined media stories she explained were according to “stolen” info within an affidavit to the SSA.
The SSA did investigate. It observed the knowledge was not a issue of point out safety and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for your media to reveal it.
A fresh board and management has considering the fact that taken about the NLC and So far have taken steps to finish corruption in the institution.
A State Stability Company (SSA) investigation located the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished sufficient motive” for exposure with the media.

The probe into supposed “details security breaches and sabotage of NLC functions” was carried out following then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC business secretary Nompumelelo Nene supporting the request, and
the security agency’s “private” conclusions and recommendations.
Nevhutanda asked the SSA to research the job of NLC staff inside the alleged leaking of data, and Nene, in her affidavit recognized precise media and studies that she claimed concerned these leaks.

During the letter outlining its findings, the SSA advised the NLC that when shielding point out information was “a legal very important aimed toward protecting the sovereignty and integrity of the point out” this only placed on properly categorised data.

Even though it didn't say so specifically, the SSA results implied the allegedly leaked data didn't tumble into this group.

Significantly, the SSA made it clear that the necessity to guard condition data “won't prevent any unique from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation identified which the NLC details linked to the alleged breach was “sensitive and privileged in character, although not classified regarding the prescripts from the Least Details Security Benchmarks (Miss out on)”.

“The leakage from the appropriate delicate Formal NLC information towards the media will not pose a risk to nationwide protection,” the SSA said, adding which the affect with the breaches was reputational.

The SSA report discovered “no proof of the factual and incriminating mother nature in opposition to any with the suspected NLC employees that might be identified from the data and data interrogated”.

It also mentioned that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does provide ample motive to obtain these types of exposed in the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs through a session of Parliament’s trade, business and competition portfolio committee that there was “a conspiracy” through which information “stolen” within the NLC was sent into the US, wherever he claimed it was being sold to fund a smear campaign against the NLC.

He was repeating very similar promises he experienced previously designed in Parliament, which bundled ad hominem assaults on GroundUp which reporter but was very careful not to call possibly.

“I arrived listed here in this August home past calendar year and claimed to honourable customers that information about our beneficiaries has actually been stolen and set in one condition in the united states,” he instructed MPs.

“We called about the Point out Protection Agency to come investigate the matter simply because we're acquiring stories that our information and facts is producing revenue for media platforms and journalists,” he stated. “There was talk, needless to say from just one supply, one particular media, that spoke A great deal about proactive-funding,” Nevhutanda said (referring to GroundUp), but didn't inform MPs that the SSA investigation were done Nearly a calendar year previously.

Proactive funding was at the heart of the looting of the lottery. It aspect-stepped the normal grant system. The NLC could by itself detect a job to fund and appoint a non-financial gain organisation to supervise it.

Following Nevhutanda 1st told Parliament in 2018 that he had questioned the SSA to investigate the meant breach, the South African Nationwide Editors Forum issued a statement saying that his remarks mirrored “an incredibly unsafe Perspective where the media is remaining blamed to the NLC’s inherent issues”.

“Instead of investigating why tens of millions cannot be accounted for, the NLC has as a substitute tried to cast doubt over the integrity from the journalists concerned and has asked the SSA to research their resources.”

Proactive jobs made key
Stability flaws identified inside the NLC grant funding technique during the SSA’s investigation, seem to are applied as an excuse via the NLC to eliminate all proactive-funded projects from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘solution’ and assignments were being faraway from the grant funding method and maintained manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Workplace, Govt Supervisor Lawful in an effort to safeguard [the] info,” Nene explained in her affidavit.

“There was many interior dialogue, with a great deal of backwards and forwards, about what to do to plug the alleged leaks”, a source, who was in a senior posture in the NLC at the time, advised GroundUp. “In the long run, the decision was taken to get rid of all of the proactive tasks within the method and Restrict access to A few persons”.

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

Maselwa, who resigned with the NLC many years in the past, is implicated in corruption involving lottery funds. He received R4.three-million from lottery funds allocated to develop a library and museum complex in Kuruman (see Taung Cultural Audio and Arts Expo) which he used to create a household within an upmarket gated development in Pretoria. The home is one of a number of paid for with lottery cash which were frozen once the Asset Forfeiture Unit acquired a preservation purchase in December 2022.

The politically-linked Nevhutanda, who was appointed as being the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to superior-ups in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated while in the corruption which overwhelmed the NLC on their own check out.

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

Whenever a new administration, such as the entire board and government, took in excess of at the NLC in late 2022 and early 2023, they found a “chaotic mess” inside the documentation associated with proactive funding, A great deal of which was paper-centered. Important documents were being lacking. Information held for safekeeping by doc storage organization Metrofile had been signed out and in no way returned.

The NLC was capable of Recuperate copies of some ltpbet paperwork from its Mimecast e mail archiving method plus the laptops of their assistants and guidance employees.

Information reports
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave concern possible details stability breaches and the unauthorised use and/or dissemination of confidential info attained because of carrying out Formal features inside the Commission by NLC employees. The functions are meant to undermine the integrity of the Commission though disrupting the efficient features [from the NLC] and resulting in insurmountable reputational harm towards the Commission since the custodian of non-public information and facts entrusted to it by its beneficiaries.”

His ask for with the SSA to research was supported in an affidavit by suspended NLC organization secretary, Nomphumelelo Nene.

Nene is at this time struggling with a disciplinary inquiry following she was unsuccessful in legal motion to set aside conclusions of irregular expenditure on her look at.

The purpose of her affidavit, Nene mentioned, was “to record the functions which transpired regarding info protection breaches within the National Lotteries Commission”.

She stated numerous news reviews which she claimed were being the outcome of such “breaches” (see at the end of this post).

Nene reported that a whistle-blower approached the NLC alleging that one among its personnel, Sello Qhino, experienced “supplied her labeled NLC Info and persistently inspired her to deliver the knowledge to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded tasks in Kuruman soon after makes an attempt to raise The difficulty internally had been disregarded, was subsequently fired.

Referring to an eighteen November 2018 short article from the Each day Dispatch with regard to the misappropriation of Lottery cash, Nene mentioned which the NLC recognized and then suspended Zintle Rungqu. She was an worker inside the NLC’s East London Business, who was the partner along with the mother of whistleblower Mzukise Makatse’s a few children.

Rungqu and Makatse think Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, With all the NLC investing R470,000 on lawyers to signify it, but was found not responsible and allowed to return to operate.

“The frequent Think about these content is [they contain] labeled info concerning proactive funding jobs,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out in the family members household to take the heat off her and his small children. Dealing with homelessness, he moved into an Business within an vacant manufacturing unit belonging to a buddy.

Both Makatse and Qhino are participating in an NLC reparation procedure intended to recognise the hurt lots of people experienced for the fingers in the NLC. Apologies and, in some cases, economical compensation are predicted.

“Some persons had been definitely impacted incredibly negatively by this … This is absolutely painful,” NLC Commissioner Jodi Scholtz instructed the Every day Maverick previous year.

“I satisfied a few these individuals. It had been just so heart-wrenching that their total lives are already turned the other way up,” mentioned Scholtz.

Amongst All those she fulfilled have been Qhino and Makatse.

Risk-free platform needed for whistleblowers
The SSA found the absence at some time of a suitable channel for whistleblowers to report corruption led them to turn into the media.

“Failure to have a focused anti-corruption channel will cause employees presenting these situations beyond the NLC,” the SSA explained in its findings.

“Supplied the magnitude of corruption in point out institutions, it stays essential that it makes sure that the NLC complies with all stability prescripts Which its target is on guaranteeing that unlawful and irregular carry out is sufficiently mitigated versus and by ensuring an sufficient channel for whistle-blowers to report untoward conduct devoid of remaining intimidated.”

It proposed the NLC create a “Safe and sound channel” for workers to supply info on any “untoward action” that might not protect against or discourage workforce from blowing the whistle. A whistle-blowers coverage, determined by the Protected Disclosures Act 25 of 2000, is actually a requirement.”

Media studies Nene mentioned
A 10 December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Exercise Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and operator in the Limpopo Mirror, to reveal NLC corruption. “The posting had aspects of data not accessible in the public domain, thereby raising problem on inner Information stability breaches. The allegations during the media were independently investigated,” Nene stated. “Nonetheless, staff answerable for divulging classified information and facts have still for being discovered”;
A 28 January 2018 write-up published through the Dally Dispatch “citing numerous allegations from your Limpopo Mirror short article printed on 10 December 2017 and also a new allegation concerning a previous personnel because of the title of Mzukisi Makatse. He was charged and summarily dismissed for that menace brought about to your organisation.”
A 16 November 2018 write-up within the Lowvelder regarding the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has described how, in spite of acquiring R27-million in lottery grants, the rehab has not been done. “The Lowvelder report contained classified facts when it comes to NLC coverage, boosting additional problems of interior details protection breaches,” Nene said in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an impartial Investigation, however [it] highlighted the heightened details safety hazards 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 experienced confirmed in its Tale that it had been based upon leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Use of Details) ask for for details about the challenge, she mentioned