Lottery bosses turned to Point out Safety Agency to investigate leaks

Lottery bosses turned to Point out Safety Agency to investigate leaks

Blog Article

Former Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Protection Company (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s enterprise secretary at some time outlined media stories she said had been based on “stolen” info within an affidavit with the SSA.
The SSA did look into. It observed the data was not a make a difference of state security and which the “prevalence of alleged corruption and irregularities” gave “enough motive” for that media to expose it.
A fresh board and management has considering the fact that taken in excess of the NLC and thus far have taken actions to finish corruption on the establishment.
A Point out Safety Company (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for publicity by the media.

The probe into supposed “details safety breaches and sabotage of NLC operations” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to investigate.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the safety agency’s “confidential” results and recommendations.
Nevhutanda questioned the SSA to investigate the job of NLC personnel within the alleged leaking of data, and Nene, in her affidavit identified precise media and reports that she claimed included these leaks.

During the letter outlining its findings, the SSA advised the NLC that though defending condition facts was “a lawful imperative geared toward defending the sovereignty and integrity on the condition” this only applied to appropriately classified information.

Even though it didn't say so immediately, the SSA findings implied which the allegedly leaked facts did not fall into this classification.

Appreciably, the SSA manufactured it distinct that the necessity to safeguard point out data “doesn't protect against any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered the NLC information associated with the alleged breach was “sensitive and privileged in character, although not categorised when it comes to the prescripts on the Least Information Security Requirements (Skip)”.

“The leakage in the pertinent sensitive Formal NLC information and facts into the media would not pose a threat to nationwide protection,” the SSA explained, introducing the affect from the breaches was reputational.

The SSA report located “no evidence of a factual and incriminating character versus any of your suspected NLC staff members that can be discovered from the information and facts interrogated”.

In addition, it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does offer sufficient motive to own these types of uncovered in the media”.

Conspiracy promises
In 2020, Nevhutanda told MPs in the course of a session of Parliament’s trade, market and Levels of competition portfolio committee that there was “a conspiracy” where data “stolen” through the NLC was sent into the US, wherever he claimed it was being marketed to fund a smear marketing campaign in opposition to the NLC.

He was repeating comparable statements he experienced Formerly built in Parliament, which incorporated advertisement hominem assaults on GroundUp which reporter but was mindful not to name both.

“I arrived in this article On this August household past year and noted to honourable associates that details about our beneficiaries has become stolen and place in one state in the usa,” he explained to MPs.

“We termed over the Point out Safety Agency to return investigate the issue since we've been finding reviews that our information is making cash for media platforms and journalists,” he reported. “There's been converse, needless to say from just one source, a single media, that spoke A great deal about proactive-funding,” Nevhutanda stated (referring to GroundUp), but failed to explain to MPs the SSA investigation were concluded Pretty much a calendar year before.

Proactive funding was at the guts of your looting of your lottery. It facet-stepped the traditional grant course of action. The NLC could by itself recognize a venture to fund and appoint a non-revenue organisation to oversee it.

Following Nevhutanda very first advised Parliament in 2018 that he had questioned the SSA to analyze the intended breach, the South African National Editors Discussion board issued an announcement declaring that his remarks reflected “an incredibly risky Frame of mind exactly where the media is being blamed for that NLC’s inherent difficulties”.

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

Proactive projects created mystery
Protection flaws determined during the NLC grant funding system throughout the SSA’s investigation, seem to happen to be utilized as an justification with the NLC to remove all proactive-funded projects from its central grants procedure.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘secret’ and initiatives have been faraway from the grant funding program and managed manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Office environment, Executive Manager Authorized so that you can safeguard [the] details,” Nene reported 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 position in the NLC at time, informed GroundUp. “In the end, the decision was taken to eliminate the many proactive initiatives with the technique and limit usage of a handful of individuals”.

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

Maselwa, who resigned from your NLC several yrs ago, has actually been implicated in corruption involving lottery money. He gained R4.3-million from lottery money allotted to build a library and museum intricate in Kuruman (see Taung Cultural New music and Arts Expo) which he utilized to develop a dwelling within an upmarket gated improvement in Pretoria. The house is one of many compensated for with lottery resources which were frozen following the Asset Forfeiture Unit acquired a preservation order in December 2022.

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

Also implicated are previous board members William Huma, who resigned after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got due to the fact died.

Whenever a new administration, including the complete board and executive, took over for the NLC in late 2022 and early 2023, they learned a “chaotic mess” inside the documentation regarding proactive funding, Substantially of which was paper-based. Vital documents had been lacking. Files held for safekeeping by doc storage company Metrofile had been signed out and hardly ever returned.

The NLC was able to recover copies of some หวย หุ้น ช่อง 9 วัน นี้ documents from its Mimecast electronic mail archiving process and the laptops of their assistants and assistance staff.

Information reviews
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry feasible information and facts safety breaches and the unauthorised use and/or dissemination of confidential facts obtained because of accomplishing Formal functions inside the Commission by NLC staff members. The activities are meant to undermine the integrity of the Commission whilst disrupting the successful functions [from the NLC] and leading to insurmountable reputational harm towards the Fee as being the custodian of non-public details entrusted to it by its beneficiaries.”

His request with the SSA to research was supported in an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.

Nene is at the moment dealing with a disciplinary inquiry after she was unsuccessful in authorized motion to set aside results of irregular expenditure on her check out.

The purpose of her affidavit, Nene claimed, was “to document the gatherings which transpired relating to data stability breaches at the National Lotteries Commission”.

She outlined a variety of news studies which she claimed ended up the effects of those “breaches” (see at the end of this text).

Nene claimed that a whistle-blower approached the NLC alleging that considered one of its staff members, Sello Qhino, had “provided her categorised NLC Facts and persistently encouraged her to offer the information to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded initiatives in Kuruman soon after tries to raise The problem internally ended up overlooked, was subsequently fired.

Referring to an 18 November 2018 write-up inside the Everyday Dispatch in regards to the misappropriation of Lottery money, Nene said which the NLC recognized after which suspended Zintle Rungqu. She was an staff from the NLC’s East London Place of work, who was the partner plus the mother of whistleblower Mzukise Makatse’s 3 children.

Rungqu and Makatse imagine Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Along with the NLC spending R470,000 on lawyers to depict it, but was uncovered not responsible and permitted to return to operate.

“The popular Think about these articles is the fact that [they include] classified info relating to proactive funding projects,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out of your relatives property to take the warmth off her and his kids. Struggling with homelessness, he moved into an Office environment in an empty manufacturing unit belonging to a pal.

Both of those Makatse and Qhino are participating in an NLC reparation course of action meant to recognise the harm a lot of people suffered on the palms of your NLC. Apologies and, in some cases, economic compensation are anticipated.

“Some men and women ended up definitely afflicted pretty negatively by this … This is really painful,” NLC Commissioner Jodi Scholtz explained to the Day by day Maverick past 12 months.

“I satisfied a few these individuals. It had been just so heart-wrenching that their full lives have been turned the wrong way up,” stated Scholtz.

Between Individuals she achieved had been Qhino and Makatse.

Harmless platform essential for whistleblowers
The SSA found the absence at time of a suitable channel for whistleblowers to report corruption led them to show to the media.

“Failure to have a devoted anti-corruption channel will cause staff members presenting such instances outside of the NLC,” the SSA stated in its findings.

“Offered the magnitude of corruption in state establishments, it continues to be important that it makes sure that the NLC complies with all safety prescripts Which its concentration is on guaranteeing that illegal and irregular perform is adequately mitigated versus and by guaranteeing an satisfactory channel for whistle-blowers to report untoward perform with no becoming intimidated.”

It proposed that the NLC create a “Secure channel” for workers to deliver information on any “untoward action” that may not stop or discourage personnel from blowing the whistle. A whistle-blowers plan, according to the Safeguarded Disclosures Act 25 of 2000, is often a need.”

Media experiences Nene listed
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Health and fitness Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor in the Limpopo Mirror, to expose NLC corruption. “The posting experienced factors of information not out there in the public area, thereby boosting problem on interior Data security breaches. The allegations while in the media were independently investigated,” Nene claimed. “Nevertheless, staff members accountable for divulging categorized facts have yet for being determined”;
A 28 January 2018 short article posted by the Dally Dispatch “citing many allegations from your Limpopo Mirror write-up revealed on 10 December 2017 along with a new allegation relating to a previous personnel through the name of Mzukisi Makatse. He was billed and summarily dismissed to the threat prompted on the organisation.”
A 16 November 2018 short article inside the Lowvelder concerning the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Regardless of acquiring R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder article contained categorized facts when it comes to NLC policy, elevating even further fears of interior information security breaches,” Nene stated in her affidavit. “The prima facie evidence with regards to these allegations didn't warrant an impartial Investigation, even so [it] highlighted the heightened data safety hazards within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Main Treatment, a hijacked NPO. Nene explained GroundUp had verified in its story that it had been depending on leaked NLC files. This was despite the NLC rejecting a PAIA (Marketing of Access to Facts) request for information concerning the job, she stated