Lottery bosses turned to Point out Stability Company to investigate leaks

Lottery bosses turned to Point out Stability Company to investigate leaks

Blog Article

Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Safety Agency (SSA) in December 2018 to research the leaking of paperwork that exposed lottery corruption.
The NLC’s company secretary at the time outlined media studies she explained have been dependant on “stolen” information and facts within an affidavit to the SSA.
The SSA did investigate. It uncovered the knowledge was not a make any difference of condition security and the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to expose it.
A completely new board and management has since taken in excess of the NLC and thus far have taken measures to end corruption within the establishment.
A State Safety Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for publicity from the media.

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

Here is

Nevhutanda’s letter,
an affidavit by at present suspended NLC business secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to research the function of NLC team while in the alleged leaking of data, and Nene, in her affidavit recognized unique media and studies that she claimed associated these leaks.

In the letter outlining its conclusions, the SSA explained to the NLC that even though defending condition info was “a legal vital directed at preserving the sovereignty and integrity with the state” this only applied to properly categorised information.

Although it didn't say so directly, the SSA findings implied that the allegedly leaked details did not slide into this classification.

Drastically, the SSA built it very clear that the need to shield state info “isn't going to avoid any person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation identified which the NLC data associated with the alleged breach was “delicate and privileged in mother nature, although not classified with regard to the prescripts of your Minimum Info Safety Specifications (Overlook)”.

“The leakage on the suitable sensitive official NLC information to the media does not pose a danger to nationwide security,” the SSA reported, incorporating that the effects on the breaches was reputational.

The SSA report identified “no proof of a factual and incriminating character versus any in the suspected NLC employees that would be identified from the information and facts 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 kinds of uncovered from the media”.

Conspiracy statements
In 2020, Nevhutanda instructed MPs through a session of Parliament’s trade, field and competition portfolio committee that there was “a conspiracy” in which information “stolen” within the NLC was sent towards the US, where he claimed it had been becoming bought to fund a smear campaign versus the NLC.

He was repeating equivalent promises he had Formerly made in Parliament, which provided advert hominem assaults on GroundUp and this reporter but was mindful not to call both.

“I arrived here On this August household past year and reported to honourable members that details about our beneficiaries has become stolen and place in one state in the usa,” he instructed MPs.

“We identified as to the Condition Security Company to come back consider the matter for the reason that we have been obtaining experiences that our data is producing revenue for media platforms and journalists,” he mentioned. “There have been discuss, of course from a single resource, one media, that spoke Significantly about proactive-funding,” Nevhutanda reported (referring to GroundUp), but didn't tell MPs that the SSA investigation had been completed Virtually a yr earlier.

Proactive funding was at the heart from the looting from the lottery. It side-stepped the traditional grant system. The NLC could by itself discover a undertaking to fund and appoint a non-earnings organisation to oversee it.

Just after Nevhutanda 1st informed 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 incredibly hazardous Angle in which the media is remaining blamed for your NLC’s inherent challenges”.

“Rather than investigating why hundreds of thousands can't be accounted for, the NLC has alternatively attempted to Solid doubt within the integrity in the journalists concerned and has questioned the SSA to research their sources.”

Proactive tasks produced magic formula
Stability flaws determined inside the NLC grant funding method during the SSA’s investigation, look to are actually made use of as an justification with the NLC to eliminate all proactive-funded assignments from its central grants method.

“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘top secret’ and projects were faraway from the grant funding technique and maintained manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Place of work, Govt Supervisor Legal so that you can safeguard [the] information and facts,” Nene mentioned in her affidavit.

“There was many internal dialogue, with lots of back and forth, about what to do to plug the alleged leaks”, a supply, who was in a senior situation in the NLC at time, instructed GroundUp. “Eventually, the choice was taken to remove many of the proactive initiatives with the technique and Restrict entry to A few individuals”.

Some in that handful of men and women were implicated in corruption.

Maselwa, who resigned through the NLC quite a few many years in the past, has actually been implicated in corruption involving lottery resources. He received R4.3-million from lottery funds allocated to build a library and museum sophisticated in Kuruman (see Taung Cultural Tunes and Arts Expo) which he made use of to build a residence in an upmarket gated development in Pretoria. The property is among quite a few compensated for with lottery money which were frozen following the Asset Forfeiture Unit attained a preservation purchase in December 2022.

The politically-related Nevhutanda, who was appointed as being the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to high-ups from the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated from the corruption which overwhelmed the NLC on their enjoy.

Also implicated are previous board users William Huma, who resigned right after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has due to the fact died.

When a new administration, including the complete board and executive, took in excess of for the NLC in late 2022 and early 2023, they found out a “chaotic mess” during the documentation relating to proactive funding, A great deal of which was paper-centered. Critical documents were lacking. Information held for safekeeping by doc storage firm Metrofile had been signed out and under no circumstances returned.

The NLC was capable to Get better copies of some หวย ลาว ล่าสุด documents from its Mimecast email archiving procedure as well as laptops of their assistants and support team.

News experiences
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave issue attainable information protection breaches and the unauthorised use and/or dissemination of confidential facts attained as a result of executing official features from the Fee by NLC workforce. The activities are intended to undermine the integrity of the Fee though disrupting the efficient functions [of the NLC] and causing insurmountable reputational hurt to your Commission as the custodian of private information and facts entrusted to it by its beneficiaries.”

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

Nene is at present facing a disciplinary inquiry immediately after she was unsuccessful in legal action to put aside conclusions of irregular expenditure on her observe.

The goal of her affidavit, Nene said, was “to file the situations which transpired referring to data protection breaches within the Countrywide Lotteries Fee”.

She mentioned various information experiences which she claimed were the results of such “breaches” (see at the conclusion of this article).

Nene said that a whistle-blower approached the NLC alleging that one of its workforce, Sello Qhino, had “supplied her categorised NLC Facts and persistently encouraged her to offer the information to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded assignments in Kuruman following makes an attempt to lift the issue internally have been disregarded, was subsequently fired.

Referring to an eighteen November 2018 write-up from the Every day Dispatch with regards to the misappropriation of Lottery resources, Nene reported which the NLC identified and after that suspended Zintle Rungqu. She was an worker within the NLC’s East London Business office, who was the associate along with the mother of whistleblower Mzukise Makatse’s a few small children.

Rungqu and Makatse believe that Rungqu was punished mainly because Makatse blew the whistle. She was suspended and charged internally, with the NLC expending R470,000 on attorneys to stand for it, but was located not responsible and allowed to return to work.

“The popular factor in these content is the fact that [they require] categorised info regarding proactive funding jobs,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out from the household property to take the heat off her and his kids. Dealing with homelessness, he moved into an Place of work in an vacant manufacturing facility belonging to a pal.

Each Makatse and Qhino are taking part in an NLC reparation approach intended to recognise the hurt a lot of people suffered within the fingers of your NLC. Apologies and, sometimes, financial compensation are envisioned.

“Some people ended up really impacted pretty negatively by this … This is actually unpleasant,” NLC Commissioner Jodi Scholtz instructed the Day by day Maverick last year.

“I met a number of these men and women. It had been just so heart-wrenching that their entire lives have been turned upside down,” said Scholtz.

Among the Those people she fulfilled had been Qhino and Makatse.

Secure System essential for whistleblowers
The SSA identified the absence at some time of a correct channel for whistleblowers to report corruption led them to show for the media.

“Failure to possess a dedicated anti-corruption channel will end in workers presenting these types of circumstances beyond the NLC,” the SSA said in its results.

“Supplied the magnitude of corruption in point out institutions, it remains vital that it makes certain that the NLC complies with all stability prescripts Which its aim is on making sure that unlawful and irregular perform is sufficiently mitigated in opposition to and by making certain an satisfactory channel for whistle-blowers to report untoward conduct devoid of being intimidated.”

It advisable the NLC create a “Harmless channel” for workers to offer information on any “untoward activity” that would not prevent or discourage staff members from blowing the whistle. A whistle-blowers coverage, based upon the Safeguarded Disclosures Act twenty five of 2000, is often a prerequisite.”

Media reports Nene shown
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Physical fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and operator with the Limpopo Mirror, to show NLC corruption. “The post had things of knowledge not obtainable in the general public area, thus boosting issue on internal Information and facts stability breaches. The allegations in the media were independently investigated,” Nene mentioned. “Even so, staff members chargeable for divulging labeled details have yet to generally be determined”;
A 28 January 2018 report printed from the Dally Dispatch “citing several allegations from the Limpopo Mirror short article published on 10 December 2017 and also a new allegation concerning a former worker because of the identify of Mzukisi Makatse. He was billed and summarily dismissed with the danger brought on to your organisation.”
A sixteen November 2018 report from the Lowvelder concerning the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, in spite of acquiring R27-million in lottery grants, the rehab has not been accomplished. “The Lowvelder post contained classified info when it comes to NLC plan, elevating further problems of internal data stability breaches,” Nene explained in her affidavit. “The prima facie proof with regard to these allegations did not warrant an impartial Investigation, nevertheless [it] highlighted the heightened facts stability risks within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Main Care, a hijacked NPO. Nene reported GroundUp experienced verified in its story that it was depending on leaked NLC documents. This was despite the NLC rejecting a PAIA (Advertising of Entry to Data) request for aspects concerning the challenge, she explained