Lottery bosses turned to Condition Security Agency to investigate leaks

Lottery bosses turned to Condition Security Agency to investigate leaks

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Former Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Protection Company (SSA) in December 2018 to investigate the leaking of paperwork that uncovered lottery corruption.
The NLC’s corporation secretary at some time shown media reports she mentioned ended up determined by “stolen” information in an affidavit to the SSA.
The SSA did examine. It discovered the information was not a make a difference of condition protection and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to expose it.
A completely new board and management has given that taken over the NLC and To date have taken measures to end corruption within the institution.
A Condition Protection Company (SSA) investigation identified 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 at the moment suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the safety company’s “confidential” conclusions and proposals.
Nevhutanda requested the SSA to analyze the job of NLC team within the alleged leaking of information, and Nene, in her affidavit identified unique media and experiences that she claimed associated these leaks.

From the letter outlining its results, the SSA told the NLC that even though shielding point out information was “a legal critical directed at shielding the sovereignty and integrity from the condition” this only placed on correctly classified data.

Although it didn't say so instantly, the SSA findings implied which the allegedly leaked information and facts did not tumble into this group.

Noticeably, the SSA designed it obvious that the need to shield point out info “does not avert any specific from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered the NLC information and facts involved with the alleged breach was “delicate and privileged in nature, although not labeled when it comes to the prescripts in the Bare minimum Information and facts Stability Requirements (MISS)”.

“The leakage from the pertinent sensitive Formal NLC facts for the media would not pose a risk to countrywide safety,” the SSA claimed, including which the impression in the breaches was reputational.

The SSA report found “no proof of the factual and incriminating character versus any on the suspected NLC employees which could be identified from the knowledge and data interrogated”.

What's more, it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does supply sufficient motive to acquire this kind of exposed inside the media”.

Conspiracy statements
In 2020, Nevhutanda advised MPs through a session of Parliament’s trade, field and Competitors portfolio committee that there was “a conspiracy” by which info “stolen” from the NLC was despatched for the US, exactly where he claimed it absolutely was getting sold to fund a smear campaign against the NLC.

He was repeating very similar claims he had Beforehand created in Parliament, which bundled ad hominem attacks on GroundUp which reporter but was very careful not to name either.

“I came below in this August property very last calendar year and reported to honourable members that information about our beneficiaries is stolen and place in one state in the usa,” he explained to MPs.

“We termed on the Point out Protection Agency to return check into the issue since we are finding studies that our info is building funds for media platforms and journalists,” he reported. “There's been communicate, naturally from a person source, just one media, that spoke A lot about proactive-funding,” Nevhutanda explained (referring to GroundUp), but did not convey to MPs which the SSA investigation were done Nearly a yr earlier.

Proactive funding was at the heart from the looting from the lottery. It side-stepped the normal grant process. The NLC could alone establish a job to fund and appoint a non-financial gain organisation to oversee it.

Following Nevhutanda to start with instructed Parliament in 2018 that he had questioned the SSA to investigate the intended breach, the South African National Editors Discussion board issued a statement declaring that his remarks mirrored “an especially dangerous Frame of mind where the media is getting blamed with the 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 questioned the SSA to analyze their sources.”

Proactive assignments designed key
Protection flaws determined in the NLC grant funding system in the course of the SSA’s investigation, show up to happen to be applied as an justification from the NLC to remove all proactive-funded jobs from its central grants method.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘solution’ and initiatives were being faraway from the grant funding process and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Workplace, Government Manager Authorized to be able to safeguard [the] data,” Nene said in her affidavit.

“There was plenty of inner discussion, with numerous back and forth, about what to do to plug the alleged leaks”, a source, who was in the senior place for the NLC at some time, told GroundUp. “Ultimately, the decision was taken to eliminate each of the proactive projects within the method and limit usage of A few persons”.

Some in that handful of folks were implicated in corruption.

Maselwa, who resigned through the NLC quite a few decades in the past, has been implicated in corruption involving lottery cash. He obtained R4.three-million from lottery money allotted to build a library and museum advanced in Kuruman (see Taung Cultural Songs and Arts Expo) which he used to make a residence within an upmarket gated progress in Pretoria. The assets is among quite a few paid out for with lottery funds which were frozen after the Asset Forfeiture Device obtained a preservation get in December 2022.

The politically-connected Nevhutanda, who was appointed as the NLC board chairperson by former President Jacob Zuma in 2009 and was near large-ups during the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated inside the corruption which overcome the NLC on their own look at.

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

Whenever a new administration, including the entire board and govt, took around within the NLC in late 2022 and early 2023, they found out a “chaotic mess” from the documentation regarding proactive funding, Considerably of which was paper-primarily based. Key paperwork had been lacking. Files held for safekeeping by doc storage business Metrofile were signed out and by no means returned.

The NLC was in the position to recover copies of some หวย วัน นี้ paperwork from its Mimecast e-mail archiving method and the laptops of their assistants and support team.

News stories
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem doable info protection breaches and the unauthorised use and/or dissemination of confidential details received on account of performing Formal capabilities in the Fee by NLC employees. The actions are intended to undermine the integrity of the Fee when disrupting the helpful features [in the NLC] and leading to insurmountable reputational harm into the Commission as the custodian of private data entrusted to it by its beneficiaries.”

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

Nene is now going through a disciplinary inquiry after she was unsuccessful in authorized motion to put aside conclusions of irregular expenditure on her view.

The objective of her affidavit, Nene reported, was “to record the activities which transpired regarding information and facts stability breaches at the National Lotteries Fee”.

She mentioned various information stories which she claimed ended up the final results of those “breaches” (see at the end of this informative article).

Nene stated that a whistle-blower approached the NLC alleging that one of its workforce, Sello Qhino, had “provided her labeled NLC Info and persistently inspired her to provide the knowledge to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded assignments in Kuruman after makes an attempt to boost The difficulty internally were dismissed, was subsequently fired.

Referring to an 18 November 2018 short article during the Every day Dispatch in regards to the misappropriation of Lottery cash, Nene claimed which the NLC determined and afterwards suspended Zintle Rungqu. She was an personnel from the NLC’s East London Office environment, who was the associate along with the mother of whistleblower Mzukise Makatse’s a few young children.

Rungqu and Makatse feel Rungqu was punished since Makatse blew the whistle. She was suspended and billed internally, Together with the NLC spending R470,000 on attorneys to represent it, but was located not responsible and allowed to return to work.

“The prevalent Think about these content articles is the fact [they involve] categorized data regarding proactive funding jobs,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out from the loved ones residence to take the warmth off her and his small children. Struggling with homelessness, he moved into an Business within an empty manufacturing unit belonging to a buddy.

Equally Makatse and Qhino are participating in an NLC reparation system intended to recognise the hurt a number of people suffered with the hands on the NLC. Apologies and, in some cases, fiscal payment are expected.

“Some men and women were being truly influenced pretty negatively by this … This is actually unpleasant,” NLC Commissioner Jodi Scholtz advised the Each day Maverick past calendar year.

“I achieved two or three these individuals. It absolutely was just so coronary heart-wrenching that their complete lives happen to be turned upside down,” reported Scholtz.

Between People she satisfied were being Qhino and Makatse.

Safe and sound platform desired for whistleblowers
The SSA located the absence at the time of a suitable channel for whistleblowers to report corruption led them to show for the media.

“Failure to possess a dedicated anti-corruption channel will cause employees presenting these kinds of conditions outside of the NLC,” the SSA claimed in its findings.

“Offered the magnitude of corruption in point out institutions, it remains important that it ensures that the NLC complies with all stability prescripts and that its target is on guaranteeing that unlawful and irregular perform is adequately mitigated in opposition to and by making sure an adequate channel for whistle-blowers to report untoward perform with no currently being intimidated.”

It advised that the NLC build a “Protected channel” for workers to provide information on any “untoward exercise” that could not protect against or discourage personnel from blowing the whistle. A whistle-blowers plan, based on the Secured Disclosures Act twenty five of 2000, is often a requirement.”

Media studies Nene listed
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Physical fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and owner of the Limpopo Mirror, to expose NLC corruption. “The write-up had components of information not obtainable in the public area, thus increasing problem on internal Information protection breaches. The allegations while in the media had been independently investigated,” Nene said. “Having said that, personnel to blame for divulging classified facts have but to be recognized”;
A 28 January 2018 article printed because of the Dally Dispatch “citing many allegations through the Limpopo Mirror posting published on 10 December 2017 along with a new allegation associated with a previous personnel by the identify of Mzukisi Makatse. He was billed and summarily dismissed with the menace prompted into the organisation.”
A sixteen November 2018 short article while in the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of obtaining R27-million in lottery grants, the rehab has never been done. “The Lowvelder report contained categorized information and facts regarding NLC plan, elevating even further considerations of inside information and facts security breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened information stability threats inside the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene said GroundUp experienced verified in its story that it was based upon leaked NLC files. This was despite the NLC rejecting a PAIA (Promotion of Entry to Data) request for details regarding the venture, she reported