Lottery bosses turned to Condition Stability Company to analyze leaks

Lottery bosses turned to Condition Stability Company to analyze leaks

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Previous National 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 business secretary at time detailed media stories she claimed ended up dependant on “stolen” information within an affidavit to the SSA.
The SSA did investigate. It uncovered the knowledge wasn't a subject of state stability and that the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to reveal it.
A fresh board and administration has considering that taken over the NLC and To this point have taken steps to finish corruption at the institution.
A Condition Safety Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for exposure from the media.

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

Here is

Nevhutanda’s letter,
an affidavit by presently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” results and recommendations.
Nevhutanda questioned the SSA to investigate the purpose of NLC personnel within the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and experiences that she claimed concerned these leaks.

From the letter outlining its conclusions, the SSA informed the NLC that even though protecting state details was “a authorized vital directed at preserving the sovereignty and integrity of the point out” this only placed on properly categorized details.

Although it didn't say so specifically, the SSA results implied that the allegedly leaked facts didn't drop into this category.

Appreciably, the SSA manufactured it clear that the necessity to shield state data “would not protect against any person from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation observed which the NLC information and facts associated with the alleged breach was “sensitive and privileged in character, although not labeled when it comes to the prescripts from the Bare minimum Information Safety Standards (MISS)”.

“The leakage in the appropriate sensitive official NLC data to the media does not pose a danger to national protection,” the SSA stated, introducing that the affect of the breaches was reputational.

The SSA report identified “no evidence of a factual and incriminating character against any with the suspected NLC workers that would be discovered from the knowledge and details interrogated”.

Furthermore, it said that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does supply enough motive to get these exposed during the media”.

Conspiracy claims
In 2020, Nevhutanda instructed MPs throughout a session of Parliament’s trade, sector and competition portfolio committee that there was “a conspiracy” in which information and facts “stolen” within the NLC was sent for the US, exactly where he claimed it had been remaining sold to fund a smear campaign in opposition to the NLC.

He was repeating equivalent statements he experienced Beforehand created in Parliament, which involved advert hominem assaults on GroundUp which reporter but was thorough not to name possibly.

“I came right here in this August household previous calendar year and noted to honourable users that details about our beneficiaries has long been stolen and put in a single condition in the usa,” he told MPs.

“We termed within the Condition Protection Company to come consider the issue for the reason that we are acquiring studies that our data is creating dollars for media platforms and journalists,” he said. “There was discuss, needless to say from one particular source, just one media, that spoke Considerably about proactive-funding,” Nevhutanda stated (referring to GroundUp), but didn't tell MPs the SSA investigation were completed Just about a year previously.

Proactive funding was at the guts of the looting on the lottery. It facet-stepped the traditional grant system. The NLC could itself recognize a task to fund and appoint a non-profit organisation to oversee it.

Just after Nevhutanda initial informed Parliament in 2018 that he experienced questioned the SSA to research the intended breach, the South African Nationwide Editors Forum issued a press release declaring that his remarks mirrored “an extremely risky Perspective exactly where the media is being blamed with the NLC’s inherent troubles”.

“As an alternative to investigating why hundreds of thousands can not be accounted for, the NLC has as a substitute made an effort to Solid question over the integrity from the journalists concerned and has asked the SSA to research their sources.”

Proactive initiatives created solution
Protection flaws discovered in the NLC grant funding method through the SSA’s investigation, show up to are already applied 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 pro-actively funding projects was heightened to ‘mystery’ and tasks were being faraway from the grant funding program and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Place of work, Government Manager Lawful in order to safeguard [the] information,” Nene claimed in her affidavit.

“There was loads of internal discussion, with a great deal of forwards and backwards, about what to do to plug the alleged leaks”, a resource, who was in a very senior placement at the NLC at time, instructed GroundUp. “In the end, the decision was taken to remove the many proactive projects from your program and limit access to a handful of men and women”.

Some in that handful of individuals had been implicated in corruption.

Maselwa, who resigned with the NLC quite a few many years ago, is implicated in corruption involving lottery funds. He obtained R4.3-million from lottery cash allotted to construct a library and museum elaborate in Kuruman (see Taung Cultural New music and Arts Expo) which he made use of to develop a residence within an upmarket gated progress in Pretoria. The residence is one of quite a few paid for with lottery funds which were frozen once the Asset Forfeiture Unit obtained a preservation buy in December 2022.

The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to higher-ups while in the ANC leadership, former NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated during the corruption which confused the NLC on their watch.

Also implicated are former board users William Huma, who resigned immediately after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got because died.

When a new administration, including the complete board and government, took around in the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” from the documentation concerning proactive funding, much of which was paper-centered. Vital files were being missing. Files held for safekeeping by doc storage firm Metrofile had been signed out and never returned.

The NLC was able to Get well copies of some ผล สลากกินแบ่ง files from its Mimecast electronic mail archiving procedure and the laptops of their assistants and aid team.

Information reviews
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave concern doable information and facts safety breaches along with the unauthorised use and/or dissemination of private facts obtained due to performing official functions while in the Fee by NLC workforce. The routines are meant to undermine the integrity on the Fee while disrupting the successful functions [in the NLC] and triggering insurmountable reputational damage on the Commission as the custodian of personal info entrusted to it by its beneficiaries.”

His ask for for that SSA to research was supported within an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is at this time going through a disciplinary inquiry soon after she was unsuccessful in lawful action to put aside results of irregular expenditure on her watch.

The objective of her affidavit, Nene said, was “to file the occasions which transpired regarding information safety breaches for the Countrywide Lotteries Fee”.

She outlined a variety of information experiences which she claimed were the outcomes of these “breaches” (see at the end of this post).

Nene explained that a whistle-blower approached the NLC alleging that considered one of its workforce, Sello Qhino, experienced “furnished her categorized NLC Info and persistently inspired her to supply the information to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded assignments in Kuruman soon after attempts to lift the issue internally have been ignored, was subsequently fired.

Referring to an eighteen November 2018 report in the Day by day Dispatch with regard to the misappropriation of Lottery money, Nene reported that the NLC recognized after which you can suspended Zintle Rungqu. She was an worker while in the NLC’s East London Business, who was the companion along with the mother of whistleblower Mzukise Makatse’s three kids.

Rungqu and Makatse feel Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, Together with the NLC paying R470,000 on lawyers to stand for it, but was located not guilty and allowed to return to operate.

“The typical Think about these articles or blog posts is the fact that [they contain] categorized information referring to proactive funding initiatives,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out with the family members property to go ahead and take warmth off her and his small children. Dealing with homelessness, he moved into an Office environment within an empty manufacturing unit belonging to a colleague.

Both Makatse and Qhino are participating in an NLC reparation method intended to recognise the harm a lot of people endured in the arms of your NLC. Apologies and, sometimes, fiscal compensation are envisioned.

“Some men and women have been really influenced really negatively by this … This is basically distressing,” NLC Commissioner Jodi Scholtz advised the Everyday Maverick very last year.

“I met a handful of these individuals. It was just so heart-wrenching that their total lives are actually turned the other way up,” said Scholtz.

Among those she achieved ended up Qhino and Makatse.

Risk-free platform necessary for whistleblowers
The SSA identified the absence at the time of an appropriate channel for whistleblowers to report corruption led them to turn for the media.

“Failure to possess a committed anti-corruption channel will lead to employees presenting these situations beyond the NLC,” the SSA mentioned in its conclusions.

“Provided the magnitude of corruption in point out establishments, it remains very important that it ensures that the NLC complies with all safety prescripts and that its concentration is on making sure that unlawful and irregular perform is sufficiently mitigated against and by making certain an ample channel for whistle-blowers to report untoward carry out devoid of becoming intimidated.”

It suggested that the NLC build a “Safe and sound channel” for employees to provide info on any “untoward action” that will not stop or discourage employees from blowing the whistle. A whistle-blowers coverage, depending on the Shielded Disclosures Act 25 of 2000, is a prerequisite.”

Media reports Nene stated
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner on the Limpopo Mirror, to reveal NLC corruption. “The short article experienced features of knowledge not obtainable in the public area, thereby increasing worry on inside Information protection breaches. The allegations while in the media ended up independently investigated,” Nene said. “Nonetheless, staff answerable for divulging categorized information have nonetheless to be identified”;
A 28 January 2018 post published via the Dally Dispatch “citing several allegations from your Limpopo Mirror posting printed on ten December 2017 and a new allegation associated with a previous personnel by the name of Mzukisi Makatse. He was billed and summarily dismissed for the threat triggered into the organisation.”
A sixteen November 2018 posting inside the Lowvelder concerning the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Despite acquiring R27-million in lottery grants, the rehab has not been accomplished. “The Lowvelder article contained categorised facts concerning NLC coverage, boosting further more worries of interior data stability breaches,” Nene stated in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an independent Investigation, having said that [it] highlighted the heightened data safety hazards within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Primary Care, a hijacked NPO. Nene stated GroundUp experienced confirmed in its Tale that it had been based upon leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Promotion of Entry to Info) ask for for specifics concerning the challenge, she explained