Lottery bosses turned to Point out Protection Company to analyze leaks

Previous Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the State Protection Agency (SSA) in December 2018 to research the leaking of documents that uncovered lottery corruption.
The NLC’s business secretary at enough time outlined media reports she stated had been according to “stolen” information within an affidavit for your SSA.
The SSA did investigate. It uncovered the knowledge was not a matter of point out safety and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to reveal it.
A fresh board and management has due to the fact taken around the NLC and So far have taken steps to finish corruption in the establishment.
A Condition Safety Company (SSA) investigation identified that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished sufficient motive” for exposure through the media.

The probe into meant “facts security breaches and sabotage of NLC operations” was carried out following then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to analyze.

Here is

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “private” conclusions and proposals.
Nevhutanda questioned the SSA to analyze the purpose of NLC team in the alleged leaking of data, and Nene, in her affidavit discovered precise media and stories that she claimed concerned these leaks.

Within the letter outlining its conclusions, the SSA instructed the NLC that although guarding point out details was “a lawful critical geared toward preserving the sovereignty and integrity in the point out” this only placed on appropriately labeled information.

Although it did not say so specifically, the SSA conclusions implied that the allegedly leaked details did not drop into this group.

Noticeably, the SSA made it very clear that the need to shield state info “doesn't stop any personal from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation found which the NLC data associated with the alleged breach was “delicate and privileged in character, although not categorized when it comes to the prescripts of your Bare minimum Information Protection Standards (Overlook)”.

“The leakage of your pertinent delicate Formal NLC info on the media would not pose a threat to national security,” the SSA mentioned, including the affect with the breaches was reputational.

The SSA report found “no proof of the factual and incriminating character in opposition to any in the suspected NLC staff that might be identified from the data and facts interrogated”.

In addition it said that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does present ample motive to obtain these kinds of exposed while in the media”.

Conspiracy claims
In 2020, Nevhutanda advised MPs during a session of Parliament’s trade, marketplace and Competitors portfolio committee that there was “a conspiracy” where information “stolen” in the NLC was sent on the US, wherever he claimed it absolutely was staying bought to fund a smear marketing campaign from the NLC.

He was repeating very similar statements he had previously built in Parliament, which bundled advertisement hominem attacks on GroundUp which reporter but was watchful not to name both.

“I came in this article With this August residence last 12 months and noted to honourable users that details about our beneficiaries has been stolen and put in one condition in the united states,” he advised MPs.

“We termed within the State Safety Company to return take a look at the matter simply because we have been obtaining studies that our details is making revenue for media platforms and journalists,” he mentioned. “There's been converse, of course from one supply, just one media, that spoke much about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but did not notify MPs which the SSA investigation had been finished almost a 12 months earlier.

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

Soon after Nevhutanda to start with told Parliament in 2018 that he experienced questioned the SSA to research the meant breach, the South African Nationwide Editors Forum issued a press release declaring that his remarks reflected “an incredibly unsafe Mindset wherever the media is being blamed for your NLC’s inherent troubles”.

“In lieu of investigating why thousands and thousands cannot be accounted for, the NLC has as a substitute tried to Solid question within the integrity of your journalists concerned and has requested the SSA to analyze their resources.”

Proactive tasks designed secret
Safety flaws recognized from the NLC grant funding system throughout the SSA’s investigation, seem to are already applied as an excuse from the NLC to remove all proactive-funded projects from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘key’ and projects were being removed from the grant funding system and preserved manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Office environment, Executive Manager Lawful as a way to safeguard [the] information,” Nene explained in her affidavit.

“There was loads of internal discussion, with many back and forth, about what to do to plug the alleged leaks”, a source, who was within a senior placement for the NLC at some time, explained to GroundUp. “Eventually, the choice was taken to get rid of every one of the proactive assignments from your program and limit usage of a handful of individuals”.

Some in that handful of people ended up implicated in corruption.

Maselwa, who resigned through the NLC numerous years in the past, has actually been implicated in corruption involving lottery cash. He gained R4.three-million from lottery funds allocated to develop a library and museum complicated in Kuruman (see Taung Cultural Tunes and Arts Expo) which he used to create a household within an upmarket gated improvement in Pretoria. The house is one of many paid out for with lottery cash that 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 substantial-ups while in the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated while in the corruption which overwhelmed the NLC on their own observe.

Also implicated are previous board associates William Huma, who resigned following he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has since died.

Every time a new administration, such as the complete board and government, took over on the NLC in late 2022 and early 2023, they found out a “chaotic mess” within the documentation associated with proactive funding, A great deal of which was paper-based. Crucial documents had been missing. Files held for safekeeping by doc storage company Metrofile were signed out and hardly ever returned.

The NLC was ready to Get well copies of some เช ค หวย paperwork from its Mimecast e mail archiving procedure and also the laptops of their assistants and support employees.

News experiences
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave problem feasible information stability breaches plus the unauthorised use and/or dissemination of confidential information received as a result of accomplishing official features within the Fee by NLC employees. The functions are meant to undermine the integrity in the Fee though disrupting the successful features [of your NLC] and creating insurmountable reputational damage on the Fee since the custodian of non-public information and facts entrusted to it by its beneficiaries.”

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

Nene is at the moment facing a disciplinary inquiry immediately after she was unsuccessful in legal motion to set aside findings of irregular expenditure on her look at.

The objective of her affidavit, Nene claimed, was “to report the functions which transpired associated with details stability breaches for the National Lotteries Fee”.

She detailed numerous information experiences which she claimed ended up the final results of those “breaches” (see at the conclusion of this post).

Nene mentioned that a whistle-blower approached the NLC alleging that one among its workers, Sello Qhino, had “provided her labeled NLC Data and persistently encouraged her to offer the data to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded assignments in Kuruman after attempts to boost The problem internally were being disregarded, was subsequently fired.

Referring to an eighteen November 2018 article while in the Daily Dispatch in regards to the misappropriation of Lottery cash, Nene explained that the NLC identified and after that suspended Zintle Rungqu. She was an staff while in the NLC’s East London Business office, who was the partner along with the mom of whistleblower Mzukise Makatse’s a few youngsters.

Rungqu and Makatse consider Rungqu was punished since Makatse blew the whistle. She was suspended and billed internally, with the NLC investing R470,000 on lawyers to signify it, but was identified not guilty and allowed to return to operate.

“The common Think about these posts is always that [they entail] categorized details referring to proactive funding projects,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out of your spouse and children property to take the heat off her and his youngsters. Facing homelessness, he moved into an Office environment in an empty manufacturing facility belonging to a friend.

Each Makatse and Qhino are participating in an NLC reparation approach intended to recognise the harm lots of people experienced for the palms on the NLC. Apologies and, sometimes, money compensation are envisioned.

“Some people today ended up actually affected pretty negatively by this … This is de facto unpleasant,” NLC Commissioner Jodi Scholtz explained to the Day-to-day Maverick last 12 months.

“I achieved several these individuals. It had been just so coronary heart-wrenching that their full life have already been turned the other way up,” said Scholtz.

Amongst People she fulfilled ended up Qhino and Makatse.

Harmless System needed for whistleblowers
The SSA found the absence at the time of a proper channel for whistleblowers to report corruption led them to show to your media.

“Failure to have a dedicated anti-corruption channel will bring about workforce presenting these types of scenarios outside of the NLC,” the SSA said in its results.

“Offered the magnitude of corruption in point out institutions, it stays essential that it makes sure that the NLC complies with all security prescripts and that its concentration is on ensuring that illegal and irregular carry out is sufficiently mitigated against and by making certain an enough channel for whistle-blowers to report untoward perform with out currently being intimidated.”

It proposed which the NLC build a “safe channel” for workers to deliver info on any “untoward action” that could not protect against or discourage staff members from blowing the whistle. A whistle-blowers coverage, determined by the Safeguarded Disclosures Act 25 of 2000, is a need.”

Media studies Nene outlined
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Conditioning Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and operator in the Limpopo Mirror, to show NLC corruption. “The article had things of data not obtainable in the public domain, therefore increasing issue on interior Info safety breaches. The allegations while in the media ended up independently investigated,” Nene claimed. “Having said that, employees accountable for divulging classified information have nonetheless to generally be determined”;
A 28 January 2018 write-up published via the Dally Dispatch “citing a lot of allegations from your Limpopo Mirror article released on 10 December 2017 plus a new allegation relating to a former personnel from the title of Mzukisi Makatse. He was billed and summarily dismissed with the threat induced into the organisation.”
A sixteen November 2018 post inside the Lowvelder about the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, in spite of receiving R27-million in lottery grants, the rehab hasn't been concluded. “The Lowvelder short article contained labeled data regarding NLC policy, raising further more worries of inner information protection breaches,” Nene mentioned in her affidavit. “The prima facie proof with regard to these allegations didn't warrant an unbiased Investigation, even so [it] highlighted the heightened info protection threats inside the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Most important Care, a hijacked NPO. Nene mentioned GroundUp had confirmed in its story that it had been based upon leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Advertising of Use of Information and facts) ask for for aspects about the venture, she stated

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