Lottery bosses turned to State Stability Company to analyze leaks

Lottery bosses turned to State Stability Company to analyze leaks

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Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the State Safety Agency (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s firm secretary at enough time shown media experiences she reported were being based on “stolen” info within an affidavit to the SSA.
The SSA did investigate. It uncovered the data was not a matter of state safety and which the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to show it.
A brand new board and management has due to the fact taken about the NLC and To this point have taken steps to end corruption for the institution.
A Condition Stability Agency (SSA) investigation located which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for publicity via the media.

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

Here's

Nevhutanda’s letter,
an affidavit by currently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security agency’s “private” results and recommendations.
Nevhutanda asked the SSA to analyze the position of NLC personnel inside the alleged leaking of data, and Nene, in her affidavit determined particular media and experiences that she claimed concerned these leaks.

During the letter outlining its results, the SSA explained to the NLC that although preserving state facts was “a lawful essential targeted at guarding the sovereignty and integrity in the condition” this only applied to properly labeled facts.

Even though it did not say so right, the SSA results implied that the allegedly leaked details did not tumble into this classification.

Noticeably, the SSA designed it crystal clear that the need to shield point out data “doesn't prevent any unique from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation discovered the NLC information involved with the alleged breach was “delicate and privileged in nature, but not labeled when it comes to the prescripts on the Minimum amount Info Safety Benchmarks (MISS)”.

“The leakage from the appropriate sensitive official NLC info for the media isn't going to pose a risk to national stability,” the SSA reported, incorporating the influence from the breaches was reputational.

The SSA report found “no proof of a factual and incriminating mother nature in opposition to any of the suspected NLC workforce that can be identified from the knowledge and data interrogated”.

What's more, it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does deliver ample motive to own these types of exposed inside the media”.

Conspiracy statements
In 2020, Nevhutanda instructed MPs during a session of Parliament’s trade, business and Competitiveness portfolio committee that there was “a conspiracy” where information and facts “stolen” within the NLC was despatched for the US, in which he claimed it was remaining marketed to fund a smear campaign versus the NLC.

He was repeating very similar claims he experienced Formerly made in Parliament, which involved ad hominem attacks on GroundUp which reporter but was mindful not to call possibly.

“I came listed here Within this August property last yr and described to honourable users that information about our beneficiaries is stolen and place in one condition in the united states,” he advised MPs.

“We identified as to the Point out Protection Agency to come look into the matter simply because we've been finding stories that our details is generating revenue for media platforms and journalists,” he claimed. “There's been speak, not surprisingly from one particular resource, one particular media, that spoke Considerably about proactive-funding,” Nevhutanda said (referring to GroundUp), but did not explain to MPs which the SSA investigation were completed Nearly a year previously.

Proactive funding was at the heart in the looting of your lottery. It side-stepped the traditional grant procedure. The NLC could alone recognize a undertaking to fund and appoint a non-income organisation to oversee it.

Soon after Nevhutanda 1st advised Parliament in 2018 that he had questioned the SSA to research the meant breach, the South African Nationwide Editors Discussion board issued an announcement saying that his remarks mirrored “an especially harmful Angle in which the media is being blamed to the NLC’s inherent problems”.

“Rather then investigating why hundreds of thousands can't be accounted for, the NLC has instead tried to cast doubt within the integrity on the journalists associated and it has requested the SSA to research their sources.”

Proactive tasks created top secret
Security flaws recognized while in the NLC grant funding process during the SSA’s investigation, appear to have already been utilised 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 initiatives was heightened to ‘mystery’ and tasks were faraway from the grant funding program and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Office, Government Supervisor Legal so that you can safeguard [the] details,” Nene reported in her affidavit.

“There was plenty of interior dialogue, with plenty of backwards and forwards, about how to proceed to plug the alleged leaks”, a resource, who was inside of a senior place with the NLC at enough time, instructed GroundUp. “Eventually, the choice was taken to get rid of the many proactive jobs within the procedure and Restrict entry to A few people today”.

Some in that handful of men and women have been implicated in corruption.

Maselwa, who resigned from your NLC several decades in the past, continues to be implicated in corruption involving lottery resources. He obtained R4.three-million from lottery funds allocated to make a library and museum intricate in Kuruman (see Taung Cultural Music and Arts Expo) which he utilised to build a residence within an upmarket gated development in Pretoria. The house is among various compensated for with lottery funds that were frozen after the Asset Forfeiture Unit obtained a preservation order 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 high-ups in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated while in the corruption which overwhelmed the NLC on their own enjoy.

Also implicated are former board users William Huma, who resigned immediately after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has since died.

Every time a new administration, including the total board and executive, took in excess of within the NLC in late 2022 and early 2023, they identified a “chaotic mess” during the documentation referring to proactive funding, Substantially of which was paper-based. Important paperwork have been missing. Information held for safekeeping by document storage firm Metrofile had been signed out and never ever returned.

The NLC was in the position to Get well copies of some ruay files from its Mimecast e-mail archiving technique as well as laptops of their assistants and assistance workers.

News studies
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave worry doable facts protection breaches along with the unauthorised use and/or dissemination of confidential information attained due to doing official capabilities inside the Fee by NLC staff members. The routines are meant to undermine the integrity in the Fee although disrupting the effective features [of the NLC] and triggering insurmountable reputational hurt towards the Commission as being the custodian of personal details entrusted to it by its beneficiaries.”

His request for that SSA to analyze was supported within an affidavit by suspended NLC company secretary, Nomphumelelo Nene.

Nene is at present going through a disciplinary inquiry immediately after she was unsuccessful in authorized action to set aside findings of irregular expenditure on her view.

The purpose of her affidavit, Nene reported, was “to history the situations which transpired regarding data safety breaches within the Nationwide Lotteries Commission”.

She stated a variety of information studies which she claimed were the final results of these “breaches” (see at the end of this short article).

Nene claimed that a whistle-blower approached the NLC alleging that among its staff members, Sello Qhino, experienced “supplied her labeled NLC Information and facts and persistently inspired her to provide the information to GroundUp”.

Qhino, who blew the whistle on a series of dodgy lottery-funded tasks in Kuruman right after makes an attempt to raise the issue internally were ignored, was subsequently fired.

Referring to an eighteen November 2018 short article within the Everyday Dispatch in regards to the misappropriation of Lottery resources, Nene stated that the NLC discovered and afterwards suspended Zintle Rungqu. She was an employee while in the NLC’s East London Business, who was the spouse as well as the mother of whistleblower Mzukise Makatse’s a few kids.

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

“The frequent Think about these articles is the fact that [they involve] categorised facts referring to proactive funding initiatives,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out in the family house to take the warmth off her and his small children. Struggling with homelessness, he moved into an office within an empty factory belonging to a friend.

Both of those Makatse and Qhino are taking part in an NLC reparation method meant to recognise the harm some individuals experienced on the arms in the NLC. Apologies and, occasionally, economic payment are expected.

“Some folks were being truly impacted incredibly negatively by this … This is really painful,” NLC Commissioner Jodi Scholtz advised the Day-to-day Maverick very last calendar year.

“I achieved two or three these people today. 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 Qhino and Makatse.

Harmless platform needed for whistleblowers
The SSA observed the absence at the time of a suitable channel for whistleblowers to report corruption led them to turn on the media.

“Failure to possess a dedicated anti-corruption channel will end in workers presenting these instances outside of the NLC,” the SSA explained in its conclusions.

“Specified the magnitude of corruption in state institutions, it remains essential that it ensures that the NLC complies with all security prescripts and that its concentrate is on ensuring that unlawful and irregular perform is sufficiently mitigated in opposition to and by making certain an sufficient channel for whistle-blowers to report untoward perform without the need of remaining intimidated.”

It encouraged that the NLC build a “Risk-free channel” for employees to offer information on any “untoward action” that would not protect against or discourage staff from blowing the whistle. A whistle-blowers plan, depending on the Secured Disclosures Act 25 of 2000, can be a need.”

Media reports Nene shown
A ten December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Health Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to expose NLC corruption. “The post had components of data not obtainable in the general public domain, therefore raising worry on interior Data stability breaches. The allegations inside the media were being independently investigated,” Nene mentioned. “Having said that, workers to blame for divulging categorised info have but to get determined”;
A 28 January 2018 short article released via the Dally Dispatch “citing various allegations from the Limpopo Mirror article posted on ten December 2017 as well as a new allegation referring to a previous personnel through the identify of Mzukisi Makatse. He was billed and summarily dismissed for the danger induced towards the organisation.”
A sixteen November 2018 post from the Lowvelder in regards to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite receiving R27-million in lottery grants, the rehab has never been accomplished. “The Lowvelder posting contained classified details with regard to NLC plan, boosting further issues of internal info security breaches,” Nene stated in her affidavit. “The prima facie proof with regards to these allegations did not warrant an independent Investigation, nevertheless [it] highlighted the heightened info stability challenges inside the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Main Treatment, a hijacked NPO. Nene mentioned GroundUp experienced confirmed in its Tale that it was based upon leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Advertising of Entry to Information and facts) request for information concerning the task, she said