Lottery bosses turned to Point out Protection Company to research leaks

Lottery bosses turned to Point out Protection Company to research leaks

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Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Protection Agency (SSA) in December 2018 to research the leaking of paperwork that exposed lottery corruption.
The NLC’s enterprise secretary at some time mentioned media reports she said had been determined by “stolen” facts in an affidavit for the SSA.
The SSA did look into. It located the information wasn't a issue of point out safety and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” with the media to reveal it.
A new board and management has because taken about the NLC and thus far have taken actions to end corruption within the establishment.
A State Security Agency (SSA) investigation identified the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided sufficient motive” for exposure because of the media.

The probe into supposed “information stability breaches and sabotage of NLC operations” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to analyze.

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the security company’s “private” findings and suggestions.
Nevhutanda requested the SSA to research the job of NLC team while in the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and studies that she claimed involved these leaks.

Within the letter outlining its conclusions, the SSA informed the NLC that whilst protecting point out facts was “a legal critical aimed toward guarding the sovereignty and integrity of your condition” this only placed on correctly categorized facts.

Although it did not say so right, the SSA results implied the allegedly leaked information didn't slide into this class.

Substantially, the SSA produced it apparent that the need to protect condition information “won't avoid any unique from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation uncovered that the NLC details linked to the alleged breach was “delicate and privileged in mother nature, but not classified concerning the prescripts of the Minimal Data Protection Criteria (Miss out on)”.

“The leakage with the suitable sensitive official NLC information to the media would not pose a menace to national stability,” the SSA claimed, including which the affect from the breaches was reputational.

The SSA report uncovered “no evidence of the factual and incriminating nature in opposition to any of the suspected NLC staff members that may be determined from the data and information interrogated”.

In addition it stated that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does give sufficient motive to acquire these types of uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, industry and Opposition 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 bought to fund a smear campaign versus the NLC.

He was repeating related promises he had Earlier made in Parliament, which provided advert hominem attacks on GroundUp and this reporter but was watchful not to call possibly.

“I arrived right here In this particular August dwelling last year and noted to honourable associates that information regarding our beneficiaries has actually been stolen and set in one state in America,” he told MPs.

“We known as on the Point out Protection Agency to return check into the issue since we are finding reviews that our information is making cash for media platforms and journalists,” he claimed. “There has been converse, obviously from just one resource, 1 media, that spoke Substantially about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to inform MPs that the SSA investigation had been finished Practically a 12 months previously.

Proactive funding was at the center in the looting on the lottery. It aspect-stepped the normal grant procedure. The NLC could alone detect a challenge to fund and appoint a non-financial gain organisation to oversee it.

Just after Nevhutanda initial advised Parliament in 2018 that he had asked the SSA to analyze the supposed breach, the South African National Editors Discussion board issued a press release declaring that his remarks mirrored “an incredibly perilous Angle wherever the media is getting blamed with the NLC’s inherent troubles”.

“In lieu of investigating why hundreds of thousands can't be accounted for, the NLC has rather attempted to Solid doubt to the integrity of your journalists involved and has requested the SSA to research their resources.”

Proactive tasks produced solution
Safety flaws discovered while in the NLC grant funding process through the SSA’s investigation, seem to have been applied being an justification through the NLC to get rid of all proactive-funded initiatives from its central grants process.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘secret’ and initiatives were removed from the grant funding system and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Office environment, Govt Manager Legal so that you can safeguard [the] data,” Nene stated in her affidavit.

“There was loads of interior discussion, with plenty of backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was in the senior place at the NLC at enough time, informed GroundUp. “Eventually, the decision was taken to get rid of each of the proactive initiatives from your procedure and limit entry to A few people”.

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

Maselwa, who resigned from the NLC numerous yrs back, has been implicated in corruption involving lottery funds. He obtained R4.3-million from lottery funds allotted to make a library and museum elaborate in Kuruman (see Taung Cultural New music and Arts Expo) which he made use of to develop a property in an upmarket gated development in Pretoria. The assets is among numerous compensated for with lottery money which were frozen following the Asset Forfeiture Device acquired a preservation get in December 2022.

The politically-connected Nevhutanda, who was appointed given that the NLC board chairperson by former President Jacob Zuma in 2009 and was near to high-ups while in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated in the corruption which overwhelmed the NLC on their look at.

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

Whenever a new administration, including the entire board and govt, took about for the NLC in late 2022 and early 2023, they learned a “chaotic mess” while in the documentation associated with proactive funding, Significantly of which was paper-based. Vital paperwork were lacking. Data files held for safekeeping by doc storage corporation Metrofile had been signed out and in no way returned.

The NLC was capable to recover copies of some lottovip files from its Mimecast electronic mail archiving system as well as the laptops of their assistants and help personnel.

News studies
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave concern possible information stability breaches plus the unauthorised use and/or dissemination of confidential information attained because of carrying out Formal functions from the Commission by NLC personnel. The actions are meant to undermine the integrity of the Commission when disrupting the efficient features [of your NLC] and leading to insurmountable reputational damage to your Fee as the custodian of personal data entrusted to it by its beneficiaries.”

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

Nene is at this time struggling with a disciplinary inquiry just after she was unsuccessful in lawful action to set aside conclusions of irregular expenditure on her enjoy.

The objective of her affidavit, Nene mentioned, was “to record the situations which transpired regarding details security breaches for the National Lotteries Fee”.

She listed several news studies which she claimed were being the outcome of such “breaches” (see at the conclusion of this post).

Nene said that a whistle-blower approached the NLC alleging that among its staff members, Sello Qhino, experienced “provided her classified NLC Details and persistently encouraged her to supply the information to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded jobs in Kuruman after tries to boost The problem internally had been ignored, was subsequently fired.

Referring to an eighteen November 2018 report inside the Every day Dispatch concerning the misappropriation of Lottery resources, Nene mentioned which the NLC recognized and then suspended Zintle Rungqu. She was an personnel in the NLC’s East London Office environment, who was the companion plus the mom of whistleblower Mzukise Makatse’s three young children.

Rungqu and Makatse consider Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, Along with the NLC expending R470,000 on legal professionals to represent it, but was discovered not guilty and permitted to return to operate.

“The widespread Consider these content articles is [they include] classified information and facts regarding proactive funding assignments,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out of your relatives residence to go ahead and take heat off her and his small children. Dealing with homelessness, he moved into an office within an empty factory belonging to a pal.

Each Makatse and Qhino are participating in an NLC reparation procedure intended to recognise the hurt some people endured at the fingers of the NLC. Apologies and, in some cases, money compensation are envisioned.

“Some individuals were genuinely affected pretty negatively by this … This is de facto distressing,” NLC Commissioner Jodi Scholtz informed the Each day Maverick past year.

“I achieved a couple of these folks. It had been just so heart-wrenching that their whole lives have already been turned the wrong way up,” reported Scholtz.

Among those she met were Qhino and Makatse.

Safe System necessary for whistleblowers
The SSA identified the absence at 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 end in workers presenting this kind of scenarios outside of the NLC,” the SSA said in its conclusions.

“Presented the magnitude of corruption in point out establishments, it continues to be crucial that it ensures that the NLC complies with all security prescripts Which its concentrate is on making certain that illegal and irregular conduct is sufficiently mitigated against and by ensuring an adequate channel for whistle-blowers to report untoward perform without staying intimidated.”

It suggested which the NLC create a “Risk-free channel” for employees to offer information on any “untoward action” that would not prevent or discourage staff members from blowing the whistle. A whistle-blowers policy, dependant on the Safeguarded Disclosures Act twenty five of 2000, can be a need.”

Media reviews Nene stated
A 10 December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Physical fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and proprietor on the Limpopo Mirror, to reveal NLC corruption. “The short article experienced aspects of knowledge not offered in the public domain, thereby boosting worry on internal Info stability breaches. The allegations from the media have been independently investigated,” Nene stated. “Nevertheless, workforce responsible for divulging labeled info have nonetheless for being determined”;
A 28 January 2018 article revealed with the Dally Dispatch “citing various allegations with the Limpopo Mirror article revealed on 10 December 2017 and also a new allegation concerning a previous personnel because of the identify of Mzukisi Makatse. He was charged and summarily dismissed for your threat caused to the organisation.”
A sixteen November 2018 write-up inside the Lowvelder with regards to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Regardless of obtaining R27-million in lottery grants, the rehab has never been completed. “The Lowvelder post contained classified information and facts with regard to NLC coverage, boosting even more issues of interior data stability breaches,” Nene stated in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, on the other hand [it] highlighted the heightened info security dangers within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene said GroundUp experienced confirmed in its story that it absolutely was dependant on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Marketing of Usage of Information and facts) request for details concerning the challenge, she mentioned