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 Security Agency (SSA) in December 2018 to investigate the leaking of paperwork that exposed lottery corruption.
The NLC’s firm secretary at enough time mentioned media reports she stated ended up determined by “stolen” details in an affidavit for the SSA.
The SSA did look into. It located the information wasn't a issue of state protection and that the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to show it.
A whole new board and administration has considering that taken more than the NLC and So far have taken actions to finish corruption in the institution.
A Point out Security Agency (SSA) investigation found that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented sufficient motive” for publicity because of the media.

The probe into meant “information and facts stability breaches and sabotage of NLC functions” was carried out soon after then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to research.

Here's

Nevhutanda’s letter,
an affidavit by presently suspended NLC business secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to research the function of NLC employees during the alleged leaking of knowledge, and Nene, in her affidavit recognized unique media and experiences that she claimed involved these leaks.

In the letter outlining its conclusions, the SSA advised the NLC that even though preserving state info was “a legal critical directed at preserving the sovereignty and integrity on the state” this only applied to properly categorised details.

Even though it didn't say so right, the SSA findings implied that the allegedly leaked information didn't tumble into this group.

Noticeably, the SSA designed it crystal clear that the necessity to defend condition information “does not avert any individual from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation located that the NLC data involved in the alleged breach was “sensitive and privileged in character, although not classified concerning the prescripts from the Least Information Security Expectations (Pass up)”.

“The leakage from the suitable delicate Formal NLC facts into the media would not pose a danger to nationwide safety,” the SSA mentioned, including that the influence from the breaches was reputational.

The SSA report found “no proof of a factual and incriminating character towards any of the suspected NLC staff members that can be identified from the knowledge and data interrogated”.

In addition it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide ample motive to acquire such 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 on the US, in which he claimed it was being marketed to fund a smear campaign versus the NLC.

He was repeating very similar claims he experienced previously built in Parliament, which provided ad hominem attacks on GroundUp which reporter but was cautious not to call possibly.

“I came listed here in this August residence past year and documented to honourable customers that specifics of our beneficiaries continues to be stolen and put in one state in America,” he told MPs.

“We referred to as about the State Security Company to return check into the subject mainly because we're acquiring reports that our information is making funds for media platforms and journalists,” he said. “There have been discuss, of course from just one source, just one media, that spoke A lot about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't inform MPs the SSA investigation were concluded Nearly a yr previously.

Proactive funding was at the center on the looting with the lottery. It facet-stepped the traditional grant system. The NLC could alone detect a challenge to fund and appoint a non-gain organisation to supervise it.

Soon after Nevhutanda 1st advised Parliament in 2018 that he had questioned the SSA to investigate the meant breach, the South African Nationwide Editors Discussion board issued an announcement saying that his remarks mirrored “a particularly perilous Frame of mind where the media is staying blamed for the NLC’s inherent challenges”.

“Instead of investigating why thousands and thousands can not be accounted for, the NLC has rather attempted to Solid doubt about the integrity on the journalists included and has requested the SSA to research their resources.”

Proactive assignments created solution
Protection flaws determined during the NLC grant funding procedure during the SSA’s investigation, surface to have been made use of being an justification from the NLC to get rid of all proactive-funded tasks from its central grants system.

“In or about 21 December 2019, the classification of all pro-actively funding tasks was heightened to ‘secret’ and initiatives have been faraway from the grant funding procedure and taken care of manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business office, Government Supervisor Lawful so as to safeguard [the] information,” Nene mentioned in her affidavit.

“There was many interior discussion, with lots of forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was inside a senior situation at the NLC at the time, informed GroundUp. “Ultimately, the decision was taken to get rid of every one of the proactive initiatives through the process and limit access to A few men and women”.

Some in that handful of people were being implicated in corruption.

Maselwa, who resigned through the NLC numerous many years in the past, is implicated in corruption involving lottery resources. He acquired R4.3-million from lottery resources allocated to make a library and museum intricate in Kuruman (see Taung Cultural New music and Arts Expo) which he used to create a residence within an upmarket gated enhancement in Pretoria. The property is among quite a few paid out for with lottery money which were frozen following the Asset Forfeiture Device acquired a preservation get in December 2022.

The politically-linked Nevhutanda, who was appointed because the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to substantial-ups within the ANC Management, previous NLC previous Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated during the corruption which overwhelmed the NLC on their enjoy.

Also implicated are previous board users William Huma, who resigned following he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has considering the fact that died.

Any time a new administration, such as the full board and govt, took about for the NLC in late 2022 and early 2023, they learned a “chaotic mess” from the documentation regarding proactive funding, Significantly of which was paper-primarily based. Important files have been lacking. Information held for safekeeping by doc storage organization Metrofile were signed out and never ever returned.

The NLC was in a position to Get well copies of some ตรวจ สลาก files from its Mimecast e mail archiving technique as well as the laptops in their assistants and assist employees.

Information reviews
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave concern attainable information safety breaches plus the unauthorised use and/or dissemination of private info acquired due to accomplishing Formal capabilities in the Fee by NLC employees. The actions are intended to undermine the integrity from the Fee though disrupting the effective capabilities [with the NLC] and triggering insurmountable reputational damage towards the Fee since the custodian of personal information and facts entrusted to it by its beneficiaries.”

His request for the SSA to analyze was supported in an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is at present facing a disciplinary inquiry soon after she was unsuccessful in lawful action to set aside results of irregular expenditure on her check out.

The purpose of her affidavit, Nene explained, was “to history the occasions which transpired associated with facts stability breaches at the National Lotteries Fee”.

She listed numerous information experiences which she claimed were being the results of such “breaches” (see at the end of this text).

Nene explained that a whistle-blower approached the NLC alleging that one among its workers, Sello Qhino, experienced “presented her classified NLC Facts and persistently encouraged her to offer the information to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded tasks in Kuruman just after attempts to boost The difficulty internally were dismissed, was subsequently fired.

Referring to an eighteen November 2018 posting within the Day-to-day Dispatch with regard to the misappropriation of Lottery resources, Nene said that the NLC discovered and then suspended Zintle Rungqu. She was an employee within the NLC’s East London Workplace, who was the companion and the mom of whistleblower Mzukise Makatse’s 3 kids.

Rungqu and Makatse believe Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, Using the NLC expending R470,000 on attorneys to stand for it, but was located not responsible and permitted to return to work.

“The widespread Think about these content articles is usually that [they involve] categorized data concerning proactive funding projects,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out in the household property to take the heat off her and his kids. Facing homelessness, he moved into an Workplace within an empty factory belonging to an acquaintance.

Both equally Makatse and Qhino are participating in an NLC reparation procedure meant to recognise the harm lots of people endured at the fingers of the NLC. Apologies and, sometimes, financial compensation are predicted.

“Some individuals have been definitely affected quite negatively by this … This is admittedly painful,” NLC Commissioner Jodi Scholtz informed the Everyday Maverick previous 12 months.

“I fulfilled a handful of these people today. It absolutely was just so heart-wrenching that their entire lives have been turned the other way up,” claimed Scholtz.

Amid Individuals she met 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 turn on the media.

“Failure to possess a devoted anti-corruption channel will end in workers presenting these conditions beyond the NLC,” the SSA mentioned in its results.

“Provided the magnitude of corruption in condition institutions, it remains very important that it makes sure that the NLC complies with all security prescripts Which its target is on ensuring that unlawful and irregular conduct is adequately mitigated against and by ensuring an sufficient channel for whistle-blowers to report untoward conduct with no remaining intimidated.”

It proposed which the NLC create a “Secure channel” for employees to offer information on any “untoward action” that will not reduce or discourage staff members from blowing the whistle. A whistle-blowers policy, based on the Safeguarded Disclosures Act twenty five of 2000, is usually a prerequisite.”

Media reviews Nene detailed
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to reveal NLC corruption. “The short article had components of knowledge not accessible in the public domain, thus increasing problem on inner Information and facts security breaches. The allegations while in the media ended up independently investigated,” Nene reported. “Even so, staff answerable for divulging labeled information and facts have nonetheless to be determined”;
A 28 January 2018 posting revealed from the Dally Dispatch “citing a lot of allegations in the Limpopo Mirror short article posted on 10 December 2017 and also a new allegation concerning a previous staff from the name of Mzukisi Makatse. He was billed and summarily dismissed with the danger prompted into the organisation.”
A sixteen November 2018 report while in the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite obtaining R27-million in lottery grants, the rehab has not been accomplished. “The Lowvelder report contained categorised facts when it comes to NLC coverage, raising even further considerations of inside information protection breaches,” Nene said in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, however [it] highlighted the heightened details safety pitfalls throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene reported GroundUp experienced confirmed in its story that it absolutely was dependant on leaked NLC files. This was despite the NLC rejecting a PAIA (Promotion of Usage of Information and facts) request for particulars in regards to the undertaking, she said