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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Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the Condition Safety Agency (SSA) in December 2018 to investigate the leaking of paperwork that exposed lottery corruption.
The NLC’s enterprise secretary at some time listed media reviews she claimed were being determined by “stolen” information in an affidavit for the SSA.
The SSA did investigate. It observed the data wasn't a subject of state safety and that the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for your media to show it.
A different board and management has because taken in excess of the NLC and To date have taken measures to finish corruption with the establishment.
A Point out Safety Company (SSA) investigation uncovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished enough motive” for exposure with the media.

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

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the security company’s “private” results and proposals.
Nevhutanda questioned the SSA to investigate the role of NLC personnel during the alleged leaking of information, and Nene, in her affidavit determined unique media and studies that she claimed associated these leaks.

While in the letter outlining its results, the SSA informed the NLC that while guarding state details was “a legal crucial geared toward shielding the sovereignty and integrity from the point out” this only applied to correctly categorized info.

Although it did not say so directly, the SSA results implied that the allegedly leaked information didn't drop into this category.

Noticeably, the SSA created it very clear that the need to guard point out info “won't stop any unique from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation uncovered the NLC facts linked to the alleged breach was “delicate and privileged in character, although not categorized with regard to the prescripts on the Least Facts Stability Benchmarks (Overlook)”.

“The leakage of your relevant delicate official NLC facts to the media doesn't pose a danger to nationwide protection,” the SSA explained, introducing the effect from the breaches was reputational.

The SSA report observed “no evidence of the factual and incriminating mother nature towards any of the suspected NLC personnel that might be identified from the data and details interrogated”.

In addition it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide ample motive to get these types of uncovered in the media”.

Conspiracy claims
In 2020, Nevhutanda advised MPs throughout a session of Parliament’s trade, field and competition portfolio committee that there was “a conspiracy” in which facts “stolen” in the NLC was sent towards the US, exactly where he claimed it was becoming offered to fund a smear campaign versus the NLC.

He was repeating similar statements he had Earlier made in Parliament, which integrated ad hominem assaults on GroundUp and this reporter but was careful not to name possibly.

“I arrived right here in this August residence past calendar year and reported to honourable members that information about our beneficiaries has become stolen and put in a single state in the usa,” he instructed MPs.

“We termed around the Condition Safety Agency to come back explore the matter simply because we've been receiving experiences that our data is building funds for media platforms and journalists,” he reported. “There have been chat, obviously from one particular resource, one particular media, that spoke Significantly about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't explain to MPs the SSA investigation had been concluded Nearly a yr earlier.

Proactive funding was at the guts of the looting with the lottery. It aspect-stepped the conventional grant system. The NLC could by itself determine a undertaking to fund and appoint a non-earnings organisation to supervise it.

Following Nevhutanda very first informed Parliament in 2018 that he had requested the SSA to investigate the meant breach, the South African Nationwide Editors Discussion board issued a statement indicating that his remarks reflected “an extremely dangerous attitude where the media is currently being blamed with the NLC’s inherent problems”.

“In lieu of investigating why millions cannot be accounted for, the NLC has as a substitute tried to Forged doubt on the integrity in the journalists associated and has asked the SSA to analyze their sources.”

Proactive tasks created magic formula
Stability flaws identified from the NLC grant funding program in the SSA’s investigation, show up to are utilised as an justification with the NLC to eliminate all proactive-funded initiatives from its central grants method.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘key’ and assignments ended up removed from the grant funding method and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Office environment, Executive Manager Legal as a way to safeguard [the] data,” Nene reported in her affidavit.

“There was a lot of interior dialogue, with numerous forwards and backwards, about what to do to plug the alleged leaks”, a source, who was in a senior posture within the NLC at enough time, informed GroundUp. “Eventually, the decision was taken to eliminate the many proactive tasks from the technique and Restrict entry to A few people”.

Some in that handful of men and women were being implicated in corruption.

Maselwa, who resigned from your NLC various many years ago, has actually been implicated in corruption involving lottery resources. He received R4.three-million from lottery funds allotted to construct a library and museum intricate in Kuruman (see Taung Cultural Audio and Arts Expo) which he utilised to develop a property in an upmarket gated advancement in Pretoria. The home is among several paid for with lottery resources that were frozen after the Asset Forfeiture Device acquired a preservation get in December 2022.

The politically-linked Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near to substantial-ups inside the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their check out.

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, who's got since died.

Whenever a new administration, including the whole board and executive, took in excess of with the NLC in late 2022 and early 2023, they learned a “chaotic mess” from the documentation regarding proactive funding, Substantially of which was paper-centered. Essential documents were being missing. Files held for safekeeping by doc storage corporation Metrofile were signed out and under no circumstances returned.

The NLC was in the position to Recuperate copies of some หวย ออก documents from its Mimecast electronic mail archiving procedure as well as laptops of their assistants and help staff.

Information reports
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave concern doable info protection breaches and also the unauthorised use and/or dissemination of confidential information and facts obtained because of accomplishing official functions inside the Commission by NLC personnel. The functions are meant to undermine the integrity with the Fee though disrupting the effective capabilities [of the NLC] and creating insurmountable reputational harm for the Commission because the custodian of personal information and facts entrusted to it by its beneficiaries.”

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

Nene is at this time experiencing a disciplinary inquiry soon after she was unsuccessful in legal action to put aside findings of irregular expenditure on her look at.

The goal of her affidavit, Nene mentioned, was “to history the occasions which transpired regarding info safety breaches for the Countrywide Lotteries Fee”.

She listed different news studies which she claimed ended up the results of these “breaches” (see at the conclusion of this information).

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

Qhino, who blew the whistle over a series of dodgy lottery-funded tasks in Kuruman soon after makes an attempt to lift The problem internally have been dismissed, was subsequently fired.

Referring to an eighteen November 2018 short article while in the Day-to-day Dispatch in regards to the misappropriation of Lottery funds, Nene claimed that the NLC discovered after which suspended Zintle Rungqu. She was an staff while in the NLC’s East London Workplace, who was the spouse and also the mom of whistleblower Mzukise Makatse’s a few little ones.

Rungqu and Makatse imagine Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, Together with the NLC paying R470,000 on lawyers to signify it, but was found not guilty and permitted to return to work.

“The popular factor in these posts is that [they require] classified data referring to proactive funding jobs,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out from the family property to go ahead and take warmth off her and his children. Dealing with homelessness, he moved into an Business office in an empty factory belonging to a pal.

Both Makatse and Qhino are participating in an NLC reparation procedure intended to recognise the harm a number of people endured with the palms with the NLC. Apologies and, sometimes, economic payment are envisioned.

“Some people today ended up seriously impacted extremely negatively by this … This is basically painful,” NLC Commissioner Jodi Scholtz instructed the Day-to-day Maverick last yr.

“I fulfilled a number of these individuals. It was just so heart-wrenching that their total lives are actually turned upside down,” mentioned Scholtz.

Between Those people she achieved were being Qhino and Makatse.

Secure platform needed for whistleblowers
The SSA found the absence at enough time of a correct channel for whistleblowers to report corruption led them to show on the media.

“Failure to have a committed anti-corruption channel will result in employees presenting these types of scenarios outside of the NLC,” the SSA claimed in its findings.

“Supplied the magnitude of corruption in point out institutions, it continues to be important that it ensures that the NLC complies with all protection prescripts Which its aim is on ensuring that unlawful and irregular conduct is adequately mitigated versus and by ensuring an enough channel for whistle-blowers to report untoward perform with no being intimidated.”

It advised the NLC create a “Safe and sound channel” for workers to provide info on any “untoward action” that might not avoid or discourage workers from blowing the whistle. A whistle-blowers policy, according to the Guarded Disclosures Act twenty five of 2000, is actually a need.”

Media stories Nene mentioned
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to show NLC corruption. “The post had components of information not readily available in the general public area, thus boosting issue on internal Details safety breaches. The allegations while in the media ended up independently investigated,” Nene claimed. “Having said that, workforce accountable for divulging categorized information have yet being recognized”;
A 28 January 2018 article posted with the Dally Dispatch “citing various allegations through the Limpopo Mirror posting printed on 10 December 2017 in addition to a new allegation referring to a former worker through the title of Mzukisi Makatse. He was charged and summarily dismissed for your menace caused for the organisation.”
A 16 November 2018 write-up inside the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of obtaining R27-million in lottery grants, the rehab has never been finished. “The Lowvelder article contained categorised information and facts in terms of NLC plan, raising further more considerations of interior info safety breaches,” Nene reported in her affidavit. “The prima facie evidence regarding these allegations did not warrant an independent Investigation, having said that [it] highlighted the heightened details safety challenges 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 said GroundUp experienced verified in its story that it was depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Entry to Data) request for details regarding the venture, she stated