Lottery bosses turned to Point out Protection Company to analyze leaks

Lottery bosses turned to Point out Protection Company to analyze leaks

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Former National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the State Protection Agency (SSA) in December 2018 to research the leaking of files that exposed lottery corruption.
The NLC’s organization secretary at enough time detailed media studies she explained ended up determined by “stolen” details within an affidavit for your SSA.
The SSA did examine. It discovered the knowledge wasn't a make a difference of condition protection and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for your media to expose it.
A fresh board and management has due to the fact taken over the NLC and Up to now have taken steps to end corruption at the establishment.
A State Security Agency (SSA) investigation uncovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented sufficient motive” for exposure by the media.

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

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the safety agency’s “confidential” findings and recommendations.
Nevhutanda questioned the SSA to analyze the part of NLC staff members within the alleged leaking of data, and Nene, in her affidavit recognized particular media and reports that she claimed concerned these leaks.

Inside the letter outlining its findings, the SSA explained to the NLC that when guarding state information and facts was “a legal imperative targeted at protecting the sovereignty and integrity of the condition” this only applied to correctly categorized data.

Although it didn't say so directly, the SSA results implied which the allegedly leaked facts did not tumble into this group.

Considerably, the SSA built it obvious that the necessity to defend point out details “isn't going to prevent any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation observed which the NLC info involved with the alleged breach was “delicate and privileged in mother nature, although not categorised in terms of the prescripts on the Minimum Info Safety Requirements (Pass up)”.

“The leakage of your applicable sensitive Formal NLC information and facts to the media isn't going to pose a risk to nationwide protection,” the SSA claimed, incorporating the affect of your 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 can be identified from the data and information interrogated”.

What's more, it mentioned that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does supply enough motive to acquire these types of exposed in the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs all through a session of Parliament’s trade, market and competition portfolio committee that there was “a conspiracy” through which info “stolen” within the NLC was despatched to your US, where by he claimed it absolutely was getting sold to fund a smear campaign against the NLC.

He was repeating identical statements he had Earlier created in Parliament, which provided advertisement hominem attacks on GroundUp and this reporter but was watchful not to call both.

“I came below Within this August dwelling previous calendar year and documented to honourable members that information regarding our beneficiaries has been stolen and place in a single point out in America,” he instructed MPs.

“We called about the Condition Safety Agency to come take a look at the matter simply because we have been finding experiences that our details is creating income for media platforms and journalists,” he claimed. “There was talk, obviously from one supply, one media, that spoke A great deal about proactive-funding,” Nevhutanda explained (referring to GroundUp), but failed to tell MPs which the SSA investigation had been concluded Virtually a calendar year previously.

Proactive funding was at the center with the looting in the lottery. It facet-stepped the traditional grant method. The NLC could itself identify a project to fund and appoint a non-revenue organisation to oversee it.

After Nevhutanda very first informed Parliament in 2018 that he experienced questioned the SSA to analyze the intended breach, the South African Countrywide Editors Forum issued a press release indicating that his remarks mirrored “an especially perilous Frame of mind where by the media is getting blamed for that NLC’s inherent challenges”.

“Instead of investigating why millions can't be accounted for, the NLC has in its place made an effort to Solid doubt around the integrity in the journalists included and has questioned the SSA to investigate their resources.”

Proactive assignments manufactured key
Stability flaws recognized from the NLC grant funding method in the SSA’s investigation, seem to have already been utilized as an justification because of the NLC to get rid of all proactive-funded tasks from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘secret’ and initiatives have been faraway from the grant funding process and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Place of work, Govt Supervisor Lawful as a way to safeguard [the] facts,” Nene mentioned in her affidavit.

“There was many interior dialogue, with many back and forth, about what to do to plug the alleged leaks”, a source, who was inside a senior position at the NLC at some time, instructed GroundUp. “In the long run, the decision was taken to eliminate the many proactive assignments through the technique and limit usage of a handful of individuals”.

Some in that handful of folks had been implicated in corruption.

Maselwa, who resigned from the NLC many years in the past, has been implicated in corruption involving lottery money. He gained R4.three-million from lottery cash allotted to develop a library and museum complicated in Kuruman (see Taung Cultural Audio and Arts Expo) which he applied to build a home within an upmarket gated development in Pretoria. The property is among various paid out for with lottery funds which were frozen following the Asset Forfeiture Unit attained a preservation buy in December 2022.

The politically-connected Nevhutanda, who was appointed given that the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to high-ups during the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated during the corruption which overwhelmed the NLC on their watch.

Also implicated are former board customers William Huma, who resigned right after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has given that died.

Each time a new administration, including the whole board and executive, took about on the NLC in late 2022 and early 2023, they found out a “chaotic mess” within the documentation concerning proactive funding, A lot of which was paper-based mostly. Crucial documents were lacking. Data files held for safekeeping by doc storage organization Metrofile had been signed out and never returned.

The NLC was able to Get well copies of some ตรวจ หวย ล่าสุด paperwork from its Mimecast e-mail archiving method and also the laptops in their assistants and assist workers.

Information studies
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave worry feasible information and facts safety breaches as well as unauthorised use and/or dissemination of confidential data attained as a result of executing official features from the Fee by NLC employees. The actions are intended to undermine the integrity on the Fee even though disrupting the productive features [on the NLC] and resulting in insurmountable reputational damage on the Commission as the custodian of private information and facts entrusted to it by its beneficiaries.”

His ask for to the SSA to investigate was supported within an affidavit by suspended NLC organization secretary, Nomphumelelo Nene.

Nene is presently facing a disciplinary inquiry just after she was unsuccessful in authorized action to put aside findings of irregular expenditure on her enjoy.

The purpose of her affidavit, Nene claimed, was “to record the functions which transpired relating to facts security breaches on the Nationwide Lotteries Fee”.

She outlined several information experiences which she claimed had been the effects of these “breaches” (see at the conclusion of this informative article).

Nene mentioned that a whistle-blower approached the NLC alleging that among its personnel, Sello Qhino, had “delivered her labeled NLC Data and persistently encouraged her to deliver the knowledge to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded tasks in Kuruman following makes an attempt to lift The problem internally ended up ignored, was subsequently fired.

Referring to an 18 November 2018 article while in the Every day Dispatch concerning the misappropriation of Lottery resources, Nene stated the NLC discovered after which suspended Zintle Rungqu. She was an personnel within the NLC’s East London office, who was the lover and also the mom of whistleblower Mzukise Makatse’s a few youngsters.

Rungqu and Makatse consider Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Using the NLC expending R470,000 on lawyers to depict it, but was located not guilty and allowed to return to operate.

“The frequent Think about these posts is the fact that [they involve] labeled information and facts relating to proactive funding initiatives,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out from the family household to go ahead and take warmth off her and his youngsters. Facing homelessness, he moved into an Business office within an empty manufacturing unit belonging to a pal.

Both of those Makatse and Qhino are taking part in an NLC reparation course of action meant to recognise the hurt some individuals suffered at the arms with the NLC. Apologies and, sometimes, money compensation are anticipated.

“Some people were seriously impacted pretty negatively by this … This is really distressing,” NLC Commissioner Jodi Scholtz explained to the Daily Maverick previous calendar year.

“I met a number of these individuals. It was just so heart-wrenching that their complete life have already been turned the other way up,” stated Scholtz.

Amongst All those she fulfilled were being Qhino and Makatse.

Secure System needed for whistleblowers
The SSA discovered the absence at the time of an appropriate channel for whistleblowers to report corruption led them to turn towards the media.

“Failure to possess a committed anti-corruption channel will cause personnel presenting these cases beyond the NLC,” the SSA explained in its findings.

“Given the magnitude of corruption in condition establishments, it remains critical that it makes certain that the NLC complies with all safety prescripts Which its focus is on making certain that illegal and irregular carry out is adequately mitigated towards and by making certain an sufficient channel for whistle-blowers to report untoward conduct without having getting intimidated.”

It advised that the NLC build a “Safe and sound channel” for employees to deliver information on any “untoward exercise” that could not avoid or discourage employees from blowing the whistle. A whistle-blowers coverage, according to the Shielded Disclosures Act 25 of 2000, is usually a necessity.”

Media stories Nene listed
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Health 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 things of knowledge not readily available in the general public domain, thus boosting worry on inner Info stability breaches. The allegations from the media ended up independently investigated,” Nene mentioned. “Nevertheless, employees responsible for divulging labeled info have still for being determined”;
A 28 January 2018 post revealed by the Dally Dispatch “citing several allegations with the Limpopo Mirror article printed on 10 December 2017 plus a new allegation regarding a previous personnel via the identify of Mzukisi Makatse. He was billed and summarily dismissed for that 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 noted how, Despite obtaining R27-million in lottery grants, the rehab hasn't been concluded. “The Lowvelder post contained categorised data when it comes to NLC coverage, raising even more concerns of internal data stability breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an independent Investigation, even so [it] highlighted the heightened information and facts stability risks within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene claimed GroundUp had confirmed in its Tale that it absolutely was based upon leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Use of Data) request for details about the challenge, she claimed