Lottery bosses turned to State Stability Company to investigate leaks

Lottery bosses turned to State Stability Company to investigate leaks

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Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Stability Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s business secretary at time detailed media studies she explained have been dependant on “stolen” information within an affidavit to the SSA.
The SSA did investigate. It uncovered the knowledge wasn't a subject of state stability and that the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to show it.
A different board and management has considering the fact that taken in excess of the NLC and Up to now have taken measures to end corruption with the establishment.
A Point out Security Agency (SSA) investigation discovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished enough motive” for publicity because of the media.

The probe into meant “information and facts stability breaches and sabotage of NLC functions” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to investigate.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” findings and proposals.
Nevhutanda requested the SSA to analyze the position of NLC employees from the alleged leaking of information, and Nene, in her affidavit determined specific media and studies that she claimed associated these leaks.

Inside the letter outlining its results, the SSA explained to the NLC that whilst safeguarding point out information and facts was “a legal crucial aimed toward safeguarding the sovereignty and integrity with the condition” this only applied to appropriately classified information.

Even though it didn't say so right, the SSA conclusions implied which the allegedly leaked info didn't fall into this classification.

Significantly, the SSA built it crystal clear that the necessity to shield point out info “doesn't avoid any individual from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation located the NLC info involved in the alleged breach was “delicate and privileged in nature, although not classified with regards to the prescripts of the Minimum amount Information and facts Safety Benchmarks (Overlook)”.

“The leakage of your relevant delicate official NLC facts on the media doesn't pose a threat to countrywide security,” the SSA claimed, introducing that the affect on the breaches was reputational.

The SSA report located “no proof of a factual and incriminating character from any of your suspected NLC staff members that can be discovered from the information and facts interrogated”.

What's more, it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does provide enough motive to own such uncovered in the media”.

Conspiracy promises
In 2020, Nevhutanda advised MPs during a session of Parliament’s trade, market and Competitors portfolio committee that there was “a conspiracy” by which info “stolen” in the NLC was despatched to your US, wherever he claimed it had been becoming bought to fund a smear campaign versus the NLC.

He was repeating very similar claims he experienced previously manufactured in Parliament, which incorporated advert hominem assaults on GroundUp and this reporter but was thorough not to call either.

“I came below Within this August property past year and noted to honourable associates that information regarding our beneficiaries has long been stolen and set in a single condition in the united states,” he instructed MPs.

“We identified as to the Point out Protection Agency to return take a look at the subject mainly because we're obtaining experiences that our facts is producing money for media platforms and journalists,” he reported. “There's been talk, not surprisingly from a single supply, one media, that spoke Substantially about proactive-funding,” Nevhutanda stated (referring to GroundUp), but failed to notify MPs which the SSA investigation were completed Virtually a yr previously.

Proactive funding was at the center with the looting with the lottery. It facet-stepped the traditional grant course of action. The NLC could alone determine a venture to fund and appoint a non-earnings organisation to oversee it.

Following Nevhutanda initial told Parliament in 2018 that he experienced asked the SSA to investigate the intended breach, the South African Nationwide Editors Discussion board issued an announcement stating that his remarks mirrored “an especially harmful attitude where by the media is becoming blamed with the NLC’s inherent troubles”.

“Instead of investigating why thousands and thousands can not be accounted for, the NLC has as a substitute tried to cast question over the integrity of the journalists concerned and has asked the SSA to investigate their sources.”

Proactive assignments manufactured solution
Stability flaws determined while in the NLC grant funding program through the SSA’s investigation, look to are actually made use of being an excuse through the NLC to remove all proactive-funded jobs from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding projects was heightened to ‘top secret’ and initiatives have been faraway from the grant funding method and preserved manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Place of work, Govt Manager Legal to be able to safeguard [the] data,” Nene reported in her affidavit.

“There was plenty of inside dialogue, with a great deal of forwards and backwards, about what to do to plug the alleged leaks”, a source, who was inside of a senior place on the NLC at the time, explained to GroundUp. “Eventually, the choice was taken to remove every one of the proactive assignments within the method and limit usage of a handful of people today”.

Some in that handful of people have been implicated in corruption.

Maselwa, who resigned from the NLC many several years in the past, is implicated in corruption involving lottery money. He gained R4.3-million from lottery funds allotted to develop a library and museum elaborate in Kuruman (see Taung Cultural Music and Arts Expo) which he made use of to create a dwelling within an upmarket gated advancement in Pretoria. The residence is among many paid for with lottery cash which were frozen once the Asset Forfeiture Device attained a preservation order in December 2022.

The politically-linked Nevhutanda, who was appointed as the NLC board chairperson by former President Jacob Zuma in 2009 and was near to significant-ups in the ANC leadership, former NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated from the corruption which overcome the NLC on their view.

Also implicated are previous board associates William Huma, who resigned right after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has because died.

When a new administration, such as the overall board and govt, took around with the NLC in late 2022 and early 2023, they discovered a “chaotic mess” while in the documentation referring to proactive funding, A great deal of which was paper-based mostly. Key documents ended up lacking. Data files held for safekeeping by doc storage company Metrofile were signed out and in no way returned.

The NLC was in the position to recover copies of some ตรวจ หวย files from its Mimecast email archiving technique as well as laptops in their assistants and aid workers.

News reports
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave worry doable information protection breaches plus the unauthorised use and/or dissemination of confidential information obtained due to accomplishing official capabilities while in the Fee by NLC staff members. The pursuits are intended to undermine the integrity of the Commission whilst disrupting the effective functions [with the NLC] and creating insurmountable reputational damage into the Commission given that the custodian of non-public details entrusted to it by its beneficiaries.”

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

Nene is at this time dealing with a disciplinary inquiry immediately after she was unsuccessful in lawful action to set aside results of irregular expenditure on her look at.

The purpose of her affidavit, Nene reported, was “to file the occasions which transpired relating to facts security breaches with the Countrywide Lotteries Fee”.

She outlined many information reviews which she claimed ended up the effects of these “breaches” (see at the conclusion of this post).

Nene reported that a whistle-blower approached the NLC alleging that one of its workers, Sello Qhino, had “delivered her categorised NLC Information and facts and persistently encouraged her to supply the information to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded assignments in Kuruman following tries to boost the issue internally ended up dismissed, was subsequently fired.

Referring to an eighteen November 2018 report in the Day by day Dispatch with regard to the misappropriation of Lottery funds, Nene claimed which the NLC discovered then suspended Zintle Rungqu. She was an personnel inside the NLC’s East London Business, who was the companion as well as the mother of whistleblower Mzukise Makatse’s a few kids.

Rungqu and Makatse think Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, With all the NLC paying R470,000 on lawyers to represent it, but was uncovered not guilty and permitted to return to work.

“The popular Think about these articles or blog posts is [they involve] categorized information associated with proactive funding projects,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out with the family members property to go ahead and take warmth off her and his small children. Dealing with homelessness, he moved into an Place of work in an empty factory belonging to a buddy.

Equally Makatse and Qhino are taking part in an NLC reparation system intended to recognise the damage some people endured in the arms with the NLC. Apologies and, in some instances, financial payment are envisioned.

“Some people today ended up actually afflicted incredibly negatively by this … This is actually agonizing,” NLC Commissioner Jodi Scholtz told the Day-to-day Maverick last yr.

“I achieved several these individuals. It had been just so heart-wrenching that their complete lives are already turned the wrong way up,” claimed Scholtz.

Between Those people she achieved were being Qhino and Makatse.

Safe System needed for whistleblowers
The SSA found the absence at some time of a correct channel for whistleblowers to report corruption led them to show to your media.

“Failure to have a dedicated anti-corruption channel will end in staff presenting this sort of cases outside of the NLC,” the SSA reported in its findings.

“Supplied the magnitude of corruption in point out establishments, it remains essential that it makes sure that the NLC complies with all stability prescripts Which its focus is on making certain that unlawful and irregular conduct is adequately mitigated against and by making certain an adequate channel for whistle-blowers to report untoward perform without having staying intimidated.”

It suggested that the NLC create a “Secure channel” for employees to provide info on any “untoward exercise” that would not prevent or discourage workforce from blowing the whistle. A whistle-blowers coverage, based on the Shielded Disclosures Act 25 of 2000, is really a need.”

Media studies Nene detailed
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Exercise Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and owner on the Limpopo Mirror, to show NLC corruption. “The article had elements of information not out there in the public domain, therefore increasing worry on inside Information security breaches. The allegations inside the media were being independently investigated,” Nene stated. “Nonetheless, personnel accountable for divulging classified information and facts have nonetheless to get identified”;
A 28 January 2018 short article printed via the Dally Dispatch “citing several allegations within the Limpopo Mirror write-up posted on ten December 2017 in addition to a new allegation relating to a former worker with the title of Mzukisi Makatse. He was charged and summarily dismissed for your threat brought on towards the organisation.”
A 16 November 2018 article in the Lowvelder concerning the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of receiving R27-million in lottery grants, the rehab has not been completed. “The Lowvelder short article contained categorized information and facts regarding NLC plan, raising additional concerns of inner information safety breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations didn't warrant an unbiased Investigation, nonetheless [it] highlighted the heightened information and facts security hazards in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Key Treatment, a hijacked NPO. Nene claimed GroundUp experienced verified in its story that it was determined by leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Promotion of Usage of Information and facts) ask for for facts about the venture, she stated