Lottery bosses turned to Condition Security Agency to investigate leaks

Lottery bosses turned to Condition Security Agency to investigate leaks

Blog Article

Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Condition Stability Company (SSA) in December 2018 to investigate the leaking of paperwork that exposed lottery corruption.
The NLC’s company secretary at time shown media experiences she said had been based upon “stolen” information and facts within an affidavit for that SSA.
The SSA did examine. It located the knowledge was not a make any difference of condition safety and that the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to reveal it.
A brand new board and administration has given that taken around the NLC and To this point have taken steps to finish corruption in the institution.
A State Stability Agency (SSA) investigation identified which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for exposure from the media.

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

Here's

Nevhutanda’s letter,
an affidavit by at present suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety company’s “confidential” findings and proposals.
Nevhutanda asked the SSA to analyze the part of NLC personnel from the alleged leaking of data, and Nene, in her affidavit recognized certain media and studies that she claimed involved these leaks.

During the letter outlining its results, the SSA advised the NLC that while safeguarding point out data was “a legal crucial directed at safeguarding the sovereignty and integrity from the point out” this only applied to properly categorised data.

Even though it didn't say so straight, the SSA findings implied the allegedly leaked information and facts didn't tumble into this classification.

Significantly, the SSA made it clear that the necessity to guard point out information “doesn't avoid any particular person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered that the NLC info associated with the alleged breach was “sensitive and privileged in mother nature, but not categorized in terms of the prescripts of the Minimal Information and facts Protection Criteria (Skip)”.

“The leakage of your appropriate delicate Formal NLC info on the media does not pose a risk to countrywide security,” the SSA claimed, introducing which the affect of the breaches was reputational.

The SSA report observed “no evidence of a factual and incriminating nature against any on the suspected NLC staff members that would be determined from the knowledge and knowledge interrogated”.

It also mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does supply ample motive to acquire these kinds of exposed in the media”.

Conspiracy statements
In 2020, Nevhutanda informed MPs all through a session of Parliament’s trade, sector and Competitiveness portfolio committee that there was “a conspiracy” by which data “stolen” from the NLC was sent to your US, where he claimed it was becoming offered to fund a smear campaign from the NLC.

He was repeating identical promises he had previously produced in Parliament, which integrated ad hominem attacks on GroundUp and this reporter but was careful not to call either.

“I arrived listed here In this particular August residence past year and documented to honourable members that details about our beneficiaries has been stolen and put in a single point out in the united states,” he advised MPs.

“We named about the State Security Agency to come investigate the subject because we're acquiring studies that our data is producing revenue for media platforms and journalists,” he explained. “There has been chat, of course from one particular source, one media, that spoke Substantially about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't notify MPs that the SSA investigation were accomplished Virtually a year previously.

Proactive funding was at the center of your looting of your lottery. It facet-stepped the traditional grant procedure. The NLC could by itself recognize a project to fund and appoint a non-revenue organisation to oversee it.

Right after Nevhutanda 1st explained to Parliament in 2018 that he experienced questioned the SSA to analyze the meant breach, the South African Countrywide Editors Forum issued a statement saying that his remarks mirrored “an incredibly perilous Angle where the media is staying blamed to the NLC’s inherent troubles”.

“As an alternative to investigating why tens of millions can not be accounted for, the NLC has rather attempted to Solid question about the integrity from the journalists associated and it has requested the SSA to research their resources.”

Proactive tasks manufactured top secret
Stability flaws discovered in the NLC grant funding system through the SSA’s investigation, seem to are already applied being an justification from the NLC to remove all proactive-funded tasks from its central grants method.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘magic formula’ and tasks were removed from the grant funding procedure and preserved manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Office, Executive Supervisor Legal so as to safeguard [the] information,” Nene mentioned in her affidavit.

“There was a great deal of interior dialogue, with plenty of backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was in a senior place in the NLC at the time, told GroundUp. “In the long run, the decision was taken to eliminate the many proactive assignments from your system and limit usage of a handful of persons”.

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

Maselwa, who resigned in the NLC various many years ago, has long been implicated in corruption involving lottery resources. He received R4.3-million from lottery funds allocated to construct a library and museum intricate in Kuruman (see Taung Cultural New music and Arts Expo) which he made use of to construct a residence within an upmarket gated enhancement in Pretoria. The assets is one of many compensated for with lottery resources that were frozen after the Asset Forfeiture Device attained a preservation get in December 2022.

The politically-related Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was near superior-ups during the ANC Management, former NLC previous Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated during the corruption which overcome the NLC on their observe.

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

When a new administration, such as the complete board and executive, took around on the NLC in late 2022 and early 2023, they discovered a “chaotic mess” during the documentation associated with proactive funding, A lot of which was paper-dependent. Vital documents had been missing. Information held for safekeeping by document storage corporation Metrofile were signed out and by no means returned.

The NLC was capable of Get well copies of some ตรวจ หวย files from its Mimecast email archiving process and also the laptops of their assistants and guidance staff.

News reviews
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave problem achievable data safety breaches along with the unauthorised use and/or dissemination of confidential info attained due to undertaking official capabilities while in the Commission by NLC workforce. The pursuits are intended to undermine the integrity with the Commission though disrupting the powerful functions [in the NLC] and creating insurmountable reputational damage towards the Commission given that the custodian of personal facts entrusted to it by its beneficiaries.”

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

Nene is at present dealing with a disciplinary inquiry following she was unsuccessful in lawful action to put aside findings of irregular expenditure on her enjoy.

The purpose of her affidavit, Nene reported, was “to document the situations which transpired associated with information security breaches with the Countrywide Lotteries Commission”.

She outlined a variety of information studies which she claimed ended up the effects of those “breaches” (see at the conclusion of this information).

Nene said that a whistle-blower approached the NLC alleging that certainly one of its staff members, Sello Qhino, had “presented her labeled NLC Facts and persistently inspired her to supply the data to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded jobs in Kuruman following makes an attempt to boost The problem internally ended up disregarded, was subsequently fired.

Referring to an 18 November 2018 post within the Everyday Dispatch in regards to the misappropriation of Lottery money, Nene said which the NLC identified then suspended Zintle Rungqu. She was an worker within the NLC’s East London Business office, who was the husband or wife and also the mother of whistleblower Mzukise Makatse’s three little ones.

Rungqu and Makatse believe Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, with the NLC paying R470,000 on lawyers to depict it, but was observed not guilty and allowed to return to operate.

“The widespread factor in these articles or blog posts is that [they require] categorised information and facts regarding proactive funding projects,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out with the family members dwelling to take the warmth off her and his little ones. Going through homelessness, he moved into an Business in an empty manufacturing unit belonging to a buddy.

Both Makatse and Qhino are participating in an NLC reparation course of action meant to recognise the damage some individuals suffered on the fingers in the NLC. Apologies and, in some instances, economical payment are predicted.

“Some persons were being definitely afflicted incredibly negatively by this … This is de facto agonizing,” NLC Commissioner Jodi Scholtz explained to the Day by day Maverick very last year.

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

Among Individuals she satisfied have been Qhino and Makatse.

Safe and sound System needed for whistleblowers
The SSA uncovered the absence at time of a proper channel for whistleblowers to report corruption led them to turn towards the media.

“Failure to have a focused anti-corruption channel will bring about workforce presenting this kind of cases beyond the NLC,” the SSA mentioned in its conclusions.

“Offered the magnitude of corruption in state institutions, it continues to be important that it ensures that the NLC complies with all safety prescripts Which its focus is on making certain that illegal and irregular perform is sufficiently mitigated in opposition to and by making sure an ample channel for whistle-blowers to report untoward perform without having staying intimidated.”

It advisable the NLC establish a “Secure channel” for employees to deliver info on any “untoward action” that might not avert or discourage workers from blowing the whistle. A whistle-blowers policy, dependant on the Shielded Disclosures Act 25 of 2000, is really a need.”

Media studies Nene outlined
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Health and fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to expose NLC corruption. “The write-up had things of data not obtainable in the public domain, thereby raising concern on internal Info security breaches. The allegations within the media had been independently investigated,” Nene stated. “Nevertheless, workforce chargeable for divulging labeled info have still for being discovered”;
A 28 January 2018 write-up posted through the Dally Dispatch “citing various allegations from your Limpopo Mirror short article published on 10 December 2017 plus a new allegation concerning a previous staff by the name of Mzukisi Makatse. He was charged and summarily dismissed for the danger caused to the organisation.”
A sixteen November 2018 short article from the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has described how, in spite of obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder write-up contained categorised facts when it comes to NLC coverage, boosting even more issues of inside info protection breaches,” Nene reported in her affidavit. “The prima facie proof with regard to these allegations did not warrant an independent Investigation, even so [it] highlighted the heightened facts stability threats throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Principal Treatment, a hijacked NPO. Nene explained GroundUp had confirmed in its Tale that it absolutely was based on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Information and facts) request for particulars concerning the challenge, she claimed