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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Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the State Stability Agency (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s firm secretary at enough time listed media stories she stated were dependant on “stolen” details within an affidavit with the SSA.
The SSA did examine. It identified the knowledge wasn't a issue of point out protection and the “prevalence of alleged corruption and irregularities” gave “ample motive” for the media to reveal it.
A completely new board and management has given that taken over the NLC and To date have taken measures to finish corruption at the institution.
A Point out Security Agency (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied sufficient motive” for exposure because of the media.

The probe into meant “info safety breaches and sabotage of NLC operations” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to analyze.

Here is

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the safety company’s “confidential” conclusions and proposals.
Nevhutanda requested the SSA to investigate the position of NLC staff inside the alleged leaking of knowledge, and Nene, in her affidavit identified particular media and experiences that she claimed concerned these leaks.

In the letter outlining its results, the SSA informed the NLC that though protecting state information and facts was “a legal essential aimed toward guarding the sovereignty and integrity of your condition” this only applied to properly categorised information.

Even though it did not say so immediately, the SSA results implied that the allegedly leaked facts did not fall into this category.

Appreciably, the SSA manufactured it very clear that the need to protect condition data “doesn't protect against any individual from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation uncovered the NLC data associated with the alleged breach was “delicate and privileged in character, although not categorised concerning the prescripts from the Least Info Safety Criteria (Pass up)”.

“The leakage from the pertinent sensitive official NLC details on the media won't pose a menace to nationwide safety,” the SSA stated, adding which the affect on the breaches was reputational.

The SSA report identified “no proof of the factual and incriminating nature versus any with the suspected NLC staff that may be discovered from the information and details interrogated”.

What's more, it stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does deliver ample motive to own such exposed inside the media”.

Conspiracy statements
In 2020, Nevhutanda instructed MPs throughout a session of Parliament’s trade, market and Level of competition portfolio committee that there was “a conspiracy” in which info “stolen” in the NLC was sent into the US, where by he claimed it had been currently being offered to fund a smear marketing campaign in opposition to the NLC.

He was repeating equivalent statements he experienced Earlier manufactured in Parliament, which involved advertisement hominem attacks on GroundUp which reporter but was watchful not to name both.

“I arrived listed here On this August dwelling previous year and described to honourable members that details about our beneficiaries has been stolen and put in one state in America,” he informed MPs.

“We named about the Condition Protection Company to return consider the make any difference simply because we have been receiving reviews that our information and facts is generating money for media platforms and journalists,” he explained. “There have been speak, obviously from a single supply, one particular media, that spoke Significantly about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't inform MPs which the SSA investigation were concluded Just about a year earlier.

Proactive funding was at the center on the looting of the lottery. It aspect-stepped the traditional grant procedure. The NLC could by itself detect a venture to fund and appoint a non-financial gain organisation to oversee it.

Soon after Nevhutanda to start with explained to Parliament in 2018 that he experienced requested the SSA to research the supposed breach, the South African National Editors Forum issued a press release indicating that his remarks mirrored “a particularly harmful attitude wherever the media is getting blamed for the NLC’s inherent troubles”.

“Instead of investigating why millions cannot be accounted for, the NLC has in its place made an effort to Forged question to the integrity on the journalists involved and it has requested the SSA to research their resources.”

Proactive initiatives manufactured secret
Safety flaws identified during the NLC grant funding system in the SSA’s investigation, surface to are already utilised being an excuse via the NLC to get rid of all proactive-funded projects from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘key’ and jobs had been removed from the grant funding procedure and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Workplace, Executive Supervisor Legal so as to safeguard [the] information,” Nene said in her affidavit.

“There was lots of inner discussion, with a great deal of backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was in a senior posture with the NLC at some time, informed GroundUp. “Ultimately, the decision was taken to remove the many proactive initiatives from the method and Restrict use of a handful of persons”.

Some in that handful of folks were implicated in corruption.

Maselwa, who resigned within the NLC quite a few years ago, has become implicated in corruption involving lottery money. He received R4.3-million from lottery money allocated to develop a library and museum elaborate in Kuruman (see Taung Cultural New music and Arts Expo) which he made use of to build a residence within an upmarket gated growth in Pretoria. The home is one of several paid for with lottery cash that were frozen following the Asset Forfeiture Unit acquired a preservation buy 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 to substantial-ups while in 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 own observe.

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

Every time a new administration, such as the overall board and government, took in excess of with the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation associated with proactive funding, Significantly of which was paper-primarily based. Key files had 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 ltpbet files from its Mimecast e mail archiving program and also the laptops in their assistants and assistance staff.

News experiences
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave worry possible data stability breaches as well as the unauthorised use and/or dissemination of confidential facts attained as a result of executing official features while in the Fee by NLC staff members. The things to do are meant to undermine the integrity of the Commission although disrupting the productive capabilities [of your NLC] and causing insurmountable reputational hurt to the Fee given that the custodian of private info entrusted to it by its beneficiaries.”

His ask for with the SSA to research was supported within an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.

Nene is at the moment dealing with a disciplinary inquiry right after she was unsuccessful in lawful action to put aside findings of irregular expenditure on her check out.

The objective of her affidavit, Nene said, was “to report the functions which transpired relating to facts security breaches on the National Lotteries Commission”.

She shown many news reports which she claimed had been the outcome of those “breaches” (see at the conclusion of this short article).

Nene stated that a whistle-blower approached the NLC alleging that among its staff, Sello Qhino, had “provided her categorised NLC Facts and persistently encouraged her to deliver the data to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded initiatives in Kuruman soon after attempts to boost the issue internally ended up disregarded, was subsequently fired.

Referring to an 18 November 2018 write-up from the Daily Dispatch in regards to the misappropriation of Lottery cash, Nene claimed which the NLC determined after which you can suspended Zintle Rungqu. She was an staff during the NLC’s East London Business, who was the husband or wife plus the mother of whistleblower Mzukise Makatse’s a few little ones.

Rungqu and Makatse imagine Rungqu was punished since Makatse blew the whistle. She was suspended and billed internally, Together with the NLC paying R470,000 on legal professionals to signify it, but was uncovered not guilty and allowed to return to operate.

“The popular factor in these content is that [they entail] labeled information and facts relating to proactive funding tasks,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out on the relatives household to go ahead and take heat off her and his youngsters. Dealing with homelessness, he moved into an Workplace within an empty factory belonging to an acquaintance.

Equally Makatse and Qhino are participating in an NLC reparation process meant to recognise the harm lots of people endured within the fingers of the NLC. Apologies and, sometimes, monetary compensation are predicted.

“Some individuals have been definitely affected really negatively by this … This is de facto distressing,” NLC Commissioner Jodi Scholtz told the Every day Maverick final yr.

“I satisfied several these persons. It had been just so heart-wrenching that their whole life have been turned the wrong way up,” reported Scholtz.

Among All those she met were Qhino and Makatse.

Protected platform required for whistleblowers
The SSA identified the absence at the time of an appropriate channel for whistleblowers to report corruption led them to show for the media.

“Failure to have a devoted anti-corruption channel will end in personnel presenting these kinds of instances outside of the NLC,” the SSA reported in its findings.

“Supplied the magnitude of corruption in state institutions, it stays very important that it makes sure that the NLC complies with all protection prescripts Which its focus is on making certain that illegal and irregular carry out is adequately mitigated from and by making sure an adequate channel for whistle-blowers to report untoward conduct without having currently being intimidated.”

It encouraged that the NLC establish a “Secure channel” for workers to offer information on any “untoward action” that will not stop or discourage workers from blowing the whistle. A whistle-blowers plan, determined by the Guarded Disclosures Act twenty five of 2000, is a necessity.”

Media experiences Nene detailed
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Conditioning Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner with the Limpopo Mirror, to expose NLC corruption. “The report experienced components of knowledge not readily available in the general public area, thereby elevating problem on inside Information and facts security breaches. The allegations within the media had been independently investigated,” Nene stated. “Nonetheless, staff to blame for divulging categorized info have yet being identified”;
A 28 January 2018 short article published because of the Dally Dispatch “citing various allegations from the Limpopo Mirror short article posted on ten December 2017 and a new allegation referring to a former worker with the title of Mzukisi Makatse. He was charged and summarily dismissed for your threat brought about to your organisation.”
A 16 November 2018 write-up within the Lowvelder in regards to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Despite getting R27-million in lottery grants, the rehab hasn't been accomplished. “The Lowvelder article contained categorised details when it comes to NLC coverage, boosting more fears of internal data protection breaches,” Nene said in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an independent Investigation, even so [it] highlighted the heightened facts protection challenges in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene said GroundUp experienced confirmed in its story that it absolutely was based upon leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Information and facts) request for details about the task, she stated