Lottery bosses turned to Point out Stability Company to analyze leaks

Lottery bosses turned to Point out Stability Company to analyze leaks

Blog Article

Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the State Safety Agency (SSA) in December 2018 to research the leaking of paperwork that uncovered lottery corruption.
The NLC’s corporation secretary at the time outlined media experiences she stated had been dependant on “stolen” information and facts within an affidavit for your SSA.
The SSA did examine. It identified the data was not a subject of condition safety and the “prevalence of alleged corruption and irregularities” gave “enough motive” for the media to show it.
A different board and administration has due to the fact taken over the NLC and thus far have taken steps to finish corruption with the institution.
A Condition Stability Agency (SSA) investigation discovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented sufficient motive” for publicity by the media.

The probe into supposed “details safety breaches and sabotage of NLC operations” was undertaken following then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to investigate.

Here's

Nevhutanda’s letter,
an affidavit by at this time suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” results and proposals.
Nevhutanda requested the SSA to investigate the purpose of NLC workers in the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and experiences that she claimed involved these leaks.

From the letter outlining its conclusions, the SSA informed the NLC that even though protecting state details was “a authorized vital directed at guarding the sovereignty and integrity from the state” this only placed on correctly categorised facts.

Even though it did not say so straight, the SSA conclusions implied the allegedly leaked data did not tumble into this class.

Substantially, the SSA produced it apparent that the need to protect condition information “won't stop any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation observed that the NLC details linked to the alleged breach was “delicate and privileged in nature, but not classified regarding the prescripts with the Minimum amount Information Security Specifications (Skip)”.

“The leakage in the pertinent sensitive Formal NLC information and facts to your media won't pose a risk to national protection,” the SSA explained, adding which the effect of the breaches was reputational.

The SSA report observed “no evidence of a factual and incriminating mother nature in opposition to any of your suspected NLC personnel that could be recognized from the knowledge and data interrogated”.

What's more, it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does offer sufficient motive to own these types of uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, business and Opposition portfolio committee that there was “a conspiracy” during which info “stolen” from the NLC was despatched for the US, exactly where he claimed it absolutely was currently being sold to fund a smear marketing campaign against the NLC.

He was repeating very similar claims he had Beforehand created in Parliament, which bundled ad hominem attacks on GroundUp and this reporter but was very careful not to call either.

“I came listed here During this August home previous 12 months and described to honourable customers that specifics of our beneficiaries has been stolen and set in a single condition in the united states,” he told MPs.

“We known as about the Point out Security Agency to return explore the make any difference simply because we are finding experiences that our info is generating revenue for media platforms and journalists,” he claimed. “There was discuss, naturally from just one source, 1 media, that spoke much about proactive-funding,” Nevhutanda explained (referring to GroundUp), but failed to notify MPs the SSA investigation were accomplished almost a yr earlier.

Proactive funding was at the heart of your looting with the lottery. It aspect-stepped the normal grant procedure. The NLC could alone establish a project to fund and appoint a non-earnings organisation to oversee it.

Just after Nevhutanda initially explained to Parliament in 2018 that he had questioned the SSA to investigate the intended breach, the South African Countrywide Editors Discussion board issued an announcement expressing that his remarks reflected “an especially hazardous Perspective the place the media is becoming blamed for that NLC’s inherent difficulties”.

“Instead of investigating why tens of millions cannot be accounted for, the NLC has alternatively made an effort to Forged question around the integrity in the journalists included and has requested the SSA to research their sources.”

Proactive assignments manufactured solution
Protection flaws determined while in the NLC grant funding technique in the course of the SSA’s investigation, look to have already been employed being an excuse from the NLC to eliminate all proactive-funded assignments from its central grants method.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘top secret’ and assignments were being removed from the grant funding process and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Workplace, Government Manager Authorized so that you can safeguard [the] info,” Nene explained in her affidavit.

“There was many interior dialogue, with numerous forwards and backwards, about how to proceed to plug the alleged leaks”, a supply, who was within a senior place in the NLC at the time, explained to GroundUp. “In the long run, the decision was taken to eliminate the many proactive assignments in the procedure and limit usage of a handful of people today”.

Some in that handful of individuals were being implicated in corruption.

Maselwa, who resigned from your NLC several several years back, continues to be implicated in corruption involving lottery cash. He gained R4.three-million from lottery funds allotted to construct a library and museum complex in Kuruman (see Taung Cultural Audio and Arts Expo) which he utilized to develop a house in an upmarket gated enhancement in Pretoria. The home is one of various compensated for with lottery funds that were frozen after the Asset Forfeiture Unit acquired a preservation purchase in December 2022.

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

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 considering the fact that died.

Every time a new administration, including the total board and executive, took about in the NLC in late 2022 and early 2023, they found out a “chaotic mess” inside the documentation concerning proactive funding, Significantly of which was paper-dependent. Key documents have been missing. Documents held for safekeeping by doc storage corporation Metrofile were signed out and never returned.

The NLC was in a position to recover copies of some ตรวจ หวย files from its Mimecast e-mail archiving process and the laptops of their assistants and assist staff members.

Information reports
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave concern achievable details safety breaches as well as the unauthorised use and/or dissemination of confidential info obtained on account of undertaking official capabilities during the Commission by NLC employees. The things to do are intended to undermine the integrity of the Fee while disrupting the helpful functions [with the NLC] and leading to insurmountable reputational hurt towards the Commission given that the custodian of personal data entrusted to it by its beneficiaries.”

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

Nene is now facing a disciplinary inquiry right after she was unsuccessful in legal action to put aside conclusions of irregular expenditure on her check out.

The goal of her affidavit, Nene claimed, was “to report the functions which transpired relating to facts security breaches in the Nationwide Lotteries Commission”.

She shown many information experiences which she claimed had been the final results of those “breaches” (see at the end of this text).

Nene explained that a whistle-blower approached the NLC alleging that considered one of its staff members, Sello Qhino, had “delivered her categorized NLC Info and persistently encouraged her to supply the knowledge to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded tasks in Kuruman after attempts to raise the issue internally were ignored, was subsequently fired.

Referring to an eighteen November 2018 write-up within the Each day Dispatch with regards to the misappropriation of Lottery resources, Nene stated that the NLC recognized after which you can suspended Zintle Rungqu. She was an staff in the NLC’s East London Workplace, who was the spouse plus the mom of whistleblower Mzukise Makatse’s 3 young children.

Rungqu and Makatse believe that Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, Together with the NLC shelling out R470,000 on lawyers to characterize it, but was identified not responsible and allowed to return to operate.

“The frequent Think about these articles or blog posts is that [they entail] categorised data concerning proactive funding projects,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out in the family members dwelling to go ahead and take heat off her and his young children. Experiencing homelessness, he moved into an Business within an vacant manufacturing unit belonging to an acquaintance.

Each Makatse and Qhino are participating in an NLC reparation procedure intended to recognise the hurt some people suffered within the palms in the NLC. Apologies and, in some cases, economical compensation are predicted.

“Some people were definitely impacted pretty negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz informed the Each day Maverick past yr.

“I achieved several these people today. It was just so heart-wrenching that their whole lives have already been turned upside down,” stated Scholtz.

Amongst These she met were being Qhino and Makatse.

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

“Failure to possess a devoted anti-corruption channel will bring about staff presenting such scenarios beyond the NLC,” the SSA stated in its results.

“Specified the magnitude of corruption in state institutions, it stays important that it makes certain that the NLC complies with all stability prescripts Which its focus is on ensuring that unlawful and irregular perform is sufficiently mitigated from and by guaranteeing an enough channel for whistle-blowers to report untoward carry out with no currently being 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 Secured Disclosures Act 25 of 2000, can be a need.”

Media reviews Nene mentioned
A 10 December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Health and fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to reveal NLC corruption. “The report had factors of information not obtainable in the public area, therefore elevating concern on interior Information and facts protection breaches. The allegations while in the media had been independently investigated,” Nene said. “Having said that, staff members answerable for divulging classified facts have however to generally be identified”;
A 28 January 2018 short article published with the Dally Dispatch “citing various allegations in the Limpopo Mirror report released on ten December 2017 and a new allegation referring to a former employee from the name of Mzukisi Makatse. He was billed and summarily dismissed with the danger brought about to your organisation.”
A 16 November 2018 write-up inside the Lowvelder in regards to 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 finished. “The Lowvelder posting contained categorized information regarding NLC plan, elevating even further issues of inside information and facts security breaches,” Nene mentioned in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened information security dangers within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene explained GroundUp had verified in its Tale that it had been depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Promotion of Usage of Facts) request for aspects with regard to the task, she stated