Lottery bosses turned to Point out Protection Company to investigate leaks

Lottery bosses turned to Point out Protection Company to investigate leaks

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Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the Point out Safety Agency (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s company secretary at enough time shown media stories she said have been determined by “stolen” information in an affidavit to the SSA.
The SSA did examine. It uncovered the data wasn't a subject of condition stability and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for your media to show it.
A new board and administration has considering the fact that taken over the NLC and thus far have taken actions to finish corruption on the institution.
A Point out Safety Agency (SSA) investigation identified which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered ample motive” for exposure by the media.

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

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “private” results and proposals.
Nevhutanda questioned the SSA to research the purpose of NLC team within the alleged leaking of information, and Nene, in her affidavit discovered distinct media and reports that she claimed included these leaks.

From the letter outlining its results, the SSA advised the NLC that even though protecting state info was “a legal vital geared toward safeguarding the sovereignty and integrity of the state” this only applied to correctly categorized info.

Even though it did not say so directly, the SSA results implied which the allegedly leaked data did not drop into this classification.

Appreciably, the SSA produced it obvious that the necessity to safeguard condition information and facts “doesn't protect against any unique from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation observed the NLC info involved with the alleged breach was “sensitive and privileged in character, but not classified with regard to the prescripts of your Minimal Data Stability Requirements (Skip)”.

“The leakage in the related sensitive official NLC information and facts to your media does not pose a menace to nationwide security,” the SSA mentioned, including the affect on the breaches was reputational.

The SSA report located “no evidence of the factual and incriminating character in opposition to any in the suspected NLC workforce that could be determined from the data and info interrogated”.

What's more, it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does present enough motive to get this kind of exposed from the media”.

Conspiracy claims
In 2020, Nevhutanda instructed MPs for the duration of a session of Parliament’s trade, marketplace and Level of competition portfolio committee that there was “a conspiracy” wherein information “stolen” within the NLC was sent on the US, where by he claimed it absolutely was becoming marketed to fund a smear marketing campaign versus the NLC.

He was repeating similar claims he experienced Beforehand made in Parliament, which incorporated ad hominem attacks on GroundUp and this reporter but was very careful not to call both.

“I arrived here in this August household very last year and claimed to honourable members that details about our beneficiaries has long been stolen and set in a single condition in the united states,” he instructed MPs.

“We termed over the Point out Protection Agency to come look into the matter simply because we've been finding studies that our details is generating money for media platforms and journalists,” he said. “There was discuss, needless to say from one supply, one media, that spoke Substantially about proactive-funding,” Nevhutanda stated (referring to GroundUp), but did not convey to MPs that the SSA investigation had been concluded Virtually a calendar year earlier.

Proactive funding was at the heart on the looting of the lottery. It side-stepped the normal grant approach. The NLC could alone identify a venture to fund and appoint a non-income organisation to oversee it.

Soon after Nevhutanda initially instructed Parliament in 2018 that he experienced requested the SSA to investigate the supposed breach, the South African Countrywide Editors Discussion board issued an announcement stating that his remarks mirrored “an incredibly risky Frame of mind in which the media is becoming blamed with the NLC’s inherent troubles”.

“As opposed to investigating why tens of millions can't be accounted for, the NLC has instead attempted to Solid question around the integrity with the journalists associated and has asked the SSA to research their sources.”

Proactive initiatives built magic formula
Safety flaws recognized while in the NLC grant funding process during the SSA’s investigation, appear to have been utilized being an justification through the NLC to remove all proactive-funded projects from its central grants procedure.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘secret’ and jobs have been removed from the grant funding process and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Business, Executive Manager Lawful to be able to safeguard [the] facts,” Nene stated in her affidavit.

“There was many interior dialogue, with plenty of backwards and forwards, about what to do to plug the alleged leaks”, a supply, who was in the senior situation for the NLC at enough time, instructed GroundUp. “In the long run, the choice was taken to remove each of the proactive tasks in the system and Restrict entry to A few people today”.

Some in that handful of men and women had been implicated in corruption.

Maselwa, who resigned from the NLC several yrs back, has been implicated in corruption involving lottery cash. He been given R4.3-million from lottery resources allotted to create a library and museum complex in Kuruman (see Taung Cultural Audio and Arts Expo) which he used to create a property within an upmarket gated development in Pretoria. The residence is one of several paid out for with lottery funds that were frozen after the Asset Forfeiture Unit obtained a preservation order in December 2022.

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

Also implicated are former board customers William Huma, who resigned following he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got given that died.

Every time a new administration, such as the overall board and government, took about within the NLC in late 2022 and early 2023, they found out a “chaotic mess” in the documentation relating to proactive funding, much of which was paper-based. Key files were missing. Information held for safekeeping by document storage enterprise Metrofile had been signed out and never returned.

The NLC was in the position to recover copies of some ตรวจ หวย documents from its Mimecast electronic mail archiving process plus the laptops of their assistants and aid personnel.

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 problem doable info protection breaches and the unauthorised use and/or dissemination of confidential data attained on account of carrying out official functions inside the Commission by NLC staff. The pursuits are intended to undermine the integrity on the Commission although disrupting the successful functions [of the NLC] and causing insurmountable reputational hurt on the Commission given that the custodian of non-public info entrusted to it by its beneficiaries.”

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

Nene is at this time dealing with a disciplinary inquiry just after she was unsuccessful in legal action to put aside conclusions of irregular expenditure on her watch.

The objective of her affidavit, Nene claimed, was “to history the occasions which transpired associated with facts stability breaches at the National Lotteries Fee”.

She outlined many news stories which she claimed had been the effects of these “breaches” (see at the end of this short article).

Nene explained that a whistle-blower approached the NLC alleging that one of its staff, Sello Qhino, experienced “furnished her categorised NLC Info and persistently encouraged her to supply the information to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded tasks in Kuruman right after attempts to raise The difficulty internally ended up overlooked, was subsequently fired.

Referring to an 18 November 2018 post in the Day by day Dispatch with regard to the misappropriation of Lottery cash, Nene mentioned which the NLC recognized and then suspended Zintle Rungqu. She was an personnel within the NLC’s East London Business, who was the spouse as well as mother of whistleblower Mzukise Makatse’s 3 small children.

Rungqu and Makatse think Rungqu was punished mainly because Makatse blew the whistle. She was suspended and billed internally, Using the NLC paying R470,000 on attorneys to depict it, but was observed not responsible and permitted to return to work.

“The frequent factor in these content articles is [they include] classified information and facts concerning proactive funding initiatives,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out of the spouse and children property to take the heat off her and his children. Experiencing homelessness, he moved into an Place of work within an vacant factory belonging to a colleague.

Both Makatse and Qhino are participating in an NLC reparation system meant to recognise the harm a number of people experienced at the hands from the NLC. Apologies and, in some instances, fiscal compensation are anticipated.

“Some men and women have been genuinely impacted really negatively by this … This is basically unpleasant,” NLC Commissioner Jodi Scholtz told the Day by day Maverick very last yr.

“I achieved a handful of these men and women. It was just so heart-wrenching that their whole lives have been turned the wrong way up,” said Scholtz.

Amid those she satisfied ended up Qhino and Makatse.

Secure platform wanted for whistleblowers
The SSA discovered the absence at time of a suitable channel for whistleblowers to report corruption led them to show to your media.

“Failure to possess a focused anti-corruption channel will bring about employees presenting this kind of circumstances outside of the NLC,” the SSA stated in its findings.

“Given the magnitude of corruption in point out establishments, it remains essential that it makes certain that the NLC complies with all protection prescripts and that its aim is on guaranteeing that illegal and irregular perform is adequately mitigated from and by making certain an suitable channel for whistle-blowers to report untoward carry out without currently being intimidated.”

It suggested the NLC build a “Secure channel” for employees to offer info on any “untoward exercise” that will not avert or discourage workforce from blowing the whistle. A whistle-blowers policy, according to the Safeguarded Disclosures Act 25 of 2000, can be a prerequisite.”

Media stories Nene stated
A ten December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Health Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor from the Limpopo Mirror, to show NLC corruption. “The short article had features of knowledge not accessible in the general public domain, therefore boosting problem on interior Details stability breaches. The allegations within the media ended up independently investigated,” Nene stated. “Even so, employees liable for divulging labeled information and facts have however for being recognized”;
A 28 January 2018 report released because of the Dally Dispatch “citing various allegations within the Limpopo Mirror posting released on 10 December 2017 as well as a new allegation referring to a previous personnel through the identify of Mzukisi Makatse. He was charged and summarily dismissed for the danger induced to the organisation.”
A sixteen November 2018 post from the Lowvelder in regards to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite receiving R27-million in lottery grants, the rehab has never been accomplished. “The Lowvelder posting contained classified details with regard to NLC plan, boosting further issues of inner details safety breaches,” Nene mentioned in her affidavit. “The prima facie evidence with regard to these allegations didn't warrant an impartial Investigation, even so [it] highlighted the heightened data security risks throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Key Care, a hijacked NPO. Nene reported GroundUp had verified in its story that it had been according to leaked NLC files. This was despite the NLC rejecting a PAIA (Marketing of Usage of Details) ask for for details with regards to the project, she explained