Lottery bosses turned to Condition Safety Company to analyze leaks

Lottery bosses turned to Condition Safety Company to analyze leaks

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Former Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Security Agency (SSA) in December 2018 to investigate the leaking of files that uncovered lottery corruption.
The NLC’s firm secretary at enough time detailed media studies she stated were according to “stolen” details in an affidavit to the SSA.
The SSA did investigate. It discovered the information was not a subject of point out security and which the “prevalence of alleged corruption and irregularities” gave “enough motive” for the media to expose it.
A new board and administration has because taken above the NLC and So far have taken actions to finish corruption in the institution.
A State Stability Agency (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered enough motive” for exposure because of the media.

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

Here is

Nevhutanda’s letter,
an affidavit by presently suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “confidential” findings and proposals.
Nevhutanda questioned the SSA to research the position of NLC workers within the alleged leaking of data, and Nene, in her affidavit determined particular media and reports that she claimed included these leaks.

Inside the letter outlining its results, the SSA advised the NLC that even though shielding condition data was “a legal critical targeted at defending the sovereignty and integrity with the point out” this only placed on appropriately classified details.

Although it did not say so immediately, the SSA results implied which the allegedly leaked information didn't drop into this classification.

Substantially, the SSA produced it crystal clear that the need to secure state details “isn't going to avert any person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation located which the NLC information and facts involved with the alleged breach was “delicate and privileged in nature, although not categorised when it comes to the prescripts from the Least Info Stability Specifications (Overlook)”.

“The leakage from the appropriate sensitive Formal NLC details for the media isn't going to pose a threat to countrywide stability,” the SSA reported, incorporating that the impression from the breaches was reputational.

The SSA report located “no proof of the factual and incriminating character versus any on the suspected NLC staff that can be identified from the data and details interrogated”.

Additionally, it stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does give enough motive to have this sort of exposed from the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs in the course of a session of Parliament’s trade, field and Competitiveness portfolio committee that there was “a conspiracy” through which information and facts “stolen” from the NLC was despatched to the US, where by he claimed it had been getting marketed to fund a smear marketing campaign towards the NLC.

He was repeating very similar claims he had Beforehand made in Parliament, which incorporated advertisement hominem attacks on GroundUp and this reporter but was mindful not to name both.

“I arrived listed here With this August home very last yr and described to honourable users that information regarding our beneficiaries is stolen and place in a single point out in America,” he advised MPs.

“We called on the Point out Security Company to come explore the make any difference simply because we've been acquiring stories that our information is producing funds for media platforms and journalists,” he claimed. “There has been talk, naturally from one supply, one media, that spoke A great deal about proactive-funding,” Nevhutanda said (referring to GroundUp), but did not tell MPs the SSA investigation were concluded Just about a 12 months previously.

Proactive funding was at the center in the looting of your lottery. It aspect-stepped the normal grant procedure. The NLC could alone identify a undertaking to fund and appoint a non-financial gain organisation to oversee it.

After Nevhutanda 1st explained to Parliament in 2018 that he had requested the SSA to analyze the meant breach, the South African National Editors Forum issued an announcement declaring that his remarks reflected “an especially risky Perspective in which the media is remaining blamed for that NLC’s inherent complications”.

“Rather then investigating why millions cannot be accounted for, the NLC has rather tried to Forged question over the integrity with the journalists involved and it has requested the SSA to investigate their resources.”

Proactive jobs built top secret
Security flaws discovered in the NLC grant funding technique over the SSA’s investigation, surface to happen to be utilized being an excuse through the NLC to remove all proactive-funded jobs from its central grants procedure.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘secret’ and initiatives have been faraway from the grant funding technique and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Office, Government Supervisor Lawful in an effort to safeguard [the] information,” Nene mentioned in her affidavit.

“There was loads of internal discussion, with a lot of backwards and forwards, about how to proceed to plug the alleged leaks”, a supply, who was inside of a senior posture at the NLC at the time, told GroundUp. “In the end, the choice was taken to eliminate many of the proactive initiatives within the process and limit access to A few men and women”.

Some in that handful of individuals were implicated in corruption.

Maselwa, who resigned with the NLC many many years back, is implicated in corruption involving lottery resources. He acquired R4.three-million from lottery funds allocated to make a library and museum sophisticated in Kuruman (see Taung Cultural New music and Arts Expo) which he employed to develop a dwelling in an upmarket gated advancement in Pretoria. The house is among various compensated for with lottery resources which were frozen once the Asset Forfeiture Device received a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near superior-ups during the ANC Management, former NLC previous Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated in the corruption which confused the NLC on their watch.

Also implicated are previous board members William Huma, who resigned just after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has since died.

Every time a new administration, such as the complete board and govt, took over with the NLC in late 2022 and early 2023, they discovered a “chaotic mess” inside the documentation regarding proactive funding, much of which was paper-primarily based. Essential paperwork ended up lacking. Documents held for safekeeping by document storage organization Metrofile had been signed out and in no way returned.

The NLC was capable to Recuperate copies of some หวย ไทยรัฐ files from its Mimecast e-mail archiving method and also the laptops of their assistants and assist team.

Information stories
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave worry attainable information security breaches plus the unauthorised use and/or dissemination of private information attained on account of undertaking official functions during the Commission by NLC staff. The activities are meant to undermine the integrity from the Commission though disrupting the powerful capabilities [on the NLC] and causing insurmountable reputational hurt towards the Commission given that the custodian of personal information and facts entrusted to it by its beneficiaries.”

His request to the SSA to research was supported within an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.

Nene is at the moment struggling with a disciplinary inquiry after she was unsuccessful in legal motion to set aside findings of irregular expenditure on her enjoy.

The objective of her affidavit, Nene claimed, was “to history the events which transpired concerning information and facts protection breaches with the National Lotteries Commission”.

She outlined many news reports which she claimed had been the results of those “breaches” (see at the conclusion of this information).

Nene explained that a whistle-blower approached the NLC alleging that certainly one of its staff members, Sello Qhino, experienced “supplied her categorized NLC Facts and persistently inspired her to provide the information to GroundUp”.

Qhino, who blew the whistle on a series of dodgy lottery-funded assignments in Kuruman following tries to boost The difficulty internally were dismissed, was subsequently fired.

Referring to an 18 November 2018 posting from the Every day Dispatch concerning the misappropriation of Lottery funds, Nene mentioned which the NLC identified after which you can suspended Zintle Rungqu. She was an staff in the NLC’s East London Workplace, who was the spouse as well as the mom of whistleblower Mzukise Makatse’s three children.

Rungqu and Makatse imagine Rungqu was punished simply because Makatse blew the whistle. She was suspended and billed internally, with the NLC spending R470,000 on lawyers to signify it, but was identified not responsible and permitted to return to work.

“The widespread Think about these articles or blog posts is that [they require] categorized data relating to proactive funding jobs,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out of the household household to take the heat off her and his small children. Going through homelessness, he moved into an Business office in an vacant manufacturing unit belonging to a buddy.

Both equally Makatse and Qhino are taking part in an NLC reparation method intended to recognise the harm some people suffered on the fingers of your NLC. Apologies and, in some cases, monetary payment are predicted.

“Some people today ended up actually afflicted quite negatively by this … This is absolutely unpleasant,” NLC Commissioner Jodi Scholtz explained to the Each day Maverick last 12 months.

“I met a couple of these men and women. It absolutely was just so heart-wrenching that their whole life are already turned upside down,” said Scholtz.

Amid Individuals she met were Qhino and Makatse.

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

“Failure to possess a focused anti-corruption channel will cause employees presenting these kinds of cases outside of the NLC,” the SSA claimed in its conclusions.

“Offered the magnitude of corruption in state institutions, it stays critical that it makes certain that the NLC complies with all stability prescripts Which its concentration is on making sure that unlawful and irregular carry out is adequately mitigated against and by ensuring an sufficient channel for whistle-blowers to report untoward conduct with out becoming intimidated.”

It advised that the NLC establish a “Secure channel” for employees to supply info on any “untoward exercise” that will not avoid or discourage personnel from blowing the whistle. A whistle-blowers policy, dependant on the Safeguarded Disclosures Act 25 of 2000, is often a necessity.”

Media stories Nene detailed
A ten December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Conditioning 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 short article experienced things of data not accessible in the general public area, therefore elevating problem on internal Info security breaches. The allegations within the media were independently investigated,” Nene reported. “Having said that, staff members chargeable for divulging labeled details have however to be discovered”;
A 28 January 2018 report published because of the Dally Dispatch “citing many allegations with the Limpopo Mirror post released on 10 December 2017 and also a new allegation relating to a former personnel via the name of Mzukisi Makatse. He was charged and summarily dismissed for your risk caused towards the organisation.”
A 16 November 2018 report from the Lowvelder concerning the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Despite obtaining R27-million in lottery grants, the rehab has never been done. “The Lowvelder short article contained categorized info with regards to NLC plan, raising even further considerations of interior info 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 information and facts security dangers within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Main Care, a hijacked NPO. Nene said GroundUp experienced confirmed in its story that it had been determined by leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Advertising of Usage of Information) ask for for facts with regards to the job, she claimed