Lottery bosses turned to State Security Agency to investigate leaks

Lottery bosses turned to State Security Agency to investigate leaks

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Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Point out Safety Agency (SSA) in December 2018 to investigate the leaking of documents that uncovered lottery corruption.
The NLC’s firm secretary at the time listed media reports she reported ended up dependant on “stolen” details within an affidavit to the SSA.
The SSA did examine. It observed the information was not a subject of state protection and the “prevalence of alleged corruption and irregularities” gave “ample motive” for the media to show it.
A different board and administration has considering the fact that taken about the NLC and So far have taken steps to end corruption at the institution.
A Condition Stability Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered sufficient motive” for publicity with the media.

The probe into meant “details stability breaches and sabotage of NLC operations” was carried out after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC corporation secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “private” conclusions and recommendations.
Nevhutanda questioned the SSA to analyze the part of NLC personnel in the alleged leaking of knowledge, and Nene, in her affidavit recognized unique media and reviews that she claimed involved these leaks.

From the letter outlining its findings, the SSA told the NLC that although shielding point out data was “a authorized critical aimed toward guarding the sovereignty and integrity of your state” this only placed on correctly categorized information.

Although it did not say so instantly, the SSA findings implied the allegedly leaked details did not slide into this class.

Considerably, the SSA created it crystal clear that the necessity to defend condition facts “doesn't avoid any personal from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation identified which the NLC info involved in the alleged breach was “sensitive and privileged in nature, but not categorised in terms of the prescripts with the Minimum Info Safety Specifications (Pass up)”.

“The leakage of the related delicate Formal NLC information for the media isn't going to pose a menace to nationwide security,” the SSA said, including the effect of your breaches was reputational.

The SSA report identified “no proof of a factual and incriminating nature versus any of the suspected NLC workers that would be determined from the data and knowledge interrogated”.

In addition it said that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does give sufficient motive to obtain these uncovered while in the media”.

Conspiracy promises
In 2020, Nevhutanda informed MPs all through a session of Parliament’s trade, market and Competitors portfolio committee that there was “a conspiracy” during which facts “stolen” in the NLC was sent on the US, exactly where he claimed it had been remaining bought to fund a smear marketing campaign towards the NLC.

He was repeating equivalent promises he had Beforehand designed in Parliament, which incorporated advert hominem assaults on GroundUp and this reporter but was watchful not to call either.

“I came right here Within this August home final yr and reported to honourable customers that information regarding our beneficiaries continues to be stolen and place in one condition in the united states,” he advised MPs.

“We identified as to the Condition Safety Agency to return check into the make any difference since we are having reports that our information is making income for media platforms and journalists,” he explained. “There has been communicate, naturally from 1 supply, one media, that spoke Significantly about proactive-funding,” Nevhutanda said (referring to GroundUp), but did not convey to MPs which the SSA investigation were finished Practically a calendar year before.

Proactive funding was at the heart in the looting on the lottery. It aspect-stepped the conventional grant system. The NLC could alone determine a undertaking to fund and appoint a non-income organisation to oversee it.

Right after Nevhutanda very first informed Parliament in 2018 that he experienced requested the SSA to research the supposed breach, the South African Countrywide Editors Forum issued a press release stating that his remarks mirrored “a very risky Perspective where by the media is currently being blamed for the NLC’s inherent challenges”.

“As opposed to investigating why thousands and thousands can not be accounted for, the NLC has rather attempted to Forged question over the integrity on the journalists involved and it has asked the SSA to analyze their resources.”

Proactive tasks built top secret
Stability flaws recognized inside the NLC grant funding technique over the SSA’s investigation, seem to are actually utilized as an justification via the NLC to get rid of all proactive-funded assignments from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘solution’ and projects were being faraway from the grant funding program and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Place of work, Government Manager Legal as a way to safeguard [the] info,” Nene claimed in her affidavit.

“There was a great deal of internal discussion, with lots of forwards and backwards, about how to proceed to plug the alleged leaks”, a source, who was inside a senior placement with the NLC at enough time, advised GroundUp. “Ultimately, the choice was taken to get rid of each of the proactive tasks from the procedure and limit access to a handful of individuals”.

Some in that handful of folks have been implicated in corruption.

Maselwa, who resigned from your NLC quite a few a long time in the past, has been implicated in corruption involving lottery cash. He obtained R4.three-million from lottery funds allocated to develop a library and museum complicated in Kuruman (see Taung Cultural Audio and Arts Expo) which he made use of to build a property in an upmarket gated progress in Pretoria. The property is among several paid for with lottery resources which were frozen after the Asset Forfeiture Device acquired a preservation get in December 2022.

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

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

Every time a new administration, such as the total board and government, took in excess of with the NLC in late 2022 and early 2023, they learned a “chaotic mess” from the documentation regarding proactive funding, Substantially of which was paper-based mostly. Crucial files ended up missing. Data files held for safekeeping by document storage enterprise Metrofile had been signed out and never returned.

The NLC was ready to Recuperate copies of some ตรวจ หวย ลาว files from its Mimecast e mail archiving program and also the laptops in their assistants and assist employees.

Information reports
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave concern attainable information safety breaches as well as unauthorised use and/or dissemination of confidential details received on account of carrying out official functions inside the Commission by NLC personnel. The functions are meant to undermine the integrity on the Commission even though disrupting the powerful features [in the NLC] and leading to insurmountable reputational harm into the Fee because the custodian of personal information and facts entrusted to it by its beneficiaries.”

His request for the SSA to research was supported in an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is at present facing a disciplinary inquiry immediately after she was unsuccessful in legal action to set aside conclusions of irregular expenditure on her view.

The objective of her affidavit, Nene reported, was “to record the functions which transpired concerning information security breaches on the Nationwide Lotteries Commission”.

She detailed a variety of news reviews which she claimed have been the outcome of these “breaches” (see at the conclusion of this short article).

Nene said that a whistle-blower approached the NLC alleging that one of its workforce, Sello Qhino, had “supplied her categorised NLC Data and persistently inspired her to supply the data to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded projects in Kuruman immediately after attempts to boost The difficulty internally were dismissed, was subsequently fired.

Referring to an eighteen November 2018 posting within the Day-to-day Dispatch about the misappropriation of Lottery funds, Nene mentioned the NLC recognized then suspended Zintle Rungqu. She was an personnel while in the NLC’s East London Office environment, who was the lover plus the mother of whistleblower Mzukise Makatse’s three small children.

Rungqu and Makatse believe that Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, While using the NLC shelling out R470,000 on lawyers to characterize it, but was discovered not responsible and permitted to return to work.

“The widespread Think about these content articles is usually that [they include] labeled information and facts referring to proactive funding assignments,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out of your family house to take the warmth off her and his small children. Struggling with homelessness, he moved into an office within an empty factory belonging to an acquaintance.

Both equally Makatse and Qhino are participating in an NLC reparation procedure meant to recognise the harm some people experienced with the arms on the NLC. Apologies and, in some cases, fiscal payment are expected.

“Some persons were genuinely afflicted extremely 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 entire lives have been turned the other way up,” reported Scholtz.

Among the People she met were being Qhino and Makatse.

Protected platform essential for whistleblowers
The SSA observed the absence at enough time of a proper channel for whistleblowers to report corruption led them to show to your media.

“Failure to have a dedicated anti-corruption channel will bring about personnel presenting these kinds of instances outside of the NLC,” the SSA reported in its results.

“Given the magnitude of corruption in condition institutions, it stays crucial that it ensures that the NLC complies with all safety prescripts and that its target is on guaranteeing that illegal and irregular conduct is adequately mitigated towards and by ensuring an sufficient channel for whistle-blowers to report untoward conduct without being intimidated.”

It recommended which the NLC create a “Safe and sound channel” for employees to provide info on any “untoward action” that would not avoid or discourage staff members from blowing the whistle. A whistle-blowers coverage, depending on the Protected Disclosures Act 25 of 2000, is a prerequisite.”

Media reports Nene stated
A 10 December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Exercise Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator from the Limpopo Mirror, to reveal NLC corruption. “The article experienced factors of data not available in the public area, thus increasing problem on inner Info security breaches. The allegations within the media were independently investigated,” Nene said. “However, workforce responsible for divulging categorised details have however to generally be determined”;
A 28 January 2018 post released from the Dally Dispatch “citing a lot of allegations from your Limpopo Mirror article revealed on ten December 2017 and a new allegation associated with a previous personnel via the identify of Mzukisi Makatse. He was billed and summarily dismissed for that menace induced on the organisation.”
A 16 November 2018 write-up inside the Lowvelder with regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite getting R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder post contained labeled info concerning NLC policy, increasing further worries of interior info protection breaches,” Nene reported 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 stability threats throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Principal Care, a hijacked NPO. Nene mentioned GroundUp had verified in its Tale that it had been depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Info) ask for for information in regards to the venture, she reported