Lottery bosses turned to State Security Agency to investigate leaks

Lottery bosses turned to State Security Agency to investigate leaks

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Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Safety Agency (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s company secretary at time outlined media studies she mentioned had been based upon “stolen” information and facts within an affidavit to the SSA.
The SSA did look into. It located the knowledge wasn't a make a difference of state stability and the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to expose it.
A new board and administration has considering that taken about the NLC and So far have taken steps to end corruption with the establishment.
A Point out Stability Company (SSA) investigation uncovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied ample motive” for publicity by the media.

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

Here's

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the security company’s “private” findings and suggestions.
Nevhutanda questioned the SSA to analyze the position of NLC personnel during the alleged leaking of information, and Nene, in her affidavit discovered precise media and reports that she claimed concerned these leaks.

During the letter outlining its conclusions, the SSA instructed the NLC that when safeguarding condition information was “a authorized crucial aimed at defending the sovereignty and integrity of your state” this only placed on correctly categorised details.

Even though it didn't say so directly, the SSA findings implied that the allegedly leaked details did not drop into this class.

Noticeably, the SSA made it clear that the need to shield condition info “does not protect against any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation identified that the NLC details involved in the alleged breach was “delicate and privileged in nature, but not labeled regarding the prescripts with the Minimum Facts Stability Requirements (Overlook)”.

“The leakage of your appropriate sensitive official NLC data on the media doesn't pose a menace to nationwide protection,” the SSA said, incorporating which the influence in the breaches was reputational.

The SSA report observed “no proof of a factual and incriminating nature against any of your suspected NLC employees that might be discovered from the data and details interrogated”.

Furthermore, it stated that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does supply ample motive to possess these types of uncovered while in the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs during a session of Parliament’s trade, sector and Competitors portfolio committee that there was “a conspiracy” through which facts “stolen” within the NLC was despatched to your US, where he claimed it had been staying bought to fund a smear marketing campaign in opposition to the NLC.

He was repeating very similar promises he experienced Beforehand designed in Parliament, which included advertisement hominem attacks on GroundUp and this reporter but was thorough not to name either.

“I arrived below in this August residence previous year and documented to honourable members that information about our beneficiaries has become stolen and set in a single condition in America,” he informed MPs.

“We identified as on the State Safety Agency to come back investigate the issue due to the fact we've been obtaining studies that our information and facts is producing dollars for media platforms and journalists,” he explained. “There's been speak, obviously from just one source, a single media, that spoke much about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but failed to explain to MPs that the SSA investigation were finished Just about a year before.

Proactive funding was at the guts of your looting on the lottery. It aspect-stepped the normal grant method. The NLC could by itself detect a project to fund and appoint a non-earnings organisation to oversee it.

Following Nevhutanda initially told Parliament in 2018 that he experienced questioned the SSA to investigate the supposed breach, the South African Nationwide Editors Discussion board issued a press release stating that his remarks reflected “an extremely unsafe Mindset the place the media is remaining blamed with the NLC’s inherent problems”.

“In lieu of investigating why millions cannot be accounted for, the NLC has rather tried to Forged question around the integrity of the journalists associated and it has requested the SSA to investigate their sources.”

Proactive projects created solution
Safety flaws identified in the NLC grant funding procedure in the course of the SSA’s investigation, look to are already made use of being an justification by the NLC to remove all proactive-funded tasks from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding tasks was heightened to ‘solution’ and projects were faraway from the grant funding process and managed manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Place of work, Govt Supervisor Authorized so as to safeguard [the] data,” Nene mentioned in her affidavit.

“There was lots of inner discussion, with a great deal of forwards and backwards, about how to proceed to plug the alleged leaks”, a supply, who was within a senior placement within the NLC at some time, explained to GroundUp. “In the long run, the decision was taken to remove all the proactive jobs with the program and Restrict access to A few folks”.

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

Maselwa, who resigned within the NLC many years ago, has actually been implicated in corruption involving lottery resources. He received R4.3-million from lottery funds allocated to construct a library and museum intricate in Kuruman (see Taung Cultural New music and Arts Expo) which he made use of to make a dwelling within an upmarket gated progress in Pretoria. The residence is one of several paid out for with lottery money that were frozen once the Asset Forfeiture Device received a preservation purchase 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 near superior-ups during the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their own check out.

Also implicated are previous board associates William Huma, who resigned following he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has since died.

Each time a new administration, such as the entire board and executive, took in excess of for 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-centered. Critical files were lacking. Data files held for safekeeping by doc storage enterprise Metrofile were signed out and under no circumstances returned.

The NLC was capable to recover copies of some หวย วัน นี้ documents from its Mimecast e-mail archiving program as well as the laptops of their assistants and assistance staff.

News reports
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave concern probable details stability breaches as well as the unauthorised use and/or dissemination of private info acquired on account of executing Formal functions from the Commission by NLC staff. The functions are meant to undermine the integrity from the Commission although disrupting the successful functions [from the NLC] and causing insurmountable reputational hurt into the Fee since the custodian of personal facts entrusted to it by its beneficiaries.”

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

Nene is at this time facing a disciplinary inquiry right after she was unsuccessful in authorized motion to put aside findings of irregular expenditure on her observe.

The goal of her affidavit, Nene reported, was “to file the occasions which transpired concerning details stability breaches for the Countrywide Lotteries Commission”.

She stated different news stories which she claimed have been the outcome of those “breaches” (see at the conclusion of this post).

Nene reported that a whistle-blower approached the NLC alleging that certainly one of its staff, Sello Qhino, had “offered her categorized NLC Information and facts and persistently inspired her to deliver the data to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded projects in Kuruman just after makes an attempt to boost The difficulty internally were disregarded, was subsequently fired.

Referring to an eighteen November 2018 short article in the Every day Dispatch with regards to the misappropriation of Lottery funds, Nene mentioned that the NLC recognized and after that suspended Zintle Rungqu. She was an employee while in the NLC’s East London Place of work, who was the husband or wife plus the mother of whistleblower Mzukise Makatse’s three small children.

Rungqu and Makatse feel Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, While using the NLC expending R470,000 on legal professionals to represent it, but was uncovered not responsible and allowed to return to operate.

“The common Think about these article content is usually that [they entail] categorised facts regarding proactive funding assignments,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out in the household dwelling to take the heat off her and his kids. Dealing with homelessness, he moved into an Business office in an empty factory belonging to an acquaintance.

Both of those Makatse and Qhino are taking part in an NLC reparation course of action meant to recognise the hurt some people experienced with the hands in the NLC. Apologies and, in some instances, fiscal compensation are envisioned.

“Some persons had been definitely impacted pretty negatively by this … This is de facto painful,” NLC Commissioner Jodi Scholtz informed the Daily Maverick previous 12 months.

“I achieved a few these persons. It had been just so coronary heart-wrenching that their full life have been turned upside down,” stated Scholtz.

Among People she fulfilled have been Qhino and Makatse.

Safe and sound System wanted for whistleblowers
The SSA observed the absence at time of an appropriate channel for whistleblowers to report corruption led them to turn to the media.

“Failure to possess a dedicated anti-corruption channel will bring about staff presenting such situations beyond the NLC,” the SSA said in its findings.

“Presented the magnitude of corruption in point out establishments, it continues to be crucial that it ensures that the NLC complies with all security prescripts and that its concentrate is on ensuring that illegal and irregular perform is sufficiently mitigated from and by guaranteeing an ample channel for whistle-blowers to report untoward conduct with out becoming intimidated.”

It suggested which the NLC set up a “Secure channel” for workers to supply info on any “untoward activity” that may not avert or discourage workers from blowing the whistle. A whistle-blowers plan, according to the Secured Disclosures Act 25 of 2000, can be a need.”

Media reports Nene shown
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Exercise Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and proprietor on the Limpopo Mirror, to reveal NLC corruption. “The report had components of information not available in the general public domain, thereby boosting worry on internal Information protection breaches. The allegations while in the media had been independently investigated,” Nene reported. “On the other hand, staff accountable for divulging categorised info have still for being determined”;
A 28 January 2018 article printed because of the Dally Dispatch “citing numerous allegations from your Limpopo Mirror report released on ten December 2017 in addition to a new allegation concerning a previous personnel because of the title of Mzukisi Makatse. He was charged and summarily dismissed for your threat caused to the organisation.”
A sixteen November 2018 report inside the Lowvelder in regards to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of acquiring R27-million in lottery grants, the rehab has not been done. “The Lowvelder report contained classified data when it comes to NLC coverage, boosting additional worries of interior information security breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, on the other hand [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 Major Care, a hijacked NPO. Nene said GroundUp experienced confirmed in its Tale that it had been depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Usage of Facts) request for aspects with regards to the undertaking, she said