Lottery bosses turned to Point out Protection Company to analyze leaks

Lottery bosses turned to Point out Protection Company to analyze leaks

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Previous Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda questioned the State Security Agency (SSA) in December 2018 to investigate the leaking of paperwork that uncovered lottery corruption.
The NLC’s business secretary at time stated media studies she explained have been based on “stolen” data within an affidavit with the SSA.
The SSA did look into. It identified the data wasn't a make any difference of state protection and which the “prevalence of alleged corruption and irregularities” gave “enough motive” for that media to show it.
A completely new board and management has given that taken in excess of the NLC and To date have taken steps to finish corruption with the institution.
A Point out Protection Agency (SSA) investigation discovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered enough motive” for exposure by the media.

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

Here is

Nevhutanda’s letter,
an affidavit by at this time suspended NLC corporation secretary Nompumelelo Nene supporting the ask for, and
the security agency’s “confidential” conclusions and recommendations.
Nevhutanda asked the SSA to investigate the position of NLC personnel inside the alleged leaking of information, and Nene, in her affidavit discovered precise media and studies that she claimed involved these leaks.

While in the letter outlining its conclusions, the SSA told the NLC that whilst shielding state info was “a authorized crucial directed at protecting the sovereignty and integrity on the condition” this only placed on appropriately categorized information and facts.

Although it did not say so specifically, the SSA conclusions implied that the allegedly leaked data didn't tumble into this classification.

Appreciably, the SSA made it distinct that the need to secure point out details “isn't going to avert any specific from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation observed the NLC facts associated with the alleged breach was “sensitive and privileged in nature, although not labeled with regards to the prescripts of the Least Information Safety Criteria (Miss out on)”.

“The leakage from the relevant sensitive Formal NLC info for the media doesn't pose a risk to countrywide safety,” the SSA mentioned, including which the impact on the breaches was reputational.

The SSA report identified “no evidence of the factual and incriminating nature versus any of your suspected NLC personnel that can be discovered from the knowledge and facts interrogated”.

It also mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does offer ample motive to own these exposed inside the media”.

Conspiracy statements
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, industry and competition portfolio committee that there was “a conspiracy” in which facts “stolen” in the NLC was despatched to your US, the place he claimed it absolutely was currently being bought to fund a smear marketing campaign against the NLC.

He was repeating very similar statements he experienced Beforehand designed in Parliament, which included advert hominem assaults on GroundUp and this reporter but was watchful not to call possibly.

“I came right here On this August house final 12 months and claimed to honourable associates that details about our beneficiaries is stolen and set in a single state in the usa,” he told MPs.

“We referred to as about the State Stability Agency to come back consider the subject because we've been getting stories that our info is producing income for media platforms and journalists,” he mentioned. “There have been communicate, needless to say from just one resource, a single media, that spoke A lot about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to tell MPs that the SSA investigation were concluded Just about a year before.

Proactive funding was at the heart with the looting of your lottery. It side-stepped the conventional grant course of action. The NLC could alone establish a task to fund and appoint a non-revenue organisation to supervise it.

Immediately after Nevhutanda initial instructed Parliament in 2018 that he had asked the SSA to research the supposed breach, the South African Countrywide Editors Forum issued an announcement stating that his remarks mirrored “an especially perilous Mindset where by the media is getting blamed for the NLC’s inherent complications”.

“In lieu of investigating why millions cannot be accounted for, the NLC has in its place attempted to cast question around the integrity on the journalists included and has asked the SSA to investigate their resources.”

Proactive projects made top secret
Security flaws identified within the NLC grant funding system over the SSA’s investigation, look to are already utilized being an justification by the NLC to get rid of all proactive-funded tasks from its central grants method.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘magic formula’ and initiatives were being faraway from the grant funding method and preserved manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Office, Executive Supervisor Lawful to be able to safeguard [the] facts,” Nene claimed in her affidavit.

“There was plenty of interior discussion, with plenty of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was inside a senior position with the NLC at the time, advised GroundUp. “Eventually, the choice was taken to eliminate each of the proactive tasks in the method and Restrict access to A few men and women”.

Some in that handful of people ended up implicated in corruption.

Maselwa, who resigned through the NLC a number of decades in the past, has become implicated in corruption involving lottery funds. He acquired R4.three-million from lottery cash allotted to construct a library and museum complex in Kuruman (see Taung Cultural Tunes and Arts Expo) which he employed to make a home in an upmarket gated improvement in Pretoria. The assets is among a number of compensated for with lottery resources 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 former President Jacob Zuma in 2009 and was near to superior-ups in the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their check out.

Also implicated are previous board customers William Huma, who resigned right after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have because died.

When a new administration, including the full board and executive, took around with the NLC in late 2022 and early 2023, they identified a “chaotic mess” during the documentation relating to proactive funding, A great deal of which was paper-based. Critical documents have been missing. Information held for safekeeping by document storage firm Metrofile were signed out and never returned.

The NLC was in the position to Get better copies of some ผล หวย ลาว วัน นี้ documents from its Mimecast e-mail archiving procedure and also the laptops of their assistants and help staff members.

Information experiences
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave worry doable info security breaches as well as unauthorised use and/or dissemination of confidential information attained because of carrying out Formal functions from the Commission by NLC employees. The functions are intended to undermine the integrity on the Fee when disrupting the efficient features [of the NLC] and causing insurmountable reputational damage to the Commission because the custodian of non-public information entrusted to it by its beneficiaries.”

His request for that SSA to analyze was supported within an affidavit by suspended NLC business secretary, Nomphumelelo Nene.

Nene is at this time facing a disciplinary inquiry soon after she was unsuccessful in lawful motion to put aside results of irregular expenditure on her enjoy.

The objective of her affidavit, Nene explained, was “to document the events which transpired relating to info security breaches at the Countrywide Lotteries Fee”.

She mentioned a variety of information studies which she claimed had been the final results of these “breaches” (see at the end of this post).

Nene mentioned that a whistle-blower approached the NLC alleging that one of its staff, Sello Qhino, had “provided her labeled NLC Data and persistently encouraged her to provide the data to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded projects in Kuruman just after makes an attempt to lift The problem internally have been dismissed, was subsequently fired.

Referring to an 18 November 2018 article within the Daily Dispatch concerning the misappropriation of Lottery resources, Nene mentioned which the NLC recognized and then suspended Zintle Rungqu. She was an worker while in the NLC’s East London office, who was the associate along with the mother of whistleblower Mzukise Makatse’s three children.

Rungqu and Makatse believe Rungqu was punished because Makatse blew the whistle. She was suspended and billed internally, Together with the NLC investing R470,000 on legal professionals to symbolize it, but was found not responsible and permitted to return to work.

“The popular factor in these content articles is the fact that [they contain] categorized information and facts associated with proactive funding initiatives,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out of the family members dwelling to take the heat off her and his kids. Facing homelessness, he moved into an Workplace in an vacant manufacturing unit belonging to a friend.

The two Makatse and Qhino are participating in an NLC reparation course of action intended to recognise the hurt lots of people experienced with the hands with the NLC. Apologies and, in some instances, financial payment are expected.

“Some men and women were being really influenced pretty negatively by this … This is actually painful,” NLC Commissioner Jodi Scholtz explained to the Day by day Maverick final 12 months.

“I fulfilled a few these individuals. It was just so heart-wrenching that their complete life have been turned upside down,” stated Scholtz.

Amongst Individuals she satisfied have been Qhino and Makatse.

Protected platform needed for whistleblowers
The SSA found the absence at some time of an appropriate channel for whistleblowers to report corruption led them to turn to the media.

“Failure to possess a devoted anti-corruption channel will cause staff presenting this kind of conditions outside of the NLC,” the SSA stated in its conclusions.

“Offered the magnitude of corruption in condition establishments, it continues to be vital that it ensures that the NLC complies with all protection prescripts Which its emphasis is on making sure that unlawful and irregular perform is adequately mitigated in opposition to and by guaranteeing an adequate channel for whistle-blowers to report untoward conduct devoid of remaining intimidated.”

It suggested that the NLC set up a “Protected channel” for employees to provide info on any “untoward action” that might not avoid or discourage staff from blowing the whistle. A whistle-blowers policy, based on the Safeguarded Disclosures Act twenty five of 2000, can be a need.”

Media reviews Nene stated
A ten 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 proprietor on the Limpopo Mirror, to reveal NLC corruption. “The short article experienced aspects of knowledge not offered in the public area, thus elevating concern on internal Information and facts stability breaches. The allegations from the media have been independently investigated,” Nene explained. “Even so, staff answerable for divulging classified facts have nevertheless to become discovered”;
A 28 January 2018 report posted through the Dally Dispatch “citing various allegations from your Limpopo Mirror report posted on ten December 2017 along with a new allegation associated with a previous staff from the name of Mzukisi Makatse. He was charged and summarily dismissed for the danger caused to the organisation.”
A sixteen November 2018 short article from the Lowvelder about the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder write-up contained categorised details in terms of NLC coverage, boosting additional problems of internal details protection breaches,” Nene reported in her affidavit. “The prima facie proof with regard to these allegations didn't warrant an independent Investigation, nevertheless [it] highlighted the heightened data protection challenges in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene claimed GroundUp had confirmed 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 Information) ask for for specifics regarding the project, she claimed