Lottery bosses turned to State Stability Company to analyze leaks

Lottery bosses turned to State Stability Company to analyze leaks

Blog Article

Former Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Security Company (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s business secretary at enough time stated media stories she claimed were based on “stolen” data in an affidavit for that SSA.
The SSA did investigate. It uncovered the knowledge wasn't a make a difference of point out safety and which the “prevalence of alleged corruption and irregularities” gave “ample motive” to the media to expose it.
A fresh board and administration has considering that taken more than the NLC and To date have taken measures to end corruption with the establishment.
A Point out Stability Company (SSA) investigation identified the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided enough motive” for publicity by the media.

The probe into supposed “info security breaches and sabotage of NLC operations” was carried out just after 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 organization secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” findings and proposals.
Nevhutanda requested the SSA to analyze the position of NLC employees during the alleged leaking of knowledge, and Nene, in her affidavit discovered particular media and experiences that she claimed involved these leaks.

While in the letter outlining its conclusions, the SSA informed the NLC that even though protecting condition info was “a lawful vital directed at protecting the sovereignty and integrity from the state” this only placed on correctly labeled facts.

Although it did not say so directly, the SSA conclusions implied the allegedly leaked info didn't drop into this category.

Significantly, the SSA designed it very clear that the necessity to defend state data “doesn't reduce any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered the NLC facts involved in the alleged breach was “sensitive and privileged in nature, but not categorized with regard to the prescripts of your Minimum Info Security Specifications (Overlook)”.

“The leakage in the pertinent sensitive Formal NLC facts on the media isn't going to pose a threat to countrywide safety,” the SSA stated, introducing the impact with the breaches was reputational.

The SSA report identified “no proof of a factual and incriminating character against any on the suspected NLC workers that would be identified from the information and knowledge interrogated”.

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

Conspiracy claims
In 2020, Nevhutanda informed MPs for the duration of a session of Parliament’s trade, sector and Levels of competition portfolio committee that there was “a conspiracy” through which data “stolen” from your NLC was despatched to your US, the place he claimed it was staying sold to fund a smear marketing campaign against the NLC.

He was repeating very similar claims he had Beforehand produced in Parliament, which involved ad hominem attacks on GroundUp and this reporter but was thorough not to call possibly.

“I arrived right here In this particular August dwelling last yr and documented to honourable customers that information about our beneficiaries has become stolen and put in a single point out in the usa,” he advised MPs.

“We identified as around the State Safety Agency to come back consider the make any difference due to the fact we have been acquiring stories that our info is generating income for media platforms and journalists,” he reported. “There's been discuss, not surprisingly from just one source, 1 media, that spoke much about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to convey to MPs the SSA investigation had been concluded Pretty much a 12 months earlier.

Proactive funding was at the heart on the looting from the lottery. It facet-stepped the traditional grant process. The NLC could by itself establish a undertaking to fund and appoint a non-gain organisation to supervise it.

After Nevhutanda very first informed Parliament in 2018 that he had questioned the SSA to investigate the supposed breach, the South African Nationwide Editors Discussion board issued a press release indicating that his remarks mirrored “a very hazardous attitude where by the media is getting blamed for your NLC’s inherent challenges”.

“As opposed to investigating why tens of millions can not be accounted for, the NLC has instead tried to cast question over the integrity of the journalists involved and it has requested the SSA to research their sources.”

Proactive projects built top secret
Protection flaws recognized in the NLC grant funding procedure over the SSA’s investigation, look to happen to be made use of as an justification from the NLC to get rid of all proactive-funded projects from its central grants technique.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘mystery’ and jobs were removed from the grant funding program and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Workplace, Executive Manager Lawful to be able to safeguard [the] details,” Nene explained in her affidavit.

“There was many inside discussion, with a lot of backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was in a very senior placement on the NLC at the time, explained to GroundUp. “In the long run, the decision was taken to get rid of each of the proactive jobs through the method and Restrict access to a handful of people today”.

Some in that handful of individuals were being implicated in corruption.

Maselwa, who resigned in the NLC various 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 sophisticated in Kuruman (see Taung Cultural Audio and Arts Expo) which he utilised to develop a household in an upmarket gated growth in Pretoria. The house is one of several compensated for with lottery money that were frozen once the Asset Forfeiture Unit attained a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed as being the NLC board chairperson by former President Jacob Zuma in 2009 and was near to higher-ups during the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated in the corruption which overwhelmed the NLC on their check out.

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 given that died.

Each time a new administration, such as the total board and government, took about for the NLC in late 2022 and early 2023, they found out a “chaotic mess” during the documentation concerning proactive funding, A great deal of which was paper-dependent. Essential documents were being missing. Files held for safekeeping by doc storage business Metrofile were signed out and in no way returned.

The NLC was able to Get well copies of some ผล สลาก documents from its Mimecast electronic mail archiving process plus the laptops of their assistants and aid staff members.

News experiences
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave concern doable info protection breaches and the unauthorised use and/or dissemination of confidential facts obtained because of undertaking Formal capabilities in the Fee by NLC workers. The activities are intended to undermine the integrity from the Fee while disrupting the efficient features [in the NLC] and causing insurmountable reputational harm for the Commission because the custodian of non-public facts entrusted to it by its beneficiaries.”

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

Nene is now struggling with a disciplinary inquiry immediately after she was unsuccessful in authorized motion to put aside findings of irregular expenditure on her watch.

The objective of her affidavit, Nene stated, was “to report the activities which transpired relating to information and facts safety breaches at the National Lotteries Commission”.

She stated a variety of information experiences which she claimed ended up the effects of these “breaches” (see at the end of this article).

Nene explained that a whistle-blower approached the NLC alleging that one of its staff members, Sello Qhino, had “furnished her categorised NLC Facts and persistently inspired her to offer the knowledge to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded assignments in Kuruman right after attempts to lift The problem internally have been overlooked, was subsequently fired.

Referring to an 18 November 2018 write-up while in the Each day Dispatch concerning the misappropriation of Lottery cash, Nene claimed the NLC recognized then suspended Zintle Rungqu. She was an staff during the NLC’s East London Business, who was the companion along with the mom of whistleblower Mzukise Makatse’s a few children.

Rungqu and Makatse think Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, Along with the NLC paying out R470,000 on attorneys to characterize it, but was observed not responsible and allowed to return to operate.

“The popular Think about these content is the fact [they entail] classified details relating to proactive funding tasks,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out in the spouse and children home to take the heat off her and his youngsters. Struggling with homelessness, he moved into an office within an vacant manufacturing facility belonging to a buddy.

The two Makatse and Qhino are participating in an NLC reparation process meant to recognise the harm a number of people suffered within the fingers of the NLC. Apologies and, occasionally, economic payment are anticipated.

“Some people today had been definitely impacted very negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz told the Everyday Maverick very last 12 months.

“I achieved a couple of these individuals. It was just so coronary heart-wrenching that their entire lives are already turned the wrong way up,” claimed Scholtz.

Amid People she satisfied were Qhino and Makatse.

Safe System wanted for whistleblowers
The SSA located the absence at time of a proper channel for whistleblowers to report corruption led them to turn towards the media.

“Failure to possess a dedicated anti-corruption channel will end in workers presenting these types of circumstances beyond the NLC,” the SSA reported in its findings.

“Provided the magnitude of corruption in condition 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 unlawful and irregular perform is sufficiently mitigated from and by guaranteeing an ample channel for whistle-blowers to report untoward carry out without having getting intimidated.”

It advised that the NLC build a “Safe and sound channel” for employees to provide info on any “untoward action” that will not stop or discourage workforce from blowing the whistle. A whistle-blowers plan, determined by the Protected Disclosures Act 25 of 2000, is a requirement.”

Media reviews Nene detailed
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Exercise Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and operator with the Limpopo Mirror, to reveal NLC corruption. “The write-up had elements of data not readily available in the public area, therefore raising issue on inner Info protection breaches. The allegations within the media ended up independently investigated,” Nene stated. “Having said that, personnel responsible for divulging categorized information and facts have but to generally be discovered”;
A 28 January 2018 post printed with the Dally Dispatch “citing quite a few allegations with the Limpopo Mirror short article posted on ten December 2017 and also a new allegation regarding a previous worker from the identify of Mzukisi Makatse. He was billed and summarily dismissed to the risk brought on into the organisation.”
A 16 November 2018 article from the Lowvelder with regards to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, in spite of obtaining R27-million in lottery grants, the rehab hasn't been finished. “The Lowvelder posting contained categorized facts when it comes to NLC policy, increasing further more concerns of internal info safety breaches,” Nene mentioned in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an unbiased Investigation, however [it] highlighted the heightened info security threats throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Main Treatment, a hijacked NPO. Nene explained GroundUp had verified in its story that it absolutely was depending on leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Access to Information and facts) request for aspects with regards to the undertaking, she reported