Lottery bosses turned to Condition Safety Agency to research leaks

Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Condition Safety Company (SSA) in December 2018 to investigate the leaking of paperwork that uncovered lottery corruption.
The NLC’s business secretary at time shown media experiences she explained ended up determined by “stolen” data within an affidavit for your SSA.
The SSA did investigate. It observed the data was not a make a difference of condition security and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for that media to show it.
A brand new board and administration has because taken about the NLC and To this point have taken steps to finish corruption on the establishment.
A Point out Security Agency (SSA) investigation located the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered ample motive” for exposure by the media.

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

Here's

Nevhutanda’s letter,
an affidavit by at present suspended NLC corporation secretary Nompumelelo Nene supporting the ask for, and
the security company’s “private” results and recommendations.
Nevhutanda questioned the SSA to investigate the part of NLC staff members from the alleged leaking of knowledge, and Nene, in her affidavit recognized precise media and experiences that she claimed included these leaks.

Inside the letter outlining its conclusions, the SSA informed the NLC that though safeguarding point out facts was “a legal very important aimed toward defending the sovereignty and integrity from the condition” this only placed on correctly categorized info.

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

Appreciably, the SSA made it clear that the need to secure point out info “does not prevent any specific from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation uncovered the NLC facts associated with the alleged breach was “delicate and privileged in character, although not classified concerning the prescripts of the Bare minimum Info Security Standards (MISS)”.

“The leakage of the relevant sensitive official NLC details on the media isn't going to pose a risk to nationwide protection,” the SSA stated, adding which the affect with the breaches was reputational.

The SSA report located “no proof of a factual and incriminating character versus any in the suspected NLC personnel that could be determined from the knowledge and knowledge interrogated”.

What's more, it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does deliver enough motive to acquire such exposed within the media”.

Conspiracy promises
In 2020, Nevhutanda advised MPs during a session of Parliament’s trade, sector and Competitiveness portfolio committee that there was “a conspiracy” wherein information and facts “stolen” with the NLC was despatched to your US, where he claimed it was getting offered to fund a smear campaign versus the NLC.

He was repeating very similar statements he experienced Earlier designed in Parliament, which provided ad hominem assaults on GroundUp and this reporter but was thorough not to name both.

“I came here On this August residence past year and claimed to honourable associates that specifics of our beneficiaries is stolen and place in one state in the usa,” he explained to MPs.

“We known as on the Condition Safety Company to come back consider the subject since we have been having reviews that our details is producing money for media platforms and journalists,” he claimed. “There was chat, naturally from a person source, a single media, that spoke A great deal about proactive-funding,” Nevhutanda stated (referring to GroundUp), but did not inform MPs that the SSA investigation had been finished almost a 12 months before.

Proactive funding was at the guts of the looting from the lottery. It side-stepped the traditional grant approach. The NLC could itself identify a challenge to fund and appoint a non-gain organisation to oversee it.

After Nevhutanda initially informed Parliament in 2018 that he experienced asked the SSA to research the intended breach, the South African Countrywide Editors Discussion board issued a statement declaring that his remarks mirrored “an extremely hazardous attitude exactly where the media is remaining blamed for your NLC’s inherent complications”.

“Rather then investigating why tens of millions can't be accounted for, the NLC has in its place made an effort to Forged question over the integrity of the journalists involved and it has asked the SSA to analyze their sources.”

Proactive assignments designed solution
Protection flaws recognized within the NLC grant funding program through the SSA’s investigation, surface to are made use of as an justification from the NLC to remove all proactive-funded assignments from its central grants process.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘key’ and jobs were faraway from the grant funding system and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Govt Manager Lawful as a way to safeguard [the] information and facts,” Nene stated in her affidavit.

“There was plenty of inside discussion, with plenty of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was in a very senior situation on the NLC at some time, advised GroundUp. “Ultimately, the choice was taken to eliminate all the proactive initiatives in the system and limit usage of A few men and women”.

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

Maselwa, who resigned from the NLC a number of several years back, is implicated in corruption involving lottery money. He gained R4.three-million from lottery funds allocated to make a library and museum complex in Kuruman (see Taung Cultural Songs and Arts Expo) which he utilised to develop a dwelling within an upmarket gated enhancement in Pretoria. The assets is among numerous compensated for with lottery money which were frozen after the Asset Forfeiture Device received a preservation purchase in December 2022.

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

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

Any time a new administration, including the complete board and govt, took about on the NLC in late 2022 and early 2023, they found a “chaotic mess” during the documentation associated with proactive funding, A lot of which was paper-dependent. Important paperwork were being lacking. Files held for safekeeping by document storage corporation Metrofile were signed out and never ever returned.

The NLC was able to Recuperate copies of some หวย ลาว วัน นี้ documents from its Mimecast email archiving procedure as well as the laptops in their assistants and help staff.

News stories
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave concern attainable information security breaches plus the unauthorised use and/or dissemination of private information obtained as a result of executing official functions within the Commission by NLC staff. The pursuits are intended to undermine the integrity in the Fee although disrupting the powerful features [of your NLC] and resulting in insurmountable reputational damage towards the Fee as the custodian of private info entrusted to it by its beneficiaries.”

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

Nene is at the moment going through a disciplinary inquiry soon after she was unsuccessful in lawful motion to set aside results of irregular expenditure on her view.

The goal of her affidavit, Nene mentioned, was “to file the situations which transpired referring to info stability breaches for the Countrywide Lotteries Commission”.

She detailed a variety of news reports which she claimed were being the effects of those “breaches” (see at the conclusion of this information).

Nene explained that a whistle-blower approached the NLC alleging that considered one of its staff, Sello Qhino, experienced “presented her classified NLC Information and facts and persistently encouraged her to provide the information to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded assignments in Kuruman just after tries to lift the issue internally had been ignored, was subsequently fired.

Referring to an 18 November 2018 post within the Every day Dispatch in regards to the misappropriation of Lottery money, Nene mentioned that the NLC discovered after which you can suspended Zintle Rungqu. She was an personnel inside the NLC’s East London office, who was the husband or wife plus the mother of whistleblower Mzukise Makatse’s 3 youngsters.

Rungqu and Makatse believe Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, While using the NLC paying R470,000 on attorneys to represent it, but was located not responsible and permitted to return to operate.

“The common factor in these article content is that [they involve] categorised information and facts concerning proactive funding initiatives,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out in the loved ones house to take the warmth off her and his young children. Struggling with homelessness, he moved into an Business within an empty factory belonging to a colleague.

Each Makatse and Qhino are taking part in an NLC reparation procedure meant to recognise the harm some people endured for the hands in the NLC. Apologies and, sometimes, financial payment are envisioned.

“Some people today were being seriously impacted really negatively by this … This is absolutely painful,” NLC Commissioner Jodi Scholtz explained to the Day by day Maverick previous yr.

“I fulfilled a handful of these persons. It had been just so heart-wrenching that their entire life are already turned upside down,” reported Scholtz.

Between These she fulfilled have been Qhino and Makatse.

Safe System required for whistleblowers
The SSA uncovered the absence at the time of a suitable channel for whistleblowers to report corruption led them to show to the media.

“Failure to have a committed anti-corruption channel will end in staff members presenting such instances beyond the NLC,” the SSA claimed in its findings.

“Offered the magnitude of corruption in condition institutions, it stays vital that it makes sure that the NLC complies with all protection prescripts and that its emphasis is on guaranteeing that unlawful and irregular carry out is adequately mitigated towards and by ensuring an adequate channel for whistle-blowers to report untoward carry out with out remaining intimidated.”

It advisable which the NLC establish a “Safe and sound channel” for employees to offer information on any “untoward activity” that could not prevent or discourage personnel from blowing the whistle. A whistle-blowers coverage, based on the Guarded Disclosures Act 25 of 2000, is actually a necessity.”

Media reviews Nene outlined
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Health Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and owner on the Limpopo Mirror, to expose NLC corruption. “The short article had factors of data not obtainable in the general public area, thereby elevating worry on interior Info protection breaches. The allegations during the media had been independently investigated,” Nene claimed. “Nevertheless, personnel accountable for divulging labeled facts have nonetheless to be identified”;
A 28 January 2018 article published from the Dally Dispatch “citing many allegations in the Limpopo Mirror article posted on 10 December 2017 along with a new allegation concerning a former staff through the identify of Mzukisi Makatse. He was charged and summarily dismissed for that risk prompted to your organisation.”
A 16 November 2018 short article within the Lowvelder about the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Despite receiving R27-million in lottery grants, the rehab has not been accomplished. “The Lowvelder posting contained categorised information and facts in terms of NLC plan, increasing even more considerations of internal information and facts protection breaches,” Nene mentioned in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an impartial Investigation, nevertheless [it] highlighted the heightened information and facts safety risks inside the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Most important Care, a hijacked NPO. Nene explained GroundUp experienced confirmed in its story that it had been based on leaked NLC documents. This was despite the NLC rejecting a PAIA (Marketing of Use of Information and facts) ask for for aspects regarding the task, she explained

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