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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Former National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the State Protection Company (SSA) in December 2018 to analyze the leaking of documents that exposed lottery corruption.
The NLC’s enterprise secretary at the time outlined media studies she explained ended up determined by “stolen” information within an affidavit for your SSA.
The SSA did examine. It found the information wasn't a make a difference of condition security and the “prevalence of alleged corruption and irregularities” gave “ample motive” to the media to show it.
A whole new board and management has since taken over the NLC and So far have taken actions to end corruption with the institution.
A Point out Safety Agency (SSA) investigation discovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied ample motive” for exposure with the media.

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

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the security agency’s “confidential” findings and suggestions.
Nevhutanda asked the SSA to research the position of NLC workers while in the alleged leaking of data, and Nene, in her affidavit determined unique media and reports that she claimed associated these leaks.

During the letter outlining its findings, the SSA advised the NLC that though safeguarding condition information and facts was “a lawful imperative geared toward safeguarding the sovereignty and integrity with the condition” this only applied to appropriately classified information.

Even though it did not say so immediately, the SSA findings implied which the allegedly leaked facts did not tumble into this group.

Appreciably, the SSA created it distinct that the necessity to safeguard point out details “does not avert any person from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation found that the NLC data linked to the alleged breach was “delicate and privileged in nature, but not classified with regard to the prescripts of the Minimum Details Safety Expectations (Overlook)”.

“The leakage on the appropriate sensitive Formal NLC information and facts to your media isn't going to pose a risk to countrywide protection,” the SSA mentioned, adding the effect of the breaches was reputational.

The SSA report observed “no evidence of a factual and incriminating mother nature towards any of your suspected NLC staff that could be recognized from the knowledge and details interrogated”.

What's more, it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does supply sufficient motive to own these types of uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs throughout a session of Parliament’s trade, business and Opposition portfolio committee that there was “a conspiracy” during which info “stolen” from the NLC was despatched for the US, exactly where he claimed it absolutely was currently being sold to fund a smear marketing campaign against the NLC.

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

“I arrived right here With this August dwelling last yr and documented to honourable associates that information regarding our beneficiaries has long been stolen and set in a single state in America,” he told MPs.

“We known as around the Point out Protection Agency to return check into the issue due to the fact we are having studies that our info is building funds for media platforms and journalists,” he claimed. “There's been speak, not surprisingly from a person supply, 1 media, that spoke A lot about proactive-funding,” Nevhutanda reported (referring to GroundUp), but did not explain to MPs the SSA investigation were completed Nearly a 12 months earlier.

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

Immediately after Nevhutanda to start with explained to Parliament in 2018 that he experienced questioned the SSA to investigate the meant breach, the South African Countrywide Editors Discussion board issued an announcement expressing that his remarks mirrored “a very risky Angle exactly where the media is being blamed for that NLC’s inherent challenges”.

“Rather than investigating why tens of millions can't be accounted for, the NLC has instead tried to Solid doubt about the integrity of the journalists involved and has asked the SSA to analyze their resources.”

Proactive jobs manufactured key
Security flaws discovered from the NLC grant funding technique in the course of the SSA’s investigation, seem to have been applied as an excuse via the NLC to get rid of all proactive-funded jobs from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘key’ and initiatives were removed from the grant funding program and preserved manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Workplace, Executive Supervisor Lawful in order to safeguard [the] info,” Nene stated in her affidavit.

“There was plenty of internal dialogue, with numerous backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was in the senior place at the NLC at enough time, informed GroundUp. “Eventually, the decision was taken to get rid of all of the proactive initiatives in the procedure and limit entry to A few people”.

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

Maselwa, who resigned from the NLC many yrs back, has been implicated in corruption involving lottery funds. He obtained R4.3-million from lottery funds allotted to make a library and museum complex in Kuruman (see Taung Cultural Music and Arts Expo) which he used to make a dwelling within an upmarket gated advancement in Pretoria. The home is among many paid for with lottery resources that were frozen once the Asset Forfeiture Unit received a preservation order 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 in the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their own watch.

Also implicated are former board associates William Huma, who resigned soon after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got due to the fact died.

Any time a new administration, such as the overall board and government, took in excess of with the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” inside the documentation referring to proactive funding, A lot of which was paper-centered. Critical documents were being missing. Data files held for safekeeping by document storage enterprise Metrofile had been signed out and hardly ever returned.

The NLC was capable to Get better copies of some cat888 documents from its Mimecast electronic mail archiving technique as well as the laptops in their assistants and assist employees.

Information reports
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave worry possible data stability breaches and also the unauthorised use and/or dissemination of confidential facts attained on account of carrying out official functions within the Commission by NLC workers. The routines are intended to undermine the integrity from the Fee though disrupting the effective capabilities [on the NLC] and triggering insurmountable reputational harm to the Fee because the custodian of private facts entrusted to it by its beneficiaries.”

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

Nene is at this time dealing with a disciplinary inquiry just after she was unsuccessful in legal action to put aside conclusions of irregular expenditure on her watch.

The objective of her affidavit, Nene claimed, was “to record the occasions which transpired associated with information and facts stability breaches at the Countrywide Lotteries Fee”.

She stated many information studies which she claimed have been the outcome of these “breaches” (see at the conclusion of this post).

Nene said that a whistle-blower approached the NLC alleging that among its staff members, Sello Qhino, experienced “provided her classified NLC Details and persistently encouraged her to supply the information to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded jobs in Kuruman soon after makes an attempt to raise The problem internally were dismissed, was subsequently fired.

Referring to an eighteen November 2018 write-up during the Everyday Dispatch about the misappropriation of Lottery funds, Nene mentioned the NLC determined after which you can suspended Zintle Rungqu. She was an staff in the NLC’s East London Workplace, who was the companion as well as the mother of whistleblower Mzukise Makatse’s a few young children.

Rungqu and Makatse believe that Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, with the NLC spending R470,000 on legal professionals to characterize it, but was located not guilty and permitted to return to operate.

“The widespread Think about these articles or blog posts is [they contain] labeled details associated with proactive funding projects,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out from the relatives home to go ahead and take warmth off her and his youngsters. Struggling with homelessness, he moved into an Workplace in an empty factory belonging to a pal.

The two Makatse and Qhino are participating in an NLC reparation approach meant to recognise the harm a lot of people endured with the hands of your NLC. Apologies and, sometimes, financial compensation are expected.

“Some individuals ended up seriously affected quite negatively by this … This is basically painful,” NLC Commissioner Jodi Scholtz instructed the Everyday Maverick past calendar year.

“I satisfied a few these individuals. It had been just so heart-wrenching that their full life have been turned the wrong way up,” mentioned Scholtz.

Between These she fulfilled ended up Qhino and Makatse.

Harmless System wanted for whistleblowers
The SSA found the absence at some time of a suitable channel for whistleblowers to report corruption led them to turn on the media.

“Failure to have a focused anti-corruption channel will bring about workforce presenting this kind of circumstances outside of the NLC,” the SSA claimed in its findings.

“Specified the magnitude of corruption in condition establishments, it stays vital that it makes certain that the NLC complies with all safety prescripts Which its emphasis is on making sure that unlawful and irregular conduct is adequately mitigated versus and by making certain an satisfactory channel for whistle-blowers to report untoward carry out with no remaining intimidated.”

It recommended which the NLC build a “Harmless channel” for workers to offer information on any “untoward activity” that may not prevent or discourage personnel from blowing the whistle. A whistle-blowers policy, based on the Shielded Disclosures Act 25 of 2000, is a necessity.”

Media experiences Nene detailed
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Physical fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and proprietor on the Limpopo Mirror, to reveal NLC corruption. “The short article experienced things of data not out there in the general public domain, thereby boosting worry on inner Details security breaches. The allegations during the media were being independently investigated,” Nene claimed. “Even so, workers answerable for divulging classified facts have however being identified”;
A 28 January 2018 report posted from the Dally Dispatch “citing a lot of allegations from the Limpopo Mirror post revealed on 10 December 2017 and also a new allegation concerning a previous personnel because of the title of Mzukisi Makatse. He was billed and summarily dismissed to the risk triggered towards the organisation.”
A sixteen November 2018 posting from the Lowvelder about the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has described how, in spite of acquiring R27-million in lottery grants, the rehab has never been done. “The Lowvelder write-up contained categorised data when it comes to NLC coverage, boosting more fears of internal data protection breaches,” Nene reported in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, even so [it] highlighted the heightened facts protection challenges throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Principal Care, a hijacked NPO. Nene stated GroundUp experienced verified in its story that it absolutely was based on leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Use of Data) request for facts with regards to the task, she said