Lottery bosses turned to Point out Stability Company to investigate leaks

Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Condition Security Agency (SSA) in December 2018 to analyze the leaking of files that exposed lottery corruption.
The NLC’s corporation secretary at enough time mentioned media stories she explained had been according to “stolen” details within an affidavit for the SSA.
The SSA did investigate. It observed the data wasn't a subject of point out security and the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to show it.
A new board and management has due to the fact taken in excess of the NLC and thus far have taken actions to end corruption for the institution.
A State Security Company (SSA) investigation uncovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for publicity via the media.

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

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” results and proposals.
Nevhutanda asked the SSA to investigate the job of NLC employees in the alleged leaking of knowledge, and Nene, in her affidavit identified distinct media and reviews that she claimed associated these leaks.

In the letter outlining its results, the SSA instructed the NLC that when guarding point out details was “a authorized critical aimed at safeguarding the sovereignty and integrity in the condition” this only placed on correctly categorized information.

Even though it didn't say so instantly, the SSA results implied the allegedly leaked details didn't fall into this group.

Appreciably, the SSA created it clear that the need to protect condition information “won't stop any specific from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation uncovered the NLC info associated with the alleged breach was “delicate and privileged in character, although not categorised in terms of the prescripts of the Minimum amount Info Safety Specifications (Pass up)”.

“The leakage of your suitable sensitive Formal NLC details on the media isn't going to pose a risk to national stability,” the SSA mentioned, incorporating which the impression of the breaches was reputational.

The SSA report discovered “no evidence of a factual and incriminating nature from any from the suspected NLC staff that can be recognized from the knowledge and info interrogated”.

It also mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does give ample motive to acquire this sort of exposed in the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs in the course of a session of Parliament’s trade, sector and competition portfolio committee that there was “a conspiracy” by which details “stolen” in the NLC was despatched towards the US, wherever he claimed it absolutely was staying bought to fund a smear marketing campaign versus the NLC.

He was repeating similar promises he experienced Formerly built in Parliament, which included advertisement hominem attacks on GroundUp and this reporter but was careful not to call either.

“I arrived in this article In this particular August residence very last year and documented to honourable users that information regarding our beneficiaries has actually been stolen and place in a single condition in the usa,” he instructed MPs.

“We called to the State Protection Company to return investigate the make any difference simply because we have been obtaining experiences that our info is building funds for media platforms and journalists,” he reported. “There has been chat, obviously from 1 supply, one particular media, that spoke Significantly about proactive-funding,” Nevhutanda said (referring to GroundUp), but didn't tell MPs that the SSA investigation were finished Practically a year before.

Proactive funding was at the center in the looting on the lottery. It side-stepped the traditional grant course of action. The NLC could itself detect a task to fund and appoint a non-revenue organisation to supervise it.

Right after Nevhutanda first explained to Parliament in 2018 that he had requested the SSA to analyze the intended breach, the South African Countrywide Editors Forum issued an announcement stating that his remarks reflected “an incredibly harmful Mind-set exactly where the media is getting blamed for that NLC’s inherent issues”.

“Rather then investigating why hundreds of thousands can't be accounted for, the NLC has instead tried to Forged question to the integrity with the journalists associated and has asked the SSA to analyze their resources.”

Proactive tasks produced secret
Stability flaws recognized within the NLC grant funding method in the SSA’s investigation, look to happen to be applied as an excuse because of the NLC to remove all proactive-funded initiatives from its central grants procedure.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘magic formula’ and projects had been faraway from the grant funding process and preserved manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Office environment, Government Supervisor Legal to be able to safeguard [the] information,” Nene stated in her affidavit.

“There was plenty of internal dialogue, with many forwards and backwards, about what to do to plug the alleged leaks”, a supply, who was inside a senior situation in the NLC at enough time, instructed GroundUp. “In the end, the choice was taken to eliminate all of the proactive initiatives from the technique and Restrict use of A few individuals”.

Some in that handful of folks were implicated in corruption.

Maselwa, who resigned from your NLC various many years ago, has long been implicated in corruption involving lottery funds. He been given R4.three-million from lottery money allotted to build a library and museum complicated in Kuruman (see Taung Cultural Music and Arts Expo) which he used to develop a household in an upmarket gated progress in Pretoria. The assets is among many paid out for with lottery money which were frozen following the Asset Forfeiture Device attained a preservation buy in December 2022.

The politically-connected Nevhutanda, who was appointed given that the NLC board chairperson by previous President Jacob Zuma in 2009 and was near higher-ups while in the ANC leadership, former NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated while in the corruption which overwhelmed the NLC on their observe.

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

Each time a new administration, including the whole board and govt, took around with the NLC in late 2022 and early 2023, they learned a “chaotic mess” in the documentation regarding proactive funding, Significantly of which was paper-based mostly. Important files have been missing. Files held for safekeeping by doc storage firm Metrofile were signed out and never returned.

The NLC was in a position to Recuperate copies of some ตรวจ หวย ล่าสุด files from its Mimecast e-mail archiving procedure and also the laptops of their assistants and assist personnel.

News experiences
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave issue attainable information and facts protection breaches and also the unauthorised use and/or dissemination of private facts acquired due to accomplishing Formal features while in the Fee by NLC workers. The pursuits are meant to undermine the integrity of your Commission while disrupting the helpful features [of the NLC] and resulting in insurmountable reputational hurt for the Fee given that the custodian of personal data entrusted to it by its beneficiaries.”

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

Nene is at present struggling with a disciplinary inquiry right after she was unsuccessful in authorized action to set aside findings of irregular expenditure on her watch.

The goal of her affidavit, Nene stated, was “to file the gatherings which transpired concerning information and facts protection breaches for the Nationwide Lotteries Commission”.

She outlined different information studies which she claimed had been the effects of those “breaches” (see at the end of this article).

Nene explained that a whistle-blower approached the NLC alleging that among its employees, Sello Qhino, had “presented her categorised NLC Info and persistently encouraged her to deliver the information to GroundUp”.

Qhino, who blew the whistle on a series of dodgy lottery-funded tasks in Kuruman soon after makes an attempt to boost The problem internally have been dismissed, was subsequently fired.

Referring to an 18 November 2018 posting from the Each day Dispatch with regards to the misappropriation of Lottery money, Nene said the NLC discovered and afterwards suspended Zintle Rungqu. She was an employee while in the NLC’s East London office, who was the associate and the mother of whistleblower Mzukise Makatse’s three youngsters.

Rungqu and Makatse believe that Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Using the NLC paying R470,000 on lawyers to symbolize it, but was identified not guilty and permitted to return to work.

“The typical Think about these article content is usually that [they require] categorized information concerning proactive funding assignments,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out on the family members dwelling to take the heat off her and his small children. Dealing with homelessness, he moved into an Office environment within an vacant factory belonging to a pal.

Both equally Makatse and Qhino are taking part in an NLC reparation system meant to recognise the hurt some individuals suffered in the hands of the NLC. Apologies and, in some cases, monetary compensation are envisioned.

“Some persons have been actually affected incredibly negatively by this … This is absolutely painful,” NLC Commissioner Jodi Scholtz explained to the Day-to-day Maverick last 12 months.

“I satisfied a couple of these individuals. It had been just so coronary heart-wrenching that their complete lives are turned upside down,” claimed Scholtz.

Among All those she met have been Qhino and Makatse.

Safe platform necessary for whistleblowers
The SSA observed the absence at the time of a proper channel for whistleblowers to report corruption led them to show into the media.

“Failure to possess a committed anti-corruption channel will cause staff presenting this sort of instances outside of the NLC,” the SSA said in its findings.

“Specified the magnitude of corruption in condition institutions, it continues to be important that it makes sure that the NLC complies with all security prescripts and that its focus is on making sure that unlawful and irregular conduct is adequately mitigated versus and by ensuring an enough channel for whistle-blowers to report untoward perform with out currently being intimidated.”

It proposed which the NLC establish a “Protected channel” for employees to supply information on any “untoward activity” that might not avert or discourage staff members from blowing the whistle. A whistle-blowers coverage, determined by the Safeguarded Disclosures Act 25 of 2000, is really a necessity.”

Media reports Nene mentioned
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Physical fitness Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and owner on the Limpopo Mirror, to expose NLC corruption. “The short article had things of knowledge not obtainable in the general public domain, thus raising problem on inner Information and facts security breaches. The allegations while in the media ended up independently investigated,” Nene claimed. “Nonetheless, personnel chargeable for divulging categorised information and facts have nonetheless to be discovered”;
A 28 January 2018 short article revealed through the Dally Dispatch “citing many allegations from your Limpopo Mirror post posted on 10 December 2017 and a new allegation concerning a former personnel from the title of Mzukisi Makatse. He was billed and summarily dismissed for your menace caused for the organisation.”
A 16 November 2018 posting within the Lowvelder with regard to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Regardless of obtaining R27-million in lottery grants, the rehab has not been concluded. “The Lowvelder short article contained categorised facts concerning NLC plan, increasing even more considerations of inner information stability breaches,” Nene explained in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an impartial Investigation, on the other hand [it] highlighted the heightened information and facts stability challenges in the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Major Treatment, a hijacked NPO. Nene mentioned GroundUp experienced confirmed in its story that it absolutely was according to leaked NLC files. This was despite the NLC rejecting a PAIA (Marketing of Entry to Details) ask for for particulars regarding the task, she said

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