Lottery bosses turned to State Security Agency to investigate leaks

Lottery bosses turned to State Security Agency to investigate leaks

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Former National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the Condition Safety Company (SSA) in December 2018 to investigate the leaking of files that uncovered lottery corruption.
The NLC’s business secretary at some time shown media studies she mentioned ended up according to “stolen” facts in an affidavit for the SSA.
The SSA did look into. It uncovered the information wasn't a subject of point out stability and that the “prevalence of alleged corruption and irregularities” gave “sufficient motive” to the media to reveal it.
A different board and management has given that taken above the NLC and So far have taken measures to finish corruption with the institution.
A Condition Security Company (SSA) investigation identified which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied sufficient motive” for publicity from the media.

The probe into supposed “details safety breaches and sabotage of NLC operations” was undertaken following then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by at present suspended NLC corporation secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “private” conclusions and suggestions.
Nevhutanda questioned the SSA to analyze the purpose of NLC team during the alleged leaking of knowledge, and Nene, in her affidavit identified precise media and studies that she claimed associated these leaks.

While in the letter outlining its conclusions, the SSA informed the NLC that when defending condition information and facts was “a legal essential targeted at preserving the sovereignty and integrity of the state” this only placed on correctly categorised info.

Even though it didn't say so specifically, the SSA results implied that the allegedly leaked information didn't slide into this class.

Substantially, the SSA manufactured it very clear that the need to secure condition info “would not avert any person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation uncovered which the NLC info involved with the alleged breach was “delicate and privileged in nature, although not classified with regards to the prescripts of your Minimum Facts Protection Requirements (Pass up)”.

“The leakage with the appropriate delicate Formal NLC data for the media does not pose a risk to countrywide safety,” the SSA said, adding that the impression of the breaches was reputational.

The SSA report located “no evidence of the factual and incriminating character in opposition to any with the suspected NLC workforce that could be discovered from the data and details interrogated”.

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

Conspiracy claims
In 2020, Nevhutanda told MPs all through a session of Parliament’s trade, market and Competitors portfolio committee that there was “a conspiracy” during which facts “stolen” with the NLC was sent towards the US, exactly where he claimed it was being marketed to fund a smear campaign versus the NLC.

He was repeating related claims he experienced Formerly made in Parliament, which involved ad hominem assaults on GroundUp which reporter but was cautious not to name both.

“I arrived right here With this August house previous calendar year and reported to honourable associates that information regarding our beneficiaries has long been stolen and set in a single condition in the united states,” he explained to MPs.

“We called on the Point out Protection Agency to come look into the matter simply because we've been finding studies that our details is generating dollars for media platforms and journalists,” he mentioned. “There have been chat, needless to say from one supply, 1 media, that spoke A great deal about proactive-funding,” Nevhutanda stated (referring to GroundUp), but did not convey to MPs that the SSA investigation had been accomplished almost a 12 months before.

Proactive funding was at the guts of the looting from the lottery. It aspect-stepped the conventional grant procedure. The NLC could itself discover a job to fund and appoint a non-profit organisation to oversee it.

Right after Nevhutanda initially told Parliament in 2018 that he experienced questioned the SSA to research the supposed breach, the South African Countrywide Editors Forum issued a statement expressing that his remarks reflected “an extremely dangerous attitude wherever the media is currently being blamed for your NLC’s inherent issues”.

“Rather than investigating why thousands and thousands cannot be accounted for, the NLC has rather made an effort to cast doubt about the integrity in the journalists associated and has requested the SSA to research their resources.”

Proactive projects created magic formula
Safety flaws determined during the NLC grant funding system through the SSA’s investigation, look to are made use of being an justification because of the NLC to get rid of all proactive-funded assignments from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding projects was heightened to ‘secret’ and jobs were being removed from the grant funding system and preserved manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Office environment, Executive Supervisor Lawful in an effort to safeguard [the] information,” Nene explained in her affidavit.

“There was loads of inner dialogue, with plenty of backwards and forwards, about how to proceed to plug the alleged leaks”, a resource, who was in a senior place with the NLC at enough time, instructed GroundUp. “Eventually, the choice was taken to get rid of the many proactive jobs within the process and Restrict entry to a handful of persons”.

Some in that handful of men and women ended up implicated in corruption.

Maselwa, who resigned with the NLC various a long time ago, has been implicated in corruption involving lottery funds. He obtained R4.three-million from lottery resources allocated to construct a library and museum advanced in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to construct a house within an upmarket gated progress in Pretoria. The house is one of numerous paid for with lottery cash which were frozen following the Asset Forfeiture Device received a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed as being the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to substantial-ups while in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated within the corruption which overcome the NLC on their observe.

Also implicated are former board customers William Huma, who resigned after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has due to the fact died.

Each time a new administration, such as the whole board and govt, took in excess of at the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” in the documentation referring to proactive funding, A great deal of which was paper-based. Important paperwork have been missing. Files held for safekeeping by doc storage corporation Metrofile were signed out and hardly ever returned.

The NLC was able to Get better copies of some หวย ลาว วัน นี้ documents from its Mimecast email archiving program plus the laptops of their assistants and help workers.

News reports
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave issue probable information and facts protection breaches and also the unauthorised use and/or dissemination of private data attained as a result of accomplishing official features during the Commission by NLC staff members. The actions are intended to undermine the integrity on the Fee while disrupting the successful features [of your NLC] and causing insurmountable reputational harm into the Fee given that the custodian of private facts entrusted to it by its beneficiaries.”

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

Nene is at this time experiencing a disciplinary inquiry immediately after she was unsuccessful in authorized motion to set aside results of irregular expenditure on her watch.

The goal of her affidavit, Nene mentioned, was “to record the situations which transpired regarding information safety breaches for the Countrywide Lotteries Fee”.

She detailed several information experiences which she claimed had been the final results of those “breaches” (see at the conclusion of this short article).

Nene stated that a whistle-blower approached the NLC alleging that one among its personnel, Sello Qhino, had “supplied her categorized NLC Information and persistently inspired her to offer the information to GroundUp”.

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

Referring to an eighteen November 2018 post within the Each day Dispatch regarding the misappropriation of Lottery resources, Nene said the NLC determined after which suspended Zintle Rungqu. She was an staff inside the NLC’s East London Office environment, who was the partner as well as the mother of whistleblower Mzukise Makatse’s three kids.

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

“The prevalent factor in these articles is always that [they involve] categorized information associated with proactive funding jobs,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out of your loved ones property to go ahead and take warmth off her and his children. Dealing with homelessness, he moved into an Place of work in an empty manufacturing facility belonging to a buddy.

Both of those Makatse and Qhino are taking part in an NLC reparation course of action intended to recognise the harm many people suffered at the palms from the NLC. Apologies and, occasionally, financial compensation are envisioned.

“Some men and women were definitely impacted pretty negatively by this … This is actually distressing,” NLC Commissioner Jodi Scholtz informed the Each day Maverick final 12 months.

“I achieved several these individuals. It was just so heart-wrenching that their complete lives are actually turned upside down,” stated Scholtz.

Amid Those people she achieved were Qhino and Makatse.

Protected System needed for whistleblowers
The SSA discovered the absence at time of a proper channel for whistleblowers to report corruption led them to show on the media.

“Failure to possess a committed anti-corruption channel will lead to workforce presenting these types of situations beyond the NLC,” the SSA said in its findings.

“Supplied the magnitude of corruption in point out institutions, it remains vital that it makes sure that the NLC complies with all stability prescripts Which its target is on guaranteeing that unlawful and irregular perform is sufficiently mitigated in opposition to and by making sure an satisfactory channel for whistle-blowers to report untoward conduct with no staying intimidated.”

It recommended that the NLC build a “Harmless channel” for workers to supply info on any “untoward action” that might not stop or discourage employees from blowing the whistle. A whistle-blowers coverage, according to the Shielded Disclosures Act 25 of 2000, is often a requirement.”

Media studies Nene listed
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Health Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and operator of the Limpopo Mirror, to expose NLC corruption. “The post had things of knowledge not out there in the general public area, therefore increasing worry on inner Data protection breaches. The allegations while in the media ended up independently investigated,” Nene claimed. “On the other hand, workforce chargeable for divulging labeled facts have nevertheless for being recognized”;
A 28 January 2018 article posted through the Dally Dispatch “citing many allegations from the Limpopo Mirror report published on 10 December 2017 plus a new allegation concerning a previous staff from the title of Mzukisi Makatse. He was charged and summarily dismissed to the menace brought about into the organisation.”
A sixteen November 2018 posting during the Lowvelder regarding the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Despite obtaining R27-million in lottery grants, the rehab has not been completed. “The Lowvelder short article contained categorized information concerning NLC policy, boosting additional fears of inner facts security breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations did not warrant an independent Investigation, even so [it] highlighted the heightened information and facts safety hazards in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Most important Care, a hijacked NPO. Nene mentioned GroundUp had confirmed in its Tale that it absolutely was according to leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Advertising of Use of Information and facts) ask for for facts in regards to the challenge, she claimed