Lottery bosses turned to State Stability Company to analyze leaks

Lottery bosses turned to State Stability Company to analyze leaks

Blog Article

Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Stability Agency (SSA) in December 2018 to research the leaking of documents that uncovered lottery corruption.
The NLC’s corporation secretary at the time mentioned media stories she said have been depending on “stolen” facts within an affidavit for that SSA.
The SSA did examine. It located the information wasn't a matter of condition safety and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for that media to show it.
A completely new board and management has given that taken around the NLC and thus far have taken steps to finish corruption in the establishment.
A Condition Security Agency (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished ample motive” for publicity because of the media.

The probe into supposed “information protection breaches and sabotage of NLC operations” was carried out soon 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 at present suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the security agency’s “private” results and suggestions.
Nevhutanda asked the SSA to analyze the purpose of NLC personnel while in the alleged leaking of information, and Nene, in her affidavit discovered unique media and reviews that she claimed involved these leaks.

Within the letter outlining its results, the SSA told the NLC that though guarding point out information and facts was “a authorized vital geared toward safeguarding the sovereignty and integrity in the condition” this only applied to properly classified details.

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

Substantially, the SSA created it crystal clear that the need to shield state information “doesn't stop any person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation observed the NLC info linked to the alleged breach was “delicate and privileged in nature, although not classified when it comes to the prescripts of the Bare minimum Information Safety Expectations (Miss out on)”.

“The leakage of your related sensitive Formal NLC facts for the media won't pose a danger to nationwide stability,” the SSA said, introducing which the effects with the breaches was reputational.

The SSA report observed “no proof of a factual and incriminating mother nature against any in the suspected NLC workforce that can be discovered from the information and information interrogated”.

Additionally, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does present ample motive to possess this sort of uncovered inside the media”.

Conspiracy statements
In 2020, Nevhutanda informed MPs during a session of Parliament’s trade, market and Level of competition portfolio committee that there was “a conspiracy” by which details “stolen” from your NLC was sent towards the US, wherever he claimed it was remaining sold to fund a smear campaign from the NLC.

He was repeating identical promises he experienced Formerly designed in Parliament, which involved advert hominem assaults on GroundUp and this reporter but was careful not to call either.

“I came listed here in this August home previous calendar year and documented to honourable users that details about our beneficiaries has long been stolen and place in a single point out in America,” he instructed MPs.

“We termed around the State Safety Agency to come investigate the matter due to the fact we have been receiving stories that our details is generating income for media platforms and journalists,” he reported. “There have been speak, obviously from one supply, 1 media, that spoke A great deal about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't notify MPs which the SSA investigation had been concluded Virtually a calendar year before.

Proactive funding was at the heart of your looting in the lottery. It aspect-stepped the conventional grant procedure. The NLC could itself recognize a task to fund and appoint a non-gain organisation to supervise it.

Following Nevhutanda 1st informed Parliament in 2018 that he experienced questioned the SSA to analyze the intended breach, the South African National Editors Discussion board issued an announcement declaring that his remarks mirrored “a very unsafe attitude wherever 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 rather made an effort to cast doubt within the integrity of the journalists concerned and has requested the SSA to research their sources.”

Proactive assignments manufactured solution
Protection flaws determined during the NLC grant funding system over the SSA’s investigation, surface to have already been utilised as an justification via the NLC to get rid of all proactive-funded tasks from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘top secret’ and tasks ended up faraway from the grant funding method and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Executive Manager Legal as a way to safeguard [the] data,” Nene stated in her affidavit.

“There was a lot of interior dialogue, with many back and forth, about what to do to plug the alleged leaks”, a supply, who was in the senior position with the NLC at enough time, told GroundUp. “In the long run, the choice was taken to eliminate many of the proactive jobs in the process and Restrict entry to a handful of folks”.

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

Maselwa, who resigned through the NLC many several years back, has actually been implicated in corruption involving lottery money. He been given R4.three-million from lottery resources allotted to build a library and museum sophisticated in Kuruman (see Taung Cultural Audio and Arts Expo) which he used to construct a dwelling in an upmarket gated enhancement in Pretoria. The house is among several paid for with lottery money that were frozen following the Asset Forfeiture Unit received a preservation get 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 close to superior-ups during the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated inside the corruption which overcome the NLC on their look at.

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

Every time a new administration, such as the entire board and government, took over in the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” from the documentation relating to proactive funding, much of which was paper-based. Key files ended up lacking. Data files held for safekeeping by document storage firm Metrofile had been signed out and never returned.

The NLC was able to Get well copies of some ตรวจ สลาก documents from its Mimecast email archiving method and also the laptops in their assistants and assist workers.

Information studies
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry feasible information and facts protection breaches and also the unauthorised use and/or dissemination of private information received as a result of undertaking Formal capabilities within the Commission by NLC staff. The activities are intended to undermine the integrity from the Commission although disrupting the powerful features [from the NLC] and leading to insurmountable reputational harm to the Fee since the custodian of personal information entrusted to it by its beneficiaries.”

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

Nene is presently struggling with a disciplinary inquiry soon after she was unsuccessful in lawful action to set aside results of irregular expenditure on her watch.

The objective of her affidavit, Nene reported, was “to record the gatherings which transpired concerning info safety breaches with the Nationwide Lotteries Fee”.

She mentioned numerous news experiences which she claimed were the outcome of these “breaches” (see at the end of this information).

Nene explained that a whistle-blower approached the NLC alleging that considered one of its workers, Sello Qhino, experienced “supplied her classified NLC Information and persistently inspired her to provide the data to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded initiatives in Kuruman just after makes an attempt to boost The difficulty internally have been ignored, was subsequently fired.

Referring to an eighteen November 2018 post from the Everyday Dispatch about the misappropriation of Lottery funds, Nene stated that the NLC recognized then suspended Zintle Rungqu. She was an personnel while in the NLC’s East London Office environment, who was the lover plus the mother of whistleblower Mzukise Makatse’s three small children.

Rungqu and Makatse believe that Rungqu was punished mainly because Makatse blew the whistle. She was suspended and charged internally, with the NLC expending R470,000 on attorneys to symbolize it, but was found not guilty and permitted to return to work.

“The widespread factor in these content is [they contain] categorized data concerning proactive funding projects,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out with the family house to take the heat off her and his children. Dealing with homelessness, he moved into an Place of work in an vacant manufacturing unit belonging to an acquaintance.

Both of those Makatse and Qhino are taking part in an NLC reparation system meant to recognise the harm some people endured on the hands of the NLC. Apologies and, in some cases, financial payment are anticipated.

“Some people were seriously affected incredibly negatively by this … This is basically distressing,” NLC Commissioner Jodi Scholtz informed the Day-to-day Maverick past year.

“I satisfied several these persons. It absolutely was just so heart-wrenching that their complete lives are turned the other way up,” said Scholtz.

Among those she achieved ended up Qhino and Makatse.

Protected platform needed for whistleblowers
The SSA found the absence at enough time of a correct channel for whistleblowers to report corruption led them to turn to your media.

“Failure to have a committed anti-corruption channel will result in staff members presenting this kind of conditions outside of the NLC,” the SSA mentioned in its conclusions.

“Given the magnitude of corruption in state institutions, it stays critical that it makes certain that the NLC complies with all security prescripts and that its target is on guaranteeing that illegal and irregular conduct is adequately mitigated towards and by guaranteeing an ample channel for whistle-blowers to report untoward carry out without having currently being intimidated.”

It advisable the NLC establish a “Harmless channel” for employees to provide info on any “untoward activity” that would not protect against or discourage personnel from blowing the whistle. A whistle-blowers plan, determined by the Guarded Disclosures Act twenty five of 2000, is a necessity.”

Media stories Nene listed
A 10 December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Health and fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner of the Limpopo Mirror, to expose NLC corruption. “The post experienced features of data not out there in the general public domain, thus increasing problem on interior Information and facts security breaches. The allegations during the media ended up independently investigated,” Nene mentioned. “Nevertheless, workforce chargeable for divulging categorized information and facts have but to generally be identified”;
A 28 January 2018 report posted from the Dally Dispatch “citing quite a few allegations within the Limpopo Mirror post printed on 10 December 2017 plus a new allegation regarding a former worker with the name of Mzukisi Makatse. He was charged and summarily dismissed for the danger brought about to your organisation.”
A 16 November 2018 post in the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite receiving R27-million in lottery grants, the rehab has not been completed. “The Lowvelder short article contained classified data when it comes to NLC coverage, boosting additional worries of interior information safety breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an impartial Investigation, on the other hand [it] highlighted the heightened information and facts stability threats throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene said GroundUp experienced confirmed in its Tale that it had been depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Promotion of Use of Data) ask for for information regarding the project, she claimed