Lottery bosses turned to State Security Agency to investigate leaks

Lottery bosses turned to State Security Agency to investigate leaks

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Previous Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Security Agency (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s corporation secretary at enough time mentioned media reports she said were depending on “stolen” details in an affidavit with the SSA.
The SSA did examine. It identified the information wasn't a issue of state protection and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” with the media to reveal it.
A brand new board and administration has because taken around the NLC and So far have taken actions to finish corruption within the institution.
A State Safety Agency (SSA) investigation located which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for publicity by the media.

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

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the security company’s “confidential” conclusions and proposals.
Nevhutanda asked the SSA to analyze the job of NLC employees during the alleged leaking of information, and Nene, in her affidavit identified certain media and studies that she claimed included these leaks.

Inside the letter outlining its conclusions, the SSA advised the NLC that whilst protecting state info was “a legal essential aimed toward shielding the sovereignty and integrity in the point out” this only applied to appropriately classified data.

Although it didn't say so directly, the SSA findings implied which the allegedly leaked data did not drop into this classification.

Substantially, the SSA built it apparent that the necessity to safeguard state details “does not avoid any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered that the NLC details involved in the alleged breach was “delicate and privileged in character, but not classified when it comes to the prescripts in the Minimum Information and facts Protection Requirements (Miss out on)”.

“The leakage from the suitable delicate Formal NLC info to your media doesn't pose a risk to nationwide protection,” the SSA claimed, incorporating the effects of your breaches was reputational.

The SSA report uncovered “no evidence of the factual and incriminating character versus any of your suspected NLC workforce that might be recognized from the information and data interrogated”.

Additionally, it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does deliver enough motive to own this sort of uncovered from the media”.

Conspiracy promises
In 2020, Nevhutanda told MPs for the duration of a session of Parliament’s trade, field and Opposition portfolio committee that there was “a conspiracy” where information “stolen” from your NLC was sent to your US, in which he claimed it had been staying bought to fund a smear marketing campaign towards the NLC.

He was repeating related claims he had previously created in Parliament, which integrated advert hominem assaults on GroundUp and this reporter but was very careful not to call either.

“I arrived listed here With this August household final year and described to honourable members that specifics of our beneficiaries has become stolen and set in one condition in the usa,” he informed MPs.

“We identified as on the State Safety Agency to come consider the subject simply because we are acquiring reviews that our data is making revenue for media platforms and journalists,” he claimed. “There was discuss, needless to say from just one source, one media, that spoke A great deal about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't notify MPs which the SSA investigation had been concluded Practically a calendar year earlier.

Proactive funding was at the heart with the looting from the lottery. It side-stepped the conventional grant course of action. The NLC could alone recognize a task to fund and appoint a non-profit organisation to supervise it.

After Nevhutanda initial explained to Parliament in 2018 that he had questioned the SSA to research the meant breach, the South African Nationwide Editors Discussion board issued an announcement declaring that his remarks reflected “an extremely dangerous attitude wherever the media is getting blamed for the NLC’s inherent problems”.

“Rather then investigating why millions can't be accounted for, the NLC has rather attempted to Forged doubt around the integrity with the journalists concerned and it has requested the SSA to investigate their sources.”

Proactive initiatives built magic formula
Security flaws discovered in the NLC grant funding technique over the SSA’s investigation, look to have been utilized as an justification with the NLC to eliminate all proactive-funded jobs from its central grants method.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘magic formula’ and projects were faraway from the grant funding procedure and preserved manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business office, Government Manager Legal in an effort to safeguard [the] details,” Nene explained in her affidavit.

“There was a lot of internal discussion, with many forwards and backwards, about what to do to plug the alleged leaks”, a resource, who was within a senior position for the NLC at time, instructed GroundUp. “Eventually, the decision was taken to remove all the proactive assignments from the system and limit entry to a handful of folks”.

Some in that handful of men and women were being implicated in corruption.

Maselwa, who resigned within the NLC several many years ago, is implicated in corruption involving lottery money. He obtained R4.three-million from lottery funds allocated to build a library and museum intricate in Kuruman (see Taung Cultural Music and Arts Expo) which he utilized to develop a home in an upmarket gated growth in Pretoria. The residence is among quite a few compensated for with lottery resources which were frozen once the Asset Forfeiture Device received a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near to substantial-ups inside the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their check out.

Also implicated are former board members William Huma, who resigned just after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have due to the fact died.

Whenever a new administration, such as the whole board and government, took over on the NLC in late 2022 and early 2023, they discovered a “chaotic mess” within the documentation regarding proactive funding, much of which was paper-primarily based. Important documents were being lacking. Data files held for safekeeping by doc storage corporation Metrofile were signed out and never returned.

The NLC was in a position to recover copies of some หวย หุ้น documents from its Mimecast e-mail archiving technique plus the laptops of their assistants and assist staff members.

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 doable data security breaches as well as unauthorised use and/or dissemination of confidential information and facts received because of accomplishing official features within the Commission by NLC employees. The routines are intended to undermine the integrity of your Fee even though disrupting the productive functions [from the NLC] and creating insurmountable reputational harm towards the Commission as the custodian of personal info entrusted to it by its beneficiaries.”

His request for the SSA to analyze was supported within an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is at the moment going through a disciplinary inquiry right after she was unsuccessful in lawful action to put aside findings of irregular expenditure on her enjoy.

The purpose of her affidavit, Nene reported, was “to file the events which transpired associated with information safety breaches within the National Lotteries Commission”.

She detailed several information experiences which she claimed were the results of such “breaches” (see at the conclusion of this post).

Nene claimed that a whistle-blower approached the NLC alleging that amongst its workforce, Sello Qhino, experienced “presented her categorized NLC Info and persistently inspired her to offer the information to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded jobs in Kuruman soon after attempts to lift the issue internally have been disregarded, was subsequently fired.

Referring to an 18 November 2018 report in the Everyday Dispatch concerning the misappropriation of Lottery cash, Nene claimed which the NLC determined and then suspended Zintle Rungqu. She was an employee within the NLC’s East London Business, who was the companion as well as the mother of whistleblower Mzukise Makatse’s three children.

Rungqu and Makatse believe Rungqu was punished simply because Makatse blew the whistle. She was suspended and billed internally, with the NLC spending R470,000 on legal professionals to depict it, but was discovered not responsible and allowed to return to operate.

“The frequent Think about these articles or blog posts is the fact that [they require] classified details concerning proactive funding tasks,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out of the loved ones property to go ahead and take warmth off her and his small children. Dealing with homelessness, he moved into an Business office within an vacant manufacturing unit belonging to an acquaintance.

Each Makatse and Qhino are participating in an NLC reparation procedure intended to recognise the harm many people suffered for the fingers with the NLC. Apologies and, in some cases, economical compensation are anticipated.

“Some people were really affected really negatively by this … This is basically agonizing,” NLC Commissioner Jodi Scholtz told the Daily Maverick previous calendar year.

“I met several these people today. It was just so coronary heart-wrenching that their full life happen to be turned upside down,” stated Scholtz.

Among These she achieved were being Qhino and Makatse.

Harmless System essential for whistleblowers
The SSA located the absence at the time of an appropriate channel for whistleblowers to report corruption led them to turn into the media.

“Failure to have a dedicated anti-corruption channel will end in staff members presenting these situations outside of the NLC,” the SSA explained in its conclusions.

“Offered the magnitude of corruption in state establishments, it continues to be important that it ensures that the NLC complies with all protection prescripts Which its target is on guaranteeing that unlawful and irregular perform is adequately mitigated versus and by ensuring an satisfactory channel for whistle-blowers to report untoward carry out without currently being intimidated.”

It proposed which the NLC set up a “Secure channel” for employees to deliver information on any “untoward activity” that would not stop or discourage employees from blowing the whistle. A whistle-blowers coverage, based upon the Safeguarded Disclosures Act twenty five of 2000, can be a need.”

Media studies Nene listed
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Conditioning Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to expose NLC corruption. “The write-up experienced elements of knowledge not offered in the public area, thus boosting worry on inside Data safety breaches. The allegations inside the media had been independently investigated,” Nene stated. “Nevertheless, employees responsible for divulging categorised details have yet being identified”;
A 28 January 2018 short article revealed from the Dally Dispatch “citing numerous allegations with the Limpopo Mirror article revealed on ten December 2017 in addition to a new allegation associated with a previous staff through the name of Mzukisi Makatse. He was charged and summarily dismissed with the menace prompted to the organisation.”
A sixteen November 2018 short article during the Lowvelder regarding 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 hasn't been done. “The Lowvelder short article contained categorized information and facts concerning NLC plan, elevating additional issues of inside data stability breaches,” Nene claimed in her affidavit. “The prima facie proof with regard to these allegations did not warrant an impartial Investigation, nonetheless [it] highlighted the heightened data protection threats throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Key Treatment, a hijacked NPO. Nene claimed GroundUp had confirmed in its Tale that it had been dependant on leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Use of Details) request for aspects about the job, she explained