Lottery bosses turned to Condition Safety Agency to research leaks

Lottery bosses turned to Condition Safety Agency to research leaks

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Former National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Point out Protection Agency (SSA) in December 2018 to research the leaking of paperwork that uncovered lottery corruption.
The NLC’s enterprise secretary at time mentioned media studies she stated have been according to “stolen” facts within an affidavit for that SSA.
The SSA did look into. It found the data was not a subject of point out protection and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” to the media to expose it.
A different board and administration has given that taken in excess of the NLC and thus far have taken actions to finish corruption within the establishment.
A Point out Stability Company (SSA) investigation observed that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied sufficient motive” for exposure via the media.

The probe into meant “info safety breaches and sabotage of NLC operations” was carried out immediately after then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to research.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “confidential” findings and recommendations.
Nevhutanda asked the SSA to investigate the purpose of NLC employees inside the alleged leaking of knowledge, and Nene, in her affidavit discovered unique media and reports that she claimed involved these leaks.

During the letter outlining its findings, the SSA explained to the NLC that while preserving state details was “a authorized vital aimed at protecting the sovereignty and integrity on the state” this only applied to correctly labeled information and facts.

Even though it didn't say so instantly, the SSA findings implied which the allegedly leaked facts did not tumble into this category.

Substantially, the SSA made it clear that the necessity to shield condition facts “isn't going to protect against any individual from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation uncovered the NLC info involved with the alleged breach was “sensitive and privileged in nature, but not categorized with regards to the prescripts with the Minimal Information and facts Safety Standards (Overlook)”.

“The leakage on the suitable sensitive Formal NLC information and facts into the media does not pose a threat to countrywide protection,” the SSA claimed, adding the effect in the breaches was reputational.

The SSA report identified “no evidence of a factual and incriminating character towards any of your suspected NLC staff that could be recognized from the information and knowledge interrogated”.

In addition, it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide sufficient motive to acquire these types of uncovered inside the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs in the course of a session of Parliament’s trade, sector and Level of competition portfolio committee that there was “a conspiracy” where facts “stolen” within the NLC was sent for the US, exactly where he claimed it had been getting offered to fund a smear marketing campaign towards the NLC.

He was repeating very similar claims he experienced previously built in Parliament, which involved ad hominem attacks on GroundUp and this reporter but was mindful not to call both.

“I arrived in this article in this August house previous year and documented to honourable members that details about our beneficiaries has long been stolen and put in one condition in America,” he instructed MPs.

“We referred to as over the Point out Stability Agency to come back consider the subject because we are having experiences that our info is producing dollars for media platforms and journalists,” he stated. “There has been discuss, not surprisingly from just one source, 1 media, that spoke A lot about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't explain to MPs which the SSA investigation had been concluded Pretty much a yr previously.

Proactive funding was at the heart with the looting from the lottery. It side-stepped the conventional grant method. The NLC could alone establish a job to fund and appoint a non-revenue organisation to supervise it.

Right after Nevhutanda very first informed Parliament in 2018 that he experienced requested the SSA to research the intended breach, the South African National Editors Forum issued a statement saying that his remarks mirrored “an incredibly perilous Frame of mind in which the media is being blamed with the NLC’s inherent complications”.

“As an alternative to investigating why millions cannot be accounted for, the NLC has as a substitute made an effort to cast doubt on the integrity on the journalists included and it has questioned the SSA to analyze their sources.”

Proactive initiatives created solution
Stability flaws identified in the NLC grant funding program over the SSA’s investigation, look to happen to be employed as an justification because of the NLC to get rid of all proactive-funded initiatives from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘solution’ and jobs had been removed from the grant funding procedure and maintained manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business office, Govt Manager Authorized as a way to safeguard [the] details,” Nene stated in her affidavit.

“There was lots of inner dialogue, with a great deal of back and forth, about what to do to plug the alleged leaks”, a resource, who was in the senior place within the NLC at the time, instructed GroundUp. “In the end, the decision was taken to get rid of all the proactive assignments from the system and Restrict use of a handful of people today”.

Some in that handful of men and women have been implicated in corruption.

Maselwa, who resigned in the NLC a number of yrs ago, has long been implicated in corruption involving lottery money. He received R4.3-million from lottery cash allotted to build a library and museum elaborate in Kuruman (see Taung Cultural Music and Arts Expo) which he applied to create a house within an upmarket gated growth in Pretoria. The assets is among a number of paid for with lottery cash which were frozen once the Asset Forfeiture Unit received a preservation order in December 2022.

The politically-linked Nevhutanda, who was appointed as being the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to higher-ups in the ANC Management, former NLC previous Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated within the corruption which confused the NLC on their own enjoy.

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

Each time a new administration, such as the total board and govt, took above in the NLC in late 2022 and early 2023, they learned a “chaotic mess” inside the documentation regarding proactive funding, much of which was paper-based. Key files were being lacking. Documents held for safekeeping by document storage business Metrofile were signed out and under no circumstances returned.

The NLC was in the position to Recuperate copies of some ผล สลากกินแบ่ง files from its Mimecast electronic mail archiving system as well as the laptops of their assistants and help personnel.

News reviews
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave worry doable facts protection breaches as well as unauthorised use and/or dissemination of private data acquired because of doing Formal functions within the Fee by NLC staff members. The pursuits are meant to undermine the integrity of the Commission while disrupting the productive functions [on the NLC] and leading to insurmountable reputational damage towards the Commission since the custodian of private details entrusted to it by its beneficiaries.”

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

Nene is currently struggling with a disciplinary inquiry just after she was unsuccessful in authorized motion to set aside conclusions of irregular expenditure on her observe.

The objective of her affidavit, Nene said, was “to file the situations which transpired associated with information and facts security breaches on the Nationwide Lotteries Fee”.

She outlined various news experiences which she claimed had been the outcome of those “breaches” (see at the end of this text).

Nene claimed that a whistle-blower approached the NLC alleging that amongst its workforce, Sello Qhino, had “offered her classified NLC Information and persistently inspired her to supply the data to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded assignments in Kuruman following tries to lift the issue internally ended up dismissed, was subsequently fired.

Referring to an eighteen November 2018 article while in the Daily Dispatch with regard to the misappropriation of Lottery funds, Nene explained 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 mom of whistleblower Mzukise Makatse’s 3 young children.

Rungqu and Makatse imagine Rungqu was punished since Makatse blew the whistle. She was suspended and billed internally, Along with the NLC paying R470,000 on legal professionals to depict it, but was found not guilty and permitted to return to operate.

“The widespread Think about these articles or blog posts is that [they include] labeled information and facts referring to proactive funding assignments,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out of your family house to take the warmth off her and his small children. Struggling with homelessness, he moved into an office within an empty factory belonging to an acquaintance.

Both equally Makatse and Qhino are participating in an NLC reparation process meant to recognise the harm some individuals experienced on the arms in the NLC. Apologies and, occasionally, fiscal payment are expected.

“Some persons were genuinely afflicted extremely negatively by this … This is de facto distressing,” NLC Commissioner Jodi Scholtz told the Every day Maverick previous calendar year.

“I fulfilled several these folks. It was just so heart-wrenching that their total life happen to be turned upside down,” mentioned Scholtz.

Between All those she fulfilled ended up Qhino and Makatse.

Safe platform desired for whistleblowers
The SSA uncovered the absence at enough time of a correct channel for whistleblowers to report corruption led them to show into the media.

“Failure to have a focused anti-corruption channel will bring about workforce presenting such conditions outside of the NLC,” the SSA said in its results.

“Offered the magnitude of corruption in condition institutions, it continues to be critical that it makes certain that the NLC complies with all protection prescripts and that its concentration is on making sure that unlawful and irregular carry out is sufficiently mitigated in opposition to and by guaranteeing an enough channel for whistle-blowers to report untoward perform without the need of getting intimidated.”

It advised the NLC create a “Safe and sound channel” for workers to supply information on any “untoward exercise” that could not reduce or discourage employees from blowing the whistle. A whistle-blowers plan, based upon the Safeguarded Disclosures Act twenty five of 2000, can be a requirement.”

Media studies Nene listed
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Conditioning Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and proprietor from the Limpopo Mirror, to reveal NLC corruption. “The article had aspects of data not offered in the general public area, therefore raising issue on interior Details safety breaches. The allegations from the media were being independently investigated,” Nene stated. “Even so, personnel responsible for divulging categorised information and facts have still being determined”;
A 28 January 2018 write-up revealed from the Dally Dispatch “citing various allegations through the Limpopo Mirror article revealed on ten December 2017 along with a new allegation regarding a previous staff by the title of Mzukisi Makatse. He was charged and summarily dismissed for the menace caused on the organisation.”
A sixteen November 2018 short article in the Lowvelder with regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of receiving R27-million in lottery grants, the rehab hasn't been done. “The Lowvelder report contained classified information concerning NLC coverage, boosting even more issues of interior details stability breaches,” Nene mentioned in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an independent Investigation, even so [it] highlighted the heightened details safety pitfalls in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Principal Treatment, a hijacked NPO. Nene explained GroundUp had confirmed in its Tale that it had been based upon leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Use of Details) request for facts about the job, she mentioned