Lottery bosses turned to State Security Agency to research leaks

Lottery bosses turned to State Security Agency to research leaks

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Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Protection Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s business secretary at the time outlined media reviews she mentioned had been based upon “stolen” information and facts within an affidavit for your SSA.
The SSA did look into. It observed the knowledge wasn't a subject of state stability and that the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to show it.
A fresh board and administration has due to the fact taken more than the NLC and To date have taken steps to end corruption on the establishment.
A Condition Stability Company (SSA) investigation found that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for exposure through the media.

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

Here is

Nevhutanda’s letter,
an affidavit by at present suspended NLC business secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and suggestions.
Nevhutanda questioned the SSA to research the role of NLC staff members inside the alleged leaking of data, and Nene, in her affidavit identified precise media and reports that she claimed concerned these leaks.

From the letter outlining its findings, the SSA informed the NLC that even though protecting state details was “a authorized critical targeted at preserving the sovereignty and integrity of the point out” this only placed on properly categorized details.

Although it didn't say so right, the SSA results implied that the allegedly leaked information and facts did not fall into this classification.

Drastically, the SSA created it clear that the necessity to shield condition info “won't avoid any unique from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation observed which the NLC details involved with the alleged breach was “delicate and privileged in mother nature, but not categorized with regard to the prescripts in the Minimum Information Security Expectations (Overlook)”.

“The leakage in the related sensitive Formal NLC info into the media doesn't pose a threat to nationwide protection,” the SSA claimed, incorporating which the effect with the breaches was reputational.

The SSA report found “no proof of a factual and incriminating nature against any with the suspected NLC workers which could be identified 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 present ample motive to obtain this sort of uncovered inside the media”.

Conspiracy statements
In 2020, Nevhutanda advised MPs throughout a session of Parliament’s trade, sector and Opposition portfolio committee that there was “a conspiracy” wherein information “stolen” in the NLC was sent to the US, where he claimed it absolutely was staying bought to fund a smear campaign from the NLC.

He was repeating equivalent promises he experienced Earlier built in Parliament, which included advert hominem attacks on GroundUp which reporter but was watchful not to call possibly.

“I arrived right here With this August house final yr and documented to honourable customers that information regarding our beneficiaries has been stolen and set in a single condition in the united states,” he informed MPs.

“We referred to as within the State Stability Agency to come look into the make any difference because we have been acquiring experiences that our facts is producing revenue for media platforms and journalists,” he explained. “There have been discuss, of course from one particular resource, 1 media, that spoke Substantially about proactive-funding,” Nevhutanda stated (referring to GroundUp), but failed to explain to MPs the SSA investigation had been concluded Pretty much a calendar year before.

Proactive funding was at the guts of your looting of your lottery. It facet-stepped the conventional grant course of action. The NLC could by itself recognize a undertaking to fund and appoint a non-earnings organisation to supervise it.

Just after Nevhutanda initially advised Parliament in 2018 that he experienced requested the SSA to analyze the intended breach, the South African Countrywide Editors Forum issued an announcement saying that his remarks reflected “an extremely unsafe Mindset wherever the media is being blamed to the NLC’s inherent complications”.

“As opposed to investigating why thousands and thousands can not be accounted for, the NLC has instead tried to Forged question over the integrity of your journalists associated and it has requested the SSA to investigate their resources.”

Proactive jobs built solution
Protection flaws recognized in the NLC grant funding procedure over the SSA’s investigation, look to are applied as an excuse via the NLC to eliminate all proactive-funded assignments from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘mystery’ and tasks were being removed from the grant funding procedure and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Workplace, Government Supervisor Lawful in an effort to safeguard [the] information,” Nene mentioned in her affidavit.

“There was many interior dialogue, with plenty of backwards and forwards, about what to do to plug the alleged leaks”, a source, who was within a senior placement for the NLC at enough time, instructed GroundUp. “In the long run, the decision was taken to remove all of the proactive tasks from the system and Restrict entry to A few persons”.

Some in that handful of individuals were implicated in corruption.

Maselwa, who resigned within the NLC many many years back, has long been implicated in corruption involving lottery resources. He received R4.three-million from lottery funds allotted to create a library and museum sophisticated in Kuruman (see Taung Cultural Tunes and Arts Expo) which he utilised to build a dwelling in an upmarket gated improvement in Pretoria. The house is among several paid out for with lottery funds that were frozen once the Asset Forfeiture Device attained a preservation order in December 2022.

The politically-related Nevhutanda, who was appointed as being the NLC board chairperson by former President Jacob Zuma in 2009 and was near significant-ups inside the ANC leadership, former NLC former Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated during the corruption which confused the NLC on their own observe.

Also implicated are previous board customers William Huma, who resigned immediately after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got considering that died.

Any time a new administration, such as the whole board and executive, took around at the NLC in late 2022 and early 2023, they discovered a “chaotic mess” while in the documentation relating to proactive funding, much of which was paper-primarily based. Vital documents were being lacking. Data files held for safekeeping by document storage company Metrofile were signed out and never returned.

The NLC was able to Recuperate copies of some ตรวจ หวย ผล สลากกินแบ่ง รัฐบาล งวด paperwork from its Mimecast electronic mail archiving process and the laptops in their assistants and assist personnel.

Information stories
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave concern feasible facts protection breaches as well as unauthorised use and/or dissemination of private details received on account of executing official functions inside the Commission by NLC workforce. The actions are intended to undermine the integrity in the Commission even though disrupting the successful capabilities [from the NLC] and resulting in insurmountable reputational hurt to the Commission since the custodian of private info entrusted to it by its beneficiaries.”

His request for your SSA to research was supported in an affidavit by suspended NLC organization secretary, Nomphumelelo Nene.

Nene is at this time experiencing a disciplinary inquiry after she was unsuccessful in lawful motion to set aside conclusions of irregular expenditure on her look at.

The purpose of her affidavit, Nene claimed, was “to document the situations which transpired concerning info protection breaches with the Nationwide Lotteries Fee”.

She listed many news stories which she claimed had been the results of those “breaches” (see at the conclusion of this post).

Nene claimed that a whistle-blower approached the NLC alleging that certainly one of its personnel, Sello Qhino, experienced “supplied her labeled NLC Information and persistently inspired her to deliver the information to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded jobs in Kuruman just after makes an attempt to lift the issue internally ended up disregarded, was subsequently fired.

Referring to an 18 November 2018 post within the Daily Dispatch concerning the misappropriation of Lottery cash, Nene reported the NLC recognized and afterwards suspended Zintle Rungqu. She was an staff during the NLC’s East London office, who was the companion and also the mother of whistleblower Mzukise Makatse’s 3 youngsters.

Rungqu and Makatse believe that Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, While using the NLC paying R470,000 on lawyers to represent it, but was observed not guilty and allowed to return to work.

“The typical Consider these article content is the fact that [they require] categorized information relating to proactive funding projects,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out from the relatives dwelling to go ahead and take warmth off her and his small children. Struggling with homelessness, he moved into an Office environment in an empty manufacturing unit belonging to a colleague.

Both of those Makatse and Qhino are taking part in an NLC reparation approach meant to recognise the damage some people suffered for the fingers of your NLC. Apologies and, sometimes, monetary compensation are expected.

“Some people ended up genuinely afflicted quite negatively by this … This is admittedly distressing,” NLC Commissioner Jodi Scholtz explained to the Each day Maverick last year.

“I satisfied several these persons. It absolutely was just so heart-wrenching that their whole life have already been turned the other way up,” explained Scholtz.

Among All those she met have been Qhino and Makatse.

Safe platform wanted for whistleblowers
The SSA discovered the absence at enough time of a suitable channel for whistleblowers to report corruption led them to show to the media.

“Failure to have a devoted anti-corruption channel will cause staff members presenting such instances outside of the NLC,” the SSA said in its conclusions.

“Specified the magnitude of corruption in point out establishments, it stays essential that it ensures that the NLC complies with all stability prescripts Which its target is on ensuring that unlawful and irregular conduct is sufficiently mitigated in opposition to and by ensuring an enough channel for whistle-blowers to report untoward conduct without the need of currently being intimidated.”

It suggested the NLC build a “Protected channel” for workers to provide information on any “untoward action” that may not stop or discourage staff members from blowing the whistle. A whistle-blowers plan, according to the Safeguarded Disclosures Act 25 of 2000, can be a prerequisite.”

Media experiences Nene mentioned
A ten December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Fitness Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and owner of the Limpopo Mirror, to show NLC corruption. “The report had features of knowledge not accessible in the general public domain, thus raising worry on internal Information and facts safety breaches. The allegations during the media have been independently investigated,” Nene reported. “Nonetheless, workforce liable for divulging labeled information have but to get discovered”;
A 28 January 2018 posting published from the Dally Dispatch “citing several allegations from your Limpopo Mirror write-up printed on 10 December 2017 along with a new allegation relating to a previous personnel through the name of Mzukisi Makatse. He was billed and summarily dismissed for your danger brought about for the organisation.”
A sixteen November 2018 report within the Lowvelder concerning the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Regardless of acquiring R27-million in lottery grants, the rehab has never been accomplished. “The Lowvelder posting contained classified details concerning NLC plan, raising more worries of inside facts stability breaches,” Nene reported in her affidavit. “The prima facie proof regarding these allegations did not warrant an independent Investigation, nevertheless [it] highlighted the heightened info security threats in the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene claimed GroundUp had verified in its Tale that it absolutely was according to leaked NLC documents. This was despite the NLC rejecting a PAIA (Advertising of Usage of Details) request for details with regards to the job, she claimed