Lottery bosses turned to Point out Protection Company to research leaks

Lottery bosses turned to Point out Protection Company to research leaks

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Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Safety Company (SSA) in December 2018 to analyze the leaking of documents that exposed lottery corruption.
The NLC’s corporation secretary at some time outlined media studies she reported were determined by “stolen” information and facts within an affidavit with the SSA.
The SSA did look into. It observed the knowledge was not a matter of point out protection and that the “prevalence of alleged corruption and irregularities” gave “enough motive” for that media to expose it.
A brand new board and administration has due to the fact taken above the NLC and thus far have taken actions to end corruption with the institution.
A State Safety Company (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished sufficient motive” for publicity because of the media.

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

Here is

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the security company’s “private” findings and recommendations.
Nevhutanda questioned the SSA to analyze the position of NLC workers inside the alleged leaking of data, and Nene, in her affidavit determined certain media and reports that she claimed included these leaks.

Within the letter outlining its conclusions, the SSA informed the NLC that though safeguarding point out details was “a lawful imperative aimed toward preserving the sovereignty and integrity from the condition” this only applied to properly categorized facts.

Even though it didn't say so right, the SSA results implied the allegedly leaked data did not fall into this category.

Considerably, the SSA produced it distinct that the necessity to guard condition info “does not reduce any particular person from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation uncovered that the NLC information and facts associated with the alleged breach was “delicate and privileged in mother nature, but not categorized when it comes to the prescripts on the Minimum Details Protection Standards (Skip)”.

“The leakage on the suitable delicate Formal NLC facts into the media does not pose a danger to countrywide protection,” the SSA claimed, incorporating the influence from the breaches was reputational.

The SSA report found “no proof of a factual and incriminating mother nature from any in the suspected NLC workers which could be determined from the data and knowledge interrogated”.

In addition, it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does give enough motive to get these types of uncovered within the media”.

Conspiracy statements
In 2020, Nevhutanda instructed MPs during a session of Parliament’s trade, market and Level of competition portfolio committee that there was “a conspiracy” in which info “stolen” in the NLC was sent to the US, where he claimed it absolutely was currently being offered to fund a smear campaign from the NLC.

He was repeating related claims he experienced Formerly built in Parliament, which involved ad hominem assaults on GroundUp which reporter but was mindful not to call either.

“I came in this article On this August dwelling previous 12 months and reported to honourable associates that information regarding our beneficiaries has been stolen and put in one state in America,” he advised MPs.

“We identified as over the Point out Protection Agency to come consider the make a difference since we are getting experiences that our information and facts is creating funds for media platforms and journalists,” he stated. “There have been chat, obviously from one supply, one media, that spoke Substantially about proactive-funding,” Nevhutanda stated (referring to GroundUp), but did not convey to MPs which the SSA investigation had been accomplished Nearly a calendar year earlier.

Proactive funding was at the guts with the looting on the lottery. It facet-stepped the normal grant procedure. The NLC could by itself identify a challenge to fund and appoint a non-income organisation to supervise it.

Just after Nevhutanda 1st informed Parliament in 2018 that he experienced questioned the SSA to investigate the supposed breach, the South African National Editors Discussion board issued an announcement declaring that his remarks mirrored “an especially dangerous Mind-set exactly where the media is staying blamed for the NLC’s inherent challenges”.

“As opposed to investigating why thousands and thousands can not be accounted for, the NLC has instead tried to cast question on the integrity from the journalists involved and has questioned the SSA to research their sources.”

Proactive tasks produced magic formula
Security flaws discovered while in the NLC grant funding technique through the SSA’s investigation, appear to are actually applied as an excuse by the NLC to get rid of all proactive-funded projects from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘top secret’ and tasks ended up faraway from the grant funding system and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Office, Executive Manager Authorized to be able to safeguard [the] facts,” Nene stated in her affidavit.

“There was a great deal of inside dialogue, with a lot of forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was in a very senior posture in the NLC at time, informed GroundUp. “Ultimately, the decision was taken to eliminate all the proactive projects from the procedure and Restrict entry to A few persons”.

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

Maselwa, who resigned in the NLC quite a few several years ago, has long been implicated in corruption involving lottery money. He been given R4.3-million from lottery cash allotted to create a library and museum complex in Kuruman (see Taung Cultural Audio and Arts Expo) which he made use of to build a property within an upmarket gated enhancement in Pretoria. The property is one of numerous paid out for with lottery cash that were frozen following the Asset Forfeiture Unit acquired 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 superior-ups during the ANC Management, former NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated within the corruption which confused the NLC on their view.

Also implicated are previous board members William Huma, who resigned after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has because died.

Every time a new administration, including the total board and govt, took more than for the NLC in late 2022 and early 2023, they found a “chaotic mess” while in the documentation relating to proactive funding, Significantly of which was paper-dependent. Vital files were lacking. Files held for safekeeping by doc storage enterprise Metrofile were signed out and hardly ever returned.

The NLC was able to Get better copies of some ตรวจ ล้อ ต เต อ รี่ documents from its Mimecast e-mail archiving technique as well as laptops in their assistants and assistance workers.

News reviews
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave issue probable facts protection breaches along with the unauthorised use and/or dissemination of confidential information and facts received as a result of accomplishing official capabilities inside the Fee by NLC staff. The activities are intended to undermine the integrity of your Commission when disrupting the successful capabilities [of the NLC] and resulting in insurmountable reputational hurt for the Commission as being the custodian of private details entrusted to it by its beneficiaries.”

His request to the SSA to research was supported in an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is now facing a disciplinary inquiry following she was unsuccessful in legal motion to put aside findings of irregular expenditure on her view.

The purpose of her affidavit, Nene reported, was “to report the gatherings which transpired associated with details stability breaches for the National Lotteries Fee”.

She outlined many news experiences which she claimed had been the effects of these “breaches” (see at the conclusion of this informative article).

Nene reported that a whistle-blower approached the NLC alleging that among its staff members, Sello Qhino, experienced “provided her categorized NLC Data and persistently inspired her to offer the knowledge to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded initiatives in Kuruman immediately after tries to boost The problem internally had been ignored, was subsequently fired.

Referring to an 18 November 2018 posting during the Each day Dispatch with regards to the misappropriation of Lottery money, Nene stated which the NLC recognized and after that suspended Zintle Rungqu. She was an staff inside the NLC’s East London office, who was the lover and also the mom of whistleblower Mzukise Makatse’s a few kids.

Rungqu and Makatse believe that Rungqu was punished simply because Makatse blew the whistle. She was suspended and charged internally, Along with the NLC spending R470,000 on lawyers to signify it, but was identified not guilty and allowed to return to operate.

“The common Think about these articles is the fact that [they involve] labeled data relating to proactive funding assignments,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out in the household house to go ahead and take warmth off her and his children. Struggling with homelessness, he moved into an Place of work in an empty manufacturing facility belonging to a buddy.

Both Makatse and Qhino are taking part in an NLC reparation course of action meant to recognise the hurt some individuals suffered within the hands from the NLC. Apologies and, sometimes, economical payment are predicted.

“Some men and women had been really impacted really negatively by this … This is admittedly unpleasant,” NLC Commissioner Jodi Scholtz explained to the Each day Maverick very last year.

“I fulfilled two or three these men and women. It absolutely was just so heart-wrenching that their complete lives have already been turned the other way up,” claimed Scholtz.

Between People she satisfied had been Qhino and Makatse.

Protected platform desired for whistleblowers
The SSA observed the absence at some time of a proper channel for whistleblowers to report corruption led them to show to your media.

“Failure to have a devoted anti-corruption channel will result in staff members presenting this kind of scenarios beyond the NLC,” the SSA mentioned in its results.

“Specified the magnitude of corruption in state institutions, it remains vital that it makes sure that the NLC complies with all protection prescripts Which its concentration is on guaranteeing that unlawful and irregular carry out is adequately mitigated towards and by ensuring an sufficient channel for whistle-blowers to report untoward perform without the need of remaining intimidated.”

It encouraged the NLC establish a “safe channel” for workers to provide info on any “untoward activity” that could not avert or discourage workers from blowing the whistle. A whistle-blowers coverage, according to the Secured Disclosures Act twenty five of 2000, can be a need.”

Media reviews Nene shown
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Fitness Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator of the Limpopo Mirror, to expose NLC corruption. “The article experienced elements of data not out there in the general public domain, thereby boosting worry on inner Info security breaches. The allegations during the media ended up independently investigated,” Nene mentioned. “Nevertheless, workforce chargeable for divulging categorized information and facts have nevertheless to be recognized”;
A 28 January 2018 posting printed with the Dally Dispatch “citing numerous allegations from your Limpopo Mirror short article posted on ten December 2017 and a new allegation referring to a former employee from the name of Mzukisi Makatse. He was billed and summarily dismissed with the danger brought about to your organisation.”
A sixteen November 2018 write-up in 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 short article contained classified details with regard to NLC plan, raising additional worries of inside facts protection breaches,” Nene claimed in her affidavit. “The prima facie proof regarding these allegations did not warrant an independent Investigation, however [it] highlighted the heightened information stability challenges inside the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Principal Care, a hijacked NPO. Nene claimed GroundUp had verified in its story that it absolutely was depending on leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Access to Facts) request for information concerning the job, she said