Lottery bosses turned to Condition Security Agency to investigate leaks

Former National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Condition Stability Agency (SSA) in December 2018 to analyze the leaking of documents that uncovered lottery corruption.
The NLC’s organization secretary at some time detailed media experiences she mentioned were being based upon “stolen” info in an affidavit to the SSA.
The SSA did examine. It uncovered the data wasn't a matter of state security and which the “prevalence of alleged corruption and irregularities” gave “enough motive” for that media to reveal it.
A completely new board and administration has due to the fact taken about the NLC and To this point have taken measures to finish corruption with the institution.
A Point out Safety Company (SSA) investigation located that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished ample motive” for publicity from the media.

The probe into intended “info protection breaches and sabotage of NLC functions” was carried out right after then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “private” conclusions and proposals.
Nevhutanda requested the SSA to research the purpose of NLC staff members during the alleged leaking of data, and Nene, in her affidavit determined distinct media and reviews that she claimed involved these leaks.

In the letter outlining its conclusions, the SSA advised the NLC that whilst shielding state data was “a legal critical aimed toward protecting the sovereignty and integrity in the state” this only applied to appropriately categorised information.

Although it did not say so specifically, the SSA results implied that the allegedly leaked information did not tumble into this group.

Appreciably, the SSA produced it obvious that the necessity to protect condition facts “doesn't avert any individual from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation located the NLC details involved with the alleged breach was “delicate and privileged in mother nature, although not labeled when it comes to the prescripts from the Least Facts Safety Specifications (Miss out on)”.

“The leakage with the suitable delicate Formal NLC facts for the media does not pose a threat to national safety,” the SSA explained, incorporating the effects of your breaches was reputational.

The SSA report found “no proof of the factual and incriminating character in opposition to any on the suspected NLC personnel that would be recognized from the information and data interrogated”.

Additionally, it mentioned that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does offer sufficient motive to get this kind of uncovered within the media”.

Conspiracy statements
In 2020, Nevhutanda explained to MPs for the duration of a session of Parliament’s trade, industry and Level of competition portfolio committee that there was “a conspiracy” by which data “stolen” within the NLC was sent towards the US, in which he claimed it had been currently being marketed to fund a smear campaign towards the NLC.

He was repeating equivalent claims he experienced Beforehand designed in Parliament, which involved advertisement hominem attacks on GroundUp which reporter but was mindful not to name both.

“I came in this article With this August property last 12 months and noted to honourable users that details about our beneficiaries has been stolen and place in a single point out in America,” he instructed MPs.

“We called about the Point out Stability Company to return consider the subject for the reason that we are getting reviews that our details is creating income for media platforms and journalists,” he explained. “There's been speak, needless to say from 1 source, just one media, that spoke Substantially about proactive-funding,” Nevhutanda explained (referring to GroundUp), but failed to notify MPs that the SSA investigation had been completed Just about a year previously.

Proactive funding was at the guts in the looting of your lottery. It side-stepped the conventional grant system. The NLC could itself discover a project to fund and appoint a non-earnings organisation to oversee it.

Immediately after Nevhutanda first informed Parliament in 2018 that he had asked the SSA to investigate the meant breach, the South African Countrywide Editors Discussion board issued an announcement declaring that his remarks reflected “a particularly harmful Mindset where the media is being blamed with the NLC’s inherent challenges”.

“As an alternative to investigating why hundreds of thousands can not be accounted for, the NLC has alternatively tried to Solid question around the integrity with the journalists involved and has requested the SSA to analyze their sources.”

Proactive assignments built magic formula
Safety flaws determined from the NLC grant funding technique throughout the SSA’s investigation, surface to have already been utilised being an excuse through the NLC to remove all proactive-funded tasks from its central grants procedure.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘mystery’ and tasks were faraway from the grant funding technique and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Business office, Govt Manager Lawful as a way to safeguard [the] facts,” Nene explained in her affidavit.

“There was loads of interior dialogue, with numerous forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was in a very senior placement within the NLC at time, explained to GroundUp. “Ultimately, the decision was taken to get rid of each of the proactive jobs with the method and limit access to a handful of men and women”.

Some in that handful of individuals had been implicated in corruption.

Maselwa, who resigned within the NLC a number of a long time in the past, continues to be implicated in corruption involving lottery funds. He acquired R4.3-million from lottery money allocated to make a library and museum sophisticated in Kuruman (see Taung Cultural Tunes and Arts Expo) which he made use of to make a house within an upmarket gated progress in Pretoria. The residence is among a number of compensated for with lottery resources which were frozen following the Asset Forfeiture Device obtained a preservation get in December 2022.

The politically-related Nevhutanda, who was appointed given that the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to higher-ups inside the ANC Management, former NLC previous Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated during the corruption which overwhelmed the NLC on their check out.

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

When a new administration, including the entire board and government, took above on the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” from the documentation associated with proactive funding, A great deal of which was paper-centered. Vital paperwork have been lacking. Information held for safekeeping by doc storage enterprise Metrofile were signed out and under no circumstances returned.

The NLC was ready to Recuperate copies of some สลาก กิน รัฐบาล files from its Mimecast e-mail archiving system as well as laptops in their assistants and assist staff members.

Information studies
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem possible information protection breaches as well as the unauthorised use and/or dissemination of private data attained because of performing official features during the Fee by NLC personnel. The things to do are meant to undermine the integrity from the Fee whilst disrupting the successful features [with the NLC] and producing insurmountable reputational hurt to the Fee as being the custodian of non-public details entrusted to it by its beneficiaries.”

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

Nene is at present going through a disciplinary inquiry after she was unsuccessful in authorized motion to put aside findings of irregular expenditure on her look at.

The purpose of her affidavit, Nene explained, was “to record the gatherings which transpired regarding information and facts stability breaches on the Nationwide Lotteries Fee”.

She stated many information reports which she claimed were the outcomes of these “breaches” (see at the conclusion of this short article).

Nene said that a whistle-blower approached the NLC alleging that one of its workforce, Sello Qhino, experienced “supplied her classified NLC Info and persistently inspired her to supply the data to GroundUp”.

Qhino, who blew the whistle on a series of dodgy lottery-funded projects in Kuruman just after attempts to raise the issue internally had been dismissed, was subsequently fired.

Referring to an 18 November 2018 post within the Everyday Dispatch regarding the misappropriation of Lottery funds, Nene claimed that the NLC discovered then suspended Zintle Rungqu. She was an employee while in the NLC’s East London Workplace, who was the lover and also the mother of whistleblower Mzukise Makatse’s 3 small children.

Rungqu and Makatse think Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and billed internally, Along with the NLC expending R470,000 on legal professionals to stand for it, but was found not responsible and permitted to return to work.

“The typical Think about these article content is usually that [they require] categorized info concerning proactive funding initiatives,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out of the spouse and children residence to go ahead and take heat off her and his young children. Facing homelessness, he moved into an Business office within an vacant factory belonging to a buddy.

Both of those Makatse and Qhino are taking part in an NLC reparation process intended to recognise the harm many people endured with the palms on the NLC. Apologies and, sometimes, fiscal compensation are expected.

“Some individuals had been truly affected pretty negatively by this … This is de facto unpleasant,” NLC Commissioner Jodi Scholtz told the Each day Maverick final calendar year.

“I satisfied a couple of these men and women. It absolutely was just so heart-wrenching that their complete life happen to be turned the wrong way up,” reported Scholtz.

Amid These she achieved had been Qhino and Makatse.

Risk-free System required for whistleblowers
The SSA discovered the absence at time of a suitable channel for whistleblowers to report corruption led them to show for the media.

“Failure to possess a focused anti-corruption channel will lead to staff members presenting this sort of conditions beyond the NLC,” the SSA stated in its findings.

“Provided the magnitude of corruption in state institutions, it remains very important that it makes certain that the NLC complies with all safety prescripts and that its target is on ensuring that unlawful and irregular carry out is adequately mitigated against and by making sure an enough channel for whistle-blowers to report untoward carry out with out being intimidated.”

It encouraged that the NLC establish a “Safe and sound channel” for employees to supply info on any “untoward activity” that may not avert or discourage employees from blowing the whistle. A whistle-blowers policy, based upon the Protected Disclosures Act twenty five of 2000, is really a prerequisite.”

Media stories Nene detailed
A 10 December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Physical fitness Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and operator on the Limpopo Mirror, to expose NLC corruption. “The posting had features of information not available in the public domain, therefore raising problem on interior Data security breaches. The allegations during the media have been independently investigated,” Nene said. “On the other hand, personnel to blame for divulging classified data have still to get recognized”;
A 28 January 2018 short article posted from the Dally Dispatch “citing many allegations in the Limpopo Mirror article posted on ten December 2017 as well as a new allegation referring to a previous worker by the title of Mzukisi Makatse. He was charged and summarily dismissed with the menace triggered to the organisation.”
A 16 November 2018 posting within the Lowvelder concerning the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite receiving R27-million in lottery grants, the rehab hasn't been completed. “The Lowvelder report contained labeled information and facts in terms of NLC plan, boosting even further problems of inside data security breaches,” Nene explained in her affidavit. “The prima facie proof with regard to these allegations didn't warrant an unbiased Investigation, however [it] highlighted the heightened info security pitfalls within the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Main Treatment, a hijacked NPO. Nene said GroundUp had verified in its Tale that it was determined by leaked NLC files. This was despite the NLC rejecting a PAIA (Marketing of Use of Information) request for aspects regarding the job, she said

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