Lottery bosses turned to Condition Safety Agency to research leaks

Lottery bosses turned to Condition Safety Agency to research leaks

Blog Article

Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Security Agency (SSA) in December 2018 to research the leaking of files that exposed lottery corruption.
The NLC’s firm secretary at enough time listed media reviews she explained have been based on “stolen” info within an affidavit with the SSA.
The SSA did examine. It located the information wasn't a subject of condition security and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to show it.
A whole new board and administration has since taken about the NLC and So far have taken actions to finish corruption in the institution.
A Point out Security Agency (SSA) investigation located which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied ample motive” for exposure with the media.

The probe into meant “details safety breaches and sabotage of NLC operations” was undertaken following then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” results and recommendations.
Nevhutanda requested the SSA to investigate the purpose of NLC personnel within the alleged leaking of data, and Nene, in her affidavit identified precise media and reports that she claimed included these leaks.

During the letter outlining its findings, the SSA advised the NLC that when guarding condition data was “a lawful very important aimed at defending the sovereignty and integrity in the state” this only placed on correctly classified details.

Although it didn't say so specifically, the SSA conclusions implied the allegedly leaked facts did not fall into this category.

Appreciably, the SSA produced it very clear that the necessity to secure state data “won't avert any particular person from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation uncovered the NLC facts associated with the alleged breach was “delicate and privileged in nature, although not classified in terms of the prescripts of your Minimal Information Safety Standards (MISS)”.

“The leakage from the appropriate sensitive Formal NLC information and facts into the media would not pose a menace to national security,” the SSA claimed, incorporating that the impression in the breaches was reputational.

The SSA report discovered “no proof of the factual and incriminating character versus any on the suspected NLC workers which could be recognized from the knowledge and details interrogated”.

Furthermore, it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does offer sufficient motive to acquire such uncovered in the media”.

Conspiracy promises
In 2020, Nevhutanda told MPs throughout a session of Parliament’s trade, market and Competitiveness portfolio committee that there was “a conspiracy” through which data “stolen” from your NLC was sent to your US, the place he claimed it was remaining offered to fund a smear marketing campaign in opposition to the NLC.

He was repeating similar statements he experienced previously designed in Parliament, which integrated advertisement hominem assaults on GroundUp which reporter but was mindful not to name both.

“I arrived here In this particular August dwelling last year and documented to honourable customers that information regarding our beneficiaries has long been stolen and set in a single condition in the united states,” he advised MPs.

“We referred to as about the State Security Company to come consider the matter because we have been acquiring reports that our information and facts is creating money for media platforms and journalists,” he claimed. “There has been converse, needless to say from a person source, one particular media, that spoke A great deal about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but did not notify MPs which the SSA investigation were done Nearly a yr earlier.

Proactive funding was at the heart from the looting from the lottery. It side-stepped the normal grant process. The NLC could alone establish a job to fund and appoint a non-financial gain organisation to oversee it.

Following Nevhutanda first explained to Parliament in 2018 that he had questioned the SSA to research the meant breach, the South African Nationwide Editors Discussion board issued a statement indicating that his remarks reflected “an incredibly hazardous Angle in which the media is remaining blamed for your NLC’s inherent challenges”.

“Rather than investigating why hundreds of thousands can't be accounted for, the NLC has in its place made an effort to Forged question to the integrity of your journalists associated and it has requested the SSA to investigate their resources.”

Proactive jobs built top secret
Protection flaws determined from the NLC grant funding procedure during the SSA’s investigation, appear to happen to be utilized as an justification because of the NLC to get rid of all proactive-funded tasks from its central grants method.

“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘key’ and projects were being removed from the grant funding system and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Govt Manager Authorized in order to safeguard [the] data,” Nene claimed in her affidavit.

“There was a lot of interior dialogue, with plenty of backwards and forwards, about what to do to plug the alleged leaks”, a source, who was inside of a senior place with the NLC at some time, explained to GroundUp. “Eventually, the decision was taken to remove every one of the proactive tasks through the method and Restrict entry to A few folks”.

Some in that handful of folks have been implicated in corruption.

Maselwa, who resigned within the NLC many many years ago, has become implicated in corruption involving lottery money. He received R4.three-million from lottery funds allocated to build a library and museum elaborate in Kuruman (see Taung Cultural Tunes and Arts Expo) which he used to create a household within an upmarket gated advancement in Pretoria. The house is one of various compensated for with lottery resources which were frozen following the Asset Forfeiture Device received a preservation purchase 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 large-ups within the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated within the corruption which overcome the NLC on their own view.

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

When a new administration, including the total board and govt, took around at the NLC in late 2022 and early 2023, they discovered a “chaotic mess” in the documentation concerning proactive funding, A great deal of which was paper-dependent. Essential documents ended up missing. Documents held for safekeeping by document storage corporation Metrofile had been signed out and under no circumstances returned.

The NLC was in the position to recover copies of some ltpbet files from its Mimecast e mail archiving program and also the laptops in their assistants and assist employees.

Information reviews
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave issue attainable information protection breaches and the unauthorised use and/or dissemination of confidential data received on account of carrying out official functions inside the Commission by NLC personnel. The functions are meant to undermine the integrity on the Commission although disrupting the powerful functions [from the NLC] and creating insurmountable reputational hurt to your Commission as the custodian of private data entrusted to it by its beneficiaries.”

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

Nene is currently experiencing a disciplinary inquiry right after she was unsuccessful in authorized motion to put aside results of irregular expenditure on her observe.

The purpose of her affidavit, Nene stated, was “to record the situations which transpired concerning facts safety breaches within the Nationwide Lotteries Fee”.

She shown numerous information reviews which she claimed ended up the outcomes of such “breaches” (see at the conclusion of this information).

Nene stated that a whistle-blower approached the NLC alleging that considered one of its workers, Sello Qhino, had “presented her categorised NLC Information and persistently inspired her to provide the information to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded jobs in Kuruman after attempts to lift The problem internally have been dismissed, was subsequently fired.

Referring to an 18 November 2018 article in the Day by day Dispatch with regard to the misappropriation of Lottery cash, 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 associate and also the mother of whistleblower Mzukise Makatse’s 3 children.

Rungqu and Makatse imagine Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Together with the NLC paying out R470,000 on legal professionals to represent it, but was discovered not guilty and permitted to return to operate.

“The popular Think about these article content is usually that [they contain] labeled facts associated with proactive funding tasks,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out of your relatives residence to go ahead and take heat off her and his children. Experiencing homelessness, he moved into an Workplace within an vacant factory belonging to a buddy.

Both Makatse and Qhino are participating in an NLC reparation approach intended to recognise the harm a number of people experienced at the hands from the NLC. Apologies and, in some instances, fiscal compensation are anticipated.

“Some men and women ended up seriously influenced quite negatively by this … This is absolutely unpleasant,” NLC Commissioner Jodi Scholtz informed the Daily Maverick past 12 months.

“I satisfied a couple of these people today. It had been just so coronary heart-wrenching that their complete life are already turned upside down,” explained Scholtz.

Among All those she met have been Qhino and Makatse.

Safe platform essential for whistleblowers
The SSA uncovered the absence at the time of a correct channel for whistleblowers to report corruption led them to turn on the media.

“Failure to possess a committed anti-corruption channel will bring about employees presenting this kind of circumstances outside of the NLC,” the SSA stated in its findings.

“Given the magnitude of corruption in point out establishments, it remains essential that it ensures that the NLC complies with all protection prescripts and that its focus is on making sure that illegal and irregular perform is adequately mitigated versus and by guaranteeing an sufficient channel for whistle-blowers to report untoward perform without having remaining intimidated.”

It advisable which the NLC establish a “Risk-free channel” for workers to provide information on any “untoward action” that could not prevent or discourage staff from blowing the whistle. A whistle-blowers coverage, based upon the Shielded Disclosures Act twenty five of 2000, is really a requirement.”

Media reviews Nene detailed
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Physical fitness Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor of the Limpopo Mirror, to show NLC corruption. “The report had things of knowledge not available in the general public area, therefore boosting problem on interior Details stability breaches. The allegations inside the media ended up independently investigated,” Nene claimed. “On the other hand, workforce to blame for divulging categorised information and facts have yet to be identified”;
A 28 January 2018 article revealed from the Dally Dispatch “citing various allegations from your Limpopo Mirror posting printed on ten December 2017 along with a new allegation regarding a previous personnel with the title of Mzukisi Makatse. He was charged and summarily dismissed to the threat triggered on the organisation.”
A 16 November 2018 short article while in the Lowvelder with regard to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Regardless of acquiring R27-million in lottery grants, the rehab hasn't been concluded. “The Lowvelder short article contained categorized details concerning NLC policy, elevating further more issues of inside details safety breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, on the other hand [it] highlighted the heightened facts protection pitfalls throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Principal Care, a hijacked NPO. Nene reported GroundUp had verified in its story that it absolutely was according to leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Usage of Data) request for aspects with regard to the job, she stated