Lottery bosses turned to State Security Agency to investigate leaks

Lottery bosses turned to State Security Agency to investigate leaks

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Former National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Security Agency (SSA) in December 2018 to analyze the leaking of documents that exposed lottery corruption.
The NLC’s business secretary at enough time mentioned media reviews she reported were based on “stolen” data within an affidavit for that SSA.
The SSA did look into. It identified the information was not a issue of condition protection and that the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to expose it.
A fresh board and administration has since taken above the NLC and So far have taken steps to finish corruption within the institution.
A Point out Stability Agency (SSA) investigation discovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied enough motive” for exposure via the media.

The probe into supposed “details stability breaches and sabotage of NLC functions” was undertaken following then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to investigate.

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” conclusions and recommendations.
Nevhutanda asked the SSA to investigate the position of NLC workers within the alleged leaking of knowledge, and Nene, in her affidavit identified distinct media and reports that she claimed associated these leaks.

While in the letter outlining its findings, the SSA explained to the NLC that although safeguarding state information was “a lawful critical aimed toward safeguarding the sovereignty and integrity in the point out” this only applied to appropriately categorized facts.

Although it didn't say so instantly, the SSA findings implied which the allegedly leaked facts didn't tumble into this classification.

Substantially, the SSA created it obvious that the need to secure state data “won't stop any specific from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation found the NLC info involved with the alleged breach was “delicate and privileged in nature, but not labeled regarding the prescripts of your Minimum Data Protection Standards (MISS)”.

“The leakage of the suitable delicate Formal NLC info for the media will not pose a threat to countrywide stability,” the SSA claimed, incorporating that the effects with the breaches was reputational.

The SSA report identified “no proof of a factual and incriminating mother nature in opposition to any from the suspected NLC employees which could be recognized from the information and facts interrogated”.

In addition it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does supply enough motive to get these types of exposed inside the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs for the duration of a session of Parliament’s trade, marketplace and Competitors portfolio committee that there was “a conspiracy” during which facts “stolen” through the NLC was sent towards the US, exactly where he claimed it absolutely was staying offered to fund a smear marketing campaign from the NLC.

He was repeating related claims he experienced previously built in Parliament, which provided ad hominem attacks on GroundUp which reporter but was very careful not to call both.

“I arrived below On this August house previous 12 months and claimed to honourable associates that information regarding our beneficiaries has been stolen and put in one point out in America,” he informed MPs.

“We named to the Point out Safety Agency to come back look into the make any difference simply because we are acquiring studies that our data is producing cash for media platforms and journalists,” he said. “There have been discuss, of course from one supply, a single media, that spoke A lot about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but failed to notify MPs that the SSA investigation had been done Practically a year earlier.

Proactive funding was at the heart in the looting with the lottery. It facet-stepped the normal grant method. The NLC could by itself recognize a task to fund and appoint a non-financial gain organisation to oversee it.

Soon after Nevhutanda very first informed Parliament in 2018 that he had questioned the SSA to research the intended breach, the South African Nationwide Editors Discussion board issued a press release indicating that his remarks mirrored “an especially perilous attitude where the media is being blamed for your NLC’s inherent issues”.

“Instead of investigating why millions can't be accounted for, the NLC has as an alternative made an effort to cast doubt to the integrity in the journalists included and it has questioned the SSA to investigate their sources.”

Proactive tasks created top secret
Stability flaws identified inside the NLC grant funding procedure through the SSA’s investigation, look to are applied as an justification with the NLC to remove all proactive-funded assignments from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘secret’ and initiatives have been removed from the grant funding process and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Place of work, Govt Supervisor Legal as a way to safeguard [the] info,” Nene reported in her affidavit.

“There was plenty of inside dialogue, with lots of back and forth, about how to proceed to plug the alleged leaks”, a source, who was in a very senior position with the NLC at enough time, instructed GroundUp. “In the long run, the decision was taken to get rid of the many proactive assignments within the technique and Restrict usage of A few people”.

Some in that handful of folks were implicated in corruption.

Maselwa, who resigned from the NLC a number of several years back, has been implicated in corruption involving lottery money. He obtained R4.three-million from lottery cash allocated to develop a library and museum intricate in Kuruman (see Taung Cultural Music and Arts Expo) which he applied to construct a household within an upmarket gated enhancement in Pretoria. The home is among several paid out for with lottery resources which were frozen following the Asset Forfeiture Device obtained a preservation purchase in December 2022.

The politically-linked Nevhutanda, who was appointed given that the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to significant-ups within the ANC leadership, former NLC former Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated from the corruption which overcome the NLC on their own watch.

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

Whenever a new administration, including the full board and govt, took over in the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation associated with proactive funding, Substantially of which was paper-dependent. Essential paperwork were missing. Files held for safekeeping by doc storage enterprise Metrofile had been signed out and by no means returned.

The NLC was able to Get well copies of some หวย หุ้น files from its Mimecast electronic mail archiving procedure and the laptops in their assistants and assist workers.

News reports
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry attainable info stability breaches plus the unauthorised use and/or dissemination of confidential facts acquired due to accomplishing Formal functions within the Commission by NLC staff. The pursuits are meant to undermine the integrity on the Fee while disrupting the successful capabilities [of your NLC] and leading to insurmountable reputational harm towards the Commission because the custodian of personal information entrusted to it by its beneficiaries.”

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

Nene is at present facing a disciplinary inquiry after she was unsuccessful in authorized motion to set aside results of irregular expenditure on her check out.

The purpose of her affidavit, Nene explained, was “to record the activities which transpired regarding information security breaches in the National Lotteries Commission”.

She detailed a variety of news reviews which she claimed have been the outcome of these “breaches” (see at the conclusion of this short article).

Nene stated that a whistle-blower approached the NLC alleging that certainly one of its employees, Sello Qhino, experienced “presented her categorized NLC Information and facts and persistently encouraged her to provide the knowledge to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded initiatives in Kuruman following tries to lift the issue internally ended up disregarded, was subsequently fired.

Referring to an 18 November 2018 write-up during the Daily Dispatch with regards to the misappropriation of Lottery resources, Nene reported which the NLC discovered and after that suspended Zintle Rungqu. She was an employee within the NLC’s East London Place of work, who was the companion as well as the mom of whistleblower Mzukise Makatse’s 3 youngsters.

Rungqu and Makatse think Rungqu was punished because Makatse blew the whistle. She was suspended and billed internally, With all the NLC spending R470,000 on attorneys to represent it, but was observed not responsible and allowed to return to work.

“The popular factor in these content is [they require] categorised info associated with proactive funding jobs,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out from the loved ones property to go ahead and take heat off her and his little ones. Experiencing homelessness, he moved into an Business within an vacant manufacturing facility belonging to a colleague.

Equally Makatse and Qhino are taking part in an NLC reparation course of action intended to recognise the harm lots of people endured at the palms of the NLC. Apologies and, sometimes, economic payment are expected.

“Some men and women were being actually influenced very negatively by this … This is absolutely agonizing,” NLC Commissioner Jodi Scholtz explained to the Daily Maverick final yr.

“I satisfied several these men and women. It had been just so heart-wrenching that their entire lives have been turned the other way up,” reported Scholtz.

Between People she satisfied were Qhino and Makatse.

Harmless platform needed for whistleblowers
The SSA uncovered the absence at time of a proper channel for whistleblowers to report corruption led them to turn to the media.

“Failure to have a committed anti-corruption channel will lead to staff members presenting this kind of conditions outside of the NLC,” the SSA mentioned in its results.

“Specified the magnitude of corruption in point out establishments, it remains vital that it makes sure that the NLC complies with all safety prescripts and that its emphasis is on making certain that illegal and irregular conduct is sufficiently mitigated versus and by making sure an suitable channel for whistle-blowers to report untoward carry out without being intimidated.”

It suggested that the NLC build a “Safe and sound channel” for employees to provide info on any “untoward activity” that may not protect against or discourage staff members from blowing the whistle. A whistle-blowers policy, according to the Guarded Disclosures Act twenty five of 2000, can be a requirement.”

Media stories Nene outlined
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Health and fitness Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to show NLC corruption. “The article experienced components of information not offered in the public domain, thus increasing problem on internal Information stability breaches. The allegations in the media ended up independently investigated,” Nene claimed. “On the other hand, personnel answerable for divulging classified facts have still for being identified”;
A 28 January 2018 article released through the Dally Dispatch “citing various allegations from your Limpopo Mirror short article published on 10 December 2017 plus a new allegation concerning a previous staff from the identify of Mzukisi Makatse. He was charged and summarily dismissed with the risk induced to the organisation.”
A 16 November 2018 article within the Lowvelder concerning the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Despite getting R27-million in lottery grants, the rehab hasn't been finished. “The Lowvelder write-up contained classified info with regards to NLC policy, increasing additional problems of internal data security breaches,” Nene said in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, however [it] highlighted the heightened information stability dangers throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene explained GroundUp had confirmed in its Tale that it had been depending on leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Marketing of Entry to Details) request for particulars regarding the venture, she reported