Lottery bosses turned to State Stability Company to investigate leaks

Lottery bosses turned to State Stability Company to investigate leaks

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Previous Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Stability Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s organization secretary at time shown media stories she reported were being according to “stolen” info within an affidavit for that SSA.
The SSA did examine. It discovered the data was not a matter of condition security and the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to expose it.
A different board and management has considering the fact that taken above the NLC and Up to now have taken measures to end corruption with the establishment.
A Point out Security Agency (SSA) investigation identified the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished enough motive” for publicity via the media.

The probe into meant “information and facts stability breaches and sabotage of NLC functions” was undertaken soon after then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to research.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” findings and recommendations.
Nevhutanda asked the SSA to investigate the role of NLC workers during the alleged leaking of information, and Nene, in her affidavit identified unique media and studies that she claimed concerned these leaks.

In the letter outlining its conclusions, the SSA advised the NLC that when guarding condition data was “a authorized essential geared toward preserving the sovereignty and integrity of the condition” this only placed on correctly categorised information.

Even though it didn't say so straight, the SSA findings implied which the allegedly leaked info didn't tumble into this group.

Considerably, the SSA produced it very clear that the need to shield condition details “will not stop any individual from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation uncovered that the NLC data linked to the alleged breach was “sensitive and privileged in character, but not labeled with regards to the prescripts with the Minimum Info Safety Expectations (Miss out on)”.

“The leakage of your relevant delicate Formal NLC facts to your media won't pose a menace to national security,” the SSA reported, incorporating that the impact with the breaches was reputational.

The SSA report located “no proof of a factual and incriminating mother nature in opposition to any of the suspected NLC staff members that might be discovered from the information and knowledge interrogated”.

Additionally, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does deliver ample motive to get these uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs in the course of a session of Parliament’s trade, market and Levels of competition portfolio committee that there was “a conspiracy” where facts “stolen” through the NLC was sent to the US, where by he claimed it had been becoming marketed to fund a smear campaign from the NLC.

He was repeating equivalent promises he had Formerly created in Parliament, which integrated advert hominem attacks on GroundUp and this reporter but was careful not to name both.

“I arrived listed here On this August house previous calendar year and reported to honourable associates that information regarding our beneficiaries has been stolen and place in a single state in America,” he advised MPs.

“We termed on the State Security Company to return look into the matter since we are obtaining reports that our information is building income for media platforms and journalists,” he explained. “There has been communicate, naturally from a single resource, a person media, that spoke Substantially about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't notify MPs that the SSA investigation had been concluded Nearly a 12 months before.

Proactive funding was at the heart on the looting of your lottery. It side-stepped the normal grant approach. The NLC could by itself identify a undertaking to fund and appoint a non-financial gain organisation to supervise it.

Following Nevhutanda 1st advised Parliament in 2018 that he had questioned the SSA to research the intended breach, the South African Nationwide Editors Forum issued a press release indicating that his remarks mirrored “an especially unsafe Perspective in which the media is getting blamed for your NLC’s inherent difficulties”.

“Instead of investigating why tens of millions cannot be accounted for, the NLC has in its place tried to Forged doubt over the integrity with the journalists concerned and it has requested the SSA to investigate their sources.”

Proactive assignments created solution
Stability flaws recognized inside the NLC grant funding system during the SSA’s investigation, show up to are utilised as an excuse because of the NLC to remove all proactive-funded projects from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘mystery’ and tasks were removed from the grant funding procedure and managed manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Workplace, Government Supervisor Legal as a way to safeguard [the] information and facts,” Nene mentioned in her affidavit.

“There was a great deal of inside dialogue, with a great deal of backwards and forwards, about what to do to plug the alleged leaks”, a source, who was inside a senior posture with the NLC at some time, instructed GroundUp. “In the long run, the choice was taken to remove all of the proactive projects with the system and limit entry to A few men and women”.

Some in that handful of men and women ended up implicated in corruption.

Maselwa, who resigned from your NLC numerous several years in the past, has actually been implicated in corruption involving lottery money. He been given R4.three-million from lottery money allotted to create a library and museum intricate in Kuruman (see Taung Cultural Music and Arts Expo) which he made use of to construct a household within an upmarket gated advancement in Pretoria. The assets is among several paid for with lottery funds which were frozen following the Asset Forfeiture Unit attained a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed given that the NLC board chairperson by former President Jacob Zuma in 2009 and was near to higher-ups from the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated inside 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 experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has considering that died.

Every time a new administration, such as the total board and government, took above on the NLC in late 2022 and early 2023, they identified a “chaotic mess” inside the documentation referring to proactive funding, A lot of which was paper-centered. Critical documents were being missing. Data files held for safekeeping by document storage enterprise Metrofile had been signed out and hardly ever returned.

The NLC was in the position to recover copies of some ตรวจ รางวัล files from its Mimecast e mail archiving program and also the laptops in their assistants and help staff.

News reports
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave issue achievable information and facts security breaches along with the unauthorised use and/or dissemination of private info acquired due to accomplishing Formal capabilities within the Commission by NLC workers. The routines are intended to undermine the integrity in the Commission whilst disrupting the efficient functions [of your NLC] and producing insurmountable reputational damage on the Commission given that the custodian of non-public details entrusted to it by its beneficiaries.”

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

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

The goal of her affidavit, Nene stated, was “to file the situations which transpired relating to details protection breaches for the Countrywide Lotteries Fee”.

She stated several information studies which she claimed have been the final results of those “breaches” (see at the end of this informative article).

Nene stated that a whistle-blower approached the NLC alleging that certainly one of its employees, Sello Qhino, experienced “supplied her categorised NLC Facts and persistently encouraged her to offer the information to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded tasks in Kuruman just after attempts to boost The difficulty internally were dismissed, was subsequently fired.

Referring to an eighteen November 2018 posting within the Day-to-day Dispatch about the misappropriation of Lottery funds, Nene explained which the NLC identified after which suspended Zintle Rungqu. She was an personnel from the NLC’s East London Business office, who was the partner along with the mom of whistleblower Mzukise Makatse’s three young children.

Rungqu and Makatse believe Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and billed internally, with the NLC paying R470,000 on attorneys to depict it, but was observed not responsible and permitted to return to work.

“The frequent Consider these content articles is always that [they entail] categorized info referring to proactive funding projects,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out on the loved ones home to go ahead and take warmth off her and his young children. Dealing with homelessness, he moved into an Business in an empty manufacturing unit belonging to a pal.

Both equally Makatse and Qhino are participating in an NLC reparation method meant to recognise the hurt some individuals endured for the arms of your NLC. Apologies and, in some cases, monetary compensation are expected.

“Some people had been actually impacted extremely negatively by this … This is basically painful,” NLC Commissioner Jodi Scholtz explained to the Day by day Maverick very last yr.

“I met two or three these men and women. It was just so heart-wrenching that their whole life are already turned the wrong way up,” claimed Scholtz.

Between People she fulfilled had been Qhino and Makatse.

Protected platform needed for whistleblowers
The SSA found the absence at some time of a suitable channel for whistleblowers to report corruption led them to show to your media.

“Failure to have a devoted anti-corruption channel will result in workforce presenting these circumstances beyond the NLC,” the SSA explained in its conclusions.

“Specified the magnitude of corruption in state establishments, it remains critical that it makes certain that the NLC complies with all stability prescripts Which its focus is on ensuring that illegal and irregular conduct is adequately mitigated versus and by making sure an sufficient channel for whistle-blowers to report untoward carry out without staying intimidated.”

It recommended the NLC establish a “Safe and sound channel” for employees to provide info on any “untoward action” that would not prevent or discourage workforce from blowing the whistle. A whistle-blowers policy, according to the Secured Disclosures Act 25 of 2000, is usually a necessity.”

Media stories Nene outlined
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Exercise Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator of your Limpopo Mirror, to show NLC corruption. “The posting experienced features of data not readily available in the general public domain, thereby boosting worry on inside Details safety breaches. The allegations in the media were being independently investigated,” Nene claimed. “On the other hand, personnel answerable for divulging classified facts have but to generally be identified”;
A 28 January 2018 short article published because of the Dally Dispatch “citing several allegations from the Limpopo Mirror report published on 10 December 2017 and a new allegation concerning a previous staff from the name of Mzukisi Makatse. He was charged and summarily dismissed for your risk induced to your organisation.”
A 16 November 2018 write-up inside the Lowvelder about the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has described how, in spite of acquiring R27-million in lottery grants, the rehab has never been done. “The Lowvelder report contained classified information and facts with regard to NLC policy, elevating further considerations of interior details protection breaches,” Nene said in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, nonetheless [it] highlighted the heightened information and facts security hazards inside the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Main Care, a hijacked NPO. Nene stated GroundUp experienced verified in its story that it was according to leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Promotion of Usage of Information and facts) request for specifics regarding the project, she claimed