Lottery bosses turned to Condition Protection Company to analyze leaks

Lottery bosses turned to Condition Protection Company to analyze leaks

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Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Condition Security Agency (SSA) in December 2018 to research the leaking of documents that exposed lottery corruption.
The NLC’s firm secretary at the time shown media reports she stated ended up according to “stolen” details in an affidavit for the SSA.
The SSA did look into. It uncovered the data was not a subject of point out stability and that the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to show it.
A different board and administration has considering that taken more than the NLC and To this point have taken steps to end corruption in the establishment.
A Point out Protection Agency (SSA) investigation located that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied enough motive” for publicity from the media.

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

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the security agency’s “confidential” conclusions and recommendations.
Nevhutanda asked the SSA to research the job of NLC employees during the alleged leaking of data, and Nene, in her affidavit determined unique media and studies that she claimed concerned these leaks.

Inside the letter outlining its findings, the SSA informed the NLC that whilst guarding point out information and facts was “a legal vital aimed at defending the sovereignty and integrity of the condition” this only placed on appropriately labeled facts.

Even though it did not say so specifically, the SSA findings implied that the allegedly leaked information and facts did not drop into this class.

Drastically, the SSA built it clear that the need to shield state details “doesn't prevent any individual from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation observed which the NLC information linked to the alleged breach was “sensitive and privileged in character, although not categorized regarding the prescripts from the Least Information Safety Standards (Skip)”.

“The leakage on the suitable delicate Formal NLC facts on the media does not pose a threat to nationwide protection,” the SSA stated, incorporating which the affect in the breaches was reputational.

The SSA report observed “no proof of the factual and incriminating character against any of your suspected NLC workforce that might be determined from the information and knowledge interrogated”.

It also mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does supply enough motive to have such exposed during the media”.

Conspiracy promises
In 2020, Nevhutanda instructed MPs all through a session of Parliament’s trade, field and Opposition portfolio committee that there was “a conspiracy” during which information “stolen” within the NLC was despatched to the US, the place he claimed it was being offered to fund a smear campaign in opposition to the NLC.

He was repeating similar claims he had Beforehand manufactured in Parliament, which involved advert hominem assaults on GroundUp which reporter but was careful not to name both.

“I came below in this August dwelling previous year and claimed to honourable customers that details about our beneficiaries has become stolen and place in one point out in America,” he told MPs.

“We called to the State Safety Agency to return explore the make any difference due to the fact we have been receiving reports that our details is creating money for media platforms and journalists,” he said. “There have been converse, not surprisingly from a person source, 1 media, that spoke A great deal about proactive-funding,” Nevhutanda explained (referring to GroundUp), but didn't inform MPs that the SSA investigation had been concluded Virtually a year earlier.

Proactive funding was at the center of your looting from the lottery. It aspect-stepped the traditional grant process. The NLC could by itself establish a project to fund and appoint a non-income organisation to supervise it.

Just after Nevhutanda first informed Parliament in 2018 that he had asked the SSA to analyze the meant breach, the South African Countrywide Editors Discussion board issued a statement indicating that his remarks reflected “an extremely risky Perspective exactly where the media is being blamed for the NLC’s inherent challenges”.

“As opposed to investigating why millions can't be accounted for, the NLC has in its place attempted to Forged question within the integrity on the journalists associated and has questioned the SSA to research their resources.”

Proactive assignments designed key
Security flaws determined inside the NLC grant funding system in the SSA’s investigation, show up to happen to be employed as an excuse by the NLC to get rid of all proactive-funded initiatives from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘secret’ and jobs had been removed from the grant funding process and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Workplace, Govt Supervisor Authorized so that you can safeguard [the] information and facts,” Nene mentioned in her affidavit.

“There was many inner dialogue, with a lot of back and forth, about how to proceed to plug the alleged leaks”, a resource, who was in a very senior position within the NLC at the time, advised GroundUp. “In the long run, the choice was taken to eliminate every one of the proactive assignments from your process and Restrict use of a handful of persons”.

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

Maselwa, who resigned through the NLC many yrs ago, is implicated in corruption involving lottery funds. He gained R4.3-million from lottery funds allotted to create a library and museum complicated in Kuruman (see Taung Cultural New music and Arts Expo) which he applied to construct a property within an upmarket gated development in Pretoria. The residence is among quite a few compensated for with lottery cash that were frozen after the Asset Forfeiture Device received a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to superior-ups from the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-chief functioning officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their own look at.

Also implicated are previous board associates William Huma, who resigned following he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got because died.

Every time a new administration, such as the full board and executive, took over on the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation associated with proactive funding, Considerably of which was paper-based mostly. Crucial documents had been lacking. Documents held for safekeeping by document storage business Metrofile were signed out and under no circumstances returned.

The NLC was ready to Recuperate copies of some หวย ออก files from its Mimecast electronic mail archiving technique along with the laptops of their assistants and guidance workers.

Information stories
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry possible data stability breaches as well as the unauthorised use and/or dissemination of private details received on account of carrying out official capabilities within the Commission by NLC staff members. The activities are intended to undermine the integrity from the Commission whilst disrupting the successful functions [from the NLC] and creating insurmountable reputational harm for 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 in an affidavit by suspended NLC company secretary, Nomphumelelo Nene.

Nene is at this time going through a disciplinary inquiry after she was unsuccessful in authorized motion to put aside conclusions of irregular expenditure on her observe.

The objective of her affidavit, Nene said, was “to document the functions which transpired concerning information security breaches on the Nationwide Lotteries Commission”.

She outlined different news reports which she claimed were the results of such “breaches” (see at the conclusion of this information).

Nene claimed that a whistle-blower approached the NLC alleging that one among its staff, Sello Qhino, experienced “presented her classified NLC Information and facts and persistently encouraged her to deliver the information to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded assignments in Kuruman right after tries to raise The problem internally ended up ignored, was subsequently fired.

Referring to an 18 November 2018 write-up from the Day by day Dispatch regarding the misappropriation of Lottery cash, Nene claimed which the NLC discovered after which suspended Zintle Rungqu. She was an worker inside the NLC’s East London Business office, who was the associate along with the mother of whistleblower Mzukise Makatse’s a few little ones.

Rungqu and Makatse believe that Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, Along with the NLC shelling out R470,000 on legal professionals to characterize it, but was identified not responsible and permitted to return to work.

“The widespread Think about these posts is the fact [they involve] categorized facts relating to proactive funding tasks,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out with the spouse and children dwelling to go ahead and take warmth off her and his little ones. Experiencing homelessness, he moved into an Office environment in an vacant manufacturing unit belonging to a buddy.

Equally Makatse and Qhino are participating in an NLC reparation system intended to recognise the harm some people experienced on the arms in the NLC. Apologies and, in some cases, fiscal payment are expected.

“Some persons were genuinely afflicted extremely negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz explained to the Every day Maverick final yr.

“I satisfied several these persons. It absolutely was just so coronary heart-wrenching that their complete lives have already been turned upside down,” stated Scholtz.

Among Those people she fulfilled have been Qhino and Makatse.

Safe platform required for whistleblowers
The SSA discovered the absence at some time of an appropriate channel for whistleblowers to report corruption led them to show on the media.

“Failure to have a focused anti-corruption channel will cause personnel presenting these types of scenarios outside of the NLC,” the SSA claimed in its findings.

“Specified the magnitude of corruption in state institutions, it stays very important that it makes sure that the NLC complies with all protection prescripts Which its emphasis is on making sure that unlawful and irregular perform is sufficiently mitigated from and by making sure an ample channel for whistle-blowers to report untoward perform without the need of being intimidated.”

It suggested which the NLC create a “Risk-free channel” for employees to supply information on any “untoward activity” that will not stop or discourage workers from blowing the whistle. A whistle-blowers plan, depending on the Protected Disclosures Act twenty five of 2000, is a requirement.”

Media experiences Nene stated
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Health Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and operator in the Limpopo Mirror, to reveal NLC corruption. “The posting experienced aspects of data not accessible in the public domain, thus boosting issue on interior Info safety breaches. The allegations in the media had been independently investigated,” Nene explained. “Having said that, employees accountable for divulging categorised data have still to get determined”;
A 28 January 2018 post published with the Dally Dispatch “citing many allegations with the Limpopo Mirror article revealed on ten December 2017 along with a new allegation regarding a previous employee through the title of Mzukisi Makatse. He was charged and summarily dismissed for that menace caused to the organisation.”
A 16 November 2018 post inside the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Regardless of receiving R27-million in lottery grants, the rehab hasn't been done. “The Lowvelder posting contained labeled info concerning NLC coverage, boosting even further considerations of interior data security breaches,” Nene explained in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an independent Investigation, on the other hand [it] highlighted the heightened information and facts security pitfalls throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene reported GroundUp experienced verified in its story that it was depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Advertising of Usage of Information and facts) ask for for aspects regarding the venture, she reported