Lottery bosses turned to Point out Stability Company to analyze leaks

Lottery bosses turned to Point out Stability Company to analyze leaks

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Previous National 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 experiences 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” to the 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 Stability Company (SSA) investigation discovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented sufficient motive” for exposure with the media.

The probe into intended “facts protection breaches and sabotage of NLC operations” was undertaken following then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to analyze.

Here's

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” findings and proposals.
Nevhutanda asked the SSA to analyze the part of NLC staff while in the alleged leaking of information, and Nene, in her affidavit recognized unique media and reviews that she claimed included these leaks.

Within the letter outlining its findings, the SSA advised the NLC that when shielding state info was “a legal crucial targeted at preserving the sovereignty and integrity on the state” this only placed on correctly labeled details.

Even though it did not say so instantly, the SSA findings implied the allegedly leaked data didn't slide into this classification.

Significantly, the SSA created it very clear that the need to defend point out facts “won't reduce any particular person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation found that the NLC facts associated with the alleged breach was “delicate and privileged in nature, but not categorised with regard to the prescripts in the Least Information Safety Standards (MISS)”.

“The leakage in the relevant delicate Formal NLC info for the media isn't going to pose a menace to countrywide stability,” the SSA said, including the impression in the breaches was reputational.

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

What's more, it stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does give enough motive to obtain this kind of exposed inside the media”.

Conspiracy claims
In 2020, Nevhutanda advised MPs through a session of Parliament’s trade, marketplace and competition portfolio committee that there was “a conspiracy” in which information and facts “stolen” within the NLC was sent towards the US, where by he claimed it had been becoming bought to fund a smear campaign versus the NLC.

He was repeating related promises he had Earlier produced in Parliament, which involved ad hominem attacks on GroundUp and this reporter but was very careful not to call either.

“I came listed here in this August residence previous 12 months and claimed to honourable users that information about our beneficiaries continues to be stolen and put in one point out in the usa,” he instructed MPs.

“We identified as to the Condition Security Company to come back explore the make a difference simply because we've been receiving reviews that our information and facts is making cash for media platforms and journalists,” he reported. “There's been communicate, naturally from one source, just one media, that spoke A lot about proactive-funding,” Nevhutanda explained (referring to GroundUp), but didn't convey to MPs which the SSA investigation were completed Virtually a yr previously.

Proactive funding was at the center in the looting in the lottery. It side-stepped the normal grant procedure. The NLC could alone detect a challenge to fund and appoint a non-gain organisation to supervise it.

Right after Nevhutanda initial told Parliament in 2018 that he experienced asked the SSA to research the supposed breach, the South African Nationwide Editors Discussion board issued an announcement indicating that his remarks reflected “an incredibly hazardous Angle in which the media is remaining blamed for your NLC’s inherent troubles”.

“Rather than investigating why hundreds of thousands can't be accounted for, the NLC has as a substitute 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 recognized within the NLC grant funding system in the SSA’s investigation, show up to are actually utilized being an excuse because of the NLC to get rid of all proactive-funded projects from its central grants technique.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘magic formula’ and jobs have been faraway from the grant funding procedure and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Office, Government Manager Authorized to be able to safeguard [the] information,” Nene stated in her affidavit.

“There was a lot of internal discussion, with a great deal of forwards and backwards, about how to proceed to plug the alleged leaks”, a supply, who was in a senior placement on the NLC at time, told GroundUp. “Eventually, the choice was taken to get rid of all of the proactive tasks in the program and Restrict access to A few persons”.

Some in that handful of people ended up implicated in corruption.

Maselwa, who resigned in the NLC many several years in the past, has long been implicated in corruption involving lottery resources. He acquired R4.3-million from lottery resources allocated to create a library and museum elaborate in Kuruman (see Taung Cultural Songs and Arts Expo) which he made use of to build a house within an upmarket gated development in Pretoria. The assets is among numerous paid for with lottery cash that were frozen once the Asset Forfeiture Unit obtained a preservation buy in December 2022.

The politically-connected Nevhutanda, who was appointed as being 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 operating officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their look at.

Also implicated are previous board users William Huma, who resigned following he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has considering the fact that died.

When a new administration, such as the entire board and govt, took over at the NLC in late 2022 and early 2023, they discovered a “chaotic mess” in the documentation relating to proactive funding, much of which was paper-centered. Critical paperwork were missing. Files held for safekeeping by document storage company Metrofile were signed out and by no means returned.

The NLC was able to Recuperate copies of some ruay paperwork from its Mimecast email archiving process along with the laptops of their assistants and guidance workers.

Information reviews
In his one December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave issue feasible facts security breaches as well as the unauthorised use and/or dissemination of private information and facts obtained because of doing official features while in the Fee by NLC personnel. The functions are meant to undermine the integrity on the Commission whilst disrupting the efficient functions [of your NLC] and producing insurmountable reputational damage for the Fee as being the custodian of personal information entrusted to it by its beneficiaries.”

His request for the SSA to research was supported within an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.

Nene is at present experiencing a disciplinary inquiry immediately after she was unsuccessful in authorized action to put aside results of irregular expenditure on her look at.

The purpose of her affidavit, Nene said, was “to history the gatherings which transpired associated with info stability breaches with the National Lotteries Fee”.

She listed several news studies which she claimed were the final results of such “breaches” (see at the end of this information).

Nene stated that a whistle-blower approached the NLC alleging that considered one of its employees, Sello Qhino, had “supplied her categorized NLC Data and persistently inspired her to offer the knowledge to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded assignments in Kuruman soon after makes an attempt to raise the issue internally were being overlooked, was subsequently fired.

Referring to an 18 November 2018 post in the Daily Dispatch with regard to the misappropriation of Lottery cash, Nene stated which the NLC recognized and then suspended Zintle Rungqu. She was an personnel in the NLC’s East London Office environment, who was the companion as well as mother of whistleblower Mzukise Makatse’s three little ones.

Rungqu and Makatse believe Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and billed internally, While using the NLC spending R470,000 on lawyers to symbolize it, but was located not guilty and allowed to return to operate.

“The popular Think about these article content is that [they contain] labeled data associated with proactive funding projects,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out with the household house to go ahead and take warmth off her and his young children. Dealing with homelessness, he moved into an Business in an empty manufacturing facility belonging to a friend.

Both equally Makatse and Qhino are taking part in an NLC reparation method intended to recognise the damage lots of people suffered in the fingers in the NLC. Apologies and, sometimes, money payment are predicted.

“Some men and women have been genuinely impacted really negatively by this … This is basically painful,” NLC Commissioner Jodi Scholtz explained to the Each day Maverick previous year.

“I achieved several these people. It absolutely was just so heart-wrenching that their total lives are turned upside down,” claimed Scholtz.

Among People she achieved had been Qhino and Makatse.

Safe and sound System required for whistleblowers
The SSA located the absence at some time of an appropriate channel for whistleblowers to report corruption led them to show to the media.

“Failure to have a dedicated anti-corruption channel will result in workers presenting this sort of situations outside of the NLC,” the SSA mentioned in its findings.

“Given the magnitude of corruption in point out institutions, it remains crucial that it makes certain that the NLC complies with all safety prescripts Which its emphasis is on making certain that unlawful and irregular conduct is sufficiently mitigated towards and by making sure an satisfactory channel for whistle-blowers to report untoward perform without having being intimidated.”

It advisable which the NLC set up a “Secure channel” for employees to provide information on any “untoward exercise” that may not avert or discourage staff members from blowing the whistle. A whistle-blowers policy, based on the Protected Disclosures Act 25 of 2000, is actually a need.”

Media stories Nene outlined
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Health and fitness Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and owner with the Limpopo Mirror, to show NLC corruption. “The article experienced elements of information not available in the general public area, therefore increasing problem on inner Data safety breaches. The allegations from the media have been independently investigated,” Nene claimed. “Having said that, workers accountable for divulging categorised information have still to get identified”;
A 28 January 2018 short article posted because of the Dally Dispatch “citing several allegations from the Limpopo Mirror write-up released on ten December 2017 along with a new allegation regarding a previous personnel via the name of Mzukisi Makatse. He was billed and summarily dismissed to the menace prompted to the organisation.”
A 16 November 2018 post inside the Lowvelder about the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Despite obtaining R27-million in lottery grants, the rehab has not been accomplished. “The Lowvelder report contained categorized information with regards to NLC policy, boosting further more problems of inner info safety breaches,” Nene mentioned in her affidavit. “The prima facie proof with regards to these allegations did not warrant an independent Investigation, however [it] highlighted the heightened details protection challenges throughout the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Principal Treatment, a hijacked NPO. Nene explained GroundUp had confirmed in its Tale that it absolutely was based on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Marketing of Use of Info) ask for for aspects concerning the challenge, she explained