Lottery bosses turned to Condition Security Agency to research leaks

Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the Condition Security Company (SSA) in December 2018 to investigate the leaking of paperwork that uncovered lottery corruption.
The NLC’s corporation secretary at the time stated media studies she reported had been according to “stolen” facts within an affidavit with the SSA.
The SSA did investigate. It discovered the knowledge was not a issue of condition safety and that the “prevalence of alleged corruption and irregularities” gave “ample motive” for the media to show it.
A new board and administration has considering the fact that taken around the NLC and To date have taken actions to finish corruption for the institution.
A Point out Safety Company (SSA) investigation located that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished ample motive” for exposure by the media.

The probe into intended “information and facts safety breaches and sabotage of NLC functions” was carried out following then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to analyze.

Here's

Nevhutanda’s letter,
an affidavit by at present suspended NLC corporation secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “private” results and suggestions.
Nevhutanda requested the SSA to investigate the part of NLC workers while in the alleged leaking of knowledge, and Nene, in her affidavit identified specific media and reports that she claimed associated these leaks.

From the letter outlining its findings, the SSA told the NLC that when safeguarding state information and facts was “a legal very important aimed toward protecting the sovereignty and integrity with the point out” this only applied to properly labeled info.

Although it did not say so specifically, the SSA conclusions implied that the allegedly leaked details did not drop into this group.

Noticeably, the SSA made it distinct that the need to secure point out facts “does not stop any specific from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation located which the NLC info involved with the alleged breach was “sensitive and privileged in nature, although not categorised with regards to the prescripts in the Minimal Data Security Requirements (Pass up)”.

“The leakage of the applicable delicate Formal NLC information on the media doesn't pose a danger to countrywide safety,” the SSA reported, including which the influence from the breaches was reputational.

The SSA report observed “no proof of a factual and incriminating character versus any in the suspected NLC staff that would be recognized from the information and facts interrogated”.

In addition, it said that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does give sufficient motive to obtain this sort of exposed inside the media”.

Conspiracy claims
In 2020, Nevhutanda told MPs in the course of a session of Parliament’s trade, business and Opposition portfolio committee that there was “a conspiracy” in which data “stolen” from the NLC was despatched for the US, where he claimed it had been getting sold to fund a smear marketing campaign against the NLC.

He was repeating comparable claims he had Earlier designed in Parliament, which involved advertisement hominem attacks on GroundUp which reporter but was thorough not to name possibly.

“I arrived right here Within this August house past yr and reported to honourable customers that details about our beneficiaries has been stolen and place in a single point out in America,” he instructed MPs.

“We known as about the Point out Stability Agency to come investigate the make any difference simply because we're receiving stories that our information and facts is building money for media platforms and journalists,” he said. “There has been talk, obviously from 1 resource, just one media, that spoke Substantially about proactive-funding,” Nevhutanda explained (referring to GroundUp), but failed to notify MPs that the SSA investigation were finished almost a 12 months earlier.

Proactive funding was at the center of the looting on the lottery. It facet-stepped the normal grant course of action. The NLC could alone recognize a challenge to fund and appoint a non-revenue organisation to oversee it.

Immediately after Nevhutanda first informed Parliament in 2018 that he had asked the SSA to investigate the supposed breach, the South African National Editors Discussion board issued a press release indicating that his remarks mirrored “an incredibly perilous Angle where by the media is staying blamed for that NLC’s inherent troubles”.

“As an alternative to investigating why hundreds of thousands can not be accounted for, the NLC has as a substitute attempted to Forged doubt to the integrity in the journalists included and it has asked the SSA to research their resources.”

Proactive projects designed secret
Safety flaws determined during the NLC grant funding process through the SSA’s investigation, surface to have already been made use of as an excuse because of the NLC to eliminate all proactive-funded tasks from its central grants technique.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘secret’ and tasks had been removed from the grant funding procedure and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business office, Executive Supervisor Authorized in an effort to safeguard [the] data,” Nene mentioned in her affidavit.

“There was lots of internal dialogue, with plenty of backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was in the senior placement for the NLC at some time, informed GroundUp. “In the end, the choice was taken to get rid of many of the proactive assignments within the technique and limit entry to A few folks”.

Some in that handful of men and women were being implicated in corruption.

Maselwa, who resigned from your NLC a number of many years ago, continues to be implicated in corruption involving lottery funds. He been given R4.3-million from lottery funds allotted to create a library and museum complicated in Kuruman (see Taung Cultural Songs and Arts Expo) which he made use of to create a residence in an upmarket gated development in Pretoria. The property is one of numerous paid for with lottery money which were frozen once the Asset Forfeiture Device acquired a preservation buy in December 2022.

The politically-related Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to substantial-ups in the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated in the corruption which confused the NLC on their observe.

Also implicated are previous board users William Huma, who resigned soon after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has given that died.

When a new administration, such as the entire board and government, took about for the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” in the documentation regarding proactive funding, Considerably of which was paper-based. Essential files ended up lacking. Files held for safekeeping by doc storage company Metrofile were signed out and never returned.

The NLC was in a position to recover copies of some ตรวจ รางวัล paperwork from its Mimecast e-mail archiving process and the laptops in their assistants and support staff.

Information experiences
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave problem feasible info stability breaches plus the unauthorised use and/or dissemination of confidential info attained because of performing Formal capabilities while in the Fee by NLC personnel. The activities are intended to undermine the integrity with the Fee although disrupting the helpful functions [in the NLC] and resulting in insurmountable reputational hurt towards the Commission because the custodian of non-public facts entrusted to it by its beneficiaries.”

His ask for for that SSA to research was supported in an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.

Nene is at the moment experiencing a disciplinary inquiry soon after she was unsuccessful in authorized motion to set aside findings of irregular expenditure on her check out.

The objective of her affidavit, Nene mentioned, was “to record the situations which transpired associated with info stability breaches on the Countrywide Lotteries Commission”.

She shown various news stories which she claimed were the outcome of such “breaches” (see at the conclusion of this post).

Nene reported that a whistle-blower approached the NLC alleging that certainly one of its personnel, Sello Qhino, had “presented her labeled NLC Facts and persistently inspired her to supply the information to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded initiatives in Kuruman immediately after makes an attempt to raise The difficulty internally ended up dismissed, was subsequently fired.

Referring to an eighteen November 2018 report within the Daily Dispatch with regard to the misappropriation of Lottery money, Nene reported that the NLC determined after which suspended Zintle Rungqu. She was an staff within the NLC’s East London Office environment, who was the partner along with the mom of whistleblower Mzukise Makatse’s 3 small children.

Rungqu and Makatse think Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, Together with the NLC paying out R470,000 on attorneys to depict it, but was located not guilty and permitted to return to operate.

“The frequent factor in these articles is usually that [they require] categorized information regarding proactive funding tasks,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out on the family members household to go ahead and take heat off her and his young children. Facing homelessness, he moved into an Business office within an vacant manufacturing unit belonging to a friend.

Each Makatse and Qhino are participating in an NLC reparation method intended to recognise the harm a number of people endured on the fingers in the NLC. Apologies and, in some instances, monetary compensation are envisioned.

“Some persons ended up actually affected pretty negatively by this … This is de facto unpleasant,” NLC Commissioner Jodi Scholtz explained to the Day-to-day Maverick last 12 months.

“I met a number of these men and women. It had been just so heart-wrenching that their entire lives have been turned upside down,” said Scholtz.

Among the Those people she fulfilled have been Qhino and Makatse.

Protected System essential for whistleblowers
The SSA identified the absence at the time of a suitable channel for whistleblowers to report corruption led them to turn to your media.

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

“Given the magnitude of corruption in state institutions, it stays very important that it ensures that the NLC complies with all security prescripts and that its concentrate is on making certain that illegal and irregular conduct is adequately mitigated towards and by ensuring an sufficient channel for whistle-blowers to report untoward conduct with out becoming intimidated.”

It suggested which the NLC create a “Risk-free channel” for employees to deliver information on any “untoward activity” that may not avert or discourage staff from blowing the whistle. A whistle-blowers plan, determined by the Protected Disclosures Act 25 of 2000, is a prerequisite.”

Media experiences Nene detailed
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to reveal NLC corruption. “The short article experienced things of data not out there in the general public domain, thereby increasing concern on internal Facts security breaches. The allegations inside the media ended up independently investigated,” Nene said. “Nonetheless, personnel to blame for divulging categorised information and facts have nonetheless to generally be determined”;
A 28 January 2018 report printed from the Dally Dispatch “citing numerous allegations within the Limpopo Mirror report printed on ten December 2017 plus a new allegation relating to a previous worker by the identify of Mzukisi Makatse. He was billed and summarily dismissed for that threat prompted for the organisation.”
A sixteen November 2018 write-up during the Lowvelder in regards to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, in spite of receiving R27-million in lottery grants, the rehab has never been completed. “The Lowvelder short article contained labeled facts concerning NLC plan, increasing more considerations of internal information stability breaches,” Nene claimed in her affidavit. “The prima facie evidence with regards to these allegations did not warrant an unbiased Investigation, on the other hand [it] highlighted the heightened details stability hazards throughout the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Key Treatment, a hijacked NPO. Nene stated GroundUp had verified in its Tale that it absolutely was according to leaked NLC documents. This was despite the NLC rejecting a PAIA (Marketing of Use of Information and facts) ask for for specifics with regard to the undertaking, she reported

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