Lottery bosses turned to Condition Protection Company to analyze leaks

Lottery bosses turned to Condition Protection Company to analyze leaks

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Previous Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the Point out Safety Company (SSA) in December 2018 to investigate the leaking of files that exposed lottery corruption.
The NLC’s firm secretary at time outlined media reviews she mentioned ended up dependant on “stolen” info in an affidavit for that SSA.
The SSA did examine. It uncovered the knowledge was not a make any difference of condition security and that the “prevalence of alleged corruption and irregularities” gave “enough motive” for the media to reveal it.
A fresh board and administration has given that taken around the NLC and Up to now have taken measures to end corruption for the establishment.
A Point out Security Agency (SSA) investigation discovered which 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 “info security breaches and sabotage of NLC operations” was carried out right after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by at this time suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the security company’s “private” results and recommendations.
Nevhutanda asked the SSA to research the job of NLC personnel from the alleged leaking of knowledge, and Nene, in her affidavit identified distinct media and reviews that she claimed included these leaks.

During the letter outlining its conclusions, the SSA informed the NLC that when safeguarding condition data was “a authorized critical targeted at preserving the sovereignty and integrity of your point out” this only placed on appropriately categorised facts.

Although it did not say so specifically, the SSA conclusions implied the allegedly leaked information did not slide into this category.

Significantly, the SSA built it distinct that the necessity to secure condition information “isn't going to reduce any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation identified the NLC facts involved with the alleged breach was “sensitive and privileged in nature, although not labeled when it comes to the prescripts from the Least Information Security Standards (Pass up)”.

“The leakage of your related sensitive Formal NLC data for the media will not pose a risk to nationwide stability,” the SSA stated, incorporating which the influence on the breaches was reputational.

The SSA report found “no proof of a factual and incriminating nature in opposition to any of your suspected NLC employees that might be determined from the knowledge and knowledge interrogated”.

Additionally, it stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does provide ample motive to get these types of uncovered in the media”.

Conspiracy promises
In 2020, Nevhutanda informed MPs through a session of Parliament’s trade, marketplace and Levels of competition portfolio committee that there was “a conspiracy” during which info “stolen” in the NLC was sent towards the US, where by he claimed it absolutely was getting bought to fund a smear campaign versus the NLC.

He was repeating identical claims he experienced Beforehand made in Parliament, which included advert hominem attacks on GroundUp and this reporter but was very careful not to call both.

“I arrived in this article Within this August home previous yr and claimed to honourable members that information about our beneficiaries is stolen and put in a single condition in the usa,” he instructed MPs.

“We named on the State Stability Agency to come check into the make a difference for the reason that we've been getting reports that our info is producing funds for media platforms and journalists,” he explained. “There was chat, naturally from one particular supply, just one media, that spoke A great deal about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to convey to MPs the SSA investigation had been done Practically a year before.

Proactive funding was at the guts with the looting with the lottery. It aspect-stepped the normal grant process. The NLC could by itself determine a project to fund and appoint a non-income organisation to supervise it.

Right after Nevhutanda initially informed Parliament in 2018 that he had requested the SSA to analyze the supposed breach, the South African Nationwide Editors Discussion board issued a press release expressing that his remarks mirrored “a very dangerous Frame of mind where by the media is getting blamed to the NLC’s inherent problems”.

“Rather then investigating why hundreds of thousands cannot be accounted for, the NLC has as an alternative tried to Forged doubt within the integrity from the journalists associated and has asked the SSA to analyze their resources.”

Proactive projects built secret
Stability flaws recognized while in the NLC grant funding technique during the SSA’s investigation, look to are already used as an excuse with the NLC to eliminate all proactive-funded tasks from its central grants process.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘solution’ and initiatives ended up removed from the grant funding technique and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Business, Government Supervisor Authorized so as to safeguard [the] data,” Nene stated in her affidavit.

“There was a lot of inner dialogue, with a great deal of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was inside a senior situation in the NLC at the time, advised GroundUp. “Ultimately, the choice was taken to remove all of the proactive assignments within the program and limit entry to a handful of people today”.

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

Maselwa, who resigned through the NLC numerous years back, has long been implicated in corruption involving lottery money. He obtained R4.3-million from lottery resources allocated to construct a library and museum elaborate in Kuruman (see Taung Cultural Songs and Arts Expo) which he utilized to make a property within an upmarket gated progress in Pretoria. The house is among numerous paid for with lottery cash which were frozen after the Asset Forfeiture Unit attained a preservation purchase in December 2022.

The politically-linked Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near to superior-ups in the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-chief functioning officer Phillemon Letwaba, have all been implicated within the corruption which overwhelmed the NLC on their own enjoy.

Also implicated are former board members William Huma, who resigned following he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got considering the fact that died.

Every time a new administration, including the entire board and executive, took over for the NLC in late 2022 and early 2023, they identified a “chaotic mess” in the documentation regarding proactive funding, A lot of which was paper-dependent. Key documents were being lacking. Data files held for safekeeping by doc storage firm Metrofile were signed out and never ever returned.

The NLC was in a position to Get better copies of some ผล หวย หุ้น files from its Mimecast e-mail archiving process as well as the laptops in their assistants and support workers.

News reports
In his one December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave worry possible data security breaches and also the unauthorised use and/or dissemination of private information received because of executing Formal features inside the Fee by NLC employees. The things to do are intended to undermine the integrity from the Fee though disrupting the powerful capabilities [on the NLC] and causing insurmountable reputational damage to the Fee as the custodian of non-public info entrusted to it by its beneficiaries.”

His request for that SSA to analyze was supported within an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is presently dealing with a disciplinary inquiry following she was unsuccessful in lawful motion to set aside conclusions of irregular expenditure on her view.

The purpose of her affidavit, Nene reported, was “to history the events which transpired concerning facts protection breaches on the National Lotteries Commission”.

She stated different information reviews which she claimed were the effects of these “breaches” (see at the end of this post).

Nene reported that a whistle-blower approached the NLC alleging that one among its personnel, Sello Qhino, had “offered her categorized NLC Data and persistently encouraged her to deliver the data to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded jobs in Kuruman following tries to lift The problem internally have been ignored, was subsequently fired.

Referring to an 18 November 2018 write-up within the Each day Dispatch with regard to the misappropriation of Lottery money, Nene claimed which the NLC discovered after which suspended Zintle Rungqu. She was an worker while in the NLC’s East London Business, who was the companion along with the mother of whistleblower Mzukise Makatse’s 3 young children.

Rungqu and Makatse believe that Rungqu was punished because Makatse blew the whistle. She was suspended and billed internally, with the NLC spending R470,000 on legal professionals to stand for it, but was observed not guilty and permitted to return to work.

“The typical Think about these content articles is [they involve] labeled details relating to proactive funding assignments,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out in the spouse and children house to take the heat off her and his kids. Going through homelessness, he moved into an Business office in an empty factory belonging to a pal.

The two Makatse and Qhino are taking part in an NLC reparation method intended to recognise the hurt some people experienced with the hands of your NLC. Apologies and, occasionally, fiscal payment are predicted.

“Some people were being genuinely affected really negatively by this … This is admittedly unpleasant,” NLC Commissioner Jodi Scholtz explained to the Every day Maverick very last calendar year.

“I met a few these men and women. It had been just so heart-wrenching that their entire lives have already been turned the wrong way up,” mentioned Scholtz.

Amid Individuals she fulfilled ended up Qhino and Makatse.

Safe platform needed for whistleblowers
The SSA found the absence at the time of an appropriate channel for whistleblowers to report corruption led them to show to your media.

“Failure to have a dedicated anti-corruption channel will bring about workforce presenting these kinds of circumstances beyond the NLC,” the SSA claimed in its findings.

“Presented the magnitude of corruption in state institutions, it continues to be important that it makes certain that the NLC complies with all security prescripts Which its focus is on guaranteeing that unlawful and irregular perform is sufficiently mitigated in opposition to and by guaranteeing an suitable channel for whistle-blowers to report untoward perform with out currently being intimidated.”

It proposed which the NLC create a “safe channel” for employees to deliver info on any “untoward action” that might not avert or discourage workforce from blowing the whistle. A whistle-blowers policy, according to the Protected Disclosures Act twenty five of 2000, is a need.”

Media stories Nene detailed
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner with the Limpopo Mirror, to show NLC corruption. “The post had aspects of knowledge not obtainable in the general public area, thus boosting issue on internal Facts stability breaches. The allegations in the media had been independently investigated,” Nene claimed. “Nonetheless, personnel responsible for divulging categorised information and facts have however to be discovered”;
A 28 January 2018 article released with the Dally Dispatch “citing many allegations from the Limpopo Mirror article published on 10 December 2017 and a new allegation regarding a previous employee with the title of Mzukisi Makatse. He was charged and summarily dismissed to the risk brought about to the organisation.”
A 16 November 2018 write-up from the Lowvelder with regards to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, in spite of receiving R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder report contained categorized details when it comes to NLC coverage, increasing even more concerns of inner information and facts safety breaches,” Nene said in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an independent Investigation, on the other hand [it] highlighted the heightened details protection dangers throughout the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene reported GroundUp experienced verified in its story that it had been dependant on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Promotion of Usage of Info) ask for for particulars with regards to the job, she claimed