Lottery bosses turned to Condition Safety Agency to research leaks

Lottery bosses turned to Condition Safety Agency to research leaks

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Previous Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Point out Protection Agency (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s firm secretary at some time listed media stories she stated have been based on “stolen” information within an affidavit with the SSA.
The SSA did look into. It uncovered the information wasn't a make any difference of condition safety and that the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to expose it.
A whole new board and management has given that taken more than the NLC and To date have taken measures to end corruption within the establishment.
A State Protection Agency (SSA) investigation uncovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished sufficient motive” for exposure because of the media.

The probe into supposed “information and facts stability breaches and sabotage of NLC operations” was carried out right after 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 the moment suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “confidential” findings and recommendations.
Nevhutanda asked the SSA to analyze the part of NLC employees while in the alleged leaking of knowledge, and Nene, in her affidavit determined unique media and reviews that she claimed concerned these leaks.

Within the letter outlining its findings, the SSA explained to the NLC that while guarding state info was “a authorized crucial aimed toward preserving the sovereignty and integrity of the condition” this only placed on appropriately classified details.

Although it did not say so instantly, the SSA conclusions implied which the allegedly leaked data didn't drop into this classification.

Significantly, the SSA created it apparent that the need to protect state data “will not stop any unique from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation discovered which the NLC details involved in the alleged breach was “sensitive and privileged in mother nature, although not classified concerning the prescripts on the Minimum amount Info Safety Benchmarks (MISS)”.

“The leakage from the pertinent sensitive official NLC information towards the media doesn't pose a threat to countrywide protection,” the SSA mentioned, including which the impression with the breaches was reputational.

The SSA report identified “no evidence of a factual and incriminating mother nature from any in the suspected NLC employees which could be recognized from the information and info interrogated”.

In addition, it mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide enough motive to get these types of uncovered within the media”.

Conspiracy claims
In 2020, Nevhutanda advised MPs all through a session of Parliament’s trade, industry and Opposition portfolio committee that there was “a conspiracy” through which data “stolen” with the NLC was sent towards the US, where he claimed it absolutely was staying offered to fund a smear marketing campaign from the NLC.

He was repeating equivalent promises he had Beforehand manufactured in Parliament, which integrated ad hominem assaults on GroundUp and this reporter but was thorough not to call either.

“I arrived in this article In this particular August house previous calendar year and reported to honourable members that information regarding our beneficiaries has long been stolen and set in a single state in the united states,” he explained to MPs.

“We termed around the State Security Agency to come back check into the matter because we have been having experiences that our information and facts is building dollars for media platforms and journalists,” he explained. “There's been talk, certainly from one particular resource, one particular media, that spoke A lot about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but failed to convey to MPs the SSA investigation were accomplished almost a 12 months earlier.

Proactive funding was at the heart on the looting of your lottery. It facet-stepped the traditional grant procedure. The NLC could itself recognize a undertaking to fund and appoint a non-financial gain organisation to supervise it.

After Nevhutanda initial advised Parliament in 2018 that he had requested the SSA to investigate the meant breach, the South African Nationwide Editors Forum issued an announcement stating that his remarks reflected “an incredibly harmful Mind-set wherever the media is being blamed for the NLC’s inherent troubles”.

“Instead of investigating why tens of millions can not be accounted for, the NLC has as a substitute tried to Solid doubt within the integrity of your journalists included and has asked the SSA to analyze their resources.”

Proactive jobs built mystery
Security flaws recognized in the NLC grant funding program during the SSA’s investigation, seem to are made use of being an justification because of the NLC to get rid of all proactive-funded projects from its central grants process.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘top secret’ and initiatives were being removed from the grant funding system and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Business office, Government Supervisor Lawful to be able to safeguard [the] data,” Nene explained in her affidavit.

“There was a great deal of inner dialogue, with plenty of forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was within a senior position for the NLC at the time, advised GroundUp. “In the long run, the choice was taken to eliminate the many proactive projects from your process and Restrict entry to a handful of persons”.

Some in that handful of men and women had been implicated in corruption.

Maselwa, who resigned in the NLC many years ago, has become implicated in corruption involving lottery cash. He gained R4.3-million from lottery funds allocated to construct a library and museum complex in Kuruman (see Taung Cultural Tunes and Arts Expo) which he utilized to make a property within an upmarket gated growth in Pretoria. The assets is one of numerous paid out for with lottery cash which were frozen once the Asset Forfeiture Device attained a preservation get in December 2022.

The politically-related Nevhutanda, who was appointed as the NLC board chairperson by former President Jacob Zuma in 2009 and was near high-ups within the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-chief functioning officer Phillemon Letwaba, have all been implicated during the corruption which overcome the NLC on their view.

Also implicated are previous board customers William Huma, who resigned right after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has since died.

Every time a new administration, including the total board and executive, took in excess of in the NLC in late 2022 and early 2023, they learned a “chaotic mess” within the documentation regarding proactive funding, much of which was paper-based mostly. Critical files were being lacking. Data files held for safekeeping by doc storage corporation Metrofile were signed out and under no circumstances returned.

The NLC was ready to Get better copies of some หุ้น ชอง 9 paperwork from its Mimecast e mail archiving system as well as the laptops of their assistants and assist team.

Information experiences
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave worry doable facts protection breaches along with the unauthorised use and/or dissemination of confidential info attained due to executing Formal features within the Fee by NLC staff. The activities are intended to undermine the integrity of the Commission though disrupting the powerful capabilities [from the NLC] and resulting in insurmountable reputational harm for the Fee given that the custodian of personal details entrusted to it by its beneficiaries.”

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

Nene is currently dealing with a disciplinary inquiry right after she was unsuccessful in legal motion to put aside results of irregular expenditure on her look at.

The objective of her affidavit, Nene mentioned, was “to document the events which transpired concerning facts safety breaches in the Countrywide Lotteries Commission”.

She stated a variety of information studies which she claimed were the final results of these “breaches” (see at the end of this short article).

Nene explained that a whistle-blower approached the NLC alleging that one of its personnel, Sello Qhino, experienced “provided her classified 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 immediately after makes an attempt to boost the issue internally had been ignored, was subsequently fired.

Referring to an eighteen November 2018 short article from the Each day Dispatch with regards to the misappropriation of Lottery money, Nene stated which the NLC recognized and after that suspended Zintle Rungqu. She was an staff inside the NLC’s East London office, who was the lover and also the mom of whistleblower Mzukise Makatse’s a few youngsters.

Rungqu and Makatse believe that Rungqu was punished simply because Makatse blew the whistle. She was suspended and charged internally, Along with the NLC spending R470,000 on lawyers to symbolize it, but was located not guilty and allowed to return to work.

“The typical factor in these posts is [they include] classified information concerning proactive funding jobs,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out in the family members home to take the 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 taking part in an NLC reparation method meant to recognise the hurt many people endured at the hands in the NLC. Apologies and, sometimes, monetary compensation are envisioned.

“Some individuals were being genuinely afflicted really negatively by this … This is really unpleasant,” NLC Commissioner Jodi Scholtz instructed the Daily Maverick previous 12 months.

“I fulfilled a couple of these folks. It had been just so heart-wrenching that their entire lives are turned the other way up,” reported Scholtz.

Amongst Individuals she fulfilled were Qhino and Makatse.

Protected platform essential for whistleblowers
The SSA observed the absence at enough time of a suitable channel for whistleblowers to report corruption led them to turn to the media.

“Failure to have a focused anti-corruption channel will end in staff presenting this kind of situations beyond the NLC,” the SSA claimed in its findings.

“Supplied the magnitude of corruption in point out institutions, it continues to be vital that it ensures that the NLC complies with all security prescripts Which its concentration is on guaranteeing that illegal and irregular perform is adequately mitigated towards and by making sure an ample channel for whistle-blowers to report untoward carry out without the need of staying intimidated.”

It advised which the NLC establish a “Protected channel” for employees to provide info on any “untoward activity” that would not reduce or discourage workforce from blowing the whistle. A whistle-blowers coverage, according to the Safeguarded Disclosures Act 25 of 2000, is a need.”

Media reviews Nene stated
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Exercise Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and owner with the Limpopo Mirror, to expose NLC corruption. “The report experienced elements of information not readily available in the general public domain, thus raising worry on inner Info safety breaches. The allegations while in the media have been independently investigated,” Nene claimed. “However, workforce responsible for divulging categorised details have nevertheless for being discovered”;
A 28 January 2018 posting printed by the Dally Dispatch “citing several allegations from your Limpopo Mirror article posted on 10 December 2017 and a new allegation concerning a former worker with the identify of Mzukisi Makatse. He was charged and summarily dismissed to the danger brought about to the organisation.”
A sixteen November 2018 article inside the Lowvelder with regards to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, in spite of obtaining R27-million in lottery grants, the rehab has not been finished. “The Lowvelder post contained classified information in terms of NLC coverage, elevating additional fears of inside info stability breaches,” Nene stated in her affidavit. “The prima facie evidence 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 a few dodgy R27.five-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene reported GroundUp experienced confirmed in its story that it was depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Entry to Info) ask for for information in regards to the venture, she reported