Lottery bosses turned to Condition Safety Agency to research leaks

Former Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda questioned the Condition Safety Agency (SSA) in December 2018 to analyze the leaking of paperwork that exposed lottery corruption.
The NLC’s firm secretary at the time listed media experiences she mentioned were dependant on “stolen” information and facts within an affidavit for the SSA.
The SSA did investigate. It located the data was not a subject of point out stability and that the “prevalence of alleged corruption and irregularities” gave “sufficient motive” to the media to reveal it.
A different board and administration has considering the fact that taken about the NLC and thus far have taken measures to end corruption at the institution.
A Condition Safety Agency (SSA) investigation uncovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented ample motive” for publicity from the media.

The probe into meant “data security breaches and sabotage of NLC operations” was carried out soon after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to analyze.

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC company secretary Nompumelelo Nene supporting the request, and
the security company’s “confidential” findings and proposals.
Nevhutanda asked the SSA to analyze the position of NLC staff while in the alleged leaking of knowledge, and Nene, in her affidavit determined specific media and stories that she claimed included these leaks.

In the letter outlining its conclusions, the SSA told the NLC that though guarding state information was “a lawful very important aimed at defending the sovereignty and integrity of your point out” this only applied to appropriately categorised info.

Even though it didn't say so right, the SSA findings implied which the allegedly leaked information and facts didn't tumble into this group.

Noticeably, the SSA made it distinct that the need to defend point out information “won't prevent any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation discovered that the NLC info linked to the alleged breach was “delicate and privileged in mother nature, but not classified with regard to the prescripts of your Minimum amount Information and facts Safety Criteria (Overlook)”.

“The leakage of the suitable sensitive Formal NLC information on the media would not pose a danger to nationwide protection,” the SSA mentioned, introducing the influence from the breaches was reputational.

The SSA report found “no evidence of the factual and incriminating mother nature in opposition to any of your suspected NLC personnel that may be recognized from the information and info interrogated”.

It also stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does offer ample motive to own such exposed from the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs through a session of Parliament’s trade, sector and Level of competition portfolio committee that there was “a conspiracy” during which details “stolen” within the NLC was despatched towards the US, exactly where he claimed it was becoming marketed to fund a smear campaign against the NLC.

He was repeating identical statements he had Earlier designed in Parliament, which included advert hominem attacks on GroundUp and this reporter but was careful not to name both.

“I arrived listed here On this August dwelling last calendar year and claimed to honourable members that specifics of our beneficiaries has been stolen and set in one state in the usa,” he explained to MPs.

“We termed about the State Stability Agency to come explore the make a difference simply because we've been finding reviews that our information and facts is producing dollars for media platforms and journalists,” he explained. “There have been talk, obviously from a single source, 1 media, that spoke Considerably about proactive-funding,” Nevhutanda explained (referring to GroundUp), but did not explain to MPs the SSA investigation were done Just about a yr before.

Proactive funding was at the heart of your looting of your lottery. It facet-stepped the traditional grant system. The NLC could by itself recognize a venture to fund and appoint a non-revenue organisation to supervise it.

Immediately after Nevhutanda to start with informed Parliament in 2018 that he had questioned the SSA to investigate the intended breach, the South African Countrywide Editors Forum issued an announcement declaring that his remarks reflected “a very dangerous Perspective in which the media is staying blamed for that NLC’s inherent troubles”.

“In lieu of investigating why millions can not be accounted for, the NLC has in its place attempted to cast question around the integrity of the journalists included and has requested the SSA to investigate their sources.”

Proactive projects designed magic formula
Safety flaws discovered inside the NLC grant funding process throughout the SSA’s investigation, seem to have already been utilised being an justification via the NLC to get rid of all proactive-funded tasks from its central grants method.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘key’ and assignments had been faraway from the grant funding process and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Business office, Executive Supervisor Legal in order to safeguard [the] facts,” Nene stated in her affidavit.

“There was a great deal of inner dialogue, with a lot of forwards and backwards, about how to proceed to plug the alleged leaks”, a supply, who was inside a senior posture for the NLC at some time, explained to GroundUp. “In the end, the choice was taken to remove every one of the proactive jobs with the system and limit access to A few people today”.

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

Maselwa, who resigned in the NLC various years in the past, has been implicated in corruption involving lottery cash. He obtained R4.three-million from lottery money allocated to develop a library and museum complex in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to create a property in an upmarket gated development in Pretoria. The residence is one of quite a few paid out for with lottery funds that were frozen once the Asset Forfeiture Unit received a preservation get in December 2022.

The politically-related Nevhutanda, who was appointed given that the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to large-ups during the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated within the corruption which overcome the NLC on their own look at.

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

Every time a new administration, such as the entire board and executive, took about for the NLC in late 2022 and early 2023, they learned a “chaotic mess” during the documentation concerning proactive funding, A great deal of which was paper-centered. Essential documents were missing. Data files held for safekeeping by document storage company Metrofile were signed out and hardly ever returned.

The NLC was capable to Recuperate copies of some ตรวจ รางวัล documents from its Mimecast e mail archiving technique and also the laptops of their assistants and aid personnel.

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 worry attainable details safety breaches and also the unauthorised use and/or dissemination of confidential facts attained as a result of doing Formal features from the Fee by NLC staff. The functions are intended to undermine the integrity with the Fee when disrupting the helpful features [of your NLC] and producing insurmountable reputational hurt to your Commission as the custodian of private facts entrusted to it by its beneficiaries.”

His ask for to the SSA to investigate was supported within an affidavit by suspended NLC company secretary, Nomphumelelo Nene.

Nene is at this time struggling with a disciplinary inquiry soon after she was unsuccessful in lawful motion to set aside results of irregular expenditure on her observe.

The objective of her affidavit, Nene stated, was “to report the situations which transpired referring to info safety breaches for the Countrywide Lotteries Fee”.

She listed a variety of information stories which she claimed were the outcomes of such “breaches” (see at the conclusion of this short article).

Nene explained that a whistle-blower approached the NLC alleging that amongst its workforce, Sello Qhino, had “presented her labeled NLC Information and persistently inspired her to supply the information to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded projects in Kuruman right after makes an attempt to boost The difficulty internally were ignored, was subsequently fired.

Referring to an eighteen November 2018 article inside the Each day Dispatch concerning the misappropriation of Lottery funds, Nene said which the NLC discovered and after that suspended Zintle Rungqu. She was an employee from the NLC’s East London Office environment, who was the associate as well as the mom of whistleblower Mzukise Makatse’s three kids.

Rungqu and Makatse believe Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, With all the NLC spending R470,000 on lawyers to characterize it, but was found not guilty and allowed to return to work.

“The popular factor in these article content is always that [they require] classified info referring to proactive funding tasks,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out of the loved ones residence to take the warmth off her and his young children. Experiencing homelessness, he moved into an Place of work within an vacant manufacturing facility belonging to a friend.

Each Makatse and Qhino are taking part in an NLC reparation method intended to recognise the damage some people suffered for the hands with the NLC. Apologies and, in some cases, financial compensation are predicted.

“Some folks were being definitely afflicted really negatively by this … This is admittedly distressing,” NLC Commissioner Jodi Scholtz explained to the Everyday Maverick previous 12 months.

“I fulfilled a couple of these individuals. It had been just so coronary heart-wrenching that their full life have been turned the other way up,” said Scholtz.

Among the those she met were being Qhino and Makatse.

Harmless platform wanted for whistleblowers
The SSA discovered the absence at some time of an appropriate channel for whistleblowers to report corruption led them to turn for the media.

“Failure to possess a committed anti-corruption channel will result in workers presenting these types of circumstances outside of the NLC,” the SSA reported in its results.

“Supplied the magnitude of corruption in state institutions, it continues to be critical that it makes sure that the NLC complies with all stability prescripts and that its concentration is on making certain that illegal and irregular conduct is adequately mitigated versus and by ensuring an sufficient channel for whistle-blowers to report untoward perform with out getting intimidated.”

It suggested that the NLC build a “safe channel” for workers to provide info on any “untoward activity” that would not avert or discourage workforce from blowing the whistle. A whistle-blowers policy, based on the Guarded Disclosures Act 25 of 2000, is really a necessity.”

Media experiences Nene outlined
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Conditioning Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and proprietor of your Limpopo Mirror, to expose NLC corruption. “The write-up had components of data not offered in the general public domain, thereby boosting worry on internal Information stability breaches. The allegations while in the media were independently investigated,” Nene claimed. “Even so, staff liable for divulging labeled details have still to generally be discovered”;
A 28 January 2018 article printed with the Dally Dispatch “citing a lot of allegations from the Limpopo Mirror article printed on 10 December 2017 plus a new allegation concerning a previous employee because of the title of Mzukisi Makatse. He was charged and summarily dismissed for the menace brought on into the organisation.”
A 16 November 2018 posting within the Lowvelder concerning the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of acquiring R27-million in lottery grants, the rehab has not been done. “The Lowvelder post contained categorized details with regard to NLC plan, raising more considerations of inner data protection breaches,” Nene claimed in her affidavit. “The prima facie proof with regard to these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened facts safety dangers throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Key Care, a hijacked NPO. Nene reported GroundUp had confirmed in its Tale that it absolutely was determined by leaked NLC documents. This was despite the NLC rejecting a PAIA (Marketing of Usage of Data) ask for for specifics concerning the task, she reported

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