Lottery bosses turned to Condition Safety Agency to research leaks

Lottery bosses turned to Condition Safety Agency to research leaks

Blog Article

Previous Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Point out Protection Agency (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s enterprise secretary at some time detailed media experiences she said had been based on “stolen” information and facts within an affidavit to the SSA.
The SSA did examine. It observed the data was not a subject of condition safety and that the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to reveal it.
A new board and administration has due to the fact taken more than the NLC and To date have taken measures to end corruption at the establishment.
A Condition Security Company (SSA) investigation found which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for publicity from the media.

The probe into supposed “data stability breaches and sabotage of NLC functions” was undertaken soon after then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to research.

Here's

Nevhutanda’s letter,
an affidavit by at this time suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the security agency’s “private” conclusions and recommendations.
Nevhutanda requested the SSA to research the purpose of NLC employees from the alleged leaking of knowledge, and Nene, in her affidavit recognized distinct media and studies that she claimed included these leaks.

In the letter outlining its results, the SSA informed the NLC that although shielding state details was “a lawful very important aimed at guarding the sovereignty and integrity from the point out” this only applied to correctly categorized information and facts.

Although it did not say so immediately, the SSA findings implied which the allegedly leaked details did not slide into this category.

Noticeably, the SSA manufactured it very clear that the necessity to protect state facts “does not stop any specific from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation uncovered which the NLC information associated with the alleged breach was “delicate and privileged in character, although not labeled in terms of the prescripts from the Bare minimum Info Stability Standards (Miss out on)”.

“The leakage in the related delicate Formal NLC data for the media doesn't pose a menace to countrywide security,” the SSA explained, introducing that the affect with the breaches was reputational.

The SSA report discovered “no evidence of a factual and incriminating mother nature in opposition to any with the suspected NLC staff members that would be discovered from the data and info interrogated”.

Additionally, it stated that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does present sufficient motive to own this sort of uncovered inside the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs all through a session of Parliament’s trade, marketplace and Competitiveness portfolio committee that there was “a conspiracy” through which information “stolen” with the NLC was despatched towards the US, where he claimed it absolutely was staying offered to fund a smear marketing campaign from the NLC.

He was repeating identical promises he experienced Earlier made in Parliament, which incorporated ad hominem assaults on GroundUp and this reporter but was watchful not to call both.

“I came listed here On this August dwelling final calendar year and described to honourable associates that information about our beneficiaries is stolen and put in one state in the united states,” he explained to MPs.

“We referred to as to the Condition Security Company to come consider the issue due to the fact we are acquiring reviews that our information and facts is generating funds for media platforms and journalists,” he claimed. “There have been talk, naturally from one particular supply, a single media, that spoke Considerably about proactive-funding,” Nevhutanda explained (referring to GroundUp), but did not explain to MPs that the SSA investigation had been completed almost a 12 months earlier.

Proactive funding was at the guts of your looting from the lottery. It facet-stepped the traditional grant system. The NLC could by itself identify a task to fund and appoint a non-profit organisation to oversee it.

Immediately after Nevhutanda very first informed Parliament in 2018 that he experienced requested the SSA to analyze the intended breach, the South African Nationwide Editors Discussion board issued a statement declaring that his remarks mirrored “a particularly unsafe Angle exactly where the media is getting blamed to the NLC’s inherent troubles”.

“In lieu of investigating why thousands and thousands cannot be accounted for, the NLC has instead attempted to Forged doubt within the integrity of your journalists concerned and has requested the SSA to analyze their resources.”

Proactive tasks made solution
Security flaws discovered from the NLC grant funding method during the SSA’s investigation, seem to are actually utilized being an justification with the NLC to remove all proactive-funded projects from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘magic formula’ and initiatives ended up removed from the grant funding process and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Office environment, Govt Supervisor Legal so that you can safeguard [the] info,” Nene explained in her affidavit.

“There was loads of interior dialogue, with numerous forwards and backwards, about how to proceed to plug the alleged leaks”, a supply, who was within a senior place in the NLC at the time, told GroundUp. “In the end, the choice was taken to get rid of every one of the proactive assignments through the technique and limit usage of a handful of people”.

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

Maselwa, who resigned with the NLC numerous years in the past, has been implicated in corruption involving lottery money. He gained R4.three-million from lottery resources allotted to make a library and museum sophisticated in Kuruman (see Taung Cultural Audio and Arts Expo) which he applied to make a house within an upmarket gated enhancement in Pretoria. The assets is among many paid for with lottery funds which were frozen following the Asset Forfeiture Unit received a preservation purchase in December 2022.

The politically-related Nevhutanda, who was appointed given that the NLC board chairperson by former President Jacob Zuma in 2009 and was near significant-ups while in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated during the corruption which overwhelmed the NLC on their own watch.

Also implicated are former 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's got considering the fact that died.

Whenever a new administration, including the complete board and government, took in excess of for the NLC in late 2022 and early 2023, they found out a “chaotic mess” in the documentation relating to proactive funding, A lot of which was paper-primarily based. Key files ended up missing. Information held for safekeeping by document storage company Metrofile were signed out and under no circumstances returned.

The NLC was in the position to Get well copies of some ruay files from its Mimecast e mail archiving technique plus the laptops of their assistants and help personnel.

News reviews
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem probable facts security breaches as well as unauthorised use and/or dissemination of confidential data received as a result of carrying out official features in the Commission 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 hurt to the Fee given that the custodian of personal facts entrusted to it by its beneficiaries.”

His ask for with the SSA to analyze was supported within an affidavit by suspended NLC business secretary, Nomphumelelo Nene.

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

The purpose of her affidavit, Nene said, was “to report the functions which transpired associated with data safety breaches in the Countrywide Lotteries Fee”.

She detailed different news experiences which she claimed ended up the results of these “breaches” (see at the end of this informative article).

Nene claimed that a whistle-blower approached the NLC alleging that certainly one of its staff members, Sello Qhino, experienced “furnished her labeled NLC Information and facts and persistently inspired her to deliver the knowledge to GroundUp”.

Qhino, who blew the whistle on a series of dodgy lottery-funded projects in Kuruman soon after makes an attempt to boost The problem internally have been overlooked, was subsequently fired.

Referring to an 18 November 2018 write-up within the Day by day Dispatch concerning the misappropriation of Lottery resources, Nene stated the NLC discovered and afterwards suspended Zintle Rungqu. She was an employee from the NLC’s East London office, who was the associate and also the mother of whistleblower Mzukise Makatse’s three little ones.

Rungqu and Makatse consider Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, Together with the NLC paying out R470,000 on attorneys to stand for it, but was identified not guilty and allowed to return to work.

“The typical Think about these articles is the fact that [they involve] labeled facts associated with proactive funding jobs,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out of the relatives house to take the heat off her and his small children. Dealing with homelessness, he moved into an Business office in an vacant manufacturing unit belonging to an acquaintance.

Both Makatse and Qhino are taking part in an NLC reparation system meant to recognise the harm many people endured on the hands from the NLC. Apologies and, occasionally, money compensation are envisioned.

“Some folks had been really influenced very negatively by this … This is admittedly unpleasant,” NLC Commissioner Jodi Scholtz explained to the Everyday Maverick past yr.

“I satisfied two or three these folks. It had been just so heart-wrenching that their total life happen to be turned upside down,” explained Scholtz.

Between Those people she achieved ended up Qhino and Makatse.

Harmless System wanted for whistleblowers
The SSA observed the absence at enough time of a correct channel for whistleblowers to report corruption led them to show on the media.

“Failure to have a focused anti-corruption channel will end in personnel presenting this sort of instances beyond the NLC,” the SSA mentioned in its findings.

“Specified the magnitude of corruption in condition institutions, it continues to be vital that it makes certain that the NLC complies with all security prescripts and that its emphasis is on making sure that unlawful and irregular perform is sufficiently mitigated against and by ensuring an satisfactory channel for whistle-blowers to report untoward conduct without having currently being intimidated.”

It advisable which the NLC create a “Risk-free channel” for employees to provide info on any “untoward exercise” that may not reduce or discourage workers from blowing the whistle. A whistle-blowers plan, based upon the Safeguarded Disclosures Act twenty five of 2000, can be a requirement.”

Media stories Nene listed
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Health and fitness Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and operator of your Limpopo Mirror, to expose NLC corruption. “The write-up had factors of knowledge not out there in the general public domain, thereby raising concern on interior Information and facts stability breaches. The allegations during the media ended up independently investigated,” Nene explained. “Even so, personnel to blame for divulging categorized data have but to be discovered”;
A 28 January 2018 write-up posted because of the Dally Dispatch “citing numerous allegations with the Limpopo Mirror article revealed on ten December 2017 and a new allegation associated with a previous personnel by the name of Mzukisi Makatse. He was charged and summarily dismissed for your risk triggered towards the organisation.”
A 16 November 2018 article in the Lowvelder regarding the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Regardless of getting R27-million in lottery grants, the rehab hasn't been accomplished. “The Lowvelder article contained labeled details concerning NLC coverage, boosting additional problems of internal data stability breaches,” Nene said in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an independent Investigation, on the other hand [it] highlighted the heightened information and facts stability risks within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene explained GroundUp had confirmed in its Tale that it had been determined by 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