Lottery bosses turned to Condition Protection Company to research leaks

Lottery bosses turned to Condition Protection Company to research leaks

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Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Protection Company (SSA) in December 2018 to analyze the leaking of paperwork that exposed lottery corruption.
The NLC’s company secretary at some time mentioned media reports she claimed have been depending on “stolen” facts in an affidavit to the SSA.
The SSA did examine. It identified the knowledge wasn't a matter of state security and that the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to expose it.
A new board and management has given that taken over the NLC and To date have taken measures to end corruption within the institution.
A Condition Stability Company (SSA) investigation identified which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for exposure through the media.

The probe into intended “facts stability breaches and sabotage of NLC functions” was carried out after then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC business secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “private” results and recommendations.
Nevhutanda questioned the SSA to research the function of NLC staff in the alleged leaking of knowledge, and Nene, in her affidavit identified unique media and studies that she claimed associated these leaks.

While in the letter outlining its conclusions, the SSA informed the NLC that though defending point out info was “a authorized vital aimed at safeguarding the sovereignty and integrity with the point out” this only placed on correctly categorised information.

Even though it didn't say so instantly, the SSA conclusions implied the allegedly leaked facts did not tumble into this class.

Substantially, the SSA made it apparent that the need to protect condition information “won't stop any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation observed which the NLC info involved with the alleged breach was “delicate and privileged in mother nature, although not categorised when it comes to the prescripts on the Least Information and facts Stability Benchmarks (Pass up)”.

“The leakage of the relevant delicate official NLC details towards the media doesn't pose a danger to nationwide security,” the SSA reported, incorporating that the effects on the breaches was reputational.

The SSA report discovered “no proof of the factual and incriminating character versus any on the suspected NLC workers that could be determined from the data and data interrogated”.

In addition, it stated that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does present ample motive to possess this sort of exposed during the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs during a session of Parliament’s trade, market and competition portfolio committee that there was “a conspiracy” through which information “stolen” through the NLC was despatched for the US, where by he claimed it absolutely was getting marketed to fund a smear marketing campaign against the NLC.

He was repeating equivalent claims he had Formerly built in Parliament, which included advert hominem attacks on GroundUp which reporter but was very careful not to name either.

“I arrived in this article On this August dwelling final year and reported to honourable members that specifics of our beneficiaries continues to be stolen and set in one condition in America,” he explained to MPs.

“We identified as around the Condition Security Agency to come back take a look at the issue mainly because we've been receiving stories that our info is producing income for media platforms and journalists,” he stated. “There's been chat, naturally from a single resource, one particular media, that spoke A lot about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but failed to explain to MPs the SSA investigation were finished almost a year earlier.

Proactive funding was at the center with the looting of the lottery. It aspect-stepped the conventional grant course of action. The NLC could alone detect a project to fund and appoint a non-revenue organisation to oversee it.

Right after Nevhutanda initial told Parliament in 2018 that he had questioned the SSA to research the meant breach, the South African National Editors Discussion board issued a statement expressing that his remarks mirrored “an especially dangerous Frame of mind where the media is currently being blamed with the NLC’s inherent issues”.

“In lieu of investigating why millions cannot be accounted for, the NLC has as an alternative attempted to cast doubt around the integrity from the journalists involved and it has requested the SSA to research their sources.”

Proactive projects built top secret
Protection flaws recognized in the NLC grant funding procedure over the SSA’s investigation, look to have already been used as an justification through the NLC to eliminate all proactive-funded projects from its central grants technique.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘solution’ and projects had been removed from the grant funding process and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Place of work, Government Manager Legal to be able to safeguard [the] details,” Nene mentioned in her affidavit.

“There was plenty of internal dialogue, with numerous backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was within a senior place within the NLC at enough time, told GroundUp. “Eventually, the decision was taken to get rid of all of the proactive initiatives in the process and Restrict access to a handful of persons”.

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

Maselwa, who resigned within the NLC a number of a long time in the past, has actually been implicated in corruption involving lottery resources. He been given R4.three-million from lottery resources allotted to create a library and museum advanced in Kuruman (see Taung Cultural Tunes and Arts Expo) which he applied to develop a property in an upmarket gated improvement in Pretoria. The assets is among a number of compensated for with lottery cash which were frozen following the Asset Forfeiture Device received a preservation get in December 2022.

The politically-linked Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was near large-ups during the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their own watch.

Also implicated are previous board associates William Huma, who resigned right after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has considering that died.

Any time a new administration, such as the full board and govt, took over in the NLC in late 2022 and early 2023, they learned a “chaotic mess” in the documentation referring to proactive funding, Substantially of which was paper-based. Critical files ended up missing. Documents held for safekeeping by document storage enterprise Metrofile had been signed out and never ever returned.

The NLC was able to Recuperate copies of some หวย วัน นี้ paperwork from its Mimecast e-mail archiving program as well as the laptops in their assistants and help workers.

News stories
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave concern probable data security breaches and the unauthorised use and/or dissemination of confidential information and facts received as a result of accomplishing Formal functions during the Commission by NLC employees. The activities are intended to undermine the integrity of your Commission even though disrupting the helpful features [from the NLC] and creating insurmountable reputational damage for the Fee since the custodian of private data entrusted to it by its beneficiaries.”

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

Nene is at this time experiencing a disciplinary inquiry just after she was unsuccessful in authorized motion to put aside findings of irregular expenditure on her look at.

The purpose of her affidavit, Nene claimed, was “to file the activities which transpired relating to info protection breaches within the National Lotteries Commission”.

She outlined various news stories which she claimed were the final results of such “breaches” (see at the end of this short article).

Nene said that a whistle-blower approached the NLC alleging that one among its staff members, Sello Qhino, experienced “provided her classified NLC Details and persistently encouraged her to supply the information to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded projects in Kuruman after tries to raise the issue internally had been ignored, was subsequently fired.

Referring to an eighteen November 2018 report inside the Day by day Dispatch about the misappropriation of Lottery cash, Nene said that the NLC discovered after which suspended Zintle Rungqu. She was an staff from the NLC’s East London Workplace, who was the husband or wife as well as the mother of whistleblower Mzukise Makatse’s 3 small children.

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

“The common Consider these content articles is [they contain] classified facts referring to proactive funding initiatives,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out in the spouse and children home to take the warmth off her and his children. Dealing with homelessness, he moved into an Place of work in an vacant manufacturing facility belonging to a colleague.

Equally Makatse and Qhino are participating in an NLC reparation process meant to recognise the damage a number of people suffered within the fingers from the NLC. Apologies and, occasionally, fiscal payment are anticipated.

“Some individuals ended up truly influenced very negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz told the Day-to-day Maverick very last calendar year.

“I met a number of these people today. It absolutely was just so coronary heart-wrenching that their whole lives have already been turned the wrong way up,” mentioned Scholtz.

Amongst These she met were Qhino and Makatse.

Secure platform desired for whistleblowers
The SSA observed the absence at time of an appropriate channel for whistleblowers to report corruption led them to turn into the media.

“Failure to have a committed anti-corruption channel will result in personnel presenting this kind of scenarios beyond the NLC,” the SSA stated in its results.

“Specified the magnitude of corruption in state institutions, it remains vital that it makes sure that the NLC complies with all protection prescripts and that its emphasis is on guaranteeing that illegal and irregular carry out is adequately mitigated towards and by ensuring an sufficient channel for whistle-blowers to report untoward conduct without remaining intimidated.”

It proposed the NLC establish a “Harmless channel” for employees to provide info on any “untoward exercise” that could not stop or discourage workforce from blowing the whistle. A whistle-blowers coverage, based on the Safeguarded Disclosures Act twenty five of 2000, is actually a need.”

Media reports Nene shown
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Exercise Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and proprietor of your Limpopo Mirror, to show NLC corruption. “The article experienced elements of data not available in the public area, therefore raising issue on inside Data safety breaches. The allegations within the media were being independently investigated,” Nene claimed. “Even so, workers chargeable for divulging labeled information have nevertheless to be recognized”;
A 28 January 2018 posting printed with the Dally Dispatch “citing numerous allegations from your Limpopo Mirror report released on 10 December 2017 plus a new allegation regarding a previous personnel with the title of Mzukisi Makatse. He was charged and summarily dismissed for your threat triggered towards the organisation.”
A sixteen November 2018 short article from the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite getting R27-million in lottery grants, the rehab hasn't been accomplished. “The Lowvelder article contained categorized information and facts with regard to NLC plan, elevating even further concerns of inner facts security breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, nevertheless [it] highlighted the heightened data protection threats throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Principal Care, a hijacked NPO. Nene stated GroundUp experienced verified in its story that it absolutely was based on leaked NLC files. This was despite the NLC rejecting a PAIA (Promotion of Usage of Data) request for aspects with regards to the undertaking, she said