Lottery bosses turned to State Stability Company to analyze leaks

Lottery bosses turned to State Stability Company to analyze leaks

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Previous Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the State Security Agency (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s enterprise secretary at some time mentioned media stories she mentioned were according to “stolen” facts in an affidavit for that SSA.
The SSA did look into. It observed the information was not a make any difference of condition protection and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for that media to show it.
A completely new board and administration has given that taken around the NLC and Up to now have taken measures to end corruption in the establishment.
A Point out Protection Company (SSA) investigation located the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented ample motive” for exposure from the media.

The probe into meant “details protection breaches and sabotage of NLC functions” was undertaken immediately after then-NLC board chairperson Alfred Nevhutanda wrote to the SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the security company’s “private” conclusions and recommendations.
Nevhutanda questioned the SSA to investigate the role of NLC staff while in the alleged leaking of data, and Nene, in her affidavit discovered unique media and stories that she claimed involved these leaks.

Inside the letter outlining its results, the SSA told the NLC that whilst safeguarding condition data was “a legal imperative geared toward protecting the sovereignty and integrity of the point out” this only applied to correctly labeled facts.

Even though it did not say so instantly, the SSA conclusions implied the allegedly leaked info didn't slide into this category.

Drastically, the SSA produced it clear that the need to protect condition facts “doesn't reduce any particular person from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation identified the NLC details involved with the alleged breach was “sensitive and privileged in nature, but not classified with regard to the prescripts in the Minimum Information and facts Security Expectations (MISS)”.

“The leakage of your applicable sensitive Formal NLC details for the media will not pose a threat to national protection,” the SSA reported, including that the effect of your breaches was reputational.

The SSA report discovered “no evidence of the factual and incriminating mother nature versus any on the suspected NLC workers that could be recognized from the data and information interrogated”.

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

Conspiracy statements
In 2020, Nevhutanda instructed MPs all through a session of Parliament’s trade, marketplace and Competitors portfolio committee that there was “a conspiracy” during which information “stolen” in the NLC was despatched for the US, where he claimed it had been becoming bought to fund a smear campaign in opposition to the NLC.

He was repeating identical statements he had Beforehand created in Parliament, which included advertisement hominem assaults on GroundUp and this reporter but was cautious not to call both.

“I came below During this August property very last calendar year and reported to honourable members that information about our beneficiaries has been stolen and set in a single point out in the united states,” he advised MPs.

“We referred to as around the Point out Safety Company to return explore the matter mainly because we've been receiving experiences that our info is making cash for media platforms and journalists,” he claimed. “There have been talk, naturally from a person supply, a single media, that spoke A great deal about proactive-funding,” Nevhutanda reported (referring to GroundUp), but didn't inform MPs the SSA investigation had been concluded Nearly a calendar year earlier.

Proactive funding was at the center in the looting of the lottery. It facet-stepped the conventional grant system. The NLC could alone recognize a task to fund and appoint a non-income organisation to supervise it.

Right after Nevhutanda initial explained to Parliament in 2018 that he experienced questioned the SSA to research the intended breach, the South African Countrywide Editors Discussion board issued an announcement stating that his remarks reflected “an especially hazardous Angle where the media is being blamed for the NLC’s inherent issues”.

“Rather then investigating why tens of millions can't be accounted for, the NLC has rather made an effort to Forged question about the integrity on the journalists involved and it has asked the SSA to analyze their sources.”

Proactive tasks designed key
Stability flaws identified while in the NLC grant funding method in the SSA’s investigation, appear to are already utilized as an excuse because of the NLC to eliminate all proactive-funded jobs from its central grants process.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘solution’ and assignments have been removed from the grant funding procedure and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business office, Govt Manager Authorized so that you can safeguard [the] data,” Nene stated in her affidavit.

“There was a great deal of interior discussion, with a great deal of forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was in a very senior posture at the NLC at the time, explained to GroundUp. “In the long run, the decision was taken to remove all of the proactive projects within the system and limit entry to A few people”.

Some in that handful of people were implicated in corruption.

Maselwa, who resigned in the NLC a number of several years ago, has actually been implicated in corruption involving lottery funds. He gained R4.three-million from lottery money allocated to construct a library and museum sophisticated in Kuruman (see Taung Cultural Audio and Arts Expo) which he employed to build a dwelling within an upmarket gated improvement in Pretoria. The home is one of many paid for with lottery resources that were frozen following the Asset Forfeiture Device received a preservation order in December 2022.

The politically-linked Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was near higher-ups within the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated within the corruption which confused the NLC on their own observe.

Also implicated are former board users William Huma, who resigned following he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has given that died.

Whenever a new administration, such as the entire board and govt, took in excess of at the NLC in late 2022 and early 2023, they found out a “chaotic mess” within the documentation associated with proactive funding, A lot of which was paper-dependent. Key documents had been missing. Files held for safekeeping by document storage firm Metrofile were signed out and never ever returned.

The NLC was ready to Get better copies of some ผล หวย ลาว documents from its Mimecast email archiving method along with the laptops of their assistants and assistance staff.

Information experiences
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave problem doable facts safety breaches and also the unauthorised use and/or dissemination of private info received because of performing official features from the Commission by NLC personnel. The actions are intended to undermine the integrity of your Commission even though disrupting the effective features [of your NLC] and leading to insurmountable reputational damage for the Commission as being the custodian of private information entrusted to it by its beneficiaries.”

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

Nene is at this time going through a disciplinary inquiry right after she was unsuccessful in legal action to put aside findings of irregular expenditure on her enjoy.

The purpose of her affidavit, Nene explained, was “to history the activities which transpired regarding information security breaches with the Nationwide Lotteries Fee”.

She mentioned a variety of information experiences which she claimed were being the results of these “breaches” (see at the conclusion of this informative article).

Nene mentioned that a whistle-blower approached the NLC alleging that one among its personnel, Sello Qhino, had “provided her categorised NLC Facts and persistently encouraged her to deliver the knowledge to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded projects in Kuruman just after makes an attempt to lift the issue internally ended up ignored, was subsequently fired.

Referring to an 18 November 2018 article while in the Daily Dispatch with regards to the misappropriation of Lottery funds, Nene explained which the NLC discovered and then suspended Zintle Rungqu. She was an employee while in the NLC’s East London Office environment, who was the lover and the mom of whistleblower Mzukise Makatse’s 3 young children.

Rungqu and Makatse imagine Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, While using the NLC paying out R470,000 on lawyers to stand for it, but was located not responsible and allowed to return to operate.

“The common Consider these articles is the fact [they involve] classified data concerning proactive funding tasks,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out with the family house to take the warmth off her and his small children. Facing homelessness, he moved into an office within an vacant factory belonging to a friend.

Both of those Makatse and Qhino are taking part in an NLC reparation method intended to recognise the hurt a lot of people suffered within the fingers of the NLC. Apologies and, sometimes, monetary payment are expected.

“Some persons were genuinely afflicted extremely negatively by this … This is de facto painful,” NLC Commissioner Jodi Scholtz informed the Day-to-day Maverick very last calendar year.

“I achieved a couple of these people. It had been just so heart-wrenching that their whole life have been turned the other way up,” reported Scholtz.

Between All those she satisfied had been Qhino and Makatse.

Safe System essential for whistleblowers
The SSA discovered the absence at some time of a correct channel for whistleblowers to report corruption led them to show on the media.

“Failure to possess a devoted anti-corruption channel will bring about staff presenting such situations beyond the NLC,” the SSA said in its findings.

“Presented the magnitude of corruption in point out establishments, it continues to be essential that it makes sure that the NLC complies with all safety prescripts and that its emphasis is on guaranteeing that illegal and irregular conduct is adequately mitigated against and by ensuring an adequate channel for whistle-blowers to report untoward perform without the need of staying intimidated.”

It encouraged the NLC establish a “Harmless channel” for employees to provide info on any “untoward activity” that could not avoid or discourage employees from blowing the whistle. A whistle-blowers coverage, based on the Secured 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 Overall health and Exercise Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator with the Limpopo Mirror, to show NLC corruption. “The short article experienced things of knowledge not offered in the public domain, thus increasing problem on inner Info security breaches. The allegations during the media ended up independently investigated,” Nene claimed. “On the other hand, personnel liable for divulging categorised facts have nevertheless to be recognized”;
A 28 January 2018 posting printed because of the Dally Dispatch “citing many allegations through the Limpopo Mirror posting published on 10 December 2017 along with a new allegation associated with a former worker through the name of Mzukisi Makatse. He was charged and summarily dismissed with the danger prompted into the organisation.”
A sixteen November 2018 write-up inside the Lowvelder in regards to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of receiving R27-million in lottery grants, the rehab has not been finished. “The Lowvelder posting contained categorized information and facts regarding NLC plan, elevating even further issues of inside information and facts security breaches,” Nene mentioned in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened information security dangers within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Key Care, a hijacked NPO. Nene mentioned GroundUp experienced confirmed in its story that it had been based on leaked NLC documents. This was despite the NLC rejecting a PAIA (Promotion of Usage of Details) request for aspects regarding the venture, she reported