Lottery bosses turned to Condition Safety Agency to research leaks

Lottery bosses turned to Condition Safety Agency to research leaks

Blog Article

Previous Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Point out Safety Company (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s company secretary at time mentioned media studies she reported were based upon “stolen” details in an affidavit for that SSA.
The SSA did investigate. It identified the knowledge was not a make a difference of point out protection and that the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to expose it.
A new board and administration has due to the fact taken around the NLC and To date have taken actions to end corruption in the establishment.
A Condition Safety Agency (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented ample motive” for publicity with the media.

The probe into intended “details stability breaches and sabotage of NLC operations” was undertaken just after then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to research.

Here's

Nevhutanda’s letter,
an affidavit by at this time suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” findings and recommendations.
Nevhutanda asked the SSA to analyze the job of NLC staff within the alleged leaking of data, and Nene, in her affidavit determined distinct media and reports that she claimed concerned these leaks.

During the letter outlining its findings, the SSA advised the NLC that while shielding state information and facts was “a authorized essential geared toward defending the sovereignty and integrity of the condition” this only placed on properly classified info.

Although it did not say so instantly, the SSA conclusions implied that the allegedly leaked info did not drop into this class.

Noticeably, the SSA made it clear that the need to guard point out facts “would not prevent any individual from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation observed which the NLC info linked to the alleged breach was “delicate and privileged in character, but not categorised when it comes to the prescripts in the Least Information Safety Specifications (MISS)”.

“The leakage on the suitable delicate official NLC information on the media does not pose a risk to national safety,” the SSA said, incorporating which the affect of your breaches was reputational.

The SSA report discovered “no proof of a factual and incriminating nature against any of your suspected NLC personnel that can be identified from the knowledge and data interrogated”.

Additionally, it mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide ample motive to acquire these kinds of uncovered in the media”.

Conspiracy claims
In 2020, Nevhutanda advised MPs during a session of Parliament’s trade, business and Opposition portfolio committee that there was “a conspiracy” wherein info “stolen” from your NLC was despatched on the US, wherever he claimed it had been currently being marketed to fund a smear campaign towards the NLC.

He was repeating equivalent claims he experienced Formerly produced in Parliament, which integrated advert hominem attacks on GroundUp which reporter but was thorough not to name either.

“I came here in this August dwelling previous year and described to honourable users that details about our beneficiaries has been stolen and place in a single point out in America,” he advised MPs.

“We termed around the Condition Stability Company to come back take a look at the subject due to the fact we are having experiences that our information is producing revenue for media platforms and journalists,” he reported. “There have been communicate, certainly from a person supply, a single media, that spoke Significantly about proactive-funding,” Nevhutanda stated (referring to GroundUp), but didn't explain to MPs that the SSA investigation were finished Nearly a 12 months before.

Proactive funding was at the center of the looting of your lottery. It side-stepped the conventional grant process. The NLC could by itself identify a undertaking to fund and appoint a non-gain organisation to supervise it.

Following Nevhutanda 1st explained to Parliament in 2018 that he experienced requested the SSA to research the supposed breach, the South African National Editors Forum issued a press release stating that his remarks reflected “a very risky attitude exactly where the media is becoming blamed for your NLC’s inherent difficulties”.

“As an alternative to investigating why hundreds of thousands can not be accounted for, the NLC has alternatively tried to cast question within the integrity of the journalists concerned and has requested the SSA to research their resources.”

Proactive jobs created mystery
Safety flaws recognized inside the NLC grant funding program through the SSA’s investigation, look to have been utilized as an excuse via the NLC to eliminate all proactive-funded initiatives from its central grants system.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘mystery’ and tasks had been faraway from the grant funding technique and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Business, Government Manager Legal so that you can safeguard [the] information and facts,” Nene reported in her affidavit.

“There was lots of interior dialogue, with many back and forth, about how to proceed to plug the alleged leaks”, a resource, who was inside of a senior posture within the NLC at enough time, informed GroundUp. “Eventually, the decision was taken to eliminate each of the proactive initiatives within the procedure and limit usage of a handful of folks”.

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

Maselwa, who resigned within the NLC quite a few yrs ago, continues to be implicated in corruption involving lottery resources. He acquired R4.three-million from lottery funds allocated to develop a library and museum elaborate in Kuruman (see Taung Cultural Songs and Arts Expo) which he utilized to develop a house in an upmarket gated development in Pretoria. The house is among several paid for with lottery money which were frozen following the Asset Forfeiture Unit attained a preservation buy in December 2022.

The politically-related Nevhutanda, who was appointed since the NLC board chairperson by former President Jacob Zuma in 2009 and was close to higher-ups inside the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated from the corruption which confused the NLC on their look at.

Also implicated are former board associates William Huma, who resigned just after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got due to the fact died.

Each time a new administration, including the total board and govt, took around in the NLC in late 2022 and early 2023, they identified a “chaotic mess” while in the documentation concerning proactive funding, Considerably of which was paper-based mostly. Essential paperwork have been missing. Data files held for safekeeping by document storage enterprise Metrofile had been signed out and hardly ever returned.

The NLC was in the position to Recuperate copies of some hihuay paperwork from its Mimecast e-mail archiving method and also the laptops in their assistants and help employees.

Information reviews
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave worry possible information and facts safety breaches as well as unauthorised use and/or dissemination of confidential data obtained due to executing Formal capabilities within the Commission by NLC workforce. The actions are intended to undermine the integrity with the Fee though disrupting the effective capabilities [of your NLC] and producing insurmountable reputational damage on the Commission given that the custodian of private data entrusted to it by its beneficiaries.”

His request for the SSA to analyze was supported within an affidavit by suspended NLC organization secretary, Nomphumelelo Nene.

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

The objective of her affidavit, Nene explained, was “to report the gatherings which transpired concerning information and facts protection breaches within the Countrywide Lotteries Commission”.

She mentioned 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 certainly one of its personnel, Sello Qhino, experienced “supplied her categorized NLC Facts and persistently inspired her to deliver the data to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded jobs in Kuruman after tries to lift The difficulty internally ended up dismissed, was subsequently fired.

Referring to an 18 November 2018 article during the Day by day Dispatch about the misappropriation of Lottery cash, Nene mentioned that the NLC determined after which suspended Zintle Rungqu. She was an employee while in the NLC’s East London Workplace, who was the husband or wife as well as 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, Together with the NLC spending R470,000 on lawyers to signify it, but was identified not guilty and allowed to return to work.

“The typical factor in these posts is the fact that [they involve] categorised information and facts regarding proactive funding assignments,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out of your relatives property to go ahead and take heat off her and his children. Experiencing homelessness, he moved into an Place of work within an vacant factory belonging to a colleague.

Both Makatse and Qhino are participating in an NLC reparation process intended to recognise the damage lots of people experienced at the fingers with the NLC. Apologies and, in some cases, monetary compensation are anticipated.

“Some persons were being truly impacted really negatively by this … This is basically unpleasant,” NLC Commissioner Jodi Scholtz informed the Every day Maverick last calendar year.

“I satisfied a few these individuals. It absolutely was just so heart-wrenching that their full lives have been turned the wrong way up,” stated Scholtz.

Between These she fulfilled were Qhino and Makatse.

Risk-free System needed for whistleblowers
The SSA located the absence at some time of a proper channel for whistleblowers to report corruption led them to turn towards the media.

“Failure to have a devoted anti-corruption channel will cause staff members presenting these types of cases beyond the NLC,” the SSA said in its conclusions.

“Supplied the magnitude of corruption in condition institutions, it remains crucial that it makes certain that the NLC complies with all protection prescripts and that its aim is on guaranteeing that illegal and irregular perform is adequately mitigated versus and by making certain an adequate channel for whistle-blowers to report untoward carry out with out remaining intimidated.”

It advisable which the NLC establish a “safe channel” for workers to provide info on any “untoward activity” that could not avoid or discourage staff from blowing the whistle. A whistle-blowers policy, according to the Shielded Disclosures Act twenty five of 2000, is a requirement.”

Media experiences Nene shown
A ten December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Conditioning Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to reveal NLC corruption. “The article had factors of knowledge not available in the general public area, thereby elevating concern on interior Information and facts protection breaches. The allegations while in the media had been independently investigated,” Nene stated. “However, employees accountable for divulging labeled info have nonetheless for being discovered”;
A 28 January 2018 post revealed via the Dally Dispatch “citing many allegations with the Limpopo Mirror post released on ten December 2017 and a new allegation referring to a former employee from the name of Mzukisi Makatse. He was billed and summarily dismissed for that menace induced for the organisation.”
A 16 November 2018 article in the Lowvelder concerning the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has described how, in spite of obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder post contained labeled info concerning NLC policy, elevating further more considerations of inside information safety breaches,” Nene explained in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, on the other hand [it] highlighted the heightened information and facts stability threats throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene said GroundUp experienced confirmed in its Tale that it had been determined by leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Promotion of Usage of Data) request for aspects with regards to the task, she stated