Lottery bosses turned to Condition Security Agency to investigate leaks

Lottery bosses turned to Condition Security Agency to investigate leaks

Blog Article

Former National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Protection Company (SSA) in December 2018 to analyze the leaking of documents that uncovered lottery corruption.
The NLC’s firm secretary at enough time stated media reports she stated had been determined by “stolen” facts in an affidavit for your SSA.
The SSA did look into. It observed the knowledge wasn't a subject of state stability and that the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to reveal it.
A brand new board and administration has given that taken around the NLC and So far have taken actions to finish corruption at the institution.
A Condition Protection Company (SSA) investigation found that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for exposure through the media.

The probe into intended “data protection breaches and sabotage of NLC operations” was undertaken following then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to investigate.

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 proposals.
Nevhutanda asked the SSA to research the function of NLC team inside the alleged leaking of data, and Nene, in her affidavit identified precise media and reports that she claimed concerned these leaks.

During the letter outlining its findings, the SSA informed the NLC that even though preserving point out info was “a legal essential aimed toward safeguarding the sovereignty and integrity on the condition” this only applied to correctly labeled facts.

Although it did not say so instantly, the SSA results implied that the allegedly leaked info didn't fall into this group.

Drastically, the SSA built it crystal clear that the need to safeguard state info “will not prevent any unique from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation found which the NLC info involved with the alleged breach was “sensitive and privileged in mother nature, although not labeled with regards to the prescripts on the Minimum Data Stability Specifications (Pass up)”.

“The leakage on the relevant delicate Formal NLC information for the media won't pose a menace to nationwide safety,” the SSA reported, incorporating the effect with the breaches was reputational.

The SSA report located “no evidence of the factual and incriminating character versus any on the suspected NLC personnel that would be identified from the knowledge and data interrogated”.

In addition it stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does present enough motive to have these kinds of uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs throughout a session of Parliament’s trade, market and Levels of competition portfolio committee that there was “a conspiracy” wherein information and facts “stolen” with the NLC was sent towards the US, where he claimed it absolutely was currently being offered to fund a smear marketing campaign towards the NLC.

He was repeating similar statements he experienced Formerly built in Parliament, which provided advert hominem attacks on GroundUp and this reporter but was thorough not to call either.

“I came listed here in this August property past calendar year and noted to honourable associates that information regarding our beneficiaries has long been stolen and set in a single point out in the united states,” he advised MPs.

“We identified as to the Condition Safety Agency to return check into the subject due to the fact we're obtaining reports that our facts is creating money for media platforms and journalists,” he claimed. “There's been communicate, naturally from 1 supply, one media, that spoke Considerably about proactive-funding,” Nevhutanda reported (referring to GroundUp), but failed to explain to MPs the SSA investigation were concluded almost a year earlier.

Proactive funding was at the heart from the looting in the lottery. It aspect-stepped the conventional grant method. The NLC could itself determine a undertaking to fund and appoint a non-revenue organisation to oversee it.

Just after Nevhutanda to start with instructed Parliament in 2018 that he had questioned the SSA to investigate the meant breach, the South African Nationwide Editors Discussion board issued a statement indicating that his remarks reflected “an incredibly unsafe Mindset wherever the media is getting blamed for that NLC’s inherent issues”.

“In lieu of investigating why millions cannot be accounted for, the NLC has alternatively attempted to Solid doubt to the integrity of your journalists associated and it has requested the SSA to research their sources.”

Proactive projects made secret
Stability flaws determined while in the NLC grant funding program through the SSA’s investigation, appear to are actually applied as an justification from the NLC to eliminate all proactive-funded tasks from its central grants process.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘magic formula’ and assignments were being removed from the grant funding program and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Office environment, Govt Supervisor Authorized so as to safeguard [the] information,” Nene said in her affidavit.

“There was lots of internal dialogue, with many backwards and forwards, about how to proceed to plug the alleged leaks”, a source, who was in a very senior place within the NLC at some time, advised GroundUp. “Ultimately, the choice was taken to remove the many proactive projects within the program and limit use of A few men and women”.

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

Maselwa, who resigned through the NLC numerous decades in the past, has become implicated in corruption involving lottery money. He obtained R4.three-million from lottery money allocated to construct a library and museum intricate in Kuruman (see Taung Cultural Audio and Arts Expo) which he applied to make a dwelling within an upmarket gated enhancement in Pretoria. The residence is one of quite a few paid out for with lottery resources which were frozen after the Asset Forfeiture Unit obtained a preservation purchase 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 to high-ups inside the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated within the corruption which overwhelmed the NLC on their observe.

Also implicated are previous board customers William Huma, who resigned after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got because died.

When a new administration, including the whole board and government, took about in the NLC in late 2022 and early 2023, they found out a “chaotic mess” in the documentation referring to proactive funding, Considerably of which was paper-centered. Key files were being lacking. Information held for safekeeping by document storage organization Metrofile had been signed out and by no means returned.

The NLC was capable of recover copies of some หวย ไทยรัฐ documents from its Mimecast email archiving method and also the laptops in their assistants and guidance staff members.

News experiences
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave issue achievable data safety breaches as well as the unauthorised use and/or dissemination of private facts obtained on account of carrying out Formal capabilities while in the Fee by NLC employees. The functions are meant to undermine the integrity from the Commission even though disrupting the productive capabilities [of the NLC] and leading to insurmountable reputational harm for the Commission as the custodian of personal info entrusted to it by its beneficiaries.”

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

Nene is now facing a disciplinary inquiry after she was unsuccessful in lawful action to put aside findings of irregular expenditure on her enjoy.

The purpose of her affidavit, Nene claimed, was “to document the occasions which transpired relating to facts security breaches in the Countrywide Lotteries Fee”.

She detailed several information experiences which she claimed had been the final results of such “breaches” (see at the conclusion of this text).

Nene said that a whistle-blower approached the NLC alleging that certainly one of its staff, Sello Qhino, had “supplied her classified NLC Information and facts and persistently inspired her to offer the information to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded assignments in Kuruman soon after attempts to lift the issue internally were being overlooked, was subsequently fired.

Referring to an 18 November 2018 short article in the Day-to-day Dispatch regarding the misappropriation of Lottery resources, Nene stated the NLC discovered after which suspended Zintle Rungqu. She was an personnel during the NLC’s East London Workplace, who was the spouse plus the mom of whistleblower Mzukise Makatse’s 3 young children.

Rungqu and Makatse feel Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, with the NLC expending R470,000 on legal professionals to characterize it, but was identified not responsible and allowed to return to operate.

“The widespread Think about these articles or blog posts is always that [they involve] categorised info concerning proactive funding initiatives,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out from the family property to go ahead and take warmth off her and his youngsters. Facing homelessness, he moved into an Business office in an empty manufacturing facility belonging to a pal.

The two Makatse and Qhino are participating in an NLC reparation process intended to recognise the damage lots of people endured at the palms in the NLC. Apologies and, in some cases, fiscal compensation are anticipated.

“Some people today have been definitely impacted incredibly negatively by this … This is actually agonizing,” NLC Commissioner Jodi Scholtz explained to the Everyday Maverick very last calendar year.

“I achieved a number of these persons. It absolutely was just so heart-wrenching that their total life happen to be turned the wrong way up,” claimed Scholtz.

Among those she achieved ended up Qhino and Makatse.

Safe and sound 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 possess a devoted anti-corruption channel will lead to employees presenting these circumstances beyond the NLC,” the SSA stated in its conclusions.

“Presented the magnitude of corruption in state institutions, it continues to be essential that it makes sure that the NLC complies with all stability prescripts and that its target is on guaranteeing that illegal and irregular carry out is adequately mitigated in opposition to and by guaranteeing an enough channel for whistle-blowers to report untoward perform without the need of remaining intimidated.”

It recommended which the NLC set up a “Protected channel” for workers to offer information on any “untoward exercise” that could not protect against or discourage personnel from blowing the whistle. A whistle-blowers policy, based upon the Safeguarded Disclosures Act twenty five of 2000, can be a requirement.”

Media studies Nene listed
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Exercise Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and proprietor of your Limpopo Mirror, to show NLC corruption. “The article had aspects of knowledge not readily available in the general public area, therefore increasing problem on internal Details security breaches. The allegations in the media were being independently investigated,” Nene explained. “Even so, staff liable for divulging categorised data have however being identified”;
A 28 January 2018 report published with the Dally Dispatch “citing a lot of allegations from your Limpopo Mirror short article revealed on 10 December 2017 along with a new allegation concerning a previous worker because of the identify of Mzukisi Makatse. He was charged and summarily dismissed to the danger brought on for the organisation.”
A 16 November 2018 write-up from the Lowvelder in regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has described how, Regardless of receiving R27-million in lottery grants, the rehab hasn't been accomplished. “The Lowvelder report contained labeled information and facts with regard to NLC policy, boosting more issues of inside info protection breaches,” Nene said in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an independent Investigation, having said that [it] highlighted the heightened details safety challenges within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene explained GroundUp experienced verified in its Tale that it absolutely was according to leaked NLC documents. This was despite the NLC rejecting a PAIA (Advertising of Usage of Information and facts) request for details with regards to the job, she explained