Lottery bosses turned to State Security Agency to investigate leaks

Lottery bosses turned to State Security Agency to investigate leaks

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Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Security Agency (SSA) in December 2018 to investigate the leaking of documents that uncovered lottery corruption.
The NLC’s firm secretary at enough time shown media stories she reported were being according to “stolen” info within an affidavit for that SSA.
The SSA did investigate. It found the data was not a matter of condition security and the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to expose it.
A completely new board and management has considering the fact that taken in excess of the NLC and Up to now have taken measures to end corruption for the establishment.
A Point out Security Agency (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished enough motive” for publicity with the media.

The probe into meant “information and facts stability breaches and sabotage of NLC functions” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to research.

Here's

Nevhutanda’s letter,
an affidavit by presently suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “private” conclusions and proposals.
Nevhutanda questioned the SSA to analyze the position of NLC staff from the alleged leaking of data, and Nene, in her affidavit discovered particular media and reviews that she claimed involved these leaks.

From the letter outlining its conclusions, the SSA advised the NLC that though safeguarding point out details was “a legal vital directed at shielding the sovereignty and integrity in the condition” this only placed on properly labeled facts.

Even though it did not say so immediately, the SSA findings implied which the allegedly leaked facts did not fall into this classification.

Noticeably, the SSA designed it obvious that the need to guard state information “won't stop any unique from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation found that the NLC facts involved in the alleged breach was “sensitive and privileged in nature, but not labeled in terms of the prescripts in the Bare minimum Facts Stability Benchmarks (MISS)”.

“The leakage of the relevant delicate Formal NLC data on the media isn't going to pose a risk to national protection,” the SSA mentioned, adding the effect of the breaches was reputational.

The SSA report uncovered “no evidence of the factual and incriminating nature in opposition to any of the suspected NLC staff members that may be determined from the information and knowledge interrogated”.

It also stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does present enough motive to have this sort of exposed inside the media”.

Conspiracy statements
In 2020, Nevhutanda advised MPs through a session of Parliament’s trade, marketplace and Level of competition portfolio committee that there was “a conspiracy” wherein information and facts “stolen” with the NLC was sent to the US, where by he claimed it had been becoming bought to fund a smear campaign from the NLC.

He was repeating equivalent promises he had Earlier made in Parliament, which provided advert hominem attacks on GroundUp and this reporter but was thorough not to call either.

“I came listed here During this August residence very last calendar year and claimed to honourable members that information about our beneficiaries is stolen and put in one point out in the usa,” he instructed MPs.

“We called within the Condition Security Company to come back investigate the subject mainly because we have been receiving studies that our details is producing money for media platforms and journalists,” he reported. “There was discuss, obviously from one supply, one media, that spoke Substantially about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't inform MPs the SSA investigation were completed Practically a calendar year earlier.

Proactive funding was at the heart with the looting of the lottery. It side-stepped the normal grant approach. The NLC could by itself recognize a job to fund and appoint a non-earnings organisation to supervise it.

Following Nevhutanda initial told Parliament in 2018 that he experienced asked the SSA to investigate the meant breach, the South African National Editors Discussion board issued an announcement saying that his remarks mirrored “an especially harmful attitude the place the media is getting blamed for that NLC’s inherent troubles”.

“Instead of investigating why millions can not be accounted for, the NLC has in its place made an effort to Solid doubt over the integrity of your journalists concerned and it has asked the SSA to research their resources.”

Proactive projects produced key
Safety flaws identified while in the NLC grant funding system in the course of the SSA’s investigation, look to have already been utilised being an excuse by the NLC to eliminate all proactive-funded tasks from its central grants technique.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘key’ and tasks were removed from the grant funding process and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Office environment, Government Supervisor Authorized as a way to safeguard [the] facts,” Nene mentioned in her affidavit.

“There was many internal discussion, with a lot of forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was within a senior placement with the NLC at time, told GroundUp. “Eventually, the decision was taken to eliminate the many proactive assignments in the procedure and limit usage of a handful of men and women”.

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

Maselwa, who resigned from the NLC many decades ago, has become implicated in corruption involving lottery resources. He received R4.3-million from lottery funds allocated to build a library and museum sophisticated in Kuruman (see Taung Cultural Audio and Arts Expo) which he applied to develop a household in an upmarket gated growth in Pretoria. The home is one of quite a few compensated for with lottery money that were frozen following the Asset Forfeiture Unit attained a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed as being the NLC board chairperson by former President Jacob Zuma in 2009 and was near to large-ups in the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated within the corruption which overcome the NLC on their own watch.

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

Every time a new administration, such as the overall board and government, took about for the NLC in late 2022 and early 2023, they found out a “chaotic mess” during the documentation concerning proactive funding, A great deal of which was paper-dependent. Essential documents were being missing. Files held for safekeeping by document storage business Metrofile had been signed out and by no means returned.

The NLC was capable to Recuperate copies of some fox888 files from its Mimecast electronic mail archiving method plus the laptops in their assistants and aid staff.

News reviews
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave concern possible info security breaches and the unauthorised use and/or dissemination of private data acquired as a result of accomplishing official functions from the Commission by NLC employees. The functions are intended to undermine the integrity with the Commission even though disrupting the efficient features [of the NLC] and triggering insurmountable reputational hurt towards the Commission as being the custodian of private info entrusted to it by its beneficiaries.”

His request to the SSA to research was supported within an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.

Nene is currently dealing with a disciplinary inquiry right after she was unsuccessful in authorized action to put aside conclusions of irregular expenditure on her enjoy.

The objective of her affidavit, Nene mentioned, was “to document the occasions which transpired relating to information and facts protection breaches in the Countrywide Lotteries Commission”.

She listed several news stories which she claimed had been the effects of these “breaches” (see at the conclusion of this informative article).

Nene reported that a whistle-blower approached the NLC alleging that among its workforce, Sello Qhino, experienced “supplied her labeled NLC Facts and persistently inspired her to deliver the data to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded projects in Kuruman following attempts to raise The difficulty internally were being overlooked, was subsequently fired.

Referring to an 18 November 2018 write-up inside the Every day Dispatch concerning the misappropriation of Lottery resources, Nene claimed that the NLC discovered then suspended Zintle Rungqu. She was an employee from the NLC’s East London Business office, who was the partner plus the mom of whistleblower Mzukise Makatse’s three little ones.

Rungqu and Makatse believe Rungqu was punished mainly because Makatse blew the whistle. She was suspended and billed internally, Using the NLC paying R470,000 on attorneys to characterize it, but was uncovered not responsible and permitted to return to operate.

“The prevalent Consider these content is usually that [they require] labeled data relating to proactive funding assignments,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out from the spouse and children property to go ahead and take heat off her and his little ones. Struggling with homelessness, he moved into an office within an empty factory belonging to an acquaintance.

Both equally Makatse and Qhino are taking part in an NLC reparation method meant to recognise the damage a lot of people endured for the palms of your NLC. Apologies and, sometimes, economic payment are anticipated.

“Some individuals ended up actually afflicted really negatively by this … This is admittedly distressing,” NLC Commissioner Jodi Scholtz told the Daily Maverick previous yr.

“I met a couple of these people today. It absolutely was just so coronary heart-wrenching that their total life are actually turned upside down,” mentioned Scholtz.

Amongst These she met were Qhino and Makatse.

Risk-free System desired for whistleblowers
The SSA observed the absence at enough time of a proper channel for whistleblowers to report corruption led them to turn to the media.

“Failure to have a dedicated anti-corruption channel will end in staff presenting such conditions outside of the NLC,” the SSA reported in its results.

“Presented the magnitude of corruption in state institutions, it continues to be essential that it ensures 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 being intimidated.”

It proposed the NLC set up a “Secure channel” for workers to offer info on any “untoward action” that might not avert or discourage personnel from blowing the whistle. A whistle-blowers policy, according to the Secured Disclosures Act 25 of 2000, is often a requirement.”

Media stories Nene detailed
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Health Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and owner from the Limpopo Mirror, to expose NLC corruption. “The post had elements of data not available in the general public domain, thus boosting worry on inner Data safety breaches. The allegations within the media were independently investigated,” Nene reported. “On the other hand, personnel to blame for divulging classified facts have but to generally be identified”;
A 28 January 2018 short article published with the Dally Dispatch “citing numerous allegations from your Limpopo Mirror short article printed on 10 December 2017 plus a new allegation relating to a former employee with the title of Mzukisi Makatse. He was charged and summarily dismissed for your risk triggered for the organisation.”
A 16 November 2018 posting from the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite obtaining R27-million in lottery grants, the rehab hasn't been accomplished. “The Lowvelder article contained labeled information with regard to NLC policy, increasing further worries of interior information safety breaches,” Nene claimed 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 challenges inside the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene claimed GroundUp had confirmed in its Tale that it was according to leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Use of Details) ask for for specifics regarding the project, she claimed