Lottery bosses turned to State Protection Company to analyze leaks

Lottery bosses turned to State Protection Company to analyze leaks

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Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Point out Security Company (SSA) in December 2018 to research the leaking of documents that uncovered lottery corruption.
The NLC’s firm secretary at some time stated media reports she said were depending on “stolen” info within an affidavit for your SSA.
The SSA did examine. It discovered the data wasn't a make any difference of condition security and the “prevalence of alleged corruption and irregularities” gave “ample motive” for the media to show it.
A completely new board and management has considering that taken about the NLC and To this point have taken measures to end corruption on the institution.
A Condition Stability Agency (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for exposure with the media.

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

Here's

Nevhutanda’s letter,
an affidavit by currently suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the security company’s “private” conclusions and recommendations.
Nevhutanda asked the SSA to investigate the role of NLC staff inside the alleged leaking of knowledge, and Nene, in her affidavit determined particular media and studies that she claimed included these leaks.

From the letter outlining its results, the SSA instructed the NLC that though preserving condition details was “a legal essential aimed toward guarding the sovereignty and integrity of the condition” this only applied to appropriately labeled details.

Although it didn't say so right, the SSA findings implied the allegedly leaked details didn't slide into this class.

Noticeably, the SSA built it apparent that the need to guard state data “isn't going to protect against any individual from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation identified which the NLC info linked to the alleged breach was “delicate and privileged in nature, although not classified with regards to the prescripts of your Bare minimum Information Safety Standards (Skip)”.

“The leakage on the applicable delicate Formal NLC details on the media doesn't pose a threat to countrywide protection,” the SSA claimed, adding the impact with the breaches was reputational.

The SSA report located “no proof of a factual and incriminating character towards any with the suspected NLC employees that would be discovered from the data and data interrogated”.

In addition it mentioned that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does present ample motive to own such exposed inside the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs all through a session of Parliament’s trade, industry and Opposition portfolio committee that there was “a conspiracy” through which information and facts “stolen” from your NLC was sent on the US, exactly where he claimed it had been being sold to fund a smear campaign in opposition to the NLC.

He was repeating similar statements he experienced Earlier produced in Parliament, which included advertisement hominem attacks on GroundUp which reporter but was careful not to call possibly.

“I arrived right here in this August property previous calendar year and documented to honourable users that details about our beneficiaries has been stolen and place in one state in America,” he told MPs.

“We called about the Point out Safety Company to return explore the matter mainly because we've been finding reports that our info is making money for media platforms and journalists,” he explained. “There have been communicate, of course from one resource, just one media, that spoke A great deal about proactive-funding,” Nevhutanda stated (referring to GroundUp), but failed to explain to MPs that the SSA investigation were accomplished Nearly a calendar year earlier.

Proactive funding was at the center from the looting of your lottery. It aspect-stepped the traditional grant process. The NLC could by itself recognize a venture to fund and appoint a non-gain organisation to oversee it.

After Nevhutanda very first advised Parliament in 2018 that he experienced asked the SSA to investigate the intended breach, the South African Countrywide Editors Discussion board issued a statement declaring that his remarks reflected “a very dangerous Mind-set exactly where the media is currently being blamed with the NLC’s inherent complications”.

“Instead of investigating why millions can't be accounted for, the NLC has alternatively tried to cast question on the integrity of your journalists involved and has requested the SSA to research their resources.”

Proactive jobs designed magic formula
Protection flaws discovered within the NLC grant funding technique in the SSA’s investigation, look to are used being an excuse from the NLC to eliminate all proactive-funded projects from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘mystery’ and projects had been faraway from the grant funding technique and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Office, Government Supervisor Lawful as a way to safeguard [the] data,” Nene said in her affidavit.

“There was plenty of inside discussion, with a lot of backwards and forwards, about how to proceed to plug the alleged leaks”, a resource, who was within a senior situation within the NLC at some time, told GroundUp. “In the long run, the choice was taken to remove many of the proactive jobs with the system and limit entry to a handful of persons”.

Some in that handful of men and women were implicated in corruption.

Maselwa, who resigned through the NLC a number of several years in the past, has long been implicated in corruption involving lottery cash. He gained R4.three-million from lottery money allotted to develop a library and museum intricate in Kuruman (see Taung Cultural Songs and Arts Expo) which he utilized to develop a household in an upmarket gated advancement in Pretoria. The assets is one of several paid for with lottery cash which were frozen after the Asset Forfeiture Device acquired a preservation get 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 significant-ups in the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated in the corruption which confused the NLC on their own check out.

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

Each time a new administration, such as the entire board and government, took around on the NLC in late 2022 and early 2023, they found a “chaotic mess” while in the documentation concerning proactive funding, Considerably of which was paper-based. Crucial paperwork were being lacking. Data files held for safekeeping by doc storage enterprise Metrofile were signed out and under no circumstances returned.

The NLC was ready to Get well copies of some หวย paperwork from its Mimecast e-mail archiving technique as well as laptops in their assistants and assist personnel.

News reports
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave problem attainable facts safety breaches as well as the unauthorised use and/or dissemination of private data obtained on account of undertaking Formal features in the Commission by NLC personnel. The things to do are intended to undermine the integrity in the Commission when disrupting the effective functions [from the NLC] and triggering insurmountable reputational harm towards the Fee as the custodian of private information entrusted to it by its beneficiaries.”

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

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

The purpose of her affidavit, Nene stated, was “to history the gatherings which transpired associated with info protection breaches within the National Lotteries Commission”.

She detailed a variety of news stories which she claimed ended up the results of these “breaches” (see at the conclusion of this short article).

Nene mentioned that a whistle-blower approached the NLC alleging that one among its workforce, Sello Qhino, experienced “delivered her categorised NLC Information and persistently inspired her to offer the information to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded projects in Kuruman immediately after attempts to lift the issue internally were being dismissed, was subsequently fired.

Referring to an 18 November 2018 posting during the Day-to-day Dispatch with regards to the misappropriation of Lottery money, Nene claimed that the NLC discovered then suspended Zintle Rungqu. She was an employee while in the NLC’s East London office, who was the spouse as well as mom of whistleblower Mzukise Makatse’s 3 kids.

Rungqu and Makatse imagine Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, with the NLC spending R470,000 on attorneys to signify it, but was found not responsible and permitted to return to work.

“The prevalent factor in these posts is that [they entail] categorised info regarding proactive funding tasks,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out from the household dwelling to go ahead and take warmth off her and his small children. Dealing with homelessness, he moved into an Place of work in an vacant manufacturing unit belonging to an acquaintance.

Equally Makatse and Qhino are participating in an NLC reparation approach meant to recognise the damage lots of people suffered on the palms in the NLC. Apologies and, in some instances, fiscal compensation are envisioned.

“Some people today ended up seriously impacted very negatively by this … This is admittedly unpleasant,” NLC Commissioner Jodi Scholtz explained to the Day-to-day Maverick past yr.

“I fulfilled a few these individuals. It was just so heart-wrenching that their complete life are actually turned upside down,” stated Scholtz.

Amid Individuals she fulfilled were being Qhino and Makatse.

Harmless System needed for whistleblowers
The SSA found the absence at some time of a suitable channel for whistleblowers to report corruption led them to turn to the media.

“Failure to possess a devoted anti-corruption channel will lead to employees presenting these types of conditions outside of the NLC,” the SSA reported in its results.

“Given the magnitude of corruption in state institutions, it continues to be essential that it makes certain that the NLC complies with all security prescripts and that its concentration is on ensuring that unlawful and irregular perform is sufficiently mitigated against and by ensuring an satisfactory channel for whistle-blowers to report untoward conduct without having getting intimidated.”

It encouraged the NLC establish a “safe channel” for workers to supply info on any “untoward action” that might not avert or discourage staff from blowing the whistle. A whistle-blowers plan, determined by the Protected Disclosures Act twenty five of 2000, is really a prerequisite.”

Media reports Nene stated
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Health and fitness Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and proprietor of the Limpopo Mirror, to expose NLC corruption. “The report experienced things of data not available in the public domain, thereby elevating problem on inner Details safety breaches. The allegations inside the media had been independently investigated,” Nene stated. “Nonetheless, staff to blame for divulging categorized info have however to get discovered”;
A 28 January 2018 article revealed from the Dally Dispatch “citing quite a few allegations from your Limpopo Mirror report revealed on ten December 2017 in addition to a new allegation relating to a previous staff from the identify of Mzukisi Makatse. He was billed and summarily dismissed for that threat induced to the organisation.”
A sixteen November 2018 post while in the Lowvelder concerning the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has described how, Regardless of getting R27-million in lottery grants, the rehab has never been done. “The Lowvelder posting contained categorised data when it comes to NLC policy, raising further more problems of inside data security breaches,” Nene reported in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an unbiased Investigation, having said that [it] highlighted the heightened information and facts safety pitfalls throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene said GroundUp had verified in its story that it was based upon leaked NLC files. This was despite the NLC rejecting a PAIA (Marketing of Use of Information and facts) ask for for information about the venture, she reported