Lottery bosses turned to Point out Protection Company to analyze leaks

Lottery bosses turned to Point out Protection Company to analyze leaks

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Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Protection Company (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s company secretary at the time detailed media stories she reported were determined by “stolen” facts within an affidavit to the SSA.
The SSA did investigate. It discovered the information wasn't a make any difference of state stability and which the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to reveal it.
A new board and management has since taken in excess of the NLC and Up to now have taken measures to finish corruption for the establishment.
A Condition Safety Company (SSA) investigation uncovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided enough motive” for publicity because of the media.

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

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the safety company’s “private” results and suggestions.
Nevhutanda questioned the SSA to analyze the purpose of NLC workers in the alleged leaking of information, and Nene, in her affidavit recognized certain media and stories that she claimed included these leaks.

During the letter outlining its results, the SSA instructed the NLC that whilst guarding condition facts was “a lawful imperative geared toward defending the sovereignty and integrity on the condition” this only applied to appropriately categorised information and facts.

Even though it did not say so straight, the SSA conclusions implied which the allegedly leaked data did not tumble into this group.

Drastically, the SSA created it clear that the necessity to shield point out details “does not avert any person 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 categorized concerning the prescripts from the Bare minimum Data Protection Criteria (Pass up)”.

“The leakage of your applicable delicate official NLC info towards the media does not pose a danger to nationwide security,” the SSA reported, incorporating that the impression in the breaches was reputational.

The SSA report discovered “no proof of the factual and incriminating character versus any in the suspected NLC employees that can be discovered from the information and facts interrogated”.

In addition, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does provide ample motive to possess these kinds of uncovered from the media”.

Conspiracy statements
In 2020, Nevhutanda instructed MPs all through a session of Parliament’s trade, field and Competitors portfolio committee that there was “a conspiracy” in which information “stolen” within the NLC was sent towards the US, where by he claimed it had been becoming marketed to fund a smear campaign from the NLC.

He was repeating equivalent promises he had Formerly built in Parliament, which provided advert hominem assaults on GroundUp and this reporter but was mindful not to call both.

“I arrived here In this particular August household last year and noted to honourable associates that details about our beneficiaries has actually been stolen and place in one state in America,” he explained to MPs.

“We called over the Point out Safety Agency to return investigate the issue simply because we've been receiving reviews that our information and facts is making cash for media platforms and journalists,” he claimed. “There has been discuss, of course from 1 source, one media, that spoke A lot about proactive-funding,” Nevhutanda stated (referring to GroundUp), but didn't notify MPs the SSA investigation were done Nearly a calendar year previously.

Proactive funding was at the heart on the looting of your lottery. It side-stepped the normal grant approach. The NLC could by itself recognize a task to fund and appoint a non-gain organisation to oversee it.

Soon after Nevhutanda 1st instructed Parliament in 2018 that he had requested the SSA to research the supposed breach, the South African Nationwide Editors Forum issued a statement saying that his remarks reflected “an incredibly hazardous attitude in which the media is staying blamed for your NLC’s inherent challenges”.

“As opposed to investigating why thousands and thousands cannot be accounted for, the NLC has instead attempted to Forged doubt over the integrity in the journalists included and it has questioned the SSA to analyze their sources.”

Proactive assignments created key
Security flaws discovered from the NLC grant funding technique through the SSA’s investigation, appear to have been applied as an excuse by the NLC to get rid of all proactive-funded jobs from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘mystery’ and jobs had been removed from the grant funding technique and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Place of work, Government Manager Legal to be able to safeguard [the] details,” Nene mentioned in her affidavit.

“There was a great deal of inner discussion, with many forwards and backwards, about what to do to plug the alleged leaks”, a resource, who was in a very senior placement in the NLC at some time, advised GroundUp. “Eventually, the decision was taken to eliminate every one of the proactive projects through the system and limit use of A few individuals”.

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

Maselwa, who resigned in the NLC many decades back, continues to be implicated in corruption involving lottery money. He acquired R4.3-million from lottery funds allocated to build a library and museum complex in Kuruman (see Taung Cultural Music and Arts Expo) which he utilized to build a house within an upmarket gated growth in Pretoria. The house is among various paid out for with lottery resources that were frozen once the Asset Forfeiture Unit attained a preservation purchase in December 2022.

The politically-related Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to significant-ups within the ANC Management, previous NLC previous Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated from the corruption which confused the NLC on their observe.

Also implicated are former board customers William Huma, who resigned just after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have since died.

Whenever a new administration, including the entire board and govt, took around within the NLC in late 2022 and early 2023, they found out a “chaotic mess” during the documentation regarding proactive funding, Considerably of which was paper-based mostly. Important paperwork had been lacking. Files held for safekeeping by doc storage business Metrofile were signed out and by no means returned.

The NLC was ready to recover copies of some luckyvip77 paperwork from its Mimecast e-mail archiving system as well as laptops of their assistants and aid personnel.

News studies
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave concern attainable information security breaches plus the unauthorised use and/or dissemination of private data obtained on account of doing official features within the Fee by NLC workers. The things to do are intended to undermine the integrity with the Fee even though disrupting the effective functions [with the NLC] and creating insurmountable reputational damage to your Fee as the custodian of personal data entrusted to it by its beneficiaries.”

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

Nene is now struggling with a disciplinary inquiry after she was unsuccessful in lawful action to set aside conclusions of irregular expenditure on her check out.

The objective of her affidavit, Nene mentioned, was “to document the events which transpired concerning facts safety breaches within the Nationwide Lotteries Fee”.

She outlined many news stories which she claimed were the final results of these “breaches” (see at the end of this information).

Nene mentioned that a whistle-blower approached the NLC alleging that considered one of its employees, Sello Qhino, had “offered her labeled NLC Facts and persistently inspired her to offer the knowledge to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded assignments in Kuruman soon after makes an attempt to raise The difficulty internally were overlooked, was subsequently fired.

Referring to an eighteen November 2018 short article inside the Day by day Dispatch in regards to the misappropriation of Lottery cash, Nene explained that the NLC recognized and afterwards suspended Zintle Rungqu. She was an worker in the NLC’s East London Business office, who was the husband or wife and also the mother of whistleblower Mzukise Makatse’s 3 young children.

Rungqu and Makatse consider Rungqu was punished simply because Makatse blew the whistle. She was suspended and billed internally, Together with the NLC paying out R470,000 on attorneys to stand for it, but was uncovered not guilty and allowed to return to operate.

“The frequent factor in these posts is usually that [they require] categorized information regarding proactive funding assignments,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out of the spouse and children household to take the warmth off her and his young children. Dealing with homelessness, he moved into an office in an empty manufacturing facility belonging to an acquaintance.

Each Makatse and Qhino are participating in an NLC reparation system meant to recognise the harm some individuals suffered in the hands from the NLC. Apologies and, in some cases, economic payment are predicted.

“Some people were definitely impacted incredibly negatively by this … This is de facto unpleasant,” NLC Commissioner Jodi Scholtz explained to the Day-to-day Maverick final 12 months.

“I achieved several these folks. It absolutely was just so coronary heart-wrenching that their full life are turned upside down,” explained Scholtz.

Between These she met have been Qhino and Makatse.

Safe and sound System wanted for whistleblowers
The SSA located the absence at time of a proper channel for whistleblowers to report corruption led them to show on the media.

“Failure to possess a committed anti-corruption channel will cause workers presenting this kind of cases outside of the NLC,” the SSA stated in its conclusions.

“Presented the magnitude of corruption in state establishments, it continues to be vital that it makes certain that the NLC complies with all stability prescripts Which its aim is on ensuring that illegal and irregular perform is sufficiently mitigated versus and by making sure an suitable channel for whistle-blowers to report untoward carry out without the need of being intimidated.”

It suggested that the NLC build a “Safe and sound channel” for employees to deliver information on any “untoward exercise” that might not avoid or discourage employees from blowing the whistle. A whistle-blowers coverage, according to the Secured Disclosures Act 25 of 2000, is often a requirement.”

Media studies Nene stated
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Health and fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner from the Limpopo Mirror, to expose NLC corruption. “The write-up had components of information not available in the general public domain, thereby boosting worry on inside Details protection breaches. The allegations from the media have been independently investigated,” Nene stated. “However, staff members chargeable for divulging categorized information have still for being discovered”;
A 28 January 2018 write-up released from the Dally Dispatch “citing quite a few allegations within the Limpopo Mirror post printed on 10 December 2017 plus a new allegation regarding a previous personnel because of the identify of Mzukisi Makatse. He was billed and summarily dismissed to the risk triggered for the organisation.”
A 16 November 2018 article during 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 write-up contained categorised details in terms of NLC policy, increasing further worries of interior info safety breaches,” Nene claimed in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, however [it] highlighted the heightened info safety challenges in 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 absolutely was based upon leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Information) ask for for particulars concerning the challenge, she explained