Lottery bosses turned to State Stability Company to analyze leaks

Lottery bosses turned to State Stability Company to analyze leaks

Blog Article

Previous Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Security Company (SSA) in December 2018 to investigate the leaking of documents that uncovered lottery corruption.
The NLC’s organization secretary at time shown media stories she reported were being depending on “stolen” details in an affidavit with the SSA.
The SSA did examine. It identified the information was not a make a difference of point out safety and the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to expose it.
A whole new board and management has considering that taken above the NLC and To date have taken measures to end corruption for the establishment.
A Point out Safety Agency (SSA) investigation found which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered ample motive” for publicity through the media.

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

Here is

Nevhutanda’s letter,
an affidavit by at present suspended NLC business secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to research the function of NLC team from the alleged leaking of information, and Nene, in her affidavit recognized specific media and studies that she claimed associated these leaks.

Within the letter outlining its results, the SSA explained to the NLC that whilst shielding point out information was “a legal crucial aimed toward safeguarding the sovereignty and integrity with the condition” this only applied to properly classified info.

Even though it didn't say so right, the SSA findings implied which the allegedly leaked facts did not tumble into this group.

Drastically, the SSA created it distinct 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 with regard to the prescripts of the Minimal Details Safety Expectations (Overlook)”.

“The leakage on the appropriate sensitive official NLC information and facts into the media would not pose a menace to national stability,” the SSA claimed, including which the affect from the breaches was reputational.

The SSA report uncovered “no evidence of the factual and incriminating nature from any from the suspected NLC staff members that might be determined from the data and information interrogated”.

In addition it stated that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does give sufficient motive to acquire such uncovered in the media”.

Conspiracy claims
In 2020, Nevhutanda told MPs throughout a session of Parliament’s trade, business and Competitiveness portfolio committee that there was “a conspiracy” through which details “stolen” from your NLC was despatched to your US, in which he claimed it was staying offered to fund a smear marketing campaign towards the NLC.

He was repeating identical claims he experienced Beforehand created in Parliament, which bundled ad hominem attacks on GroundUp which reporter but was very careful not to name either.

“I came listed here in this August home previous 12 months and claimed to honourable users that information about our beneficiaries continues to be stolen and put in a single point out in the united states,” he instructed MPs.

“We identified as to the Condition Security Company to come back consider the matter because we have been acquiring experiences that our facts is producing revenue for media platforms and journalists,” he mentioned. “There have been discuss, certainly from a single resource, one media, that spoke Considerably about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't convey to MPs that the SSA investigation had been concluded Virtually a 12 months earlier.

Proactive funding was at the heart on the looting from the lottery. It aspect-stepped the traditional grant procedure. The NLC could itself detect a undertaking to fund and appoint a non-financial gain organisation to supervise it.

Immediately after Nevhutanda very first advised Parliament in 2018 that he had questioned the SSA to analyze the meant breach, the South African Nationwide Editors Discussion board issued an announcement saying that his remarks reflected “an incredibly unsafe attitude the place the media is being blamed to the NLC’s inherent complications”.

“As an alternative to investigating why tens of millions can not be accounted for, the NLC has rather tried to cast question on the integrity from the journalists involved and it has questioned the SSA to research their sources.”

Proactive projects produced secret
Stability flaws determined inside the NLC grant funding method throughout the SSA’s investigation, surface to are utilised being an excuse via 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 ‘key’ and jobs had been removed from the grant funding technique and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Business office, Government Manager Legal as a way to safeguard [the] data,” Nene claimed in her affidavit.

“There was many inside discussion, with plenty of forwards and backwards, about how to proceed to plug the alleged leaks”, a source, who was in a senior posture with the NLC at the time, explained to GroundUp. “Ultimately, the choice was taken to remove many of the proactive assignments from the technique and Restrict access to a handful of persons”.

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

Maselwa, who resigned with the NLC a number of a long time in the past, has actually been implicated in corruption involving lottery resources. He received R4.three-million from lottery resources allotted to make a library and museum complex in Kuruman (see Taung Cultural Music and Arts Expo) which he used to make a dwelling 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 obtained a preservation buy in December 2022.

The politically-connected Nevhutanda, who was appointed as being the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to superior-ups inside the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated in the corruption which overwhelmed the NLC on their look at.

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

Any time a new administration, such as the overall board and government, took about with the NLC in late 2022 and early 2023, they learned a “chaotic mess” in the documentation referring to proactive funding, Considerably of which was paper-centered. Key documents were missing. Data files held for safekeeping by doc storage enterprise Metrofile were signed out and hardly ever returned.

The NLC was ready to Get better copies of some ltpbet paperwork from its Mimecast e mail archiving procedure and also the laptops of their assistants and help personnel.

News studies
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave problem feasible details security breaches and the unauthorised use and/or dissemination of private data acquired on account of undertaking official capabilities inside the Fee by NLC personnel. The actions are meant to undermine the integrity from the Commission though disrupting the powerful capabilities [from the NLC] and resulting in insurmountable reputational hurt for the Commission as being the custodian of private info entrusted to it by its beneficiaries.”

His request for your SSA to research was supported in an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.

Nene is at this time struggling with a disciplinary inquiry after she was unsuccessful in lawful motion to set aside findings of irregular expenditure on her check out.

The goal of her affidavit, Nene explained, was “to file the activities which transpired relating to information and facts protection breaches on the Countrywide Lotteries Commission”.

She mentioned a variety of information studies which she claimed were the outcome of such “breaches” (see at the end of this information).

Nene stated that a whistle-blower approached the NLC alleging that considered one of its employees, Sello Qhino, had “presented her labeled NLC Information and facts and persistently inspired her to deliver the data to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded initiatives in Kuruman just after tries to boost The problem internally had been ignored, was subsequently fired.

Referring to an eighteen November 2018 short article from the Day-to-day Dispatch in regards to the misappropriation of Lottery funds, Nene reported the NLC discovered and afterwards suspended Zintle Rungqu. She was an employee from the NLC’s East London Place of work, who was the husband or wife along with the mother of whistleblower Mzukise Makatse’s 3 small children.

Rungqu and Makatse believe Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, Together with the NLC paying out R470,000 on lawyers to represent it, but was discovered not guilty and permitted to return to operate.

“The typical Consider these content is the fact that [they entail] classified facts referring to proactive funding jobs,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out with the spouse and children dwelling to take the warmth off her and his little ones. Facing homelessness, he moved into an Business office in an empty manufacturing facility belonging to a colleague.

Equally Makatse and Qhino are taking part in an NLC reparation course of action meant to recognise the damage a number of people suffered at the palms from the NLC. Apologies and, occasionally, money compensation are envisioned.

“Some people were being actually afflicted really negatively by this … This is admittedly unpleasant,” NLC Commissioner Jodi Scholtz instructed the Daily Maverick final 12 months.

“I achieved a couple of these people. It had been just so heart-wrenching that their entire life have already been turned the other way up,” mentioned Scholtz.

Among the Individuals she achieved had been Qhino and Makatse.

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

“Failure to possess a committed anti-corruption channel will bring about employees presenting this kind of circumstances outside of the NLC,” the SSA mentioned in its findings.

“Offered the magnitude of corruption in state establishments, it stays vital that it ensures that the NLC complies with all stability prescripts Which its target is on ensuring that unlawful and irregular conduct is sufficiently mitigated towards and by making sure an ample channel for whistle-blowers to report untoward conduct devoid of becoming intimidated.”

It proposed that the NLC create a “safe channel” for employees to offer info on any “untoward exercise” that will not avert or discourage workforce from blowing the whistle. A whistle-blowers policy, depending on the Safeguarded Disclosures Act 25 of 2000, is often a need.”

Media experiences Nene mentioned
A ten December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Conditioning Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and operator with the Limpopo Mirror, to reveal NLC corruption. “The post experienced aspects of information not readily available in the public area, thereby increasing issue on inner Information protection breaches. The allegations in the media have been independently investigated,” Nene reported. “Nonetheless, workforce liable for divulging labeled information and facts have however for being determined”;
A 28 January 2018 short article released via the Dally Dispatch “citing numerous allegations from the Limpopo Mirror article published on ten December 2017 and also a new allegation regarding a former staff because of the title of Mzukisi Makatse. He was billed and summarily dismissed for that threat prompted to your organisation.”
A 16 November 2018 short article inside the Lowvelder regarding the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite acquiring R27-million in lottery grants, the rehab has never been accomplished. “The Lowvelder posting contained classified data concerning NLC plan, raising additional considerations of inner data protection breaches,” Nene claimed in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an unbiased Investigation, having said that [it] highlighted the heightened facts protection hazards within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene mentioned GroundUp experienced confirmed in its Tale that it was dependant on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Advertising of Entry to Information) request for facts regarding the challenge, she mentioned