Lottery bosses turned to State Stability Company to analyze leaks

Lottery bosses turned to State Stability Company to analyze leaks

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Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the State Stability Agency (SSA) in December 2018 to analyze the leaking of documents that uncovered lottery corruption.
The NLC’s company secretary at some time mentioned media stories she claimed ended up based upon “stolen” information and facts within an affidavit to the 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 “enough motive” to the media to show 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 identified the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered enough motive” for publicity via the media.

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

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” results and recommendations.
Nevhutanda requested the SSA to analyze the position of NLC workers in the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and experiences that she claimed concerned these leaks.

From the letter outlining its conclusions, the SSA informed the NLC that when guarding state data was “a authorized very important aimed at guarding the sovereignty and integrity in the state” this only placed on correctly labeled facts.

Although it did not say so directly, the SSA conclusions implied the allegedly leaked info didn't slide into this category.

Significantly, the SSA built it obvious that the need to guard state facts “will not prevent any specific from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation located which the NLC information associated with the alleged breach was “sensitive and privileged in character, although not labeled in terms of the prescripts in the Bare minimum Facts Protection Specifications (Overlook)”.

“The leakage of your related sensitive official NLC info towards the media will not pose a risk to national safety,” the SSA claimed, introducing the affect on the breaches was reputational.

The SSA report observed “no proof of a factual and incriminating nature towards any from the suspected NLC personnel which could be discovered from the knowledge and information interrogated”.

Additionally, it mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does give enough motive to possess such uncovered from the media”.

Conspiracy promises
In 2020, Nevhutanda informed MPs throughout a session of Parliament’s trade, market and Level of competition portfolio committee that there was “a conspiracy” through which info “stolen” through the NLC was sent into the US, in which he claimed it had been currently being offered to fund a smear campaign versus the NLC.

He was repeating very similar claims he experienced Formerly built in Parliament, which provided ad hominem attacks on GroundUp which reporter but was cautious not to name possibly.

“I arrived right here During this August home very last calendar year and noted to honourable customers that specifics of our beneficiaries continues to be stolen and put in one state in America,” he informed MPs.

“We referred to as about the Condition Security Company to return take a look at the make any difference because we've been receiving studies that our info is generating dollars for media platforms and journalists,” he explained. “There has been converse, needless to say from one supply, one media, that spoke Considerably about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to explain to MPs which the SSA investigation were completed Virtually a 12 months before.

Proactive funding was at the guts of the looting from the lottery. It side-stepped the normal grant procedure. The NLC could itself determine a undertaking to fund and appoint a non-earnings organisation to oversee it.

After Nevhutanda first explained to Parliament in 2018 that he experienced asked the SSA to analyze the supposed breach, the South African Countrywide Editors Forum issued a press release declaring that his remarks mirrored “a very harmful Angle in which the media is being blamed to the NLC’s inherent problems”.

“As an alternative to investigating why tens of millions cannot be accounted for, the NLC has alternatively attempted to Forged question over the integrity of the journalists involved and it has questioned the SSA to analyze their resources.”

Proactive initiatives built top secret
Stability flaws determined while in the NLC grant funding technique through the SSA’s investigation, seem to happen to be used being an justification because of the NLC to remove all proactive-funded jobs from its central grants technique.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘secret’ and assignments were being removed from the grant funding technique and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Executive Supervisor Lawful to be able to safeguard [the] data,” Nene explained in her affidavit.

“There was many inside dialogue, with a great deal of backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was in a very senior situation with the NLC at time, told GroundUp. “Eventually, the decision was taken to eliminate every one of the proactive tasks within the technique and Restrict entry to A few individuals”.

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

Maselwa, who resigned in the NLC several yrs in the past, has been implicated in corruption involving lottery cash. He obtained R4.three-million from lottery funds allocated to make a library and museum intricate in Kuruman (see Taung Cultural New music and Arts Expo) which he employed to build a dwelling within an upmarket gated advancement in Pretoria. The house is among several compensated for with lottery resources which were frozen after the Asset Forfeiture Unit obtained a preservation buy in December 2022.

The politically-related Nevhutanda, who was appointed given that the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to superior-ups within the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated from the corruption which overcome the NLC on their enjoy.

Also implicated are previous board associates William Huma, who resigned just after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have considering the fact that died.

When a new administration, including the full board and executive, took around with the NLC in late 2022 and early 2023, they identified a “chaotic mess” within the documentation associated with proactive funding, A lot of which was paper-based mostly. Vital paperwork were being missing. Information held for safekeeping by document storage organization Metrofile were signed out and under no circumstances returned.

The NLC was ready to Recuperate copies of some ตัว หวย paperwork from its Mimecast e-mail archiving method and also the laptops in their assistants and assist workers.

Information stories
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave issue attainable details security breaches plus the unauthorised use and/or dissemination of confidential facts obtained due to accomplishing official capabilities while in the Commission by NLC personnel. The actions are intended to undermine the integrity with the Fee though disrupting the effective functions [from the NLC] and triggering insurmountable reputational damage for the Commission as the custodian of private details entrusted to it by its beneficiaries.”

His ask for with the SSA to analyze was supported in an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is currently dealing with a disciplinary inquiry following she was unsuccessful in lawful motion to set aside conclusions of irregular expenditure on her enjoy.

The objective of her affidavit, Nene explained, was “to document the events which transpired regarding details stability breaches on the Nationwide Lotteries Fee”.

She outlined various news reports which she claimed were being the outcome of such “breaches” (see at the end of this article).

Nene explained that a whistle-blower approached the NLC alleging that amongst its staff, Sello Qhino, had “offered her categorised NLC Information and persistently inspired her to offer the knowledge to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded projects in Kuruman soon after tries to lift The difficulty internally were being overlooked, was subsequently fired.

Referring to an 18 November 2018 article within the Day-to-day Dispatch about the misappropriation of Lottery money, Nene said that the NLC recognized after which you can suspended Zintle Rungqu. She was an worker while in the NLC’s East London Workplace, who was the lover and the mom of whistleblower Mzukise Makatse’s a few small children.

Rungqu and Makatse believe Rungqu was punished because Makatse blew the whistle. She was suspended and billed internally, Along with the NLC shelling out R470,000 on lawyers to represent it, but was found not responsible and allowed to return to operate.

“The typical Think about these content is always that [they involve] categorized information and facts referring to proactive funding initiatives,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out from the relatives dwelling to go ahead and take warmth off her and his small children. Facing homelessness, he moved into an Workplace in an vacant manufacturing unit belonging to an acquaintance.

Both of those Makatse and Qhino are taking part in an NLC reparation course of action meant to recognise the harm some people endured with the hands with the NLC. Apologies and, in some instances, financial compensation are envisioned.

“Some men and women were genuinely afflicted very negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz told the Everyday Maverick very last 12 months.

“I fulfilled two or three these individuals. It absolutely was just so coronary heart-wrenching that their total lives have already been turned upside down,” stated Scholtz.

Among Those people she fulfilled have been Qhino and Makatse.

Secure System essential for whistleblowers
The SSA discovered the absence at some time of a correct channel for whistleblowers to report corruption led them to show for the media.

“Failure to possess a dedicated anti-corruption channel will cause employees presenting these instances outside of the NLC,” the SSA claimed in its conclusions.

“Offered the magnitude of corruption in condition institutions, it stays important that it makes certain that the NLC complies with all stability prescripts Which its aim is on making sure that unlawful and irregular carry out is adequately mitigated towards and by ensuring an sufficient channel for whistle-blowers to report untoward conduct without the need of remaining intimidated.”

It encouraged the NLC establish a “Harmless channel” for employees to deliver information on any “untoward exercise” that might not stop or discourage workforce from blowing the whistle. A whistle-blowers policy, dependant on the Guarded Disclosures Act twenty five of 2000, is a necessity.”

Media experiences Nene outlined
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Physical fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to expose NLC corruption. “The write-up had components of information not available in the general public area, thereby raising issue on inside Details security breaches. The allegations during the media ended up independently investigated,” Nene mentioned. “Nonetheless, employees to blame for divulging categorized information and facts have but to generally be recognized”;
A 28 January 2018 short article published with the Dally Dispatch “citing various allegations in the Limpopo Mirror report released on ten December 2017 in addition to a new allegation relating to a previous staff by the identify of Mzukisi Makatse. He was billed and summarily dismissed for that risk induced for the organisation.”
A 16 November 2018 posting during the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder post contained labeled info concerning NLC policy, increasing further considerations of inside information safety breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened information security risks within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Key Care, a hijacked NPO. Nene mentioned GroundUp had verified in its story that it absolutely was dependant on leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Entry to Information) ask for for specifics concerning the challenge, she explained