Lottery bosses turned to State Security Agency to investigate leaks

Lottery bosses turned to State Security Agency to investigate leaks

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Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Condition Protection Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s business secretary at the time outlined media studies she claimed ended up based on “stolen” information 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 different board and management has considering the fact that taken above the NLC and Up to now have taken measures to end corruption with the establishment.
A Point out Stability Company (SSA) investigation discovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished sufficient motive” for publicity with the media.

The probe into intended “facts protection breaches and sabotage of NLC operations” was undertaken following then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to investigate.

Here's

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” findings and proposals.
Nevhutanda asked the SSA to analyze the part of NLC staff from the alleged leaking of information, and Nene, in her affidavit determined specific media and studies that she claimed associated these leaks.

Within the letter outlining its results, the SSA explained to the NLC that while safeguarding state information and facts was “a legal imperative aimed toward preserving the sovereignty and integrity from the state” this only applied to appropriately labeled facts.

Although it did not say so specifically, the SSA conclusions implied the allegedly leaked facts didn't drop into this group.

Appreciably, the SSA made it apparent that the need to shield state details “will not stop any specific from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation found that the NLC data involved with the alleged breach was “sensitive and privileged in mother nature, but not classified with regard to the prescripts of the Minimal Details Safety Criteria (Miss out on)”.

“The leakage with the applicable delicate official NLC information to the media does not pose a menace to nationwide security,” the SSA claimed, including which the affect from the breaches was reputational.

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

It also stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does give sufficient motive to obtain such exposed in the media”.

Conspiracy claims
In 2020, Nevhutanda told MPs throughout a session of Parliament’s trade, business and Opposition portfolio committee that there was “a conspiracy” during which info “stolen” from the NLC was despatched for the US, where he claimed it had been getting bought to fund a smear campaign from the NLC.

He was repeating equivalent promises he experienced Formerly designed in Parliament, which integrated advertisement hominem assaults on GroundUp which reporter but was careful not to name either.

“I came below in this August home previous 12 months and described to honourable customers that specifics of our beneficiaries has long been stolen and set in a single condition in America,” he told MPs.

“We called on the Point out Safety Agency to come back investigate the make a difference simply because we've been acquiring reports that our facts is producing revenue for media platforms and journalists,” he mentioned. “There have been discuss, certainly from one particular resource, one media, that spoke Considerably about proactive-funding,” Nevhutanda reported (referring to GroundUp), but didn't tell MPs that the SSA investigation had been finished Virtually a yr earlier.

Proactive funding was at the heart from the looting from the lottery. It side-stepped the traditional grant system. The NLC could alone establish a task to fund and appoint a non-income organisation to oversee it.

Just after Nevhutanda initially advised Parliament in 2018 that he experienced requested the SSA to analyze the supposed breach, the South African Countrywide Editors Forum issued an announcement indicating that his remarks reflected “an incredibly harmful Mind-set exactly where the media is staying blamed with the NLC’s inherent difficulties”.

“In lieu of investigating why tens of millions cannot be accounted for, the NLC has rather tried to cast question over the integrity of the journalists associated and it has requested the SSA to investigate their resources.”

Proactive initiatives manufactured mystery
Safety flaws discovered during the NLC grant funding technique through the SSA’s investigation, appear to are actually utilised being an excuse because of the NLC to get rid of all proactive-funded tasks from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘mystery’ and tasks have been removed from the grant funding system and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Workplace, Govt Supervisor Lawful so as to safeguard [the] information and facts,” Nene explained in her affidavit.

“There was many interior dialogue, with a lot of backwards and forwards, about how to proceed to plug the alleged leaks”, a supply, who was in a very senior situation in the NLC at enough time, explained to GroundUp. “In the end, the choice was taken to eliminate all of the proactive initiatives from your process and Restrict use of a handful of men and women”.

Some in that handful of individuals were implicated in corruption.

Maselwa, who resigned from your NLC numerous a long time in the past, has actually been implicated in corruption involving lottery money. He obtained R4.three-million from lottery money allotted to make a library and museum intricate in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to build a household in an upmarket gated development in Pretoria. The residence is among a number of paid out for with lottery resources which were frozen once the Asset Forfeiture Unit received a preservation get 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 near high-ups while in the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their enjoy.

Also implicated are former board users William Huma, who resigned immediately after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got since died.

Whenever a new administration, including the complete board and executive, took more than on the NLC in late 2022 and early 2023, they identified a “chaotic mess” inside the documentation referring to proactive funding, A lot of which was paper-based. Vital paperwork were lacking. Files held for safekeeping by doc storage business Metrofile were signed out and in no way returned.

The NLC was in a position to Get well copies of some ตรวจ paperwork from its Mimecast e-mail archiving system and the laptops of their assistants and support team.

News experiences
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry possible data stability breaches and also the unauthorised use and/or dissemination of confidential facts attained as a result of doing official features from the Fee by NLC staff members. The things to do are meant to undermine the integrity with the Fee even though disrupting the powerful features [from the NLC] and causing insurmountable reputational hurt to your Commission as the custodian of non-public details entrusted to it by its beneficiaries.”

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

Nene is at this time dealing with a disciplinary inquiry just after she was unsuccessful in legal action to set aside results of irregular expenditure on her watch.

The purpose of her affidavit, Nene claimed, was “to history the occasions which transpired associated with facts stability breaches at the Countrywide Lotteries Fee”.

She mentioned various information experiences which she claimed ended up the results of such “breaches” (see at the conclusion of this article).

Nene reported that a whistle-blower approached the NLC alleging that amongst its staff members, Sello Qhino, had “delivered her labeled NLC Info and persistently inspired her to supply the data to GroundUp”.

Qhino, who blew the whistle on a series of dodgy lottery-funded jobs in Kuruman soon after tries to raise The problem internally were dismissed, was subsequently fired.

Referring to an eighteen November 2018 article while in the Day by day Dispatch concerning the misappropriation of Lottery money, Nene explained the NLC determined after which you can suspended Zintle Rungqu. She was an staff during the NLC’s East London office, who was the companion and also the mother of whistleblower Mzukise Makatse’s a few kids.

Rungqu and Makatse think Rungqu was punished simply because Makatse blew the whistle. She was suspended and billed internally, Together with the NLC investing R470,000 on legal professionals to depict it, but was found not responsible and permitted to return to operate.

“The frequent Think about these posts is the fact [they include] labeled information and facts relating to proactive funding tasks,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out of the loved ones residence to take the heat off her and his kids. Dealing with homelessness, he moved into an Business office in an vacant manufacturing facility belonging to a buddy.

The two Makatse and Qhino are taking part in an NLC reparation course of action intended to recognise the damage a number of people suffered for the fingers of the NLC. Apologies and, occasionally, fiscal payment are predicted.

“Some people were being actually afflicted extremely negatively by this … This is de facto distressing,” NLC Commissioner Jodi Scholtz informed the Day-to-day Maverick past calendar year.

“I achieved a few these folks. It had been just so coronary heart-wrenching that their total life are actually turned the other way up,” reported Scholtz.

Among the All those she satisfied were Qhino and Makatse.

Secure platform required for whistleblowers
The SSA uncovered the absence at enough time of a suitable channel for whistleblowers to report corruption led them to turn to your media.

“Failure to have a committed anti-corruption channel will result in staff members presenting this sort of conditions outside of the NLC,” the SSA claimed in its findings.

“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 focus is on ensuring that unlawful and irregular carry out is adequately mitigated versus and by making sure an ample channel for whistle-blowers to report untoward conduct devoid of staying intimidated.”

It suggested that the NLC establish a “safe channel” for workers to offer information on any “untoward exercise” that might not avoid or discourage workers from blowing the whistle. A whistle-blowers policy, dependant on the Secured Disclosures Act twenty five of 2000, can be a need.”

Media reviews Nene stated
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Exercise Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to show NLC corruption. “The posting experienced features of data not out there in the general public domain, thereby boosting issue on inside Facts safety breaches. The allegations within the media were being independently investigated,” Nene claimed. “On the other hand, staff answerable for divulging classified data have however being recognized”;
A 28 January 2018 article printed by the Dally Dispatch “citing quite a few allegations from the Limpopo Mirror report printed on 10 December 2017 and also a new allegation concerning a previous worker through the title of Mzukisi Makatse. He was charged and summarily dismissed to the menace prompted towards the organisation.”
A 16 November 2018 report during the Lowvelder in regards to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Despite obtaining R27-million in lottery grants, the rehab has never been completed. “The Lowvelder posting contained labeled data with regards to NLC policy, elevating further considerations of inside details stability breaches,” Nene stated in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an impartial Investigation, however [it] highlighted the heightened details protection challenges in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Key Treatment, a hijacked NPO. Nene mentioned GroundUp had verified in its Tale that it had been determined by leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Entry to Information) ask for for specifics concerning the challenge, she mentioned