Lottery bosses turned to Point out Safety Agency to research leaks

Lottery bosses turned to Point out Safety Agency to research leaks

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Former Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Security Agency (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s organization secretary at enough time stated media reports she stated had been based on “stolen” information within an affidavit with the SSA.
The SSA did examine. It located the knowledge was not a make any difference of condition safety and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for your media to show it.
A different board and management has since taken about the NLC and So far have taken actions to finish corruption in the establishment.
A Point out Security Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for exposure because of the media.

The probe into meant “info safety breaches and sabotage of NLC operations” was carried out after 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 currently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security company’s “private” findings and recommendations.
Nevhutanda questioned the SSA to research the role of NLC team while in 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 instructed the NLC that while safeguarding point out information and facts was “a lawful crucial directed at shielding the sovereignty and integrity from the state” this only placed on appropriately classified information and facts.

Although it didn't say so directly, the SSA results implied which the allegedly leaked info didn't tumble into this group.

Significantly, the SSA produced it very clear that the need to guard point out data “isn't going to avert any unique from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation identified which the NLC details associated with the alleged breach was “delicate and privileged in nature, although not classified concerning the prescripts in the Bare minimum Facts Stability Standards (Skip)”.

“The leakage from the pertinent sensitive Formal NLC facts into the media would not pose a menace to national stability,” the SSA claimed, including which the impression in the breaches was reputational.

The SSA report found “no proof of the factual and incriminating character versus any on the suspected NLC employees that would be identified from the knowledge and details interrogated”.

Furthermore, it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does offer ample motive to own these types of uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, industry and Opposition portfolio committee that there was “a conspiracy” during which info “stolen” in the NLC was despatched on the US, exactly where he claimed it absolutely was currently being sold to fund a smear marketing campaign towards the NLC.

He was repeating identical claims he experienced Beforehand manufactured in Parliament, which included advertisement hominem assaults on GroundUp which reporter but was careful not to name both.

“I came below Within this August property very last calendar year and reported to honourable members that details about our beneficiaries has become stolen and place in one state in America,” he explained to MPs.

“We termed on the Point out Safety Agency to return investigate the issue since we are finding reviews that our info is making funds for media platforms and journalists,” he reported. “There's been communicate, naturally from one source, just one media, that spoke A lot about proactive-funding,” Nevhutanda explained (referring to GroundUp), but did not convey to MPs which the SSA investigation were completed Virtually a yr earlier.

Proactive funding was at the heart from the looting in the lottery. It side-stepped the normal grant process. The NLC could alone establish a job to fund and appoint a non-financial gain organisation to oversee it.

Following Nevhutanda first explained to Parliament in 2018 that he had questioned the SSA to research the meant breach, the South African National Editors Discussion board issued a statement expressing that his remarks reflected “an extremely perilous Frame of mind in which the media is being blamed with the NLC’s inherent troubles”.

“Instead of investigating why tens of millions cannot be accounted for, the NLC has as a substitute tried to cast doubt over the integrity from the journalists concerned and it has requested the SSA to analyze their resources.”

Proactive jobs produced mystery
Protection flaws determined during the NLC grant funding procedure throughout the SSA’s investigation, appear to happen to be utilized as an justification with the NLC to get rid of all proactive-funded projects from its central grants procedure.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘secret’ and jobs ended up removed from the grant funding procedure and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Office environment, Govt Supervisor Authorized in order to safeguard [the] data,” Nene reported in her affidavit.

“There was a great deal of interior discussion, with plenty of back and forth, about what to do to plug the alleged leaks”, a supply, who was in a senior posture at the NLC at enough time, informed GroundUp. “Eventually, the decision was taken to get rid of each of the proactive tasks within the method and limit access to A few people”.

Some in that handful of people were implicated in corruption.

Maselwa, who resigned from your NLC numerous yrs in the past, is implicated in corruption involving lottery funds. He been given R4.3-million from lottery cash allocated to build a library and museum intricate in Kuruman (see Taung Cultural Audio and Arts Expo) which he made use of to develop a residence within an upmarket gated enhancement in Pretoria. The property is among various paid for with lottery cash which were frozen after the Asset Forfeiture Device attained a preservation order in December 2022.

The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was close to superior-ups within the ANC leadership, former NLC former Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated in the corruption which confused the NLC on their own enjoy.

Also implicated are previous board members William Huma, who resigned following he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have given that died.

When a new administration, such as the total board and executive, took about in the NLC in late 2022 and early 2023, they learned a “chaotic mess” in the documentation referring to proactive funding, Substantially of which was paper-centered. Vital files have been lacking. Data files held for safekeeping by doc storage corporation Metrofile were signed out and hardly ever returned.

The NLC was in a position to Get better copies of some ผล หวย ลาว วัน นี้ documents from its Mimecast email archiving method and also the laptops in their assistants and aid personnel.

News experiences
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave problem possible data security breaches plus the unauthorised use and/or dissemination of private data attained as a result of doing Formal capabilities in the Commission by NLC staff. The functions are meant to undermine the integrity of the Commission although disrupting the powerful features [on the NLC] and resulting in insurmountable reputational damage to the Fee as being the custodian of non-public facts entrusted to it by its beneficiaries.”

His request for the SSA to analyze was supported within an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.

Nene is at present facing a disciplinary inquiry just after she was unsuccessful in lawful action to set aside findings of irregular expenditure on her check out.

The objective of her affidavit, Nene said, was “to report the occasions which transpired regarding info stability breaches in the Nationwide Lotteries Fee”.

She listed different news reviews which she claimed had been the outcome of those “breaches” (see at the end of this informative article).

Nene mentioned that a whistle-blower approached the NLC alleging that among its staff, Sello Qhino, experienced “presented her classified NLC Information and facts and persistently encouraged her to deliver the knowledge to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded jobs in Kuruman immediately after attempts to boost The difficulty internally had been overlooked, was subsequently fired.

Referring to an eighteen November 2018 post from the Every day Dispatch about the misappropriation of Lottery cash, Nene said that the NLC recognized and then suspended Zintle Rungqu. She was an employee within the NLC’s East London Business office, who was the husband or wife as well as 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, Together with the NLC shelling out R470,000 on lawyers to represent it, but was observed not guilty and permitted to return to work.

“The typical Consider these posts is that [they require] classified facts relating to proactive funding tasks,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out of your family members residence to go ahead and take heat off her and his little ones. Struggling with homelessness, he moved into an office in an vacant manufacturing facility belonging to a pal.

Each Makatse and Qhino are participating in an NLC reparation system meant to recognise the harm some individuals experienced on the arms on the NLC. Apologies and, in some cases, economical compensation are predicted.

“Some individuals have been truly influenced pretty negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz told the Each day Maverick last yr.

“I fulfilled two or three these individuals. It absolutely was just so coronary heart-wrenching that their total lives are already turned the wrong way up,” stated Scholtz.

Among those she fulfilled have been Qhino and Makatse.

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

“Failure to have a focused anti-corruption channel will lead to staff members presenting this sort of conditions beyond the NLC,” the SSA mentioned in its results.

“Specified the magnitude of corruption in point out establishments, it remains essential that it makes sure that the NLC complies with all safety prescripts and that its emphasis is on guaranteeing that illegal and irregular conduct is sufficiently mitigated versus and by guaranteeing an ample channel for whistle-blowers to report untoward carry out without having becoming intimidated.”

It recommended which the NLC set up a “Harmless channel” for employees to provide information on any “untoward action” that will not protect against or discourage workers from blowing the whistle. A whistle-blowers policy, depending on the Guarded Disclosures Act twenty five of 2000, can be a requirement.”

Media experiences Nene shown
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Exercise Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and proprietor of your Limpopo Mirror, to expose NLC corruption. “The write-up had aspects of knowledge not accessible in the public area, thus boosting issue on interior Info safety breaches. The allegations inside the media had been independently investigated,” Nene mentioned. “Nonetheless, workers accountable for divulging categorised data have nevertheless to be determined”;
A 28 January 2018 article revealed via the Dally Dispatch “citing many allegations with the Limpopo Mirror post revealed on 10 December 2017 in addition to a new allegation referring to a former worker with the identify of Mzukisi Makatse. He was billed and summarily dismissed with the menace brought about on the organisation.”
A 16 November 2018 report inside the Lowvelder with regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite getting R27-million in lottery grants, the rehab hasn't been concluded. “The Lowvelder post contained categorised details when it comes to NLC coverage, boosting more fears of internal details stability breaches,” Nene stated in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an impartial Investigation, on the other hand [it] highlighted the heightened information security hazards in the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Principal Care, a hijacked NPO. Nene mentioned GroundUp had verified in its story that it was depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Promotion of Access to Info) ask for for aspects about the challenge, she explained