Lottery bosses turned to Condition Security Agency to investigate leaks

Lottery bosses turned to Condition Security Agency to investigate leaks

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Previous Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Condition Stability Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s business secretary at time detailed media studies she explained have been according to “stolen” details in an affidavit for the SSA.
The SSA did investigate. It found the data was not a make a difference of state protection and the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to expose it.
A brand new board and administration has due to the fact taken above the NLC and thus far have taken actions to finish corruption in the institution.
A Point out Security Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied sufficient motive” for exposure via the media.

The probe into meant “information security breaches and sabotage of NLC operations” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to investigate.

Here's

Nevhutanda’s letter,
an affidavit by currently suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the safety company’s “confidential” findings and suggestions.
Nevhutanda requested the SSA to investigate the part of NLC personnel from the alleged leaking of knowledge, and Nene, in her affidavit identified unique media and reports that she claimed involved these leaks.

Inside the letter outlining its results, the SSA told the NLC that while preserving state information and facts was “a lawful crucial aimed toward shielding the sovereignty and integrity on the state” this only placed on appropriately labeled data.

Even though it didn't say so straight, the SSA findings implied that the allegedly leaked information and facts did not slide into this classification.

Significantly, the SSA built it crystal clear that the need to secure condition information “won't avoid any unique from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation uncovered that the NLC data linked to the alleged breach was “delicate and privileged in nature, but not categorized concerning the prescripts from the Minimal Data Protection Criteria (Pass up)”.

“The leakage of your relevant delicate official NLC details towards the media doesn't pose a danger to nationwide security,” the SSA reported, incorporating that the effects on the breaches was reputational.

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

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

Conspiracy statements
In 2020, Nevhutanda advised MPs through a session of Parliament’s trade, field and competition portfolio committee that there was “a conspiracy” wherein information and facts “stolen” with the NLC was sent to the US, where by he claimed it had been being marketed to fund a smear campaign from the NLC.

He was repeating comparable promises he experienced Formerly built in Parliament, which incorporated advert hominem assaults on GroundUp which reporter but was mindful not to name both.

“I arrived in this article On this August household last year and noted to honourable associates that information regarding our beneficiaries has long been stolen and set in a single condition in America,” he informed MPs.

“We known as around the Point out Protection Agency to return check into the subject due to the fact we are having studies that our info is building funds for media platforms and journalists,” he said. “There's been communicate, naturally from one source, one particular media, that spoke much about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but did not notify MPs which the SSA investigation were done almost a year earlier.

Proactive funding was at the guts of the looting of the lottery. It facet-stepped the traditional grant course of action. The NLC could by itself discover a undertaking to fund and appoint a non-earnings organisation to oversee it.

Just after Nevhutanda initially advised Parliament in 2018 that he experienced requested the SSA to research the supposed breach, the South African National Editors Discussion board issued an announcement stating that his remarks mirrored “an especially hazardous Perspective where the media is staying blamed to the NLC’s inherent complications”.

“Rather than investigating why thousands and thousands cannot be accounted for, the NLC has rather tried to Forged doubt on the integrity from the journalists associated and it has asked the SSA to analyze their resources.”

Proactive projects built secret
Security flaws determined during the NLC grant funding method through the SSA’s investigation, appear to have already been used being an excuse by the NLC to eliminate all proactive-funded tasks from its central grants method.

“In or about 21 December 2019, the classification of all pro-actively funding projects was heightened to ‘magic formula’ and projects were being removed from the grant funding system and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Workplace, Government Supervisor Lawful as a way to safeguard [the] information and facts,” Nene mentioned in her affidavit.

“There was a lot of inside discussion, with many forwards and backwards, about how to proceed to plug the alleged leaks”, a supply, who was inside of a senior posture at the NLC at the time, told GroundUp. “In the end, the choice was taken to get rid of all of the proactive assignments from your procedure and limit use of A few folks”.

Some in that handful of folks had been implicated in corruption.

Maselwa, who resigned through the NLC several a long time in the past, has actually been implicated in corruption involving lottery resources. He been given R4.three-million from lottery resources allotted to develop a library and museum elaborate in Kuruman (see Taung Cultural Music and Arts Expo) which he used to build a house within an upmarket gated growth in Pretoria. The house is one of quite a few paid out for with lottery funds which were frozen after the Asset Forfeiture Device obtained a preservation get in December 2022.

The politically-linked Nevhutanda, who was appointed as the NLC board chairperson by former President Jacob Zuma in 2009 and was near higher-ups during the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their own observe.

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

Each time a new administration, including the total board and government, took in excess of with the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation associated with proactive funding, Significantly of which was paper-based. Vital paperwork had been lacking. Files held for safekeeping by doc storage business Metrofile were signed out and in no way returned.

The NLC was capable to recover copies of some ตรวจ หวย ย้อน หลัง documents from its Mimecast electronic mail archiving technique along with the laptops in their assistants and assist employees.

Information reviews
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave issue achievable information and facts safety breaches plus the unauthorised use and/or dissemination of private details acquired due to performing Formal capabilities in the Commission by NLC workers. The routines are intended to undermine the integrity from the Commission while disrupting the effective capabilities [with the NLC] and resulting in insurmountable reputational damage towards the Fee as being the custodian of personal information entrusted to it by its beneficiaries.”

His ask for for your SSA to analyze was supported in an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.

Nene is at the moment facing a disciplinary inquiry immediately 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 record the occasions which transpired regarding information and facts stability breaches at the National Lotteries Fee”.

She listed various information experiences which she claimed were being the effects of those “breaches” (see at the end of this informative article).

Nene mentioned that a whistle-blower approached the NLC alleging that certainly one of its employees, Sello Qhino, experienced “offered her categorised NLC Facts and persistently encouraged her to offer the information to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded assignments in Kuruman just after attempts to boost The difficulty internally were dismissed, was subsequently fired.

Referring to an 18 November 2018 short article within the Everyday Dispatch with regard to the misappropriation of Lottery resources, Nene said that the NLC identified and after that suspended Zintle Rungqu. She was an employee within the NLC’s East London Place of work, who was the spouse as well as the mom of whistleblower Mzukise Makatse’s 3 youngsters.

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 symbolize it, but was uncovered not guilty and permitted to return to operate.

“The frequent factor in these posts is [they include] classified information concerning proactive funding initiatives,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out from the family dwelling to take the warmth off her and his youngsters. Struggling with homelessness, he moved into an Office environment within an empty manufacturing facility belonging to a friend.

Both of those Makatse and Qhino are taking part in an NLC reparation system meant to recognise the hurt many people suffered in the arms in the NLC. Apologies and, in some cases, fiscal compensation are envisioned.

“Some folks were being actually afflicted pretty negatively by this … This is basically unpleasant,” NLC Commissioner Jodi Scholtz advised the Each day Maverick last 12 months.

“I achieved a number of these people today. It was just so heart-wrenching that their complete life have already been turned the wrong way up,” said Scholtz.

Among Individuals she satisfied ended up Qhino and Makatse.

Secure platform essential for whistleblowers
The SSA observed the absence at enough time of a suitable channel for whistleblowers to report corruption led them to turn towards the media.

“Failure to possess a committed anti-corruption channel will end in workforce presenting these types of situations outside of the NLC,” the SSA claimed in its findings.

“Supplied the magnitude of corruption in point out institutions, it stays very important that it ensures that the NLC complies with all safety prescripts and that its emphasis is on making sure that unlawful and irregular perform is adequately mitigated towards and by making certain an ample channel for whistle-blowers to report untoward carry out without becoming intimidated.”

It advised that the NLC establish a “Protected channel” for employees to provide info on any “untoward action” that might not avert or discourage staff from blowing the whistle. A whistle-blowers coverage, determined by the Guarded Disclosures Act 25 of 2000, is usually a prerequisite.”

Media studies Nene listed
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Physical fitness Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and owner with the Limpopo Mirror, to show NLC corruption. “The write-up experienced things of knowledge not out there in the general public domain, thereby raising concern on internal Information security breaches. The allegations in the media were independently investigated,” Nene stated. “Nonetheless, workers answerable for divulging classified information have still to get identified”;
A 28 January 2018 short article published with the Dally Dispatch “citing numerous allegations from your Limpopo Mirror posting published on 10 December 2017 and also a new allegation relating to a former employee through the title of Mzukisi Makatse. He was charged and summarily dismissed for your threat triggered on the organisation.”
A 16 November 2018 write-up while in the Lowvelder with regard to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Regardless of receiving R27-million in lottery grants, the rehab hasn't been accomplished. “The Lowvelder write-up contained classified facts regarding NLC policy, elevating further problems of internal data security breaches,” Nene mentioned in her affidavit. “The prima facie proof with regard to these allegations did not warrant an independent Investigation, even so [it] highlighted the heightened information and facts security dangers in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Principal Care, a hijacked NPO. Nene mentioned GroundUp had verified in its Tale that it had been determined by leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Use of Data) request for aspects with regard to the job, she mentioned