Lottery bosses turned to Point out Protection Company to analyze leaks

Lottery bosses turned to Point out Protection Company to analyze leaks

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Former National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Protection Company (SSA) in December 2018 to research the leaking of files that exposed lottery corruption.
The NLC’s business secretary at the time detailed media stories she reported were based on “stolen” information in an affidavit for that SSA.
The SSA did examine. It found the information was not a issue of condition security and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” to the media to reveal it.
A completely new board and management has considering the fact that taken about the NLC and So far have taken actions to end corruption on the establishment.
A State Protection Company (SSA) investigation discovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for exposure with the media.

The probe into intended “information and facts security breaches and sabotage of NLC operations” was undertaken 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 agency’s “private” results and suggestions.
Nevhutanda asked the SSA to analyze the part of NLC employees in the alleged leaking of knowledge, and Nene, in her affidavit identified specific media and studies that she claimed associated these leaks.

From the letter outlining its findings, the SSA advised the NLC that although safeguarding condition information and facts was “a lawful critical targeted at safeguarding the sovereignty and integrity on the state” this only placed on appropriately classified information and facts.

Although it didn't say so directly, the SSA findings implied that the allegedly leaked facts did not fall into this class.

Drastically, the SSA made it very clear that the need to defend condition facts “would not protect against any personal from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation found which the NLC info linked to the alleged breach was “sensitive and privileged in mother nature, but not categorised with regard to the prescripts from the Least Details Stability Criteria (Skip)”.

“The leakage on the related delicate Formal NLC information into the media would not pose a menace to nationwide security,” the SSA said, adding that 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 information and info interrogated”.

Additionally, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does present enough motive to have this sort of exposed inside the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs for the duration of a session of Parliament’s trade, sector and Level of competition portfolio committee that there was “a conspiracy” wherein facts “stolen” through the NLC was sent into the US, the place he claimed it was remaining offered to fund a smear marketing campaign towards the NLC.

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

“I came listed here During this August home previous year and documented to honourable users that information about our beneficiaries has become stolen and set in a single point out in the usa,” he told MPs.

“We referred to as about the Condition Safety Agency to come consider the issue due to the fact we're acquiring reviews that our information is building dollars for media platforms and journalists,” he explained. “There's been talk, certainly from one particular source, just one media, that spoke Significantly about proactive-funding,” Nevhutanda said (referring to GroundUp), but did not convey to MPs that the SSA investigation had been done Nearly a 12 months before.

Proactive funding was at the heart in the looting with the lottery. It facet-stepped the traditional grant procedure. The NLC could itself recognize a task to fund and appoint a non-financial gain organisation to supervise it.

Just after Nevhutanda to start with explained to Parliament in 2018 that he experienced requested the SSA to investigate the supposed breach, the South African Countrywide Editors Discussion board issued a statement saying that his remarks mirrored “an especially hazardous Mindset where by the media is staying blamed for your NLC’s inherent problems”.

“In lieu of investigating why hundreds of thousands can not be accounted for, the NLC has rather attempted to Forged question within the integrity with the journalists associated and it has asked the SSA to investigate their sources.”

Proactive assignments designed secret
Security flaws identified within the NLC grant funding program in the course of the SSA’s investigation, look to are applied as an excuse by the NLC to remove all proactive-funded assignments from its central grants procedure.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘solution’ and tasks ended up removed from the grant funding process and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business office, Government Supervisor Authorized as a way to safeguard [the] data,” Nene claimed in her affidavit.

“There was many inside dialogue, with many back and forth, about what to do to plug the alleged leaks”, a supply, who was within a senior posture at the NLC at some time, told GroundUp. “Eventually, the choice was taken to get rid of the many proactive initiatives from your program and Restrict use of A few folks”.

Some in that handful of people ended up implicated in corruption.

Maselwa, who resigned from your NLC a number of years back, has become implicated in corruption involving lottery funds. He gained R4.3-million from lottery resources allocated to create a library and museum complex in Kuruman (see Taung Cultural Audio and Arts Expo) which he applied to develop a home within an upmarket gated growth in Pretoria. The house is among many paid out for with lottery cash that 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 previous President Jacob Zuma in 2009 and was close to significant-ups inside the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their own observe.

Also implicated are previous board users William Huma, who resigned right after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got because died.

Each time a new administration, including the complete board and government, took above with the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation associated with proactive funding, Substantially of which was paper-dependent. Essential documents ended up missing. Data files held for safekeeping by document storage company Metrofile were signed out and in no way returned.

The NLC was in a position to Get well copies of some ltpbet documents from its Mimecast electronic mail archiving process along with the laptops of their assistants and aid staff members.

News stories
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave worry feasible information and facts security breaches plus the unauthorised use and/or dissemination of private details received on account of carrying out official functions while in the Commission by NLC staff members. The things to do are meant to undermine the integrity of your Fee when disrupting the helpful capabilities [with the NLC] and resulting in insurmountable reputational damage for the Commission given that the custodian of non-public details entrusted to it by its beneficiaries.”

His ask for for that SSA to investigate was supported within an affidavit by suspended NLC organization secretary, Nomphumelelo Nene.

Nene is currently struggling with a disciplinary inquiry right after she was unsuccessful in lawful action to set aside results of irregular expenditure on her watch.

The objective of her affidavit, Nene reported, was “to document the functions which transpired concerning info safety breaches with the Nationwide Lotteries Fee”.

She stated many information stories which she claimed were being the effects of such “breaches” (see at the conclusion of this text).

Nene claimed that a whistle-blower approached the NLC alleging that considered one of its personnel, Sello Qhino, had “provided her labeled NLC Details and persistently inspired her to supply the data to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded tasks in Kuruman just after attempts to boost The difficulty internally had been overlooked, was subsequently fired.

Referring to an eighteen November 2018 article inside 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 partner and the mom of whistleblower Mzukise Makatse’s 3 youngsters.

Rungqu and Makatse think Rungqu was punished because Makatse blew the whistle. She was suspended and billed internally, With all the NLC spending R470,000 on attorneys to signify it, but was uncovered not guilty and allowed to return to operate.

“The typical Consider these articles is always that [they contain] categorised facts regarding proactive funding assignments,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out of the spouse and children property to take the heat off her and his kids. Experiencing homelessness, he moved into an Business office within an empty manufacturing facility belonging to an acquaintance.

The two Makatse and Qhino are taking part in an NLC reparation procedure intended to recognise the damage some people suffered on the palms with the NLC. Apologies and, occasionally, monetary compensation are expected.

“Some people had been actually impacted extremely negatively by this … This is basically painful,” NLC Commissioner Jodi Scholtz told the Day by day Maverick very last yr.

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

Among People she met have been Qhino and Makatse.

Harmless platform essential for whistleblowers
The SSA uncovered the absence at the time of a correct 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 stated in its findings.

“Given the magnitude of corruption in point out establishments, it stays essential that it ensures that the NLC complies with all stability prescripts and that its concentrate is on making sure that illegal and irregular perform is adequately mitigated against and by making sure an satisfactory channel for whistle-blowers to report untoward perform with no being intimidated.”

It encouraged that the NLC set up a “Harmless channel” for employees to supply info on any “untoward exercise” that would not avoid or discourage staff members from blowing the whistle. A whistle-blowers plan, based on the Guarded Disclosures Act 25 of 2000, is actually a prerequisite.”

Media studies Nene shown
A 10 December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Health Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor in the Limpopo Mirror, to expose NLC corruption. “The write-up had things of data not offered in the general public domain, thus elevating worry on inside Details safety breaches. The allegations while in the media have been independently investigated,” Nene explained. “On the other hand, personnel chargeable for divulging categorised information and facts have still to get identified”;
A 28 January 2018 short article revealed via the Dally Dispatch “citing various allegations within the Limpopo Mirror post printed on 10 December 2017 as well as a new allegation associated with a former employee by the identify of Mzukisi Makatse. He was charged and summarily dismissed for your danger caused to the organisation.”
A 16 November 2018 posting from the Lowvelder with regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite obtaining R27-million in lottery grants, the rehab has never been completed. “The Lowvelder short article contained labeled data in terms of NLC plan, boosting additional problems of interior info stability breaches,” Nene stated in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, even so [it] highlighted the heightened information and facts safety threats throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene claimed GroundUp had confirmed in its Tale that it had been based upon leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Entry to Info) ask for for information with regard to the venture, she said