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 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 organization secretary at time shown media stories she reported were being based on “stolen” information within an affidavit to the SSA.
The SSA did investigate. It found the data was not a make any difference 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 that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented sufficient motive” for publicity because of the media.

The probe into intended “facts stability breaches and sabotage of NLC functions” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to investigate.

Here's

Nevhutanda’s letter,
an affidavit by at this time 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 whilst defending state information was “a lawful crucial aimed toward shielding the sovereignty and integrity in the state” this only placed on properly labeled data.

Even though it did not say so right, the SSA conclusions implied which the allegedly leaked information didn't drop into this classification.

Drastically, the SSA built it very clear that the need to shield condition facts “won't avoid any person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation observed that the NLC information involved in the alleged breach was “sensitive and privileged in mother nature, but not categorised concerning the prescripts on the Minimal Data Security Criteria (MISS)”.

“The leakage from the appropriate sensitive official NLC details on the media isn't going to pose a risk to national security,” the SSA said, introducing the effect from the breaches was reputational.

The SSA report found “no proof of a factual and incriminating mother nature in opposition to any from the suspected NLC employees that would be recognized from the knowledge and data interrogated”.

In addition it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide ample motive to own such exposed inside the media”.

Conspiracy statements
In 2020, Nevhutanda instructed MPs all through a session of Parliament’s trade, industry and Opposition portfolio committee that there was “a conspiracy” through which facts “stolen” with the NLC was sent towards the US, exactly where he claimed it absolutely was staying offered to fund a smear marketing campaign from the NLC.

He was repeating equivalent promises he had Beforehand manufactured in Parliament, which integrated advertisement hominem assaults on GroundUp and this reporter but was thorough not to call either.

“I came in this article On this August dwelling final 12 months and claimed to honourable members that details about our beneficiaries has become stolen and place in a single condition in the united states,” he advised MPs.

“We identified as to the Condition Safety Agency to return take a look at the make any difference for the reason that we have been receiving reviews that our info is building income for media platforms and journalists,” he mentioned. “There have been chat, obviously from a person source, just one media, that spoke A lot about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but failed to inform MPs the SSA investigation were done almost a yr previously.

Proactive funding was at the center on the looting with the lottery. It facet-stepped the traditional grant system. The NLC could alone establish a challenge to fund and appoint a non-gain organisation to supervise it.

Soon after Nevhutanda 1st advised Parliament in 2018 that he had requested the SSA to investigate the meant breach, the South African Nationwide Editors Discussion board issued an announcement saying that his remarks mirrored “a particularly perilous Frame of mind where the media is currently being blamed for the NLC’s inherent troubles”.

“Rather than investigating why thousands and thousands can not be accounted for, the NLC has instead tried to cast doubt within the integrity on the journalists included and it has requested the SSA to investigate their sources.”

Proactive projects produced magic formula
Security flaws discovered during the NLC grant funding procedure over the SSA’s investigation, look to are actually applied being an justification through the NLC to get rid of all proactive-funded initiatives from its central grants process.

“In or about 21 December 2019, the classification of all pro-actively funding tasks was heightened to ‘secret’ and tasks had been removed from the grant funding method and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Business, Government Supervisor Lawful in an effort to safeguard [the] information,” Nene stated in her affidavit.

“There was plenty of inner discussion, with a great deal of backwards and forwards, about what to do to plug the alleged leaks”, a source, who was in the senior situation at the NLC at enough time, advised GroundUp. “In the end, the choice was taken to remove all the proactive initiatives from your process and limit use of a handful of individuals”.

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

Maselwa, who resigned within the NLC a number of decades ago, has become implicated in corruption involving lottery money. He acquired R4.three-million from lottery funds allocated to create a library and museum elaborate in Kuruman (see Taung Cultural New music and Arts Expo) which he used to make a dwelling within an upmarket gated progress in Pretoria. The house is one of several paid out for with lottery money which were frozen following the Asset Forfeiture Device acquired 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 large-ups in the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated from the corruption which overwhelmed the NLC on their look at.

Also implicated are previous board users William Huma, who resigned after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has given that died.

Each time a new administration, including the complete board and government, took above 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 missing. Files held for safekeeping by document storage company Metrofile had been signed out and by no means returned.

The NLC was ready to Recuperate copies of some หวย หุ้น files from its Mimecast e-mail archiving method and the laptops of their assistants and support staff members.

News stories
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave problem probable details protection breaches and the unauthorised use and/or dissemination of confidential data received on account of performing Formal capabilities in the Fee by NLC workers. The functions are intended to undermine the integrity with the Fee although disrupting the helpful functions [with the NLC] and creating insurmountable reputational damage to your Fee as the custodian of personal details entrusted to it by its beneficiaries.”

His request to the SSA to research was supported within an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is now struggling with a disciplinary inquiry after she was unsuccessful in lawful motion to set aside findings of irregular expenditure on her check out.

The goal of her affidavit, Nene explained, was “to document the occasions which transpired relating to facts safety breaches at the Nationwide Lotteries Fee”.

She shown numerous information reports which she claimed have been the results of those “breaches” (see at the conclusion of this informative article).

Nene claimed that a whistle-blower approached the NLC alleging that certainly one of its personnel, Sello Qhino, experienced “delivered her classified NLC Info and persistently encouraged her to provide the information to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded jobs in Kuruman after tries to lift The problem internally have been ignored, was subsequently fired.

Referring to an eighteen November 2018 short article while in the Everyday Dispatch regarding the misappropriation of Lottery funds, Nene claimed that the NLC discovered then suspended Zintle Rungqu. She was an employee while in the NLC’s East London Workplace, who was the lover and also the mother of whistleblower Mzukise Makatse’s 3 children.

Rungqu and Makatse feel Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, Using the NLC shelling out R470,000 on attorneys to characterize it, but was uncovered not responsible and permitted to return to work.

“The frequent factor in these content articles is [they include] classified information and facts concerning proactive funding assignments,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out of the spouse and children property to take the heat off her and his children. Experiencing homelessness, he moved into an Workplace within an vacant factory belonging to a buddy.

Each Makatse and Qhino are participating in an NLC reparation course of action meant to recognise the hurt some individuals suffered with the palms with the NLC. Apologies and, occasionally, financial payment are envisioned.

“Some people today were being really afflicted incredibly negatively by this … This is de facto agonizing,” NLC Commissioner Jodi Scholtz informed the Every day Maverick past 12 months.

“I met two or three these persons. It was just so coronary heart-wrenching that their whole life happen to be turned the wrong way up,” said Scholtz.

Amid those she satisfied ended up Qhino and Makatse.

Secure 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 for the media.

“Failure to have a devoted anti-corruption channel will cause staff members presenting these conditions beyond the NLC,” the SSA claimed in its results.

“Presented the magnitude of corruption in state establishments, it stays critical that it ensures that the NLC complies with all stability prescripts and that its focus is on making sure that illegal and irregular perform is adequately mitigated from and by making certain an suitable channel for whistle-blowers to report untoward conduct without the need of getting intimidated.”

It recommended that the NLC create a “safe channel” for employees to supply information on any “untoward exercise” that may not avoid or discourage personnel from blowing the whistle. A whistle-blowers coverage, depending on the Guarded Disclosures Act twenty five of 2000, can be a prerequisite.”

Media reviews Nene detailed
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Physical fitness Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator of the Limpopo Mirror, to show NLC corruption. “The article experienced things of knowledge not offered in the public area, thereby increasing issue on interior Information and facts stability breaches. The allegations during the media ended up independently investigated,” Nene explained. “Nonetheless, employees responsible for divulging labeled details have however to get determined”;
A 28 January 2018 posting revealed via the Dally Dispatch “citing many allegations through the Limpopo Mirror posting printed on 10 December 2017 and also a new allegation relating to a previous staff by the name of Mzukisi Makatse. He was billed and summarily dismissed with the danger brought about on the organisation.”
A 16 November 2018 post within the Lowvelder in regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of acquiring R27-million in lottery grants, the rehab has not been finished. “The Lowvelder article contained labeled details in terms of NLC coverage, boosting more fears of inner facts stability breaches,” Nene explained in her affidavit. “The prima facie proof with regard to these allegations did not warrant an impartial Investigation, on the other hand [it] highlighted the heightened information security dangers within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene reported GroundUp experienced confirmed in its story that it absolutely was based on leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Entry to Info) ask for for specifics regarding the project, she claimed