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 Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Security Agency (SSA) in December 2018 to research the leaking of files that exposed lottery corruption.
The NLC’s business secretary at enough time mentioned media reviews she explained ended up depending on “stolen” data in an affidavit for the SSA.
The SSA did investigate. It found the data was not a matter of point out safety and that the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to reveal it.
A completely new board and administration has since taken above the NLC and To date have taken measures to finish corruption on the institution.
A Point out Safety Company (SSA) investigation found that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered ample motive” for exposure with the media.

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

Here is

Nevhutanda’s letter,
an affidavit by presently suspended NLC business secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” findings and proposals.
Nevhutanda requested the SSA to investigate the purpose of NLC personnel inside the alleged leaking of data, and Nene, in her affidavit recognized unique media and studies that she claimed associated these leaks.

Inside the letter outlining its conclusions, the SSA told the NLC that when safeguarding point out details was “a lawful crucial aimed toward preserving the sovereignty and integrity with the state” this only applied to appropriately labeled facts.

Even though it didn't say so instantly, the SSA findings implied that the allegedly leaked details did not slide into this classification.

Drastically, the SSA manufactured it apparent that the need to defend condition data “would not stop any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation identified the NLC info involved in the alleged breach was “delicate and privileged in character, but not classified in terms of the prescripts of your Minimal Data Safety Benchmarks (Pass up)”.

“The leakage of the suitable sensitive Formal NLC data to your media doesn't pose a danger to countrywide protection,” the SSA stated, incorporating the affect in the breaches was reputational.

The SSA report discovered “no evidence of the factual and incriminating nature against any in the suspected NLC staff members that may be identified from the information and data interrogated”.

Furthermore, it stated that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does deliver sufficient motive to get these kinds of exposed from the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs all through a session of Parliament’s trade, market and Opposition portfolio committee that there was “a conspiracy” where information “stolen” in the NLC was sent into the US, where he claimed it absolutely was remaining marketed to fund a smear campaign against the NLC.

He was repeating identical statements he experienced Earlier manufactured in Parliament, which integrated advert hominem assaults on GroundUp and this reporter but was cautious not to name possibly.

“I came below On this August house very last calendar year and noted to honourable customers that specifics of our beneficiaries is stolen and place in one state in the united states,” he instructed MPs.

“We termed around the State Safety Agency to come investigate the make any difference simply because we're acquiring studies that our details is producing funds for media platforms and journalists,” he mentioned. “There has been communicate, certainly from just one source, a person media, that spoke Considerably about proactive-funding,” Nevhutanda stated (referring to GroundUp), but did not convey to MPs that the SSA investigation had been accomplished Pretty much a year previously.

Proactive funding was at the guts of the looting in the lottery. It facet-stepped the conventional grant system. The NLC could alone identify a undertaking to fund and appoint a non-financial gain organisation to supervise it.

Soon after Nevhutanda to start with told Parliament in 2018 that he had questioned the SSA to research the intended breach, the South African National Editors Discussion board issued a statement saying that his remarks mirrored “an especially hazardous attitude wherever the media is getting blamed with the NLC’s inherent troubles”.

“As an alternative to investigating why millions can't be accounted for, the NLC has in its place tried to cast doubt about the integrity of your journalists involved and has asked the SSA to investigate their sources.”

Proactive tasks manufactured solution
Protection flaws determined while in the NLC grant funding process in the SSA’s investigation, surface to have been used as an justification through the NLC to remove all proactive-funded initiatives from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘mystery’ and assignments have been faraway from the grant funding process and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Office, Government Manager Authorized so that you can safeguard [the] information,” Nene stated in her affidavit.

“There was plenty of inner discussion, with lots of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was within a senior place at the NLC at some time, advised GroundUp. “Eventually, the choice was taken to get rid of all of the proactive tasks within the process and Restrict use of a handful of folks”.

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

Maselwa, who resigned from the NLC quite a few decades in the past, has become implicated in corruption involving lottery resources. He acquired R4.3-million from lottery resources allocated to develop a library and museum elaborate in Kuruman (see Taung Cultural Tunes and Arts Expo) which he employed to make a home in an upmarket gated advancement in Pretoria. The home is one of several compensated for with lottery funds that were frozen following the Asset Forfeiture Device attained 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 near to large-ups inside the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated during the corruption which overcome the NLC on their own view.

Also implicated are former board members William Huma, who resigned right after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got given that died.

Every time a new administration, such as the overall board and government, took about for the NLC in late 2022 and early 2023, they found out a “chaotic mess” during the documentation relating to proactive funding, much of which was paper-based. Vital paperwork had been lacking. Information held for safekeeping by doc storage firm Metrofile had been signed out and under no circumstances returned.

The NLC was capable to recover copies of some ผล หวย paperwork from its Mimecast email archiving system and the laptops in their assistants and help employees.

Information reviews
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave concern doable details stability breaches as well as the unauthorised use and/or dissemination of private information acquired due to accomplishing official functions inside the Commission by NLC personnel. The things to do are meant to undermine the integrity of your Fee though disrupting the effective capabilities [of your NLC] and causing insurmountable reputational hurt into the Commission since 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 business secretary, Nomphumelelo Nene.

Nene is now going through a disciplinary inquiry following she was unsuccessful in authorized motion to set aside findings of irregular expenditure on her check out.

The purpose of her affidavit, Nene explained, was “to history the activities which transpired regarding information security breaches on the Nationwide Lotteries Commission”.

She detailed a variety of information studies which she claimed ended up the final results of those “breaches” (see at the end of this post).

Nene explained that a whistle-blower approached the NLC alleging that one among its personnel, Sello Qhino, had “delivered her labeled NLC Info and persistently inspired her to supply the data to GroundUp”.

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

Referring to an eighteen November 2018 write-up from the Daily Dispatch in regards to the misappropriation of Lottery cash, Nene reported which the NLC discovered and after that suspended Zintle Rungqu. She was an employee within the NLC’s East London Business office, who was the associate along with the mother of whistleblower Mzukise Makatse’s a few small children.

Rungqu and Makatse think Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, Together with the NLC expending R470,000 on lawyers to symbolize it, but was located not responsible and allowed to return to work.

“The frequent Consider these articles or blog posts is the fact [they require] labeled data associated with proactive funding assignments,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out of the spouse and children household to take the warmth off her and his youngsters. Facing homelessness, he moved into an Office environment in an empty manufacturing unit belonging to a pal.

Both equally Makatse and Qhino are participating in an NLC reparation system intended to recognise the harm a number of people experienced within the hands from the NLC. Apologies and, in some instances, fiscal compensation are anticipated.

“Some men and women have been genuinely impacted really negatively by this … This is absolutely unpleasant,” NLC Commissioner Jodi Scholtz told the Daily Maverick past 12 months.

“I met a couple of these persons. It was just so coronary heart-wrenching that their entire life happen to be turned the other way up,” stated Scholtz.

Between These she fulfilled were being Qhino and Makatse.

Protected System desired for whistleblowers
The SSA discovered the absence at enough time of a suitable channel for whistleblowers to report corruption led them to show into the media.

“Failure to possess a dedicated anti-corruption channel will result in staff presenting these kinds of situations outside of the NLC,” the SSA mentioned in its findings.

“Given the magnitude of corruption in point out establishments, it remains essential that it makes certain that the NLC complies with all protection prescripts and that its focus is on guaranteeing that illegal and irregular perform is adequately mitigated versus and by making certain an adequate channel for whistle-blowers to report untoward carry out with out staying intimidated.”

It advised the NLC build a “Protected channel” for workers to deliver info on any “untoward activity” that will not protect against or discourage employees from blowing the whistle. A whistle-blowers policy, depending on the Secured Disclosures Act twenty five of 2000, is often a need.”

Media experiences Nene mentioned
A ten December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Conditioning Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and operator on the Limpopo Mirror, to expose NLC corruption. “The article experienced factors of data not offered in the public domain, thus elevating issue on internal Information and facts safety breaches. The allegations from the media had been independently investigated,” Nene claimed. “Nevertheless, staff members accountable for divulging categorized facts have nonetheless to become identified”;
A 28 January 2018 write-up revealed with the Dally Dispatch “citing quite a few allegations through the Limpopo Mirror short article revealed on 10 December 2017 along with a new allegation relating to a previous worker from the identify of Mzukisi Makatse. He was charged and summarily dismissed for the danger triggered towards the organisation.”
A sixteen November 2018 post during the Lowvelder in regards to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite receiving R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder article contained classified data concerning NLC policy, raising additional worries of inside data protection breaches,” Nene explained in her affidavit. “The prima facie evidence with regard to these allegations didn't warrant an unbiased Investigation, on the other hand [it] highlighted the heightened facts protection challenges in the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Main Care, a hijacked NPO. Nene explained GroundUp had confirmed in its story that it absolutely was dependant on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Advertising of Entry to Data) request for information concerning the project, she reported