Lottery bosses turned to Point out Protection Company to investigate leaks

Lottery bosses turned to Point out Protection Company to investigate leaks

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Former Nationwide Lotteries Fee (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 firm secretary at enough time listed media reviews she explained ended up based on “stolen” info in an affidavit for the SSA.
The SSA did look into. It uncovered the data was not a make a difference of point out protection and the “prevalence of alleged corruption and irregularities” gave “enough motive” for that media to expose it.
A fresh board and administration has due to the fact taken above the NLC and thus far have taken actions to finish corruption in the establishment.
A Point out Security Agency (SSA) investigation uncovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented enough motive” for publicity by the media.

The probe into supposed “details protection breaches and sabotage of NLC functions” was undertaken immediately after then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to analyze.

Here's

Nevhutanda’s letter,
an affidavit by now suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the security company’s “private” findings and recommendations.
Nevhutanda questioned the SSA to investigate the role of NLC team from the alleged leaking of information, and Nene, in her affidavit discovered distinct media and reports that she claimed included these leaks.

While in the letter outlining its findings, the SSA advised the NLC that though preserving condition facts was “a legal vital aimed at shielding the sovereignty and integrity of the condition” this only applied to correctly categorised info.

Even though it didn't say so right, the SSA findings implied the allegedly leaked data didn't drop into this classification.

Noticeably, the SSA created it very clear that the necessity to defend point out data “would not avoid any individual from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation identified which the NLC data linked to the alleged breach was “delicate and privileged in character, although not categorised in terms of the prescripts of your Least Details Security Standards (Pass up)”.

“The leakage from the appropriate delicate Formal NLC details to your media would not pose a danger to national security,” the SSA mentioned, including that the impact on the breaches was reputational.

The SSA report identified “no proof of the factual and incriminating mother nature versus any of your suspected NLC workforce that may be identified from the data and details interrogated”.

In addition it mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does present sufficient motive to acquire this sort of exposed during the media”.

Conspiracy promises
In 2020, Nevhutanda told MPs for the duration of a session of Parliament’s trade, marketplace and Competitors portfolio committee that there was “a conspiracy” during which details “stolen” with the NLC was despatched for the US, the place he claimed it had been currently being marketed to fund a smear campaign in opposition to the NLC.

He was repeating related statements he had Earlier manufactured in Parliament, which involved advertisement hominem attacks on GroundUp which reporter but was watchful not to name both.

“I came here During this August household previous calendar year and described to honourable associates that information about our beneficiaries has long been stolen and place in a single condition in the usa,” he explained to MPs.

“We referred to as to the Point out Safety Agency to return explore the matter for the reason that we are acquiring experiences that our info is making income for media platforms and journalists,” he said. “There has been chat, certainly from 1 source, one media, that spoke A great deal about proactive-funding,” Nevhutanda said (referring to GroundUp), but didn't notify MPs the SSA investigation had been done almost a calendar year earlier.

Proactive funding was at the guts on the looting on the lottery. It side-stepped the conventional grant procedure. The NLC could by itself identify a job to fund and appoint a non-earnings organisation to supervise it.

Following Nevhutanda very first advised Parliament in 2018 that he had requested the SSA to investigate the supposed breach, the South African National Editors Discussion board issued a statement expressing that his remarks mirrored “an extremely unsafe Angle exactly where the media is currently being blamed to the NLC’s inherent challenges”.

“Rather then investigating why tens of millions can't be accounted for, the NLC has instead attempted to Forged doubt to the integrity from the journalists included and has requested the SSA to investigate their sources.”

Proactive projects designed secret
Safety flaws recognized during the NLC grant funding program in the SSA’s investigation, seem to are actually utilized as an excuse through the NLC to eliminate all proactive-funded assignments from its central grants procedure.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘magic formula’ and jobs were being faraway from the grant funding technique and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Business, Government Manager Lawful so that you can safeguard [the] details,” Nene claimed in her affidavit.

“There was lots of inner discussion, with plenty of forwards and backwards, about how to proceed to plug the alleged leaks”, a source, who was in a senior situation at the NLC at enough time, explained to GroundUp. “Eventually, the choice was taken to get rid of the many proactive jobs with the procedure and Restrict entry to a handful of men and women”.

Some in that handful of men and women had been implicated in corruption.

Maselwa, who resigned with the NLC various a long time back, has actually been implicated in corruption involving lottery resources. He obtained R4.3-million from lottery money allocated to construct a library and museum advanced in Kuruman (see Taung Cultural New music and Arts Expo) which he used to construct a residence in an upmarket gated growth in Pretoria. The house is one of numerous paid for with lottery funds which were frozen after the Asset Forfeiture Device acquired a preservation order in December 2022.

The politically-related Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to higher-ups in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their look at.

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

Each time a new administration, including the total board and government, took in excess of for the NLC in late 2022 and early 2023, they learned a “chaotic mess” during the documentation regarding proactive funding, Substantially of which was paper-dependent. Essential documents were being missing. Files held for safekeeping by doc storage business Metrofile were signed out and never ever returned.

The NLC was in a position to Get well copies of some ตัว หวย paperwork from its Mimecast email archiving procedure as well as laptops of their assistants and assistance employees.

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In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave concern doable info protection breaches and the unauthorised use and/or dissemination of confidential facts attained as a result of executing official features while in the Fee by NLC staff members. The things to do are meant to undermine the integrity with the Fee when disrupting the effective capabilities [of the NLC] and creating insurmountable reputational hurt into the Commission since the custodian of personal data entrusted to it by its beneficiaries.”

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

Nene is at the moment going through a disciplinary inquiry following she was unsuccessful in authorized action to put aside conclusions of irregular expenditure on her look at.

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

She detailed several information experiences which she claimed were the outcomes of these “breaches” (see at the conclusion of this short article).

Nene stated that a whistle-blower approached the NLC alleging that certainly one of its workers, Sello Qhino, experienced “furnished her categorized NLC Information 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 following makes an attempt to lift the issue internally ended up disregarded, was subsequently fired.

Referring to an 18 November 2018 report in the Everyday Dispatch about the misappropriation of Lottery funds, Nene stated that the NLC recognized then suspended Zintle Rungqu. She was an personnel while in the NLC’s East London Office environment, who was the lover as well as mom of whistleblower Mzukise Makatse’s three kids.

Rungqu and Makatse consider Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, Using the NLC spending R470,000 on attorneys to signify it, but was found not guilty and permitted to return to work.

“The widespread factor in these content is [they require] classified details relating to proactive funding assignments,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out on the family members residence to take the heat off her and his small children. Facing homelessness, he moved into an Workplace within an vacant manufacturing facility belonging to a colleague.

Equally Makatse and Qhino are taking part in an NLC reparation approach intended to recognise the hurt some individuals experienced on the arms on the NLC. Apologies and, in some instances, economical compensation are envisioned.

“Some folks were being truly afflicted really negatively by this … This is admittedly unpleasant,” NLC Commissioner Jodi Scholtz instructed the Day by day Maverick last year.

“I met a number of these men and women. It absolutely was just so coronary heart-wrenching that their complete lives are already turned the wrong way up,” explained Scholtz.

Among These she met were Qhino and Makatse.

Secure System wanted for whistleblowers
The SSA located the absence at the time of a suitable channel for whistleblowers to report corruption led them to turn to your media.

“Failure to have a committed anti-corruption channel will cause employees presenting these scenarios outside of the NLC,” the SSA stated in its findings.

“Specified the magnitude of corruption in state establishments, it remains essential that it makes sure that the NLC complies with all protection prescripts and that its target is on ensuring that illegal and irregular conduct is adequately mitigated versus and by ensuring an sufficient channel for whistle-blowers to report untoward perform without getting intimidated.”

It recommended that the NLC set up a “Risk-free channel” for employees to deliver info on any “untoward action” that would not reduce or discourage staff members from blowing the whistle. A whistle-blowers policy, according to the Secured Disclosures Act 25 of 2000, is often a requirement.”

Media studies Nene listed
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Exercise Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and operator of the Limpopo Mirror, to expose NLC corruption. “The article had elements of data not accessible in the public domain, thereby increasing concern on inside Information and facts stability breaches. The allegations from the media ended up independently investigated,” Nene explained. “Even so, workers accountable for divulging categorised facts have but to generally be determined”;
A 28 January 2018 short article printed via the Dally Dispatch “citing several allegations in the Limpopo Mirror short article revealed on ten December 2017 and a new allegation relating to a previous personnel by the identify of Mzukisi Makatse. He was charged and summarily dismissed for that danger induced into the organisation.”
A sixteen November 2018 article while in the Lowvelder regarding the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite receiving R27-million in lottery grants, the rehab has not been finished. “The Lowvelder write-up contained classified facts with regard to NLC policy, increasing further more worries of inside information protection breaches,” Nene said in her affidavit. “The prima facie evidence with regards to these allegations did not warrant an impartial Investigation, nonetheless [it] highlighted the heightened information and facts safety hazards inside 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 confirmed in its story that it was depending on leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Entry to Information and facts) request for particulars with regards to the task, she mentioned