Lottery bosses turned to Point out Protection Agency to research leaks

Lottery bosses turned to Point out Protection Agency to research leaks

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Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Condition Security Company (SSA) in December 2018 to investigate the leaking of paperwork that uncovered lottery corruption.
The NLC’s corporation secretary at the time stated media reviews she reported had been based on “stolen” data within an affidavit with the SSA.
The SSA did investigate. It identified the knowledge was not a issue of condition protection and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for your media to expose it.
A fresh board and management has given that taken more than the NLC and thus far have taken steps to end corruption in the establishment.
A State Stability Agency (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered enough motive” for exposure because of the media.

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

Here's

Nevhutanda’s letter,
an affidavit by currently suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “confidential” results and proposals.
Nevhutanda questioned the SSA to analyze the job of NLC team within the alleged leaking of data, and Nene, in her affidavit recognized distinct media and experiences that she claimed included these leaks.

In the letter outlining its findings, the SSA instructed the NLC that even though guarding condition info was “a authorized vital aimed at protecting the sovereignty and integrity on the condition” this only placed on appropriately labeled information and facts.

Even though it didn't say so instantly, the SSA results implied that the allegedly leaked facts did not fall into this class.

Appreciably, the SSA built it clear that the need to protect point out information “does not prevent any individual from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation observed the NLC details involved in the alleged breach was “delicate and privileged in nature, although not categorized when it comes to the prescripts of your Bare minimum Information Safety Standards (Overlook)”.

“The leakage of your pertinent delicate Formal NLC information for the media won't pose a danger to countrywide security,” the SSA stated, including that the effect in the breaches was reputational.

The SSA report located “no evidence of a factual and incriminating mother nature versus any of your suspected NLC workforce which could be determined from the knowledge and data interrogated”.

It also mentioned that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does provide sufficient motive to possess these types of exposed during the media”.

Conspiracy claims
In 2020, Nevhutanda instructed MPs throughout a session of Parliament’s trade, marketplace and Competitors portfolio committee that there was “a conspiracy” where information “stolen” in the NLC was sent for the US, wherever he claimed it had been staying marketed to fund a smear marketing campaign in opposition to the NLC.

He was repeating related statements he had Beforehand designed in Parliament, which involved advertisement hominem assaults on GroundUp which reporter but was mindful not to call both.

“I arrived below In this particular August home past yr and reported to honourable associates that specifics of our beneficiaries has become stolen and set in one state in the united states,” he explained to MPs.

“We known as to the Point out Stability Company to return consider the issue for the reason that we've been getting reports that our info is producing cash for media platforms and journalists,” he mentioned. “There has been talk, of course from a person supply, a single media, that spoke A lot about proactive-funding,” Nevhutanda said (referring to GroundUp), but did not tell MPs the SSA investigation were accomplished almost a 12 months before.

Proactive funding was at the heart with the looting from the lottery. It aspect-stepped the traditional grant process. The NLC could itself discover a challenge to fund and appoint a non-revenue organisation to oversee it.

Soon after Nevhutanda to start with explained to Parliament in 2018 that he experienced questioned the SSA to analyze the intended breach, the South African Nationwide Editors Forum issued a statement indicating that his remarks mirrored “a very unsafe Frame of mind in which the media is becoming blamed for the NLC’s inherent troubles”.

“As an alternative to investigating why thousands and thousands cannot be accounted for, the NLC has alternatively attempted to Solid doubt around the integrity of the journalists associated and has asked the SSA to investigate their sources.”

Proactive tasks made top secret
Safety flaws discovered while in the NLC grant funding program throughout the SSA’s investigation, surface to are actually utilised as an excuse with the NLC to remove all proactive-funded tasks from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘solution’ and jobs had been removed from the grant funding system and preserved manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Business, Govt Supervisor Legal so that you can safeguard [the] data,” Nene said in her affidavit.

“There was lots of inner discussion, with plenty of back and forth, about what to do to plug the alleged leaks”, a source, who was inside a senior position at the NLC at some time, explained to GroundUp. “Eventually, the decision was taken to get rid of the many proactive assignments in the program and Restrict use of A few individuals”.

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

Maselwa, who resigned with the NLC several years back, has long been implicated in corruption involving lottery resources. He gained R4.3-million from lottery money allotted to make a library and museum elaborate in Kuruman (see Taung Cultural Tunes and Arts Expo) which he utilised to construct a dwelling in an upmarket gated progress in Pretoria. The home is among quite a few paid for with lottery money which were frozen once the Asset Forfeiture Device obtained a preservation purchase in December 2022.

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

Also implicated are previous board customers William Huma, who resigned following he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has considering the fact that died.

Any time a new administration, such as the full board and govt, took about at the NLC in late 2022 and early 2023, they discovered a “chaotic mess” in the documentation concerning proactive funding, Considerably of which was paper-primarily based. Critical documents had been lacking. Data files held for safekeeping by document storage corporation Metrofile had been signed out and under no circumstances returned.

The NLC was in a position to Get well copies of some ผล หวย files from its Mimecast e-mail archiving procedure and also the laptops of their assistants and assist staff.

News reports
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave concern possible data safety breaches and also the unauthorised use and/or dissemination of confidential facts acquired as a result of accomplishing official capabilities during the Fee by NLC staff. The actions are meant to undermine the integrity from the Commission though disrupting the successful features [of the NLC] and leading to 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 in an affidavit by suspended NLC organization secretary, Nomphumelelo Nene.

Nene is at the moment struggling with a disciplinary inquiry just after she was unsuccessful in lawful action to set aside findings of irregular expenditure on her watch.

The goal of her affidavit, Nene reported, was “to history the events which transpired relating to information protection breaches on the Countrywide Lotteries Commission”.

She detailed various information reports which she claimed have been the effects of these “breaches” (see at the conclusion of this post).

Nene said that a whistle-blower approached the NLC alleging that considered one of its employees, Sello Qhino, had “furnished her categorised NLC Information and persistently encouraged her to provide the information to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded projects in Kuruman following tries to boost the issue internally were being overlooked, was subsequently fired.

Referring to an 18 November 2018 short article while in the Every day Dispatch about the misappropriation of Lottery cash, Nene said the NLC discovered then suspended Zintle Rungqu. She was an worker during the NLC’s East London Business office, who was the partner plus the mom of whistleblower Mzukise Makatse’s a few kids.

Rungqu and Makatse imagine Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Using the NLC paying R470,000 on lawyers to signify it, but was identified not guilty and permitted to return to work.

“The typical Think about these content is the fact [they include] categorised data referring to proactive funding initiatives,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out with the household house to take the warmth off her and his kids. Experiencing homelessness, he moved into an Workplace in an vacant factory belonging to a colleague.

The two Makatse and Qhino are taking part in an NLC reparation method meant to recognise the harm some people endured in the fingers on the NLC. Apologies and, in some instances, economical compensation are anticipated.

“Some people today were being really afflicted very negatively by this … This is actually painful,” NLC Commissioner Jodi Scholtz told the Day by day Maverick very last yr.

“I satisfied a number of these people today. It had been just so heart-wrenching that their entire life are turned upside down,” mentioned Scholtz.

Among People she met have been Qhino and Makatse.

Secure System desired for whistleblowers
The SSA observed the absence at enough time of a proper channel for whistleblowers to report corruption led them to show on the media.

“Failure to possess a focused anti-corruption channel will bring about staff members presenting this sort of situations outside of the NLC,” the SSA explained in its results.

“Presented the magnitude of corruption in state institutions, it remains essential that it ensures that the NLC complies with all security prescripts Which its emphasis is on making certain that unlawful and irregular conduct is adequately mitigated versus and by making certain an suitable channel for whistle-blowers to report untoward conduct without the need of becoming intimidated.”

It encouraged that the NLC create a “Protected channel” for workers to provide information on any “untoward activity” that could not avert or discourage workers from blowing the whistle. A whistle-blowers coverage, dependant on the Guarded Disclosures Act 25 of 2000, can be a prerequisite.”

Media reviews Nene detailed
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Health and fitness 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 post experienced aspects of information not offered in the general public domain, therefore increasing issue on internal Data protection breaches. The allegations in the media were being independently investigated,” Nene claimed. “Nonetheless, staff members liable for divulging labeled information and facts have yet to become identified”;
A 28 January 2018 write-up printed through the Dally Dispatch “citing several allegations through the Limpopo Mirror post published on ten December 2017 as well as a new allegation referring to a previous staff through the identify of Mzukisi Makatse. He was billed and summarily dismissed for the risk brought about to the organisation.”
A 16 November 2018 write-up while in the Lowvelder about the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, in spite of getting R27-million in lottery grants, the rehab has never been finished. “The Lowvelder report contained categorized details with regards to NLC policy, boosting even more considerations of internal information and facts protection breaches,” Nene mentioned in her affidavit. “The prima facie proof regarding these allegations didn't warrant an independent Investigation, on the other hand [it] highlighted the heightened details stability dangers in the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene claimed GroundUp experienced verified in its Tale that it absolutely was according to leaked NLC documents. This was despite the NLC rejecting a PAIA (Promotion of Entry to Data) request for information with regards to the challenge, she reported

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