Lottery bosses turned to Condition Protection Company to analyze leaks

Lottery bosses turned to Condition Protection Company to analyze leaks

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Former National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Stability Agency (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s company secretary at the time detailed media experiences she reported were being according to “stolen” info within an affidavit for that SSA.
The SSA did examine. It discovered the data was not a make a difference of point out safety and which the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to reveal it.
A new board and management has because taken about the NLC and So far have taken actions to finish corruption within the establishment.
A State Safety Agency (SSA) investigation located the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered enough motive” for publicity by the media.

The probe into meant “information security breaches and sabotage of NLC functions” was carried out soon after then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” results and recommendations.
Nevhutanda requested the SSA to investigate the purpose of NLC workers within the alleged leaking of knowledge, and Nene, in her affidavit discovered distinct media and reports that she claimed concerned these leaks.

From the letter outlining its conclusions, the SSA informed the NLC that when protecting state data was “a authorized vital directed at protecting the sovereignty and integrity from the state” this only placed on correctly labeled data.

Although it didn't say so instantly, the SSA conclusions implied that the allegedly leaked info didn't drop into this category.

Noticeably, the SSA designed it very clear that the necessity to defend state data “doesn't reduce any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered the NLC information and facts involved in the alleged breach was “sensitive and privileged in nature, but not categorized with regard to the prescripts of your Minimum Info Security Specifications (Overlook)”.

“The leakage in the appropriate sensitive Formal NLC facts on the media isn't going to pose a risk to countrywide protection,” the SSA stated, introducing the impact of your breaches was reputational.

The SSA report identified “no evidence of the factual and incriminating character against any of your suspected NLC staff members that could be identified from the knowledge and details interrogated”.

It also stated that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does provide ample motive to acquire these uncovered in the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs throughout a session of Parliament’s trade, market and competition portfolio committee that there was “a conspiracy” wherein data “stolen” in the NLC was sent to your US, where he claimed it absolutely was getting offered to fund a smear marketing campaign from the NLC.

He was repeating comparable statements he experienced previously designed in Parliament, which integrated advertisement hominem assaults on GroundUp which reporter but was careful not to name both.

“I came below in this August residence very last calendar year and claimed to honourable members that information about our beneficiaries continues to be stolen and put in a single point out in the united states,” he instructed MPs.

“We named about the State Security Company to come consider the make any difference for the reason that we're obtaining experiences that our data is generating dollars for media platforms and journalists,” he mentioned. “There have been discuss, certainly from a single supply, one media, that spoke Significantly about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't tell MPs that the SSA investigation were completed Virtually a yr earlier.

Proactive funding was at the heart from the looting from the lottery. It side-stepped the traditional grant system. The NLC could by itself recognize a undertaking to fund and appoint a non-revenue organisation to supervise it.

Immediately after Nevhutanda 1st informed Parliament in 2018 that he experienced asked the SSA to analyze the supposed breach, the South African Nationwide Editors Discussion board issued an announcement indicating that his remarks reflected “a very harmful Mind-set exactly where the media is staying blamed for the NLC’s inherent difficulties”.

“Rather then investigating why millions cannot be accounted for, the NLC has as an alternative attempted to Solid doubt around the integrity in the journalists concerned and has questioned the SSA to research their sources.”

Proactive projects made secret
Stability flaws determined inside the NLC grant funding system during the SSA’s investigation, show up to have already been used as an justification from the NLC to eliminate all proactive-funded tasks from its central grants process.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘top secret’ and tasks have been faraway from the grant funding procedure and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business office, Government Manager Authorized in an effort to safeguard [the] data,” Nene claimed in her affidavit.

“There was many inside discussion, with lots of forwards and backwards, about how to proceed to plug the alleged leaks”, a source, who was inside of a senior situation on the NLC at the time, instructed GroundUp. “In the end, the choice was taken to remove the many proactive tasks with the method and Restrict usage of a handful of folks”.

Some in that handful of folks were implicated in corruption.

Maselwa, who resigned through the NLC quite a few years ago, is implicated in corruption involving lottery money. He acquired R4.three-million from lottery money allocated to make a library and museum complicated in Kuruman (see Taung Cultural Tunes and Arts Expo) which he made use of to construct a property in an upmarket gated progress in Pretoria. The assets is among several paid for with lottery funds which were frozen once the Asset Forfeiture Device received a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by previous President Jacob Zuma in 2009 and was near significant-ups while in the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated while in the corruption which confused the NLC on their own check out.

Also implicated are previous board customers William Huma, who resigned just after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have since died.

Whenever a new administration, including the whole board and executive, took in excess of within the NLC in late 2022 and early 2023, they identified a “chaotic mess” in the documentation regarding proactive funding, A great deal of which was paper-primarily based. Critical paperwork had been lacking. Data files held for safekeeping by doc storage firm Metrofile were signed out and under no circumstances returned.

The NLC was in the position to Recuperate copies of some หวย ไทยรัฐ documents from its Mimecast email archiving method along with the laptops of their assistants and assist staff members.

News studies
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave issue attainable info stability breaches as well as the unauthorised use and/or dissemination of private info acquired on account of carrying out official capabilities inside the Commission by NLC staff members. The activities are meant to undermine the integrity of the Fee though disrupting the effective capabilities [with the NLC] and resulting in insurmountable reputational damage on the Commission given that the custodian of non-public info entrusted to it by its beneficiaries.”

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

Nene is currently experiencing 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 details protection breaches within the Countrywide Lotteries Fee”.

She listed numerous news reports which she claimed were the outcomes of those “breaches” (see at the end of this information).

Nene said that a whistle-blower approached the NLC alleging that certainly one of its staff, Sello Qhino, had “offered her labeled NLC Information and facts and persistently inspired her to offer the knowledge to GroundUp”.

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

Referring to an eighteen November 2018 write-up in the Each day Dispatch in regards to the misappropriation of Lottery resources, Nene said the NLC discovered then suspended Zintle Rungqu. She was an staff within the NLC’s East London Office environment, who was the companion as well as mom of whistleblower Mzukise Makatse’s a few children.

Rungqu and Makatse think Rungqu was punished mainly because Makatse blew the whistle. She was suspended and billed internally, Along with the NLC spending R470,000 on lawyers to represent it, but was observed not guilty and allowed to return to work.

“The popular Consider these content articles is the fact that [they contain] categorized info concerning proactive funding assignments,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out of your loved ones home to take the warmth off her and his kids. Experiencing homelessness, he moved into an office within an vacant factory belonging to a buddy.

Both Makatse and Qhino are participating in an NLC reparation system meant to recognise the hurt some individuals experienced at the arms in the NLC. Apologies and, in some instances, fiscal payment are predicted.

“Some men and women had been actually afflicted quite negatively by this … This is absolutely unpleasant,” NLC Commissioner Jodi Scholtz told the Day by day Maverick previous calendar year.

“I met a number of these people today. It absolutely was just so coronary heart-wrenching that their whole life happen to be turned upside down,” said Scholtz.

Amongst Individuals she satisfied had been Qhino and Makatse.

Secure System desired for whistleblowers
The SSA found the absence at the time of an appropriate channel for whistleblowers to report corruption led them to turn towards the media.

“Failure to possess a dedicated anti-corruption channel will end in staff presenting such situations beyond the NLC,” the SSA stated in its results.

“Specified the magnitude of corruption in point out institutions, it remains vital that it makes sure that the NLC complies with all safety prescripts and that its target is on guaranteeing that illegal and irregular carry out is adequately mitigated in opposition to and by guaranteeing an enough channel for whistle-blowers to report untoward carry out devoid of currently being intimidated.”

It advisable that the NLC establish a “safe channel” for workers to supply information on any “untoward action” that might not avoid or discourage workers from blowing the whistle. A whistle-blowers coverage, according to the Secured Disclosures Act 25 of 2000, is usually a requirement.”

Media studies Nene listed
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Exercise Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator of your Limpopo Mirror, to show NLC corruption. “The posting experienced aspects of knowledge not offered in the public area, therefore elevating concern on interior Facts safety breaches. The allegations in the media were being independently investigated,” Nene explained. “Nonetheless, workforce to blame for divulging classified facts have however being discovered”;
A 28 January 2018 write-up released by the Dally Dispatch “citing several allegations through the Limpopo Mirror posting posted on ten December 2017 along with a new allegation referring to a former employee by the identify of Mzukisi Makatse. He was billed and summarily dismissed to the risk brought on towards the organisation.”
A sixteen November 2018 short article while in the Lowvelder in regards to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has described how, Despite getting R27-million in lottery grants, the rehab has not been done. “The Lowvelder post contained categorized facts in terms of NLC policy, raising more worries of inside facts protection breaches,” Nene claimed in her affidavit. “The prima facie proof with regard to these allegations did not warrant an unbiased Investigation, on the other hand [it] highlighted the heightened facts safety dangers throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Most important Care, a hijacked NPO. Nene said GroundUp experienced verified in its story that it absolutely was depending on leaked NLC files. This was despite the NLC rejecting a PAIA (Marketing of Usage of Details) ask for for particulars with regard to the venture, she claimed