Lottery bosses turned to Condition Security Agency to investigate leaks

Lottery bosses turned to Condition Security Agency to investigate leaks

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Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Stability Company (SSA) in December 2018 to investigate the leaking of paperwork that uncovered lottery corruption.
The NLC’s business secretary at time stated media reports she mentioned have been based on “stolen” info in an affidavit for your SSA.
The SSA did investigate. It discovered the information wasn't a make any difference of condition safety and that the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to expose it.
A brand new board and administration has considering that taken above the NLC and Up to now 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 from the media.

The probe into intended “facts stability breaches and sabotage of NLC functions” was carried out just after then-NLC board chairperson Alfred Nevhutanda wrote towards 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 request, and
the safety agency’s “confidential” conclusions and proposals.
Nevhutanda requested the SSA to investigate the role of NLC staff during the alleged leaking of knowledge, and Nene, in her affidavit identified unique media and studies that she claimed involved these leaks.

From the letter outlining its findings, the SSA instructed the NLC that whilst shielding state info was “a lawful imperative aimed toward shielding the sovereignty and integrity with the state” this only placed on correctly categorised information.

Although it did not say so straight, the SSA conclusions implied that the allegedly leaked info didn't drop into this class.

Significantly, the SSA built it clear that the need to defend condition details “doesn't stop any person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation located that the NLC information and facts associated with the alleged breach was “delicate and privileged in nature, but not classified with regard to the prescripts in the Least Information Security Standards (Miss out on)”.

“The leakage with the appropriate sensitive Formal NLC information on the media does not pose a threat to national protection,” the SSA explained, including which the affect in the breaches was reputational.

The SSA report found “no proof of the factual and incriminating nature versus any in the suspected NLC workforce that can be discovered from the information and knowledge interrogated”.

In addition, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide ample motive to possess these kinds of exposed while in the media”.

Conspiracy statements
In 2020, Nevhutanda instructed MPs through a session of Parliament’s trade, field and Competitors portfolio committee that there was “a conspiracy” by which info “stolen” from the NLC was despatched towards the US, where he claimed it had been becoming marketed to fund a smear campaign from the NLC.

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

“I arrived in this article Within this August residence very last calendar year and claimed to honourable users that information about our beneficiaries continues to be stolen and put in one point out in the usa,” he instructed MPs.

“We identified as about the State Security Company to come consider the matter because we have been acquiring reports that our facts is producing revenue for media platforms and journalists,” he explained. “There have been discuss, certainly from a single resource, one media, that spoke Considerably about proactive-funding,” Nevhutanda reported (referring to GroundUp), but didn't tell MPs that the SSA investigation had been finished Virtually a yr previously.

Proactive funding was at the heart from the looting in the lottery. It side-stepped the normal grant process. The NLC could alone establish a job to fund and appoint a non-income organisation to oversee it.

After Nevhutanda to start with instructed Parliament in 2018 that he had requested the SSA to investigate the intended breach, the South African Countrywide Editors Forum issued a press release stating that his remarks mirrored “an extremely unsafe attitude the place the media is remaining blamed for your NLC’s inherent challenges”.

“Rather than investigating why hundreds of thousands can't be accounted for, the NLC has as a substitute made an effort to Solid doubt about the integrity on the journalists included and has asked the SSA to analyze their resources.”

Proactive assignments created secret
Security flaws identified while in the NLC grant funding technique over the SSA’s investigation, surface to are actually made use of as an excuse from the NLC to eliminate all proactive-funded initiatives from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘solution’ and jobs ended up faraway from the grant funding method and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Business office, Government Supervisor Lawful as a way to safeguard [the] data,” Nene stated in her affidavit.

“There was a lot of internal dialogue, with many forwards and backwards, about what to do to plug the alleged leaks”, a supply, who was in the senior position with the NLC at the time, advised GroundUp. “Eventually, the decision was taken to get rid of all of the proactive projects within the program and limit entry to a handful of men and women”.

Some in that handful of men and women were being implicated in corruption.

Maselwa, who resigned from the NLC several years back, has actually been implicated in corruption involving lottery resources. He acquired R4.3-million from lottery resources allocated to build a library and museum complex in Kuruman (see Taung Cultural Music and Arts Expo) which he made use of to develop a residence within an upmarket gated improvement in Pretoria. The residence is one of quite a few paid out for with lottery cash which were frozen once the Asset Forfeiture Unit obtained a preservation get in December 2022.

The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near high-ups in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated within the corruption which confused the NLC on their watch.

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

Whenever a new administration, such as the entire board and government, took about within the NLC in late 2022 and early 2023, they found a “chaotic mess” while in the documentation regarding proactive funding, much of which was paper-primarily based. Important documents were lacking. Data files held for safekeeping by document storage business Metrofile were signed out and under no circumstances returned.

The NLC was in the position to Recuperate copies of some ตรวจ สลากกินแบ่ง รัฐบาล files from its Mimecast e-mail archiving program and also the laptops in their assistants and guidance staff members.

News experiences
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem feasible information and facts protection breaches and also the unauthorised use and/or dissemination of private info received as a result of undertaking Formal features from the Fee by NLC workers. The pursuits are meant to undermine the integrity of the Commission even though disrupting the effective functions [of the NLC] and creating insurmountable reputational hurt into the Fee 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 company secretary, Nomphumelelo Nene.

Nene is now going through a disciplinary inquiry right after she was unsuccessful in lawful motion to set aside results of irregular expenditure on her watch.

The objective of her affidavit, Nene reported, was “to document the gatherings which transpired referring to information and facts security breaches for the Countrywide Lotteries Fee”.

She outlined a variety of information reports which she claimed have been the results of those “breaches” (see at the conclusion of this information).

Nene reported that a whistle-blower approached the NLC alleging that one of its workers, Sello Qhino, had “delivered her categorised NLC Facts and persistently encouraged her to provide the data to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded initiatives in Kuruman soon after attempts to boost the issue internally have been ignored, was subsequently fired.

Referring to an 18 November 2018 article while in the Day by day Dispatch with regards to the misappropriation of Lottery resources, Nene mentioned the NLC discovered and then suspended Zintle Rungqu. She was an employee in the NLC’s East London Place of work, who was the spouse along with the mother of whistleblower Mzukise Makatse’s three youngsters.

Rungqu and Makatse imagine Rungqu was punished mainly because Makatse blew the whistle. She was suspended and charged internally, With all the NLC spending R470,000 on attorneys to symbolize it, but was found not responsible and allowed to return to operate.

“The typical Think about these articles or blog posts is the fact that [they require] categorised details concerning proactive funding projects,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out on the spouse and children home to go ahead and take warmth off her and his little ones. Struggling with homelessness, he moved into an Business within an empty factory belonging to an acquaintance.

Both equally Makatse and Qhino are participating in an NLC reparation procedure meant to recognise the damage some individuals suffered for the fingers of your NLC. Apologies and, in some instances, financial compensation are envisioned.

“Some men and women were being actually influenced very negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz told the Every day Maverick previous yr.

“I satisfied several these persons. It absolutely was just so heart-wrenching that their complete lives have already been turned the wrong way up,” stated Scholtz.

Amongst These she achieved ended up Qhino and Makatse.

Safe and sound platform required for whistleblowers
The SSA found the absence at some time of a suitable channel for whistleblowers to report corruption led them to turn to the media.

“Failure to possess a devoted anti-corruption channel will result in staff members presenting this sort of conditions outside of the NLC,” the SSA mentioned in its conclusions.

“Offered the magnitude of corruption in condition establishments, it stays very important that it ensures that the NLC complies with all security prescripts and that its emphasis is on guaranteeing that unlawful and irregular perform is adequately mitigated against and by guaranteeing an adequate channel for whistle-blowers to report untoward carry out without becoming intimidated.”

It recommended which the NLC establish a “Secure channel” for employees to deliver info on any “untoward activity” that would not stop or discourage workers from blowing the whistle. A whistle-blowers policy, based on the Shielded Disclosures Act 25 of 2000, is usually a necessity.”

Media reports Nene stated
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Conditioning Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to reveal NLC corruption. “The report experienced features of data not accessible in the public area, thus increasing worry on inside Facts protection breaches. The allegations while in the media have been independently investigated,” Nene mentioned. “Nonetheless, workers liable for divulging classified information and facts have nonetheless being determined”;
A 28 January 2018 write-up published with the Dally Dispatch “citing many allegations with the Limpopo Mirror post revealed on ten December 2017 plus a new allegation referring to a former staff from the name of Mzukisi Makatse. He was charged and summarily dismissed for that danger triggered to your organisation.”
A sixteen November 2018 report from the Lowvelder with regard to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of receiving R27-million in lottery grants, the rehab hasn't been finished. “The Lowvelder article contained labeled info in terms of NLC coverage, boosting more concerns of inside information protection breaches,” Nene said in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an unbiased Investigation, even so [it] highlighted the heightened information security hazards inside the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene mentioned GroundUp had confirmed in its Tale that it had been based upon leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Promotion of Access to Information) ask for for aspects with regards to the job, she explained