Lottery bosses turned to Point out Safety Agency to research leaks

Lottery bosses turned to Point out Safety Agency to research leaks

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Previous Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Security Agency (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s corporation secretary at enough time mentioned media reports she stated had been determined by “stolen” data in an affidavit for the SSA.
The SSA did examine. It located the information wasn't a issue of state protection and that the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to reveal it.
A fresh board and administration has considering that taken more than the NLC and To date have taken steps to finish corruption on the institution.
A Condition Stability Company (SSA) investigation found that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for exposure with the media.

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

Here's

Nevhutanda’s letter,
an affidavit by at present suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to research the role of NLC staff members inside the alleged leaking of data, and Nene, in her affidavit identified precise media and reviews that she claimed included these leaks.

In the letter outlining its findings, the SSA advised the NLC that though defending condition facts was “a lawful imperative aimed at defending the sovereignty and integrity on the condition” this only applied to correctly labeled details.

Even though it did not say so directly, the SSA conclusions implied which the allegedly leaked info did not tumble into this classification.

Noticeably, the SSA built it apparent that the necessity to secure point out data “isn't going to protect against any particular person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation observed the NLC details involved in the alleged breach was “sensitive and privileged in nature, but not labeled concerning the prescripts on the Minimum amount Info Security Standards (Overlook)”.

“The leakage of your pertinent delicate official NLC information to your media will not pose a risk to national security,” the SSA said, introducing the affect in the breaches was reputational.

The SSA report discovered “no proof of a factual and incriminating mother nature in opposition to any from the suspected NLC employees which could be recognized from the data and info interrogated”.

Additionally, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does supply sufficient motive to have these kinds of uncovered during the media”.

Conspiracy claims
In 2020, Nevhutanda informed MPs through a session of Parliament’s trade, field and Competitors portfolio committee that there was “a conspiracy” during which data “stolen” through the NLC was sent to the US, where he claimed it absolutely was staying offered to fund a smear marketing campaign from the NLC.

He was repeating related claims he had Beforehand manufactured in Parliament, which integrated advertisement hominem assaults on GroundUp and this reporter but was very careful not to name both.

“I arrived here With this August home very last calendar year and reported to honourable associates that information regarding our beneficiaries has been stolen and put in one state in America,” he told MPs.

“We referred to as within the Condition Safety Agency to return take a look at the make any difference because we've been receiving reviews that our info is generating dollars for media platforms and journalists,” he explained. “There has been converse, naturally from one supply, one media, that spoke Considerably about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to notify MPs which the SSA investigation were finished Just about a calendar year before.

Proactive funding was at the heart from the looting in the lottery. It aspect-stepped the conventional grant approach. The NLC could by itself discover a task to fund and appoint a non-income organisation to oversee it.

Right after Nevhutanda very first informed Parliament in 2018 that he experienced requested the SSA to investigate the meant breach, the South African Nationwide Editors Discussion board issued an announcement stating that his remarks mirrored “an especially dangerous Angle in which the media is being blamed to the NLC’s inherent problems”.

“In lieu of investigating why millions cannot be accounted for, the NLC has as a substitute made an effort to Forged question on the integrity on the journalists associated and has requested the SSA to research their resources.”

Proactive projects created top secret
Security flaws recognized while in the NLC grant funding procedure throughout the SSA’s investigation, seem to are made use of being an justification with the NLC to get rid of all proactive-funded assignments from its central grants program.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘key’ and projects were removed from the grant funding procedure and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Workplace, Government Supervisor Lawful to be able to safeguard [the] data,” Nene mentioned in her affidavit.

“There was many interior dialogue, with many forwards and backwards, about how to proceed to plug the alleged leaks”, a supply, who was inside of a senior position in the NLC at the time, told GroundUp. “Ultimately, the decision was taken to eliminate the many proactive initiatives from the process and limit usage of A few persons”.

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

Maselwa, who resigned with the NLC several a long time ago, is implicated in corruption involving lottery money. He received R4.three-million from lottery money allotted to construct a library and museum complex in Kuruman (see Taung Cultural Audio and Arts Expo) which he used to create a house in an upmarket gated progress in Pretoria. The residence is one of numerous paid for with lottery funds which were frozen following the Asset Forfeiture Unit received a preservation purchase in December 2022.

The politically-related Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to superior-ups from the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated inside the corruption which overcome the NLC on their own look at.

Also implicated are previous board members William Huma, who resigned immediately after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has due to the fact died.

Each time a new administration, such as the entire board and executive, took more than in the NLC in late 2022 and early 2023, they found a “chaotic mess” within the documentation relating to proactive funding, much of which was paper-centered. Essential documents ended up missing. Data files held for safekeeping by document storage corporation Metrofile had been signed out and under no circumstances returned.

The NLC was capable to Get better copies of some หวย ไทยรัฐ files from its Mimecast e mail archiving program and also the laptops in their assistants and help employees.

Information reports
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave issue achievable information safety breaches as well as unauthorised use and/or dissemination of confidential details received due to performing Formal functions within the Commission by NLC workers. The routines are intended to undermine the integrity in the Commission whilst disrupting the efficient functions [of your NLC] and producing insurmountable reputational damage on the Commission given that the custodian of non-public details entrusted to it by its beneficiaries.”

His ask for to the SSA to analyze was supported in an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.

Nene is at the moment dealing with a disciplinary inquiry just after she was unsuccessful in legal action to put aside conclusions of irregular expenditure on her view.

The objective of her affidavit, Nene claimed, was “to record the activities which transpired regarding information and facts security breaches in the National Lotteries Commission”.

She outlined different news reviews which she claimed were the outcomes of these “breaches” (see at the conclusion of this article).

Nene reported that a whistle-blower approached the NLC alleging that amongst its staff members, Sello Qhino, had “provided her labeled NLC Details and persistently inspired her to supply the data to GroundUp”.

Qhino, who blew the whistle on a series of dodgy lottery-funded jobs in Kuruman soon after tries to raise the issue internally ended up disregarded, was subsequently fired.

Referring to an 18 November 2018 write-up from the Day by day Dispatch regarding the misappropriation of Lottery money, Nene explained the NLC recognized and afterwards suspended Zintle Rungqu. She was an personnel while in the NLC’s East London Office environment, who was the lover plus the mother of whistleblower Mzukise Makatse’s a few little ones.

Rungqu and Makatse imagine Rungqu was punished since Makatse blew the whistle. She was suspended and billed internally, Together with the NLC paying R470,000 on legal professionals to symbolize it, but was found not guilty and allowed to return to operate.

“The common Consider these article content is [they require] categorised info associated with proactive funding assignments,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out of your family house to take the warmth off her and his little ones. Experiencing homelessness, he moved into an Business in an empty manufacturing unit belonging to a buddy.

The two Makatse and Qhino are participating in an NLC reparation system intended to recognise the hurt a lot of people suffered within the fingers of your NLC. Apologies and, in some instances, economical compensation are anticipated.

“Some people today had been seriously afflicted extremely negatively by this … This is absolutely agonizing,” NLC Commissioner Jodi Scholtz explained to the Daily Maverick final yr.

“I met a number of these men and women. It had been just so heart-wrenching that their full life are turned the wrong way up,” mentioned Scholtz.

Amongst those she achieved have been Qhino and Makatse.

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

“Failure to have a focused anti-corruption channel will lead to staff members presenting this kind of situations beyond the NLC,” the SSA said in its findings.

“Presented the magnitude of corruption in condition establishments, it stays important that it makes certain that the NLC complies with all stability prescripts Which its aim is on making sure that unlawful and irregular carry out is adequately mitigated against and by ensuring an suitable channel for whistle-blowers to report untoward perform with no currently being intimidated.”

It advised which the NLC create a “Protected channel” for workers to supply info on any “untoward activity” that may not avoid or discourage employees from blowing the whistle. A whistle-blowers coverage, dependant on the Safeguarded Disclosures Act twenty five of 2000, is really a necessity.”

Media stories Nene outlined
A 10 December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Exercise Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and proprietor from the Limpopo Mirror, to expose NLC corruption. “The short article had things of data not offered in the general public area, therefore elevating problem on inner Details safety breaches. The allegations while in the media have been independently investigated,” Nene explained. “Having said that, employees accountable for divulging categorised details have nevertheless to generally be recognized”;
A 28 January 2018 report posted with the Dally Dispatch “citing numerous allegations through the Limpopo Mirror posting printed on 10 December 2017 plus a new allegation concerning a previous staff from the name of Mzukisi Makatse. He was billed and summarily dismissed with the danger caused to the organisation.”
A sixteen November 2018 posting from the Lowvelder about the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Despite getting R27-million in lottery grants, the rehab has never been done. “The Lowvelder article contained classified data with regard to NLC policy, boosting even further concerns of internal info stability breaches,” Nene mentioned in her affidavit. “The prima facie evidence with regard to these allegations didn't warrant an independent Investigation, on the other hand [it] highlighted the heightened information security dangers within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Most important Treatment, a hijacked NPO. Nene claimed GroundUp had confirmed in its Tale that it had been depending on leaked NLC documents. This was despite the NLC rejecting a PAIA (Advertising of Use of Facts) request for specifics in regards to the undertaking, she stated