Lottery bosses turned to Point out Protection Company to analyze leaks

Lottery bosses turned to Point out Protection Company to analyze leaks

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Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Security Agency (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s corporation secretary at enough time stated media experiences she said were being according to “stolen” info within an affidavit to the SSA.
The SSA did investigate. It uncovered the knowledge was not a make any difference of condition stability and the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to show it.
A whole new board and administration has considering that taken more than the NLC and To this point have taken steps to finish corruption in the institution.
A Condition Protection Company (SSA) investigation uncovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered ample motive” for exposure through the media.

The probe into supposed “details safety breaches and sabotage of NLC operations” was carried out 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 presently suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the security company’s “confidential” findings and proposals.
Nevhutanda questioned the SSA to research the role of NLC personnel from the alleged leaking of data, and Nene, in her affidavit identified precise media and stories that she claimed included these leaks.

From the letter outlining its findings, the SSA explained to the NLC that though defending condition information and facts was “a legal imperative targeted at safeguarding the sovereignty and integrity in the point out” this only applied to correctly labeled facts.

Although it did not say so right, the SSA results implied which the allegedly leaked information didn't slide into this group.

Noticeably, the SSA designed it very clear that the need to safeguard condition details “would not avert any person from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation uncovered the NLC details involved in the alleged breach was “sensitive and privileged in character, although not classified with regards to the prescripts on the Minimum amount Info Protection Benchmarks (MISS)”.

“The leakage from the related sensitive Formal NLC information to the media doesn't pose a menace to countrywide stability,” the SSA stated, including that the affect of the breaches was reputational.

The SSA report discovered “no proof of the factual and incriminating character against any from the suspected NLC employees that might be determined from the knowledge and knowledge interrogated”.

Furthermore, it said that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does give ample motive to acquire these kinds of uncovered while in the media”.

Conspiracy promises
In 2020, Nevhutanda told MPs all through a session of Parliament’s trade, market and competition portfolio committee that there was “a conspiracy” where information “stolen” in the NLC was sent on the US, the place he claimed it had been currently being bought to fund a smear campaign against the NLC.

He was repeating comparable promises he experienced Formerly produced in Parliament, which included advert hominem attacks on GroundUp which reporter but was careful not to call possibly.

“I came here In this particular August residence final year and noted to honourable users that information regarding our beneficiaries has become stolen and place in a single condition in the united states,” he explained to MPs.

“We named around the Condition Stability Agency to return investigate the matter because we're receiving stories that our information is creating revenue for media platforms and journalists,” he stated. “There's been discuss, not surprisingly from just one source, 1 media, that spoke A lot about proactive-funding,” Nevhutanda reported (referring to GroundUp), but failed to convey to MPs that the SSA investigation had been completed Just about a 12 months earlier.

Proactive funding was at the guts from the looting of your lottery. It aspect-stepped the normal grant system. The NLC could by itself determine a job to fund and appoint a non-profit organisation to oversee it.

Following Nevhutanda very first advised Parliament in 2018 that he had asked the SSA to research the meant breach, the South African National Editors Discussion board issued a press release stating that his remarks reflected “an especially harmful Perspective where the media is getting blamed for that NLC’s inherent problems”.

“Instead of investigating why millions can not be accounted for, the NLC has alternatively tried to Solid question around the integrity of your journalists involved and it has questioned the SSA to research their resources.”

Proactive projects created top secret
Security flaws identified within the NLC grant funding program over the SSA’s investigation, surface to have already been utilized as an excuse with the NLC to eliminate all proactive-funded initiatives from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘magic formula’ and tasks have been faraway from the grant funding procedure and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Business, Govt Manager Authorized to be able to safeguard [the] information and facts,” Nene claimed in her affidavit.

“There was a great deal of interior dialogue, with plenty of backwards and forwards, about how to proceed to plug the alleged leaks”, a supply, who was inside of a senior position within the NLC at time, explained to GroundUp. “In the end, the decision was taken to eliminate each of the proactive initiatives within the system and Restrict usage of a handful of individuals”.

Some in that handful of people were being implicated in corruption.

Maselwa, who resigned with the NLC various many years ago, has been implicated in corruption involving lottery resources. He acquired R4.3-million from lottery cash allocated to develop a library and museum advanced in Kuruman (see Taung Cultural Songs and Arts Expo) which he made use of to create a house in an upmarket gated progress in Pretoria. The home is one of various compensated for with lottery funds that were frozen following the Asset Forfeiture Unit acquired a preservation purchase in December 2022.

The politically-linked Nevhutanda, who was appointed as being the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to substantial-ups from the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated while in the corruption which overcome the NLC on their watch.

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

Each time a new administration, including the full board and government, took more than within the NLC in late 2022 and early 2023, they identified a “chaotic mess” in the documentation associated with proactive funding, much of which was paper-primarily based. Essential paperwork were being lacking. Data files held for safekeeping by doc storage company Metrofile were signed out and never returned.

The NLC was capable of recover copies of some หวย ลาว ย้อน หลัง paperwork from its Mimecast electronic mail archiving system along with the laptops in their assistants and assistance staff members.

News studies
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave issue probable information security breaches along with the unauthorised use and/or dissemination of confidential data acquired because of carrying out Formal features inside the Fee by NLC staff members. The routines are meant to undermine the integrity on the Commission even though disrupting the successful capabilities [in the NLC] and causing insurmountable reputational damage to your Commission as being the custodian of personal data entrusted to it by its beneficiaries.”

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

Nene is currently dealing with a disciplinary inquiry soon after she was unsuccessful in authorized action to set aside findings of irregular expenditure on her look at.

The objective of her affidavit, Nene explained, was “to file the functions which transpired associated with details security breaches within the Nationwide Lotteries Fee”.

She shown different information reviews which she claimed were being the outcome of those “breaches” (see at the conclusion of this information).

Nene mentioned that a whistle-blower approached the NLC alleging that one of its personnel, Sello Qhino, experienced “presented her categorised NLC Information and persistently encouraged her to supply the knowledge to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded initiatives in Kuruman after makes an attempt to raise The difficulty internally ended up ignored, was subsequently fired.

Referring to an eighteen November 2018 post within the Day-to-day Dispatch with regards to the misappropriation of Lottery resources, Nene stated the NLC determined and then suspended Zintle Rungqu. She was an employee inside the NLC’s East London Office environment, who was the partner and also the mother of whistleblower Mzukise Makatse’s a few small children.

Rungqu and Makatse believe that Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, Along with the NLC shelling out R470,000 on attorneys to stand for it, but was located not guilty and permitted to return to operate.

“The frequent Think about these content articles is that [they contain] categorised facts regarding proactive funding jobs,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out on the family members property to go ahead and take heat off her and his young children. Struggling with homelessness, he moved into an Place of work in an vacant factory belonging to an acquaintance.

Each Makatse and Qhino are participating in an NLC reparation system meant to recognise the damage some individuals endured for the arms from the NLC. Apologies and, in some cases, monetary payment are predicted.

“Some persons have been truly afflicted incredibly negatively by this … This is de facto distressing,” NLC Commissioner Jodi Scholtz advised the Every day Maverick very last yr.

“I achieved several these people. It had been just so coronary heart-wrenching that their complete life have been turned upside down,” mentioned Scholtz.

Amid All those she fulfilled have been Qhino and Makatse.

Risk-free platform needed for whistleblowers
The SSA found the absence at some time of a correct channel for whistleblowers to report corruption led them to turn to your media.

“Failure to have a focused anti-corruption channel will cause personnel presenting this sort of cases beyond the NLC,” the SSA stated in its results.

“Given the magnitude of corruption in condition establishments, it stays crucial that it makes sure that the NLC complies with all security prescripts and that its focus is on making sure that illegal and irregular carry out is sufficiently mitigated from and by ensuring an suitable channel for whistle-blowers to report untoward conduct with no being intimidated.”

It suggested the NLC create a “Safe and sound channel” for workers to provide info on any “untoward exercise” that would not avoid or discourage staff members from blowing the whistle. A whistle-blowers coverage, dependant on the Shielded Disclosures Act twenty five of 2000, can be a necessity.”

Media reviews Nene detailed
A ten December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Exercise Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and proprietor on the Limpopo Mirror, to show NLC corruption. “The write-up experienced components of data not offered in the general public area, thus boosting concern on inner Info safety breaches. The allegations inside the media were being independently investigated,” Nene said. “Even so, staff members accountable for divulging classified information have nonetheless being recognized”;
A 28 January 2018 posting released through the Dally Dispatch “citing various allegations from your Limpopo Mirror article revealed on 10 December 2017 in addition to a new allegation referring to a former personnel by the name of Mzukisi Makatse. He was charged and summarily dismissed with the danger caused to the organisation.”
A sixteen November 2018 report from the Lowvelder regarding the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Regardless of getting R27-million in lottery grants, the rehab has never been done. “The Lowvelder report contained classified facts with regards to NLC plan, raising even more concerns of inner facts security breaches,” Nene mentioned in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an unbiased Investigation, however [it] highlighted the heightened info safety hazards inside the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Main Treatment, a hijacked NPO. Nene reported GroundUp experienced confirmed in its Tale that it had been determined by leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Entry to Info) ask for for specifics regarding the project, she explained