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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Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Stability Company (SSA) in December 2018 to investigate the leaking of files that uncovered lottery corruption.
The NLC’s organization secretary at time shown media stories she claimed 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 expose it.
A new board and management has because taken about the NLC and thus far have taken actions to finish corruption within the institution.
A State Safety Agency (SSA) investigation observed which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for publicity from the media.

The probe into supposed “info security breaches and sabotage of NLC operations” was carried out just after then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to research.

Here is

Nevhutanda’s letter,
an affidavit by presently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and recommendations.
Nevhutanda questioned the SSA to investigate the job of NLC staff members inside the alleged leaking of data, and Nene, in her affidavit identified precise media and reports that she claimed included these leaks.

During the letter outlining its findings, the SSA advised the NLC that though protecting state details was “a lawful crucial targeted at shielding the sovereignty and integrity of your condition” this only applied to appropriately classified details.

Even though it did not say so right, the SSA findings implied the allegedly leaked facts didn't slide into this category.

Substantially, the SSA made it distinct that the necessity to protect condition information “will not protect against any specific from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation discovered which the NLC details involved with the alleged breach was “sensitive and privileged in mother nature, but not categorized when it comes to the prescripts with the Least Data Stability Standards (Skip)”.

“The leakage from the suitable sensitive official NLC data into the media does not pose a threat to national stability,” the SSA claimed, including which the impression in the breaches was reputational.

The SSA report found “no evidence of the factual and incriminating nature versus any in the suspected NLC workforce that would be identified from the information and facts interrogated”.

In addition, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does provide ample motive to get these uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, industry and Opposition portfolio committee that there was “a conspiracy” during which info “stolen” from the NLC was despatched towards the US, where he claimed it absolutely was getting sold to fund a smear marketing campaign against the NLC.

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

“I arrived here In this particular August dwelling last yr and documented to honourable customers that specifics of our beneficiaries has been stolen and put in a single condition in the united states,” he advised MPs.

“We named about the Condition Security Company to come back investigate the issue since we are finding studies that our info is building funds for media platforms and journalists,” he said. “There was talk, not surprisingly from 1 supply, a person media, that spoke Significantly about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't inform MPs that the SSA investigation had been accomplished Just about a calendar year before.

Proactive funding was at the guts with the looting of your lottery. It facet-stepped the traditional grant course of action. The NLC could by itself recognize a undertaking to fund and appoint a non-revenue organisation to supervise it.

Just after Nevhutanda initially advised Parliament in 2018 that he had requested the SSA to investigate the intended breach, the South African National Editors Forum issued a press release declaring that his remarks mirrored “an especially perilous Frame of mind where the media is currently being blamed with the NLC’s inherent difficulties”.

“Rather then investigating why millions cannot be accounted for, the NLC has alternatively attempted to Solid doubt about the integrity with the journalists included and it has requested the SSA to investigate their resources.”

Proactive jobs built top secret
Protection flaws recognized within the NLC grant funding method during the SSA’s investigation, surface to are already utilized as an excuse with the NLC to eliminate all proactive-funded tasks from its central grants procedure.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘key’ and tasks ended up removed from the grant funding system and managed manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Business office, Government Manager Legal as a way to safeguard [the] details,” Nene stated in her affidavit.

“There was lots of inside dialogue, with numerous back and forth, about what to do to plug the alleged leaks”, a resource, who was in a senior posture in the NLC at enough time, instructed GroundUp. “Eventually, the decision was taken to get rid of every one of the proactive projects through the process and Restrict usage of A few men and women”.

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

Maselwa, who resigned from the NLC several many years back, has been implicated in corruption involving lottery resources. He gained R4.three-million from lottery money allotted to create a library and museum complicated in Kuruman (see Taung Cultural Music and Arts Expo) which he utilised to build a residence within an upmarket gated advancement in Pretoria. The residence is among various compensated for with lottery funds which were frozen after the Asset Forfeiture Device obtained a preservation purchase in December 2022.

The politically-linked Nevhutanda, who was appointed because the NLC board chairperson by previous President Jacob Zuma in 2009 and was near superior-ups during the ANC Management, former NLC previous Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their observe.

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, who may have considering the fact that died.

Any time a new administration, such as the total board and executive, took above for the NLC in late 2022 and early 2023, they discovered a “chaotic mess” while in the documentation concerning proactive funding, Significantly of which was paper-based mostly. Essential files ended up missing. Files held for safekeeping by doc storage company Metrofile were signed out and never ever returned.

The NLC was capable of recover copies of some หวย หุ้น files from its Mimecast electronic mail archiving procedure and the laptops in their assistants and guidance team.

Information studies
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave issue probable data security breaches as well as unauthorised use and/or dissemination of private details received as a result of accomplishing Formal features during the Commission by NLC staff members. The things to do are intended to undermine the integrity in the Commission when disrupting the efficient functions [from the NLC] and triggering insurmountable reputational damage on the Commission because the custodian of non-public information and facts entrusted to it by its beneficiaries.”

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

Nene is at the moment going through a disciplinary inquiry right after she was unsuccessful in lawful action to put aside findings of irregular expenditure on her check out.

The objective of her affidavit, Nene stated, was “to history the situations which transpired associated with data security breaches in the Nationwide Lotteries Fee”.

She shown numerous news experiences which she claimed have been the effects of these “breaches” (see at the end of this post).

Nene claimed that a whistle-blower approached the NLC alleging that one of its staff, Sello Qhino, had “supplied her classified NLC Details and persistently inspired her to offer the knowledge to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded jobs in Kuruman after attempts to raise The difficulty internally have been overlooked, was subsequently fired.

Referring to an 18 November 2018 report inside the Every day Dispatch regarding the misappropriation of Lottery resources, Nene stated the NLC discovered after which suspended Zintle Rungqu. She was an personnel inside the NLC’s East London Workplace, who was the associate and also the mother of whistleblower Mzukise Makatse’s 3 small children.

Rungqu and Makatse believe Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, with the NLC expending R470,000 on lawyers to represent it, but was observed not guilty and allowed to return to operate.

“The typical Consider these articles is the fact [they involve] categorized facts relating to proactive funding tasks,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out with the family house to take the warmth off her and his small children. Struggling with homelessness, he moved into an office within an vacant factory belonging to a friend.

Both Makatse and Qhino are taking part in an NLC reparation course of action intended to recognise the hurt lots of people endured at the palms of the NLC. Apologies and, sometimes, monetary compensation are envisioned.

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

“I fulfilled a handful of these persons. It absolutely was just so coronary heart-wrenching that their complete lives happen to be turned upside down,” said Scholtz.

Among the Those people she fulfilled had been Qhino and Makatse.

Safe System required for whistleblowers
The SSA found 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 workforce presenting this sort of conditions outside of the NLC,” the SSA explained in its conclusions.

“Offered the magnitude of corruption in state institutions, it stays very important that it ensures that the NLC complies with all security prescripts and that its concentration is on making sure that unlawful and irregular perform is sufficiently mitigated towards and by guaranteeing an adequate channel for whistle-blowers to report untoward conduct devoid of becoming intimidated.”

It advisable which the NLC create a “Risk-free channel” for workers to provide info on any “untoward action” that could not stop or discourage personnel from blowing the whistle. A whistle-blowers coverage, determined by the Secured Disclosures Act 25 of 2000, is usually a necessity.”

Media experiences Nene shown
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Health and fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and operator from the Limpopo Mirror, to expose NLC corruption. “The report had things of data not accessible in the public area, thereby increasing issue on inner Facts protection breaches. The allegations within the media ended up independently investigated,” Nene reported. “However, employees answerable for divulging categorized information and facts have nevertheless to become discovered”;
A 28 January 2018 write-up released from the Dally Dispatch “citing numerous allegations through the Limpopo Mirror report posted on ten December 2017 along with a new allegation associated with a former worker from the identify of Mzukisi Makatse. He was billed and summarily dismissed for that menace brought about to your organisation.”
A 16 November 2018 write-up inside the Lowvelder with regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite obtaining R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder post contained categorised details in terms of NLC coverage, increasing additional problems of internal facts security breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, nonetheless [it] highlighted the heightened facts protection challenges in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene stated GroundUp experienced verified in its story that it was according to leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Advertising of Entry to Data) request for aspects about the job, she explained