Previous Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Point out Security Agency (SSA) in December 2018 to research the leaking of files that uncovered lottery corruption.
The NLC’s firm secretary at some time detailed media experiences she claimed have been based upon “stolen” data within an affidavit to the SSA.
The SSA did examine. It found the information wasn't a make a difference of point out safety and that the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to expose it.
A completely new board and management has since taken in excess of the NLC and To date have taken measures to finish corruption on the establishment.
A State Protection Agency (SSA) investigation identified the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided sufficient motive” for publicity via the media.
The probe into supposed “data stability breaches and sabotage of NLC functions” was undertaken just after then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to research.
Here's
Nevhutanda’s letter,
an affidavit by at present suspended NLC corporation secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “confidential” conclusions and recommendations.
Nevhutanda asked the SSA to research the function of NLC workers while in the alleged leaking of knowledge, and Nene, in her affidavit determined precise media and stories that she claimed associated these leaks.
Within the letter outlining its results, the SSA explained to the NLC that whilst safeguarding point out facts was “a lawful crucial geared toward guarding the sovereignty and integrity on the state” this only applied to properly categorised data.
Although it did not say so straight, the SSA results implied the allegedly leaked information and facts didn't drop into this category.
Substantially, the SSA made it crystal clear that the need to guard condition details “won't protect against any unique from blowing the whistle on corruption or irregular or criminality”.
The SSA investigation found which the NLC information and facts linked to the alleged breach was “delicate and privileged in nature, although not categorised regarding the prescripts with the Minimal Data Security Expectations (MISS)”.
“The leakage with the related sensitive Formal NLC information for the media would not pose a danger to national security,” the SSA claimed, introducing that the influence in the breaches was reputational.
The SSA report located “no evidence of the factual and incriminating nature against any of the suspected NLC employees that could be determined from the information and facts interrogated”.
Furthermore, it mentioned that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does present ample motive to get such exposed inside the media”.
Conspiracy statements
In 2020, Nevhutanda instructed MPs during a session of Parliament’s trade, business and Level of competition portfolio committee that there was “a conspiracy” in which information “stolen” from the NLC was despatched to your US, wherever he claimed it had been becoming bought to fund a smear marketing campaign towards the NLC.
He was repeating similar statements he had Earlier created in Parliament, which included advertisement hominem assaults on GroundUp and this reporter but was watchful not to call either.
“I came in this article On this August dwelling final 12 months and claimed to honourable members that details about our beneficiaries has actually been stolen and set in a single condition in the united states,” he instructed MPs.
“We termed on the Point out Stability Company to come back explore the issue due to the fact we're obtaining experiences that our facts is creating cash for media platforms and journalists,” he reported. “There was speak, certainly from one particular resource, one particular media, that spoke much about proactive-funding,” Nevhutanda explained (referring to GroundUp), but didn't inform MPs the SSA investigation were done Nearly a 12 months previously.
Proactive funding was at the center of your looting of the lottery. It side-stepped the normal grant procedure. The NLC could itself determine a venture to fund and appoint a non-revenue organisation to oversee it.
After Nevhutanda first explained to Parliament in 2018 that he experienced asked the SSA to analyze the intended breach, the South African National Editors Discussion board issued a statement expressing that his remarks reflected “an incredibly unsafe Mindset where by the media is getting blamed with the NLC’s inherent troubles”.
“Rather than investigating why thousands and thousands can not be accounted for, the NLC has rather made an effort to Forged doubt within the integrity in the journalists associated and has requested the SSA to analyze their resources.”
Proactive initiatives built magic formula
Stability flaws recognized in the NLC grant funding process in the course of the SSA’s investigation, seem to are already made use of as an excuse via the NLC to eliminate all proactive-funded assignments from its central grants method.
“In or about 21 December 2019, the classification of all pro-actively funding projects was heightened to ‘key’ and initiatives were being faraway from the grant funding system and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Workplace, Government Supervisor Legal as a way to safeguard [the] information and facts,” Nene reported in her affidavit.
“There was a lot of inner dialogue, with numerous backwards and forwards, about how to proceed to plug the alleged leaks”, a supply, who was in a senior placement on the NLC at enough time, instructed GroundUp. “Eventually, the choice was taken to eliminate each of the proactive assignments through the process and Restrict use of a handful of folks”.
Some in that handful of individuals had been implicated in corruption.
Maselwa, who resigned from the NLC quite a few decades back, has actually been implicated in corruption involving lottery cash. He acquired R4.3-million from lottery money allotted to build a library and museum intricate in Kuruman (see Taung Cultural New music and Arts Expo) which he used to create a dwelling within an upmarket gated development in Pretoria. The property is among quite a few compensated for with lottery resources that were frozen after the Asset Forfeiture Unit attained a preservation get in December 2022.
The politically-related Nevhutanda, who was appointed as being the NLC board chairperson by former President Jacob Zuma in 2009 and was near superior-ups from the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their enjoy.
Also implicated are former board users William Huma, who resigned right after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have considering the fact that died.
Each time a new administration, such as the entire board and executive, took above with the NLC in late 2022 and early 2023, they learned a “chaotic mess” from the documentation concerning proactive funding, A great deal of which was paper-dependent. Essential documents were being missing. Files held for safekeeping by doc storage organization Metrofile were signed out and under no circumstances returned.
The NLC was capable to Get better copies of some hihuay paperwork from its Mimecast email archiving method and also the laptops in their assistants and assist employees.
Information reviews
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem probable data security breaches along with the unauthorised use and/or dissemination of private info acquired on account of performing official functions inside the Fee by NLC staff members. The activities are intended to undermine the integrity from the Commission while disrupting the efficient functions [of the NLC] and causing insurmountable reputational hurt into the Commission because the custodian of personal information and facts entrusted to it by its beneficiaries.”
His request for your SSA to analyze was supported in an affidavit by suspended NLC company secretary, Nomphumelelo Nene.
Nene is at this time dealing with a disciplinary inquiry after she was unsuccessful in authorized motion to set aside findings of irregular expenditure on her enjoy.
The purpose of her affidavit, Nene explained, was “to history the activities which transpired regarding information safety breaches with the Nationwide Lotteries Commission”.
She stated many information experiences which she claimed were being the results of such “breaches” (see at the conclusion of this information).
Nene reported that a whistle-blower approached the NLC alleging that amongst its workforce, Sello Qhino, had “supplied her categorised NLC Data and persistently encouraged her to offer the information to GroundUp”.
Qhino, who blew the whistle over a number of dodgy lottery-funded assignments in Kuruman following makes an attempt to lift the issue internally ended up disregarded, was subsequently fired.
Referring to an 18 November 2018 report in the Everyday Dispatch with regard to the misappropriation of Lottery funds, Nene stated the NLC recognized and afterwards suspended Zintle Rungqu. She was an personnel from the NLC’s East London Business, who was the partner and the mom of whistleblower Mzukise Makatse’s 3 youngsters.
Rungqu and Makatse think Rungqu was punished simply because Makatse blew the whistle. She was suspended and billed internally, Along with the NLC paying R470,000 on legal professionals to depict it, but was discovered not responsible and permitted to return to work.
“The widespread Think about these articles or blog posts is that [they require] classified data relating to proactive funding assignments,” Nene claimed in her affidavit.
When Runqu was suspended, Makatse moved out from the household household to go ahead and take heat off her and his young children. Experiencing homelessness, he moved into an Office environment in an empty manufacturing unit belonging to an acquaintance.
Both equally Makatse and Qhino are participating in an NLC reparation procedure meant to recognise the damage many people suffered for the hands with the NLC. Apologies and, in some instances, money compensation are anticipated.
“Some people today had been seriously afflicted really negatively by this … This is admittedly distressing,” NLC Commissioner Jodi Scholtz informed the Day by day Maverick very last 12 months.
“I satisfied a couple of these men and women. It absolutely was just so coronary heart-wrenching that their entire lives have been turned upside down,” explained Scholtz.
Between All those she fulfilled 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 into the media.
“Failure to have a committed anti-corruption channel will lead to workforce presenting these types of situations outside of the NLC,” the SSA mentioned in its findings.
“Specified the magnitude of corruption in state institutions, it remains crucial that it ensures that the NLC complies with all stability prescripts and that its target is on guaranteeing that unlawful and irregular perform is sufficiently mitigated against and by making certain an enough channel for whistle-blowers to report untoward perform with no remaining intimidated.”
It proposed which the NLC create a “Safe and sound channel” for employees to supply information on any “untoward activity” that will not avoid or discourage workers from blowing the whistle. A whistle-blowers plan, based on the Shielded Disclosures Act twenty five of 2000, is actually a necessity.”
Media stories Nene detailed
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Health Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator of the Limpopo Mirror, to expose NLC corruption. “The short article experienced aspects of data not obtainable in the general public area, therefore elevating problem on inside Information and facts security breaches. The allegations within the media were independently investigated,” Nene said. “However, employees responsible for divulging labeled details have but to be recognized”;
A 28 January 2018 article revealed via the Dally Dispatch “citing several allegations with the Limpopo Mirror article printed on 10 December 2017 plus a new allegation concerning a previous personnel via the identify of Mzukisi Makatse. He was billed and summarily dismissed for that risk induced on the organisation.”
A 16 November 2018 post within the Lowvelder regarding 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 has not been finished. “The Lowvelder posting contained categorized information with regard to NLC policy, elevating further more considerations of inside information safety breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, nevertheless [it] highlighted the heightened details safety pitfalls in 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 story that it absolutely was based upon leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Entry to Information) ask for for specifics regarding the project, she claimed