Lottery bosses turned to State Stability Company to investigate leaks

Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the Condition Safety Company (SSA) in December 2018 to investigate the leaking of files that exposed lottery corruption.
The NLC’s enterprise secretary at time mentioned media studies she said have been according to “stolen” facts within an affidavit for the SSA.
The SSA did investigate. It identified the knowledge was not a subject of condition protection and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for your media to expose it.
A fresh board and management has because taken more than the NLC and thus far have taken steps to end corruption in the establishment.
A State Stability Agency (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered enough motive” for exposure because of the media.

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

Here's

Nevhutanda’s letter,
an affidavit by currently suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the security agency’s “confidential” findings and recommendations.
Nevhutanda asked the SSA to investigate the function of NLC employees inside the alleged leaking of information, and Nene, in her affidavit identified unique media and experiences that she claimed included these leaks.

While in the letter outlining its findings, the SSA explained to the NLC that when safeguarding point out info was “a legal vital aimed toward safeguarding the sovereignty and integrity on the state” this only placed on appropriately categorised facts.

Although it did not say so specifically, the SSA results implied that the allegedly leaked data did not tumble into this group.

Substantially, the SSA built it very clear that the necessity to secure point out facts “will not stop any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation observed the NLC info involved with the alleged breach was “delicate and privileged in mother nature, but not categorized with regard to the prescripts of the Minimum amount Facts Security Criteria (Skip)”.

“The leakage with the pertinent delicate Formal NLC information for the media won't pose a danger to national security,” the SSA mentioned, including the affect on the breaches was reputational.

The SSA report observed “no proof of a factual and incriminating nature against any of the suspected NLC employees that may be discovered from the knowledge and knowledge interrogated”.

Furthermore, it stated that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does supply enough motive to own this kind of uncovered in the media”.

Conspiracy statements
In 2020, Nevhutanda explained to MPs for the duration of a session of Parliament’s trade, industry and Levels of competition portfolio committee that there was “a conspiracy” in which data “stolen” with the NLC was despatched into the US, exactly where he claimed it was becoming offered to fund a smear campaign against the NLC.

He was repeating comparable promises he experienced Formerly created in Parliament, which incorporated ad hominem assaults on GroundUp and this reporter but was careful not to call either.

“I arrived listed here Within this August dwelling previous year and described to honourable members that information regarding our beneficiaries is stolen and set in a single state in the united states,” he explained to MPs.

“We known as about the Point out Stability Company to return consider the issue for the reason that we've been getting reports that our info is producing funds for media platforms and journalists,” he mentioned. “There has been talk, obviously from one resource, one particular media, that spoke Significantly about proactive-funding,” Nevhutanda stated (referring to GroundUp), but didn't inform MPs which the SSA investigation had been done Practically a calendar year earlier.

Proactive funding was at the center of the looting on the lottery. It facet-stepped the normal grant approach. The NLC could alone identify a task to fund and appoint a non-gain organisation to supervise it.

Following Nevhutanda very first advised Parliament in 2018 that he experienced requested the SSA to research the supposed breach, the South African National Editors Discussion board issued a press release indicating that his remarks mirrored “a very risky Mind-set the place the media is getting blamed for your NLC’s inherent issues”.

“Rather than investigating why thousands and thousands cannot be accounted for, the NLC has in its place attempted to Solid question within the integrity of your journalists concerned and it has questioned the SSA to analyze their sources.”

Proactive assignments built magic formula
Safety flaws determined during the NLC grant funding method over the SSA’s investigation, appear to are already employed as an excuse with the NLC to eliminate all proactive-funded jobs from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘solution’ and tasks have been faraway from the grant funding technique and preserved manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Office, Govt Supervisor Legal to be able to safeguard [the] facts,” Nene claimed in her affidavit.

“There was plenty of interior discussion, with numerous backwards and forwards, about what to do to plug the alleged leaks”, a supply, who was in a very senior posture with the NLC at the time, instructed GroundUp. “In the end, the decision was taken to remove the many proactive projects through the system and Restrict access to a handful of persons”.

Some in that handful of people were implicated in corruption.

Maselwa, who resigned from your NLC various yrs ago, has actually been implicated in corruption involving lottery resources. He gained R4.3-million from lottery cash allocated to make a library and museum elaborate in Kuruman (see Taung Cultural Tunes and Arts Expo) which he utilised to build a property within an upmarket gated advancement in Pretoria. The residence is among quite a few paid for with lottery funds that were frozen after 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 while in the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated inside the corruption which overwhelmed the NLC on their own look at.

Also implicated are former board users William Huma, who resigned immediately after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has since died.

Every time a new administration, including the overall board and executive, took in excess of at the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” within the documentation associated with proactive funding, much of which was paper-primarily based. Critical files were missing. Files held for safekeeping by document storage business Metrofile had been signed out and in no way returned.

The NLC was in the position to Get better copies of some ตรวจ หวย ผล สลากกินแบ่ง รัฐบาล งวด paperwork from its Mimecast electronic mail archiving method plus the laptops in their assistants and support employees.

News studies
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave worry attainable facts protection breaches along with the unauthorised use and/or dissemination of confidential info obtained on account of undertaking official capabilities while in the Commission by NLC staff members. The routines are meant to undermine the integrity in the Fee although disrupting the helpful features [with the NLC] and leading to insurmountable reputational damage to the Commission as being the custodian of private information entrusted to it by its beneficiaries.”

His request to the SSA to research was supported in an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is currently dealing with a disciplinary inquiry right after she was unsuccessful in legal action to put aside results of irregular expenditure on her look at.

The objective of her affidavit, Nene mentioned, was “to document the occasions which transpired relating to information protection breaches in the Countrywide Lotteries Commission”.

She listed many news experiences which she claimed had been the effects of these “breaches” (see at the conclusion of this post).

Nene reported that a whistle-blower approached the NLC alleging that certainly one of its staff members, Sello Qhino, experienced “provided her categorized NLC Data and persistently encouraged her to supply the knowledge to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded assignments in Kuruman soon after makes an attempt to raise the issue internally were disregarded, was subsequently fired.

Referring to an eighteen November 2018 report while in the Everyday Dispatch regarding the misappropriation of Lottery funds, Nene reported the NLC identified after which you can suspended Zintle Rungqu. She was an worker in the NLC’s East London Office environment, who was the companion plus the mom of whistleblower Mzukise Makatse’s three young children.

Rungqu and Makatse consider Rungqu was punished since Makatse blew the whistle. She was suspended and billed internally, While using the NLC spending R470,000 on lawyers to signify it, but was located not guilty and allowed to return to operate.

“The popular Think about these article content is usually that [they require] labeled details referring to proactive funding projects,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out on the family members dwelling to take the heat off her and his children. Experiencing homelessness, he moved into an Workplace in an empty manufacturing unit belonging to a friend.

Equally Makatse and Qhino are taking part in an NLC reparation process intended to recognise the hurt many people endured with the palms with the NLC. Apologies and, occasionally, money payment are predicted.

“Some men and women ended up genuinely affected pretty negatively by this … This is admittedly unpleasant,” NLC Commissioner Jodi Scholtz told the Each day Maverick final calendar year.

“I satisfied two or three these men and women. It absolutely was just so heart-wrenching that their complete life happen to be turned the wrong way up,” reported Scholtz.

Among Individuals she fulfilled were being Qhino and Makatse.

Safe platform required for whistleblowers
The SSA identified the absence at enough time of a suitable channel for whistleblowers to report corruption led them to turn for the media.

“Failure to possess a committed anti-corruption channel will bring about staff presenting these types of cases outside of the NLC,” the SSA stated in its findings.

“Given the magnitude of corruption in state establishments, it remains crucial that it ensures that the NLC complies with all stability prescripts and that its focus is on ensuring that unlawful and irregular conduct is sufficiently mitigated in opposition to and by making sure an ample channel for whistle-blowers to report untoward perform without the need of getting intimidated.”

It proposed that the NLC set up a “Safe and sound channel” for workers to provide information on any “untoward activity” that will not avert or discourage staff members from blowing the whistle. A whistle-blowers coverage, dependant on the Shielded Disclosures Act twenty five of 2000, is usually a prerequisite.”

Media stories Nene shown
A 10 December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Conditioning Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor from the Limpopo Mirror, to show NLC corruption. “The post experienced components of data not obtainable in the general public area, thereby raising problem on inside Data stability breaches. The allegations inside the media ended up independently investigated,” Nene said. “Nonetheless, personnel accountable for divulging classified info have but for being recognized”;
A 28 January 2018 write-up revealed with the Dally Dispatch “citing quite a few allegations from your Limpopo Mirror report printed on ten December 2017 and also a new allegation associated with a previous worker by the title of Mzukisi Makatse. He was billed and summarily dismissed for the menace brought on to your organisation.”
A 16 November 2018 article in the Lowvelder with regards to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has described how, Despite receiving R27-million in lottery grants, the rehab has not been accomplished. “The Lowvelder post contained categorized facts in terms of NLC policy, raising additional considerations of inner data safety breaches,” Nene stated in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, nonetheless [it] highlighted the heightened information stability pitfalls within the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Major Treatment, a hijacked NPO. Nene mentioned GroundUp experienced verified in its story that it was dependant on leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Advertising of Access to Data) ask for for facts concerning the undertaking, she explained

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