Lottery bosses turned to State Stability Company to analyze leaks

Lottery bosses turned to State Stability Company to analyze leaks

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Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Stability Company (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s corporation secretary at some time mentioned media reports she stated had been based upon “stolen” facts in an affidavit for your SSA.
The SSA did look into. It observed the knowledge wasn't a issue of state protection and that the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to reveal it.
A fresh board and administration has considering that taken over the NLC and To date have taken steps to end corruption on the establishment.
A Point out Stability Company (SSA) investigation discovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented sufficient motive” for publicity because of the media.

The probe into meant “information and facts stability breaches and sabotage of NLC functions” was carried out soon 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 currently 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 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 geared toward defending the sovereignty and integrity on the condition” this only applied to appropriately classified information.

Even though it did not say so immediately, the SSA findings implied which the allegedly leaked facts did not tumble into this group.

Drastically, the SSA produced it clear that the necessity to shield point out details “does not avert any person from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation found that the NLC facts involved in the alleged breach was “sensitive and privileged in nature, but not categorized with regard to the prescripts of the Minimum Details Safety Specifications (Overlook)”.

“The leakage on the appropriate sensitive official NLC information and facts into the media would not pose a menace to national stability,” the SSA claimed, including which the affect in the breaches was reputational.

The SSA report found “no evidence of the factual and incriminating nature from any from the suspected NLC workforce that might be discovered from the information and details interrogated”.

Additionally, it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does provide sufficient motive to get these uncovered inside the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs all through a session of Parliament’s trade, sector and Competitors portfolio committee that there was “a conspiracy” where info “stolen” with the NLC was sent for the US, the place he claimed it was remaining bought to fund a smear marketing campaign towards the NLC.

He was repeating similar statements he had previously designed in Parliament, which integrated advertisement hominem attacks on GroundUp and this reporter but was watchful not to call possibly.

“I arrived listed here Within this August home last calendar year and described to honourable associates that information about our beneficiaries has been stolen and place in one point out in the usa,” he informed MPs.

“We called about the Condition Stability Company to come explore the matter mainly because we have been acquiring experiences that our data is generating income for media platforms and journalists,” he reported. “There was converse, not surprisingly from just one source, one media, that spoke Substantially about proactive-funding,” Nevhutanda stated (referring to GroundUp), but didn't inform MPs which the SSA investigation were finished Just about a year earlier.

Proactive funding was at the center with the looting from the lottery. It aspect-stepped the traditional grant process. The NLC could itself determine a undertaking to fund and appoint a non-income organisation to oversee it.

Right after Nevhutanda 1st advised Parliament in 2018 that he had questioned the SSA to research the intended breach, the South African Countrywide Editors Discussion board issued a statement saying that his remarks mirrored “a particularly perilous Frame of mind in which the media is being blamed to the NLC’s inherent problems”.

“Rather then investigating why hundreds of thousands can not be accounted for, the NLC has as an alternative made an effort to Forged question around the integrity on the journalists included and it has questioned the SSA to analyze their resources.”

Proactive jobs created mystery
Protection flaws determined from the NLC grant funding system throughout the SSA’s investigation, seem to happen to be used being an excuse because of the NLC to get rid of all proactive-funded tasks from its central grants procedure.

“In or about 21 December 2019, the classification of all pro-actively funding projects was heightened to ‘solution’ and tasks were being removed from the grant funding technique and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Office environment, Executive Manager Authorized to be able to safeguard [the] data,” Nene claimed in her affidavit.

“There was a lot of internal discussion, with numerous forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was in a very senior posture at the NLC at some time, instructed GroundUp. “In the long run, the decision was taken to eliminate the many proactive assignments from your technique and Restrict entry to a handful of men and women”.

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

Maselwa, who resigned through the NLC several several years back, is implicated in corruption involving lottery cash. He been given R4.3-million from lottery funds allocated to create a library and museum elaborate in Kuruman (see Taung Cultural Music and Arts Expo) which he utilised to make a dwelling within an upmarket gated development in Pretoria. The property is among various paid out for with lottery money that were frozen once the Asset Forfeiture Unit obtained a preservation get 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 to large-ups inside the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated during the corruption which overcome the NLC on their own look at.

Also implicated are former board associates William Huma, who resigned just after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got given that died.

Each time a new administration, such as the entire board and government, took around on the NLC in late 2022 and early 2023, they discovered a “chaotic mess” while in the documentation relating to proactive funding, A great deal of which was paper-based mostly. Important paperwork were being missing. Files held for safekeeping by doc storage firm Metrofile had been signed out and under no circumstances returned.

The NLC was ready to Get better copies of some ผล สลากกินแบ่ง files from its Mimecast email archiving process and the laptops of their assistants and aid employees.

Information experiences
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave issue probable facts safety breaches as well as the unauthorised use and/or dissemination of confidential facts received due to executing official functions in the Fee by NLC staff members. The routines are intended to undermine the integrity with the Fee when disrupting the successful capabilities [from the NLC] and producing insurmountable reputational hurt towards the Commission since the custodian of non-public details entrusted to it by its beneficiaries.”

His request for your SSA to investigate was supported within an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.

Nene is presently dealing with a disciplinary inquiry soon after she was unsuccessful in authorized action to put aside findings of irregular expenditure on her watch.

The purpose of her affidavit, Nene mentioned, was “to document the situations which transpired regarding details stability breaches in the Nationwide Lotteries Fee”.

She stated various news reviews which she claimed had been the outcome of those “breaches” (see at the end of this text).

Nene explained that a whistle-blower approached the NLC alleging that one among its personnel, Sello Qhino, had “furnished her categorized NLC Info and persistently inspired her to supply the data to GroundUp”.

Qhino, who blew the whistle on the number of dodgy lottery-funded tasks in Kuruman after makes an attempt to lift the issue internally ended up disregarded, was subsequently fired.

Referring to an 18 November 2018 report in the Every day Dispatch with regard to the misappropriation of Lottery funds, Nene mentioned the NLC recognized and afterwards suspended Zintle Rungqu. She was an personnel from the NLC’s East London Business, who was the husband or wife and the mom of whistleblower Mzukise Makatse’s three kids.

Rungqu and Makatse believe Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, With all the NLC spending R470,000 on attorneys to signify it, but was observed not guilty and allowed to return to operate.

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

When Runqu was suspended, Makatse moved out of the loved ones property to take the heat off her and his children. Experiencing homelessness, he moved into an Place of work within an vacant manufacturing facility belonging to an acquaintance.

Each Makatse and Qhino are taking part in an NLC reparation system intended to recognise the damage lots of people suffered on the fingers with the NLC. Apologies and, occasionally, financial payment are envisioned.

“Some individuals were truly affected very negatively by this … This is really distressing,” NLC Commissioner Jodi Scholtz explained to the Each day Maverick previous year.

“I achieved a handful of these folks. It was just so heart-wrenching that their whole lives have been turned the wrong way up,” said Scholtz.

Between These she fulfilled were being Qhino and Makatse.

Protected System needed for whistleblowers
The SSA identified the absence at enough time of an appropriate channel for whistleblowers to report corruption led them to show towards the media.

“Failure to have a devoted anti-corruption channel will cause staff members presenting these types of cases beyond the NLC,” the SSA reported in its conclusions.

“Supplied the magnitude of corruption in condition institutions, it remains very important that it makes certain that the NLC complies with all safety prescripts and that its aim is on guaranteeing that illegal and irregular carry out is adequately mitigated from and by making certain an adequate channel for whistle-blowers to report untoward carry out with out staying intimidated.”

It advised the NLC establish a “Risk-free channel” for workers to provide information on any “untoward activity” that could not reduce or discourage staff from blowing the whistle. A whistle-blowers coverage, based upon the Shielded Disclosures Act twenty five of 2000, is really a requirement.”

Media reviews Nene detailed
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Physical fitness 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 short article had elements of knowledge not obtainable in the general public domain, thus raising worry on internal Facts security breaches. The allegations from the media had been independently investigated,” Nene claimed. “Nevertheless, staff members accountable for divulging categorized facts have yet to become recognized”;
A 28 January 2018 report released because of the Dally Dispatch “citing various allegations within the Limpopo Mirror posting posted on ten December 2017 plus a new allegation associated with a former staff with the name of Mzukisi Makatse. He was billed and summarily dismissed to the threat prompted on the organisation.”
A sixteen November 2018 report within the Lowvelder about the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, in spite of getting R27-million in lottery grants, the rehab hasn't been completed. “The Lowvelder write-up contained labeled information with regards to NLC coverage, increasing even further concerns of internal info security breaches,” Nene stated in her affidavit. “The prima facie evidence with regards to these allegations didn't warrant an impartial Investigation, nonetheless [it] highlighted the heightened details security risks throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Key Care, a hijacked NPO. Nene said GroundUp experienced verified in its story that it absolutely was based upon leaked NLC documents. This was despite the NLC rejecting a PAIA (Advertising of Entry to Information and facts) request for facts regarding the job, she stated