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 Fee (NLC) board chairperson Alfred Nevhutanda requested the Point out Security Agency (SSA) in December 2018 to research the leaking of documents that uncovered lottery corruption.
The NLC’s firm secretary at some time listed media studies she reported had been depending on “stolen” information in an affidavit for that SSA.
The SSA did examine. It located the knowledge was not a issue of condition safety and the “prevalence of alleged corruption and irregularities” gave “enough motive” with the media to reveal it.
A new board and management has due to the fact taken more than the NLC and thus far have taken measures to finish corruption on the institution.
A Condition Safety Agency (SSA) investigation observed that 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 “data protection breaches and sabotage of NLC functions” was undertaken soon after then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by presently suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” results 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 determined particular media and reports that she claimed included these leaks.

During the letter outlining its findings, the SSA advised the NLC that when defending point out details was “a legal critical geared toward preserving the sovereignty and integrity from the point out” this only applied to properly classified data.

Even though it did not say so directly, the SSA findings implied that the allegedly leaked information and facts did not drop into this group.

Considerably, the SSA manufactured it crystal clear that the necessity to shield condition details “isn't going to avert any specific from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation located which the NLC facts involved with the alleged breach was “delicate and privileged in character, although not classified in terms of the prescripts of the Least Data Protection Expectations (Pass up)”.

“The leakage from the appropriate delicate official NLC facts into the media doesn't pose a menace to countrywide safety,” the SSA mentioned, including which the impression with the breaches was reputational.

The SSA report observed “no proof of a factual and incriminating character towards any of your suspected NLC employees that would be recognized from the information and facts interrogated”.

Additionally, it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does provide ample motive to get these types of exposed while in the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs all through a session of Parliament’s trade, business and Levels of competition portfolio committee that there was “a conspiracy” by which information “stolen” within the NLC was sent to the US, exactly where he claimed it absolutely was remaining bought to fund a smear marketing campaign from the NLC.

He was repeating related claims he experienced previously made in Parliament, which bundled advertisement hominem attacks on GroundUp which reporter but was very careful not to name possibly.

“I arrived right here In this particular August house final 12 months and reported to honourable customers that specifics of our beneficiaries has long been stolen and place in one state in America,” he told MPs.

“We called within the State Stability Agency to come back investigate the make a difference since we have been finding experiences that our data is producing revenue for media platforms and journalists,” he explained. “There have been talk, naturally from just one resource, just one media, that spoke much about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't inform MPs that the SSA investigation had been finished Just about a calendar year before.

Proactive funding was at the center on the looting with the lottery. It aspect-stepped the conventional grant approach. The NLC could alone determine a job to fund and appoint a non-income organisation to supervise it.

Soon after Nevhutanda initially informed Parliament in 2018 that he experienced asked the SSA to investigate the intended breach, the South African National Editors Forum issued a statement saying that his remarks mirrored “an extremely harmful Frame of mind where by the media is remaining blamed to the NLC’s inherent issues”.

“In lieu of investigating why thousands and thousands can't be accounted for, the NLC has as an alternative attempted to Solid doubt around the integrity from the journalists included and it has questioned the SSA to research their resources.”

Proactive assignments built solution
Stability flaws identified while in the NLC grant funding procedure throughout the SSA’s investigation, surface to happen to be utilised being an justification from the NLC to get rid of all proactive-funded initiatives from its central grants method.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘solution’ and initiatives have been removed from the grant funding program and taken care of manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Office environment, Government Supervisor Authorized so as to safeguard [the] facts,” Nene reported in her affidavit.

“There was lots of interior dialogue, with numerous backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was in the senior place for the NLC at time, explained to GroundUp. “In the end, the choice was taken to remove the many proactive projects from your program and Restrict entry to a handful of people”.

Some in that handful of folks ended up implicated in corruption.

Maselwa, who resigned from your NLC quite a few several years ago, continues to be implicated in corruption involving lottery resources. He obtained R4.three-million from lottery money allocated to construct a library and museum complex in Kuruman (see Taung Cultural New music and Arts Expo) which he utilized to create a property in an upmarket gated advancement in Pretoria. The house is one of numerous paid for with lottery funds which were frozen following the Asset Forfeiture Unit acquired a preservation order 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 substantial-ups inside the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated during the corruption which overwhelmed the NLC on their own watch.

Also implicated are former board customers William Huma, who resigned following he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got because died.

Each time a new administration, such as the full board and govt, took more than in the NLC in late 2022 and early 2023, they identified a “chaotic mess” while in the documentation associated with proactive funding, Substantially of which was paper-centered. Vital paperwork had been lacking. Documents held for safekeeping by document storage enterprise Metrofile were signed out and in no way returned.

The NLC was in a position to Get well copies of some fox888 paperwork from its Mimecast email archiving system and the laptops in their assistants and assist personnel.

News stories
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry possible data stability breaches and also the unauthorised use and/or dissemination of confidential facts attained as a result of executing official functions in the Commission by NLC workforce. The actions are intended to undermine the integrity with the Fee though disrupting the productive capabilities [in the NLC] and triggering insurmountable reputational damage to your Fee since the custodian of non-public details entrusted to it by its beneficiaries.”

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

Nene is at the moment going through a disciplinary inquiry right after she was unsuccessful in legal motion to put aside results of irregular expenditure on her observe.

The objective of her affidavit, Nene reported, was “to report the gatherings which transpired relating to details protection breaches in the Nationwide Lotteries Fee”.

She detailed many news studies which she claimed were being the outcome of those “breaches” (see at the conclusion of this post).

Nene reported that a whistle-blower approached the NLC alleging that considered one of its workers, Sello Qhino, had “offered her categorized NLC Data and persistently encouraged her to offer the information to GroundUp”.

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

Referring to an eighteen November 2018 post from the Daily Dispatch about the misappropriation of Lottery funds, Nene stated that the NLC recognized and then suspended Zintle Rungqu. She was an employee in the NLC’s East London Workplace, who was the spouse plus the mom of whistleblower Mzukise Makatse’s three youngsters.

Rungqu and Makatse believe that Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Using the NLC investing R470,000 on legal professionals to stand for it, but was observed not guilty and permitted to return to work.

“The widespread factor in these posts is that [they contain] categorised facts referring to proactive funding initiatives,” Nene stated in her affidavit.

When Runqu was suspended, Makatse moved out with the loved ones property to take the heat off her and his kids. Going through homelessness, he moved into an Business office within an empty manufacturing unit belonging to a friend.

Each Makatse and Qhino are participating in an NLC reparation approach intended to recognise the hurt lots of people endured in the palms in the NLC. Apologies and, in some cases, fiscal payment are anticipated.

“Some persons had been genuinely afflicted extremely negatively by this … This is de facto distressing,” NLC Commissioner Jodi Scholtz informed the Day-to-day Maverick very last calendar year.

“I achieved a number of these men and women. It had been just so heart-wrenching that their complete life are actually turned the other way up,” stated Scholtz.

Among those she achieved were being Qhino and Makatse.

Harmless System desired for whistleblowers
The SSA uncovered the absence at some time of a suitable channel for whistleblowers to report corruption led them to turn for the media.

“Failure to have a dedicated anti-corruption channel will end in staff presenting this kind of scenarios outside of the NLC,” the SSA claimed in its findings.

“Given the magnitude of corruption in state institutions, it continues to be crucial that it ensures that the NLC complies with all safety prescripts and that its concentration is on making sure that unlawful and irregular carry out is sufficiently mitigated against and by ensuring an adequate channel for whistle-blowers to report untoward perform without the need of staying intimidated.”

It encouraged the NLC establish a “Harmless channel” for employees to provide info on any “untoward action” that will not stop or discourage employees from blowing the whistle. A whistle-blowers plan, determined by the Guarded Disclosures Act twenty five of 2000, is actually a need.”

Media reviews Nene shown
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Health and fitness Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and operator of the Limpopo Mirror, to expose NLC corruption. “The post experienced components of information not accessible in the general public domain, therefore boosting issue on inside Data safety breaches. The allegations within the media were being independently investigated,” Nene claimed. “On the other hand, staff accountable for divulging categorised data have yet to get discovered”;
A 28 January 2018 write-up posted from the Dally Dispatch “citing quite a few allegations within the Limpopo Mirror post revealed on 10 December 2017 and also a new allegation concerning a previous personnel because of the title of Mzukisi Makatse. He was charged and summarily dismissed for your threat brought on towards the organisation.”
A sixteen November 2018 short article while in the Lowvelder with regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite getting R27-million in lottery grants, the rehab hasn't been accomplished. “The Lowvelder article contained labeled info with regard to NLC policy, elevating further more considerations of inside information safety breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened information security risks within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Key Care, a hijacked NPO. Nene mentioned GroundUp had verified in its story that it was based on leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Entry to Info) ask for for specifics concerning the challenge, she explained