Former Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the State Security Company (SSA) in December 2018 to research the leaking of documents that exposed lottery corruption.
The NLC’s enterprise secretary at time mentioned media reports she mentioned were dependant on “stolen” info within an affidavit to the SSA.
The SSA did look into. It uncovered the knowledge wasn't a issue of state protection and the “prevalence of alleged corruption and irregularities” gave “ample motive” to the media to expose it.
A fresh board and management has because taken over the NLC and To this point have taken actions to end corruption within the establishment.
A State Stability Agency (SSA) investigation discovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered sufficient motive” for publicity because of the media.
The probe into meant “info safety breaches and sabotage of NLC functions” 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 at the moment suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the safety agency’s “confidential” conclusions and recommendations.
Nevhutanda questioned the SSA to research the purpose of NLC personnel while in the alleged leaking of information, and Nene, in her affidavit identified certain media and reviews that she claimed associated these leaks.
From the letter outlining its findings, the SSA told the NLC that even though guarding condition facts was “a legal crucial aimed toward preserving the sovereignty and integrity with the state” this only placed on appropriately categorized information.
Although it did not say so immediately, the SSA conclusions implied the allegedly leaked info did not tumble into this category.
Appreciably, the SSA made it very clear that the need to secure state data “would not avert any unique from blowing the whistle on corruption or irregular or criminal activity”.
The SSA investigation uncovered that the NLC info involved with the alleged breach was “sensitive and privileged in character, but not labeled in terms of the prescripts of your Minimum Information Protection Specifications (Skip)”.
“The leakage of the applicable sensitive official NLC facts for the media isn't going to pose a threat to nationwide safety,” the SSA claimed, adding which the influence of the breaches was reputational.
The SSA report uncovered “no proof of the factual and incriminating mother nature against any from the suspected NLC employees that may be identified from the data and information interrogated”.
What's more, it mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does present sufficient motive to have this sort of exposed in the media”.
Conspiracy promises
In 2020, Nevhutanda explained to MPs throughout a session of Parliament’s trade, business and Levels of competition portfolio committee that there was “a conspiracy” where facts “stolen” through the NLC was sent to the US, wherever he claimed it was getting bought to fund a smear campaign towards the NLC.
He was repeating related statements he experienced previously manufactured in Parliament, which integrated advertisement hominem attacks on GroundUp and this reporter but was watchful not to name either.
“I arrived listed here With this August household past yr and noted to honourable members that information regarding our beneficiaries has actually been stolen and put in a single state in the united states,” he advised MPs.
“We known as to the Point out Security Company to come investigate the make any difference since we have been getting reviews that our data is making cash for media platforms and journalists,” he explained. “There's been speak, needless to say from one supply, a single media, that spoke Significantly about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't inform MPs which the SSA investigation had been finished Pretty much a yr earlier.
Proactive funding was at the center with the looting in the lottery. It facet-stepped the traditional grant system. The NLC could by itself establish a undertaking to fund and appoint a non-earnings organisation to supervise it.
Right after Nevhutanda 1st advised Parliament in 2018 that he experienced asked the SSA to investigate the supposed breach, the South African National Editors Forum issued a press release indicating that his remarks reflected “an extremely harmful Angle in which the media is currently being blamed with the NLC’s inherent issues”.
“Rather than investigating why millions cannot be accounted for, the NLC has as a substitute made an effort to Solid question on the integrity from the journalists involved and it has requested the SSA to analyze their sources.”
Proactive projects built top secret
Safety flaws recognized inside the NLC grant funding program throughout the SSA’s investigation, show up to are already made use of being an justification because of the NLC to get rid of all proactive-funded tasks from its central grants program.
“In or about 21 December 2019, the classification of all pro-actively funding projects was heightened to ‘top secret’ and tasks have been faraway from the grant funding program and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Business, Govt Supervisor Legal in order to safeguard [the] data,” Nene explained in her affidavit.
“There was a great deal of inside discussion, with numerous back and forth, about what to do to plug the alleged leaks”, a source, who was in a senior placement at the NLC at time, advised GroundUp. “In the long run, the choice was taken to eliminate all of the proactive assignments in the process and Restrict usage of A few people today”.
Some in that handful of folks ended up implicated in corruption.
Maselwa, who resigned with the NLC quite a few decades in the past, has actually been implicated in corruption involving lottery money. He obtained R4.3-million from lottery funds allocated to build a library and museum intricate in Kuruman (see Taung Cultural Music and Arts Expo) which he used to develop a home in an upmarket gated development in Pretoria. The house is among various paid for with lottery cash which were frozen following the Asset Forfeiture Unit obtained a preservation buy in December 2022.
The politically-related Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to higher-ups inside the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated from the corruption which overcome the NLC on their observe.
Also implicated are former board customers William Huma, who resigned soon after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have due to the fact died.
Each time a new administration, such as the full board and executive, took above in the NLC in late 2022 and early 2023, they found out a “chaotic mess” within the documentation concerning proactive funding, Significantly of which was paper-dependent. Vital documents have been missing. Documents held for safekeeping by document storage organization Metrofile were signed out and hardly ever returned.
The NLC was in the position to Get well copies of some หวย หุ้น ช่อง 9 paperwork from its Mimecast e mail archiving process and the laptops in their assistants and aid team.
Information studies
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave problem achievable information security breaches plus the unauthorised use and/or dissemination of confidential information attained due to executing official features within the Commission by NLC workers. The pursuits are meant to undermine the integrity of the Commission when disrupting the effective functions [with the NLC] and producing insurmountable reputational harm on the Commission because the custodian of personal details entrusted to it by its beneficiaries.”
His request to the SSA to research was supported in an affidavit by suspended NLC company secretary, Nomphumelelo Nene.
Nene is now facing a disciplinary inquiry following she was unsuccessful in lawful motion to set aside conclusions of irregular expenditure on her observe.
The goal of her affidavit, Nene claimed, was “to document the situations which transpired associated with details stability breaches in the Countrywide Lotteries Commission”.
She shown numerous information reviews which she claimed have been the results of these “breaches” (see at the end of this information).
Nene mentioned that a whistle-blower approached the NLC alleging that among its employees, Sello Qhino, experienced “provided her classified NLC Details and persistently encouraged her to supply the information to GroundUp”.
Qhino, who blew the whistle on the series of dodgy lottery-funded projects in Kuruman just after tries to boost the issue internally had been dismissed, was subsequently fired.
Referring to an eighteen November 2018 posting in the Daily Dispatch regarding the misappropriation of Lottery money, Nene said which the NLC identified then suspended Zintle Rungqu. She was an worker while in the NLC’s East London Workplace, who was the lover and the mom of whistleblower Mzukise Makatse’s a few children.
Rungqu and Makatse consider Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, Together with the NLC expending R470,000 on legal professionals to signify it, but was uncovered not responsible and permitted to return to work.
“The typical factor in these articles or blog posts is [they entail] labeled information associated with proactive funding projects,” Nene claimed in her affidavit.
When Runqu was suspended, Makatse moved out of the relatives house to take the heat off her and his children. Struggling with homelessness, he moved into an Business office within an empty manufacturing unit belonging to a friend.
Equally Makatse and Qhino are participating in an NLC reparation approach intended to recognise the harm some people suffered on the fingers with the NLC. Apologies and, sometimes, fiscal compensation are envisioned.
“Some individuals were being seriously impacted very negatively by this … This is absolutely unpleasant,” NLC Commissioner Jodi Scholtz told the Every day Maverick last 12 months.
“I achieved a few these men and women. It absolutely was just so heart-wrenching that their total lives have already been turned the wrong way up,” said Scholtz.
Amid These she fulfilled were Qhino and Makatse.
Safe and sound System necessary for whistleblowers
The SSA uncovered the absence at enough time of a proper channel for whistleblowers to report corruption led them to show for the media.
“Failure to have a dedicated anti-corruption channel will cause staff members presenting this kind of cases beyond the NLC,” the SSA reported in its conclusions.
“Specified the magnitude of corruption in condition institutions, it remains crucial that it makes certain that the NLC complies with all protection prescripts and that its concentrate is on guaranteeing that illegal and irregular perform is adequately mitigated from and by ensuring an satisfactory channel for whistle-blowers to report untoward carry out with out staying intimidated.”
It advised which the NLC establish a “Safe and sound channel” for workers to provide information on any “untoward activity” that might not avert or discourage personnel from blowing the whistle. A whistle-blowers policy, based on the Shielded Disclosures Act 25 of 2000, is often a necessity.”
Media reports Nene stated
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Physical fitness Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and proprietor of the Limpopo Mirror, to expose NLC corruption. “The posting experienced components of information not offered in the public domain, thus boosting worry on inside Information and facts security breaches. The allegations within the media were being independently investigated,” Nene said. “Even so, personnel to blame for divulging labeled details have however being recognized”;
A 28 January 2018 short article printed via the Dally Dispatch “citing several allegations within the Limpopo Mirror post released on ten December 2017 along with a new allegation associated with a previous personnel via the name of Mzukisi Makatse. He was billed and summarily dismissed for the risk induced to your organisation.”
A sixteen November 2018 posting in the Lowvelder in regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of receiving R27-million in lottery grants, the rehab hasn't been concluded. “The Lowvelder posting contained categorized info concerning NLC coverage, raising even more issues of inside details stability breaches,” Nene mentioned in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an independent Investigation, on the other hand [it] highlighted the heightened info safety threats within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Main Care, a hijacked NPO. Nene stated GroundUp experienced verified in its story that it had been based upon leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Use of Information and facts) ask for for information with regards to the task, she stated