Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the Point out Protection Company (SSA) in December 2018 to research the leaking of files that exposed lottery corruption.
The NLC’s business secretary at enough time outlined media experiences she mentioned were being based upon “stolen” info in an affidavit to the SSA.
The SSA did examine. It uncovered the information wasn't a matter of state security and which the “prevalence of alleged corruption and irregularities” gave “enough motive” for that media to reveal it.
A different board and administration has due to the fact taken in excess of the NLC and To this point have taken measures to finish corruption on the establishment.
A Condition Security Company (SSA) investigation identified which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented enough motive” for exposure via the media.
The probe into supposed “information and 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 presently suspended NLC firm secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “confidential” results and suggestions.
Nevhutanda requested the SSA to investigate the part of NLC workers while in the alleged leaking of knowledge, and Nene, in her affidavit identified specific media and reports that she claimed associated these leaks.
While in the letter outlining its findings, the SSA explained to the NLC that when safeguarding state facts was “a legal very important aimed toward protecting the sovereignty and integrity on the point out” this only applied to appropriately labeled information.
Although it did not say so right, the SSA conclusions implied which the allegedly leaked info did not fall into this class.
Drastically, the SSA designed it apparent that the necessity to secure point out information and facts “would not reduce any unique from blowing the whistle on corruption or irregular or criminality”.
The SSA investigation located that the NLC information linked to the alleged breach was “sensitive and privileged in mother nature, but not categorised regarding the prescripts from the Bare minimum Info Stability Specifications (MISS)”.
“The leakage of the relevant sensitive official NLC info for the media would not pose a threat to countrywide safety,” the SSA stated, incorporating that the impact of the breaches was reputational.
The SSA report uncovered “no evidence of a factual and incriminating mother nature against any with the suspected NLC staff members that would be determined from the information and data interrogated”.
Furthermore, it stated that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does present sufficient motive to get this sort of uncovered inside the media”.
Conspiracy statements
In 2020, Nevhutanda explained to MPs through a session of Parliament’s trade, market and Competitors portfolio committee that there was “a conspiracy” during which facts “stolen” within the NLC was sent for the US, in which he claimed it was being offered to fund a smear marketing campaign in opposition to the NLC.
He was repeating similar promises he experienced previously produced in Parliament, which provided advertisement hominem attacks on GroundUp which reporter but was very careful not to call possibly.
“I came right here In this particular August property previous 12 months and documented to honourable members that specifics of our beneficiaries has long been stolen and set in one state in America,” he told MPs.
“We called over the Condition Stability Agency to return check into the make any difference for the reason that we are getting experiences that our info is building income for media platforms and journalists,” he stated. “There's been discuss, naturally from just one supply, just one media, that spoke Substantially about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but did not inform MPs which the SSA investigation had been finished Practically a yr earlier.
Proactive funding was at the center in the looting in the lottery. It side-stepped the normal grant system. The NLC could by itself establish a undertaking to fund and appoint a non-revenue organisation to supervise it.
Just after Nevhutanda to start with explained to Parliament in 2018 that he had questioned the SSA to research the meant breach, the South African Countrywide Editors Forum issued a statement indicating that his remarks mirrored “an extremely hazardous Mind-set wherever the media is being blamed to the NLC’s inherent challenges”.
“Rather then investigating why tens of millions can not be accounted for, the NLC has instead tried to cast question to the integrity on the journalists concerned and it has requested the SSA to analyze their sources.”
Proactive projects designed solution
Protection flaws identified during the NLC grant funding technique during the SSA’s investigation, show up to are already made use of being an excuse because of the NLC to eliminate all proactive-funded tasks from its central grants technique.
“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘top secret’ and projects had been removed from the grant funding method and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business office, Government Supervisor Legal in order to safeguard [the] data,” Nene said in her affidavit.
“There was many interior discussion, with a lot of forwards and backwards, about what to do to plug the alleged leaks”, a supply, who was in a senior placement on the NLC at some time, advised GroundUp. “In the long run, the choice was taken to remove each of the proactive assignments through the technique and limit usage of A few folks”.
Some in that handful of individuals had been implicated in corruption.
Maselwa, who resigned with the NLC various yrs in the past, continues to be implicated in corruption involving lottery funds. He acquired R4.three-million from lottery cash allotted to make a library and museum intricate in Kuruman (see Taung Cultural Tunes and Arts Expo) which he used to build a property in an upmarket gated progress in Pretoria. The home is among quite a few paid for with lottery funds which were frozen following the Asset Forfeiture Device acquired a preservation order in December 2022.
The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near significant-ups from the ANC leadership, former NLC former Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated inside the corruption which overcome the NLC on their own view.
Also implicated are former board customers William Huma, who resigned right after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has due to the fact died.
Any time a new administration, including the full board and govt, took over in the NLC in late 2022 and early 2023, they found a “chaotic mess” inside the documentation regarding proactive funding, much of which was paper-primarily based. Essential files were lacking. Information held for safekeeping by doc storage enterprise Metrofile had been signed out and by no means returned.
The NLC was in a position to Recuperate copies of some หวย หุ้น ช่อง 9 documents from its Mimecast email archiving procedure as well as laptops of their assistants and aid staff members.
Information stories
In his one December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem doable info safety breaches plus the unauthorised use and/or dissemination of private data received on account of accomplishing Formal functions during the Commission by NLC workers. The activities are meant to undermine the integrity in the Fee even though disrupting the successful capabilities [on the NLC] and leading to insurmountable reputational damage towards the Commission since the custodian of private info entrusted to it by its beneficiaries.”
His request to the SSA to analyze was supported within an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.
Nene is currently facing a disciplinary inquiry right after she was unsuccessful in legal motion to put aside results of irregular expenditure on her enjoy.
The objective of her affidavit, Nene explained, was “to file the activities which transpired relating to information and facts protection breaches in the Countrywide Lotteries Commission”.
She mentioned a variety of information reviews which she claimed were being the final results of such “breaches” (see at the end of this article).
Nene explained that a whistle-blower approached the NLC alleging that one of its personnel, Sello Qhino, experienced “supplied her categorized NLC Info and persistently encouraged her to supply the data to GroundUp”.
Qhino, who blew the whistle on a series of dodgy lottery-funded projects in Kuruman right after makes an attempt to raise The problem internally have been overlooked, was subsequently fired.
Referring to an 18 November 2018 write-up while in the Everyday Dispatch in regards to the misappropriation of Lottery funds, Nene said which the NLC determined and afterwards suspended Zintle Rungqu. She was an personnel within the NLC’s East London office, who was the husband or wife plus the mom of whistleblower Mzukise Makatse’s three little ones.
Rungqu and Makatse feel Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, With all the NLC shelling out R470,000 on legal professionals to stand for it, but was found not responsible and permitted to return to work.
“The prevalent Consider these content articles is [they entail] categorized info relating to proactive funding jobs,” Nene claimed in her affidavit.
When Runqu was suspended, Makatse moved out with the relatives residence to take the heat off her and his young children. Dealing with homelessness, he moved into an Business in an vacant manufacturing unit belonging to a pal.
Both equally Makatse and Qhino are taking part in an NLC reparation procedure intended to recognise the harm a lot of people experienced on the palms from the NLC. Apologies and, sometimes, financial compensation are anticipated.
“Some individuals were actually affected extremely negatively by this … This is basically painful,” NLC Commissioner Jodi Scholtz told the Daily Maverick past 12 months.
“I met a few these people today. It had been just so coronary heart-wrenching that their whole lives are actually turned the wrong way up,” reported Scholtz.
Amongst People she achieved had been Qhino and Makatse.
Risk-free System desired for whistleblowers
The SSA found the absence at the time of a proper channel for whistleblowers to report corruption led them to turn towards the media.
“Failure to have a dedicated anti-corruption channel will result in workers presenting these kinds of scenarios outside of the NLC,” the SSA mentioned in its findings.
“Specified the magnitude of corruption in point out institutions, it remains very important that it makes certain that the NLC complies with all safety prescripts Which its emphasis is on ensuring that unlawful and irregular carry out is sufficiently mitigated from and by guaranteeing an satisfactory channel for whistle-blowers to report untoward perform without having being intimidated.”
It encouraged which the NLC establish a “Safe and sound channel” for workers to provide information on any “untoward activity” that might not protect against or discourage employees from blowing the whistle. A whistle-blowers plan, according to the Guarded Disclosures Act twenty five of 2000, is a requirement.”
Media reports Nene listed
A ten December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Physical fitness Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and operator from the Limpopo Mirror, to show NLC corruption. “The write-up experienced factors of data not offered in the general public domain, therefore raising worry on interior Info safety breaches. The allegations during the media were independently investigated,” Nene mentioned. “Having said that, workers to blame for divulging categorised information and facts have yet to be discovered”;
A 28 January 2018 posting published from the Dally Dispatch “citing many allegations in the Limpopo Mirror post posted on 10 December 2017 along with a new allegation concerning a former staff with the identify of Mzukisi Makatse. He was charged and summarily dismissed to the danger triggered to your organisation.”
A 16 November 2018 write-up in the Lowvelder with regard to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Regardless of acquiring R27-million in lottery grants, the rehab hasn't been done. “The Lowvelder write-up contained labeled data regarding NLC coverage, raising further concerns of interior facts protection breaches,” Nene mentioned in her affidavit. “The prima facie proof with regards to these allegations did not warrant an unbiased Investigation, even so [it] highlighted the heightened data protection challenges inside the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Principal Care, a hijacked NPO. Nene reported GroundUp experienced confirmed in its Tale that it had been according to leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Marketing of Use of Data) ask for for specifics with regards to the venture, she claimed
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