Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the State Safety Agency (SSA) in December 2018 to research the leaking of paperwork that exposed lottery corruption.
The NLC’s enterprise secretary at some time listed media reviews she mentioned had been based upon “stolen” facts in an affidavit for the SSA.
The SSA did look into. It observed the information wasn't a subject of state protection and that the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to reveal it.
A fresh board and administration has given that taken around the NLC and To this point have taken actions to finish corruption at the institution.
A State Safety Company (SSA) investigation uncovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied ample motive” for exposure from the media.
The probe into supposed “details safety breaches and sabotage of NLC operations” was carried out just after then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to research.
Here is
Nevhutanda’s letter,
an affidavit by presently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” results and recommendations.
Nevhutanda requested the SSA to investigate the purpose of NLC workers in the alleged leaking of knowledge, and Nene, in her affidavit discovered particular media and stories that she claimed associated these leaks.
Inside the letter outlining its results, the SSA explained to the NLC that whilst shielding point out information was “a legal crucial geared toward safeguarding the sovereignty and integrity on the condition” this only applied to appropriately classified information and facts.
Even though it did not say so immediately, the SSA results implied the allegedly leaked info did not tumble into this classification.
Significantly, the SSA made it clear that the necessity to protect point out information “won't protect against any specific from blowing the whistle on corruption or irregular or criminality”.
The SSA investigation found that the NLC facts involved in the alleged breach was “delicate and privileged in nature, although not labeled when it comes to the prescripts with the Minimum amount Facts Stability Expectations (Miss out on)”.
“The leakage from the pertinent delicate official NLC data towards the media does not pose a threat to nationwide protection,” the SSA mentioned, adding the affect on the breaches was reputational.
The SSA report located “no proof of the factual and incriminating nature from any of your suspected NLC employees which could be identified from the knowledge and details interrogated”.
In addition it stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does give enough motive to have this sort of exposed inside the media”.
Conspiracy statements
In 2020, Nevhutanda informed MPs for the duration of a session of Parliament’s trade, sector and competition portfolio committee that there was “a conspiracy” in which information “stolen” within the NLC was sent towards the US, where by he claimed it had been becoming marketed to fund a smear campaign from the NLC.
He was repeating comparable statements he experienced Formerly built in Parliament, which incorporated advertisement hominem assaults on GroundUp which reporter but was cautious not to name both.
“I arrived in this article Within this August property past calendar year and reported to honourable members that details about our beneficiaries is stolen and place in one point out in the usa,” he explained to MPs.
“We identified as to the Condition Security Company to come back explore the make a difference simply because we've been receiving reports that our information and facts is creating money for media platforms and journalists,” he claimed. “There has been chat, obviously from just one resource, a single media, that spoke A great deal about proactive-funding,” Nevhutanda stated (referring to GroundUp), but did not explain to MPs the SSA investigation were concluded almost a year earlier.
Proactive funding was at the guts of the looting of the lottery. It facet-stepped the traditional grant course of action. The NLC could by itself recognize a undertaking to fund and appoint a non-revenue organisation to supervise it.
Immediately after Nevhutanda 1st informed Parliament in 2018 that he experienced asked the SSA to analyze the supposed breach, the South African Nationwide Editors Discussion board issued an announcement indicating that his remarks reflected “an incredibly hazardous Angle in which the media is remaining blamed for your NLC’s inherent troubles”.
“Rather than investigating why hundreds of thousands can't be accounted for, the NLC has as a substitute made an effort to Solid doubt about the integrity on the journalists included and has asked the SSA to analyze their resources.”
Proactive assignments created key
Security flaws discovered from the NLC grant funding technique through the SSA’s investigation, appear to are actually utilised being an excuse because of the NLC to remove all proactive-funded initiatives from its central grants method.
“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘magic formula’ and jobs have been removed from the grant funding technique and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Business, Executive Manager Authorized to be able to safeguard [the] data,” Nene mentioned in her affidavit.
“There was a great deal of interior discussion, with plenty of backwards and forwards, about how to proceed to plug the alleged leaks”, a source, who was within a senior situation with the NLC at time, explained to GroundUp. “Ultimately, the decision was taken to eliminate all of the proactive jobs with the process and limit use of a handful of people today”.
Some in that handful of men and women were implicated in corruption.
Maselwa, who resigned with the NLC various a long time in the past, has actually been implicated in corruption involving lottery money. He gained R4.three-million from lottery resources allotted to construct a library and museum elaborate in Kuruman (see Taung Cultural Music and Arts Expo) which he utilized to construct a residence in an upmarket gated growth in Pretoria. The assets is among numerous compensated for with lottery resources that were frozen following the Asset Forfeiture Device obtained a preservation order in December 2022.
The politically-related Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was close to substantial-ups from the ANC leadership, former NLC former Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated from the corruption which overwhelmed the NLC on their own watch.
Also implicated are previous board members William Huma, who resigned 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.
Whenever a new administration, including the entire board and executive, took over at the NLC in late 2022 and early 2023, they found a “chaotic mess” within the documentation relating to proactive funding, A lot of which was paper-based. Vital paperwork were lacking. Files held for safekeeping by document storage company Metrofile had been signed out and never returned.
The NLC was ready to Recuperate copies of some cat888 paperwork from its Mimecast electronic mail archiving process along with the laptops of their assistants and guidance workers.
Information studies
In his one December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave concern attainable info safety breaches as well as unauthorised use and/or dissemination of confidential details received on account of performing official functions within the Commission by NLC workers. The pursuits are intended to undermine the integrity in the Commission whilst disrupting the efficient functions [of your NLC] and causing insurmountable reputational damage on the Commission given that the custodian of non-public info entrusted to it by its beneficiaries.”
His ask for to the SSA to analyze was supported in an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.
Nene is at the moment facing a disciplinary inquiry immediately after she was unsuccessful in legal action to set aside results of irregular expenditure on her watch.
The objective of her affidavit, Nene explained, was “to history the occasions which transpired associated with information and facts stability breaches at the National Lotteries Fee”.
She listed numerous news reports which she claimed were the results of such “breaches” (see at the conclusion of this information).
Nene reported that a whistle-blower approached the NLC alleging that considered one of its personnel, Sello Qhino, had “delivered her categorized NLC Info and persistently inspired her to provide the knowledge to GroundUp”.
Qhino, who blew the whistle with a series of dodgy lottery-funded initiatives in Kuruman following makes an attempt to boost the issue internally had been ignored, was subsequently fired.
Referring to an eighteen November 2018 report while in the Everyday Dispatch regarding the misappropriation of Lottery funds, Nene claimed that the NLC discovered then suspended Zintle Rungqu. She was an employee from the NLC’s East London Place of work, who was the partner along with the mom of whistleblower Mzukise Makatse’s three youngsters.
Rungqu and Makatse consider Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, Along with the NLC spending R470,000 on lawyers to signify it, but was identified not guilty and allowed to return to operate.
“The popular Think about these article content is that [they contain] labeled data associated with proactive funding tasks,” Nene said in her affidavit.
When Runqu was suspended, Makatse moved out of your relatives residence to go ahead and take heat off her and his small children. Going through homelessness, he moved into an office in an vacant factory belonging to a buddy.
Both of those Makatse and Qhino are participating in an NLC reparation approach meant to recognise the hurt a number of people experienced within the hands from the NLC. Apologies and, in some instances, fiscal compensation are anticipated.
“Some folks have been genuinely impacted really negatively by this … This is basically painful,” NLC Commissioner Jodi Scholtz told the Day by day Maverick very last yr.
“I achieved a handful of these men and women. It was just so heart-wrenching that their whole lives happen to be turned the wrong way up,” stated 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 to the media.
“Failure to possess a dedicated anti-corruption channel will lead to staff presenting these kinds of scenarios outside of the NLC,” the SSA mentioned in its results.
“Offered the magnitude of corruption in state establishments, it stays vital that it ensures that the NLC complies with all stability prescripts and that its concentrate is on making sure that illegal and irregular perform is adequately mitigated versus and by guaranteeing an sufficient channel for whistle-blowers to report untoward carry out with out remaining intimidated.”
It advised which the NLC establish a “Protected channel” for workers to deliver information on any “untoward activity” that might not reduce or discourage workers from blowing the whistle. A whistle-blowers policy, determined by the Secured Disclosures Act twenty five of 2000, is often a need.”
Media experiences Nene mentioned
A ten December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Conditioning Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and operator with the Limpopo Mirror, to reveal NLC corruption. “The post experienced factors of data not readily available in the public area, thus elevating issue on inner Information and facts safety breaches. The allegations during the media had been independently investigated,” Nene claimed. “Nevertheless, personnel responsible for divulging classified details have still to generally be identified”;
A 28 January 2018 post printed through the Dally Dispatch “citing several allegations from your Limpopo Mirror write-up printed on 10 December 2017 and a new allegation concerning a previous employee with the title of Mzukisi Makatse. He was billed and summarily dismissed for that menace brought about into the organisation.”
A sixteen November 2018 short article from the Lowvelder concerning the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of getting R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder report contained labeled data with regard to NLC policy, boosting even more concerns of inner information and facts safety breaches,” Nene claimed in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an impartial Investigation, however [it] highlighted the heightened details stability pitfalls throughout the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Main Care, a hijacked NPO. Nene mentioned GroundUp had verified in its Tale that it had been based on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Info) ask for for facts about the project, she said