Former Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda questioned the Point out Security Company (SSA) in December 2018 to research the leaking of files that exposed lottery corruption.
The NLC’s firm secretary at the time listed media reports she reported have been determined by “stolen” information in an affidavit for that SSA.
The SSA did look into. It found the information was not a issue of condition protection and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” to the media to reveal it.
A whole new board and management has due to the fact taken in excess of the NLC and To this point have taken measures to finish corruption within the establishment.
A State Protection Agency (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered ample motive” for exposure from the media.
The probe into intended “info protection breaches and sabotage of NLC functions” was undertaken immediately after then-NLC board chairperson Alfred Nevhutanda wrote for 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 request, and
the safety agency’s “private” findings and proposals.
Nevhutanda asked the SSA to research the role of NLC personnel in the alleged leaking of information, and Nene, in her affidavit recognized particular media and studies that she claimed included these leaks.
While in the letter outlining its results, the SSA explained to the NLC that although safeguarding condition information was “a legal crucial geared toward defending the sovereignty and integrity from the point out” this only placed on properly classified facts.
Although it did not say so instantly, the SSA results implied which the allegedly leaked details didn't slide into this classification.
Drastically, the SSA made it distinct that the need to guard point out details “won't avoid any particular person from blowing the whistle on corruption or irregular or criminality”.
The SSA investigation found which the NLC information and facts associated with the alleged breach was “delicate and privileged in character, but not categorized in terms of the prescripts of the Minimum amount Information Security Specifications (Overlook)”.
“The leakage of your pertinent delicate Formal NLC information and facts to the media won't pose a danger to countrywide stability,” the SSA explained, incorporating which the affect of your breaches was reputational.
The SSA report observed “no proof of a factual and incriminating character towards any in the suspected NLC workforce which could be recognized from the data and details interrogated”.
Furthermore, it mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does deliver enough motive to obtain these kinds of uncovered in the media”.
Conspiracy claims
In 2020, Nevhutanda told MPs throughout a session of Parliament’s trade, market and Competitiveness portfolio committee that there was “a conspiracy” where details “stolen” from your NLC was despatched to your US, in which he claimed it had been currently being offered to fund a smear marketing campaign against the NLC.
He was repeating similar claims he had Beforehand built in Parliament, which provided advert hominem assaults on GroundUp and this reporter but was careful not to call either.
“I arrived below With this August property last calendar year and documented to honourable members that information regarding our beneficiaries has become stolen and set in one condition in America,” he advised MPs.
“We termed within the Condition Protection Company to return consider the issue because we are acquiring stories that our information and facts is building money for media platforms and journalists,” he stated. “There has been talk, obviously from one resource, just one media, that spoke Substantially about proactive-funding,” Nevhutanda explained (referring to GroundUp), but failed to notify MPs the SSA investigation were accomplished almost a 12 months previously.
Proactive funding was at the heart on the looting of the lottery. It aspect-stepped the traditional grant course of action. The NLC could itself detect a task to fund and appoint a non-revenue organisation to supervise it.
Following Nevhutanda initially informed Parliament in 2018 that he had questioned the SSA to analyze the supposed breach, the South African National Editors Forum issued an announcement indicating that his remarks mirrored “a particularly unsafe Angle where the media is becoming blamed for your NLC’s inherent difficulties”.
“In lieu of investigating why tens of millions can't be accounted for, the NLC has alternatively attempted to cast question within the integrity from the journalists associated and has questioned the SSA to research their resources.”
Proactive assignments produced secret
Protection flaws identified while in the NLC grant funding method in the SSA’s investigation, seem to are actually utilized as an excuse via the NLC to remove all proactive-funded tasks from its central grants technique.
“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘top secret’ and projects were faraway from the grant funding system and maintained manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Business, Govt Manager Legal so that you can safeguard [the] information and facts,” Nene claimed in her affidavit.
“There was a great deal of internal dialogue, with plenty of forwards and backwards, about what to do to plug the alleged leaks”, a supply, who was inside a senior situation in the NLC at enough time, told GroundUp. “Ultimately, the choice was taken to eliminate each of the proactive initiatives within the method and limit entry to A few individuals”.
Some in that handful of people have been implicated in corruption.
Maselwa, who resigned in the NLC many several years in the past, has become implicated in corruption involving lottery money. He obtained R4.3-million from lottery resources allocated to create a library and museum sophisticated in Kuruman (see Taung Cultural New music and Arts Expo) which he utilised to build a property within an upmarket gated advancement in Pretoria. The assets is one of many compensated for with lottery cash which were frozen following the Asset Forfeiture Unit attained a preservation order in December 2022.
The politically-related Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was near large-ups during the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated inside the corruption which overcome the NLC on their own observe.
Also implicated are former board users William Huma, who resigned after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has because died.
Any time a new administration, including the entire board and government, took more than for the NLC in late 2022 and early 2023, they identified a “chaotic mess” during the documentation referring to proactive funding, A great deal of which was paper-based. Crucial files ended up lacking. Files held for safekeeping by document storage firm Metrofile had been signed out and under no circumstances returned.
The NLC was able to recover copies of some ตา ว จ หวย files from its Mimecast electronic mail archiving method along with the laptops of their assistants and help personnel.
News studies
In his 1 December 2018 letter, addressed to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave issue doable data safety breaches and also the unauthorised use and/or dissemination of private details obtained due to executing Formal functions from the Commission by NLC staff members. The actions are intended to undermine the integrity of the Commission even though disrupting the effective functions [on the NLC] and producing insurmountable reputational harm for the Commission since the custodian of non-public facts entrusted to it by its beneficiaries.”
His ask for for that SSA to analyze was supported in an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.
Nene is at this time experiencing a disciplinary inquiry immediately after she was unsuccessful in authorized action to put aside findings of irregular expenditure on her watch.
The goal of her affidavit, Nene explained, was “to document the situations which transpired regarding details stability breaches on the Countrywide Lotteries Commission”.
She shown various news stories which she claimed were the outcome of such “breaches” (see at the conclusion of this informative article).
Nene claimed that a whistle-blower approached the NLC alleging that one of its workers, Sello Qhino, had “supplied her categorized NLC Details and persistently encouraged her to provide the data to GroundUp”.
Qhino, who blew the whistle over a series of dodgy lottery-funded tasks in Kuruman right after attempts to lift The problem internally were disregarded, was subsequently fired.
Referring to an 18 November 2018 article from the Everyday Dispatch concerning the misappropriation of Lottery cash, Nene stated the NLC discovered then suspended Zintle Rungqu. She was an staff within the NLC’s East London Office environment, who was the companion along with the mom of whistleblower Mzukise Makatse’s 3 little ones.
Rungqu and Makatse consider Rungqu was punished simply because Makatse blew the whistle. She was suspended and charged internally, Using the NLC investing R470,000 on lawyers to represent it, but was found not responsible and allowed to return to operate.
“The prevalent Consider these content articles is the fact that [they contain] labeled info concerning proactive funding assignments,” Nene said in her affidavit.
When Runqu was suspended, Makatse moved out on the family members household to go ahead and take heat off her and his young children. Facing homelessness, he moved into an Place of work in an vacant manufacturing facility belonging to an acquaintance.
Both Makatse and Qhino are participating in an NLC reparation procedure intended to recognise the hurt some people suffered within the arms with the NLC. Apologies and, sometimes, fiscal compensation are envisioned.
“Some persons have been really afflicted quite negatively by this … This is actually distressing,” NLC Commissioner Jodi Scholtz advised the Daily Maverick previous calendar year.
“I satisfied two or three these folks. It had been just so coronary heart-wrenching that their whole lives are already turned the other way up,” said Scholtz.
Amongst All those she achieved were being Qhino and Makatse.
Safe System needed for whistleblowers
The SSA discovered the absence at the time of a proper channel for whistleblowers to report corruption led them to show into the media.
“Failure to possess a devoted anti-corruption channel will result in employees presenting such conditions outside of the NLC,” the SSA said in its conclusions.
“Provided the magnitude of corruption in point out institutions, it continues to be vital that it makes certain that the NLC complies with all security prescripts and that its aim is on making certain that unlawful and irregular perform is sufficiently mitigated towards and by guaranteeing an adequate channel for whistle-blowers to report untoward conduct without having staying intimidated.”
It recommended which the NLC build a “safe channel” for employees to provide info on any “untoward exercise” that could not protect against or discourage staff members from blowing the whistle. A whistle-blowers coverage, determined by the Guarded Disclosures Act twenty five of 2000, is usually a prerequisite.”
Media reviews Nene listed
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Exercise Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and operator from the Limpopo Mirror, to reveal NLC corruption. “The posting had aspects of data not offered in the public domain, thus boosting worry on inner Details safety breaches. The allegations within the media were independently investigated,” Nene reported. “On the other hand, personnel liable for divulging classified facts have but to be recognized”;
A 28 January 2018 article revealed by the Dally Dispatch “citing several allegations within the Limpopo Mirror post revealed on ten December 2017 in addition to a new allegation referring to a former employee through the title of Mzukisi Makatse. He was charged and summarily dismissed for your risk triggered on the organisation.”
A 16 November 2018 write-up inside the Lowvelder in regards to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Despite obtaining R27-million in lottery grants, the rehab has never been done. “The Lowvelder report contained classified information and facts with regard to NLC policy, increasing additional problems of internal data stability breaches,” Nene mentioned in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an independent Investigation, nonetheless [it] highlighted the heightened information and facts stability dangers inside 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 had verified in its Tale that it had been determined by leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Use of Data) request for details about the challenge, she claimed
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