Lottery bosses turned to State Stability Company to analyze leaks

Previous Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the State Stability Agency (SSA) in December 2018 to analyze the leaking of paperwork that uncovered lottery corruption.
The NLC’s firm secretary at the time shown media reports she claimed were dependant on “stolen” info in an affidavit to the SSA.
The SSA did look into. It uncovered the data wasn't a make a difference of point out stability and the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to show it.
A whole new board and administration has given that taken around the NLC and To this point have taken measures to end corruption in the institution.
A Condition Stability Agency (SSA) investigation located which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered ample motive” for publicity from the media.

The probe into intended “details security breaches and sabotage of NLC operations” was undertaken immediately after then-NLC board chairperson Alfred Nevhutanda wrote to the SSA in December 2018 requesting it to research.

Here's

Nevhutanda’s letter,
an affidavit by at the moment suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety agency’s “confidential” conclusions and proposals.
Nevhutanda requested the SSA to investigate the purpose of NLC team in the alleged leaking of data, and Nene, in her affidavit discovered specific media and stories that she claimed concerned these leaks.

In the letter outlining its results, the SSA explained to the NLC that whilst shielding condition information and facts was “a legal very important geared toward defending the sovereignty and integrity in the point out” this only placed on appropriately categorized information and facts.

Even though it did not say so directly, the SSA results implied the allegedly leaked information and facts didn't fall into this category.

Noticeably, the SSA made it distinct that the need to shield state info “will not avoid any personal from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation discovered which the NLC facts associated with the alleged breach was “delicate and privileged in character, although not labeled regarding the prescripts from the Minimum amount Data Stability Expectations (MISS)”.

“The leakage on the relevant sensitive official NLC facts to the media will not pose a menace to nationwide protection,” the SSA reported, adding which the impact from the breaches was reputational.

The SSA report identified “no evidence of the factual and incriminating mother nature from any with the suspected NLC workforce which could be determined from the knowledge and information interrogated”.

Additionally, it mentioned that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does provide sufficient motive to possess these types of exposed during the media”.

Conspiracy claims
In 2020, Nevhutanda instructed MPs in the course of a session of Parliament’s trade, field and Opposition portfolio committee that there was “a conspiracy” wherein info “stolen” through the NLC was despatched to your US, where by he claimed it absolutely was being sold to fund a smear campaign against the NLC.

He was repeating similar claims he experienced Earlier manufactured in Parliament, which provided ad hominem assaults on GroundUp and this reporter but was cautious not to call either.

“I arrived listed here On this August house very last yr and claimed to honourable associates that information about our beneficiaries has actually been stolen and put in one condition in the usa,” he told MPs.

“We identified as on the State Safety Agency to come back investigate the subject due to the fact we've been obtaining studies that our information is creating cash for media platforms and journalists,” he mentioned. “There was chat, not surprisingly from just one source, one particular media, that spoke Considerably about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't tell MPs that the SSA investigation were accomplished Just about a calendar year previously.

Proactive funding was at the center in the looting of your lottery. It facet-stepped the traditional grant approach. The NLC could alone detect a job to fund and appoint a non-revenue organisation to oversee it.

Immediately after Nevhutanda very first told Parliament in 2018 that he experienced asked the SSA to research the meant breach, the South African National Editors Discussion board issued a press release stating that his remarks mirrored “an extremely harmful Mind-set the place the media is remaining blamed for that NLC’s inherent challenges”.

“In lieu of investigating why thousands and thousands cannot be accounted for, the NLC has in its place attempted to Forged doubt to the integrity from the journalists included and it has asked the SSA to investigate their resources.”

Proactive jobs produced solution
Stability flaws identified inside the NLC grant funding process during the SSA’s investigation, seem to are already applied being an excuse through the NLC to remove all proactive-funded tasks from its central grants method.

“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘mystery’ and assignments were faraway from the grant funding program and maintained manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Workplace, Govt Manager Authorized to be able to safeguard [the] facts,” Nene mentioned in her affidavit.

“There was many internal discussion, with a great deal of forwards and backwards, about how to proceed to plug the alleged leaks”, a source, who was inside a senior placement for the NLC at some time, explained to GroundUp. “Eventually, the choice was taken to get rid of the many proactive initiatives with the process and limit access to A few people today”.

Some in that handful of men and women have been implicated in corruption.

Maselwa, who resigned in the NLC several yrs ago, has been implicated in corruption involving lottery cash. He received R4.3-million from lottery resources allocated to build a library and museum elaborate in Kuruman (see Taung Cultural Tunes and Arts Expo) which he utilised to construct a house within an upmarket gated advancement in Pretoria. The assets is one of quite a few paid out for with lottery resources that were frozen following the Asset Forfeiture Device obtained a preservation purchase in December 2022.

The politically-related Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near high-ups while in the ANC Management, previous NLC previous Commissioner Thabang Mampane, and ex-Main operating officer Phillemon Letwaba, have all been implicated from the corruption which confused the NLC on their own check out.

Also implicated are previous board users William Huma, who resigned after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got due to the fact died.

Every time a new administration, including the whole board and govt, took about with the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” within the documentation relating to proactive funding, Substantially of which was paper-primarily based. Key paperwork were being missing. Documents held for safekeeping by doc storage firm Metrofile were signed out and by no means returned.

The NLC was in the position to recover copies of some สลาก กิน รัฐบาล documents from its Mimecast email archiving process along with the laptops in their assistants and assist employees.

Information reports
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave worry possible data stability breaches and also the unauthorised use and/or dissemination of confidential facts attained on account of carrying out official functions within the Commission by NLC workers. The routines are intended to undermine the integrity from the Fee though disrupting the helpful features [in the NLC] and leading to insurmountable reputational harm into the Commission as the custodian of private data entrusted to it by its beneficiaries.”

His ask for for that SSA to investigate was supported within an affidavit by suspended NLC business secretary, Nomphumelelo Nene.

Nene is at this time dealing with a disciplinary inquiry just after she was unsuccessful in legal action to put aside conclusions of irregular expenditure on her view.

The objective of her affidavit, Nene claimed, was “to record the activities which transpired regarding information and facts stability breaches with the Nationwide Lotteries Fee”.

She outlined different information experiences which she claimed ended up the outcomes of those “breaches” (see at the end of this post).

Nene explained that a whistle-blower approached the NLC alleging that considered one of its personnel, Sello Qhino, experienced “presented her classified NLC Details and persistently encouraged her to offer the data to GroundUp”.

Qhino, who blew the whistle over a number of dodgy lottery-funded jobs in Kuruman right after makes an attempt to raise the issue internally had been dismissed, was subsequently fired.

Referring to an 18 November 2018 article while in the Day-to-day Dispatch with regards to the misappropriation of Lottery cash, Nene explained that the NLC discovered and then suspended Zintle Rungqu. She was an personnel inside the NLC’s East London Workplace, who was the partner plus the mom of whistleblower Mzukise Makatse’s three little ones.

Rungqu and Makatse believe Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, Together with the NLC shelling out R470,000 on lawyers to depict it, but was found not guilty and allowed to return to work.

“The typical factor in these posts is always that [they contain] categorised information and facts concerning proactive funding initiatives,” Nene explained in her affidavit.

When Runqu was suspended, Makatse moved out in the family members household to take the warmth off her and his youngsters. Going through homelessness, he moved into an Place of work within an vacant manufacturing facility belonging to a pal.

Both equally Makatse and Qhino are participating in an NLC reparation method intended to recognise the hurt some individuals endured for the arms from the NLC. Apologies and, in some instances, money payment are expected.

“Some men and women were being actually impacted pretty negatively by this … This is basically unpleasant,” NLC Commissioner Jodi Scholtz told the Day by day Maverick very last yr.

“I achieved several these people. It had been just so coronary heart-wrenching that their whole lives are actually turned upside down,” explained Scholtz.

Among the These she satisfied have been Qhino and Makatse.

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

“Failure to possess a committed anti-corruption channel will end in staff members presenting these situations outside of the NLC,” the SSA said in its conclusions.

“Provided the magnitude of corruption in state establishments, it remains very important that it makes sure that the NLC complies with all stability prescripts and that its aim is on making certain that unlawful and irregular perform is adequately mitigated from and by making sure an satisfactory channel for whistle-blowers to report untoward carry out without getting intimidated.”

It encouraged which the NLC build a “Secure channel” for employees to supply information on any “untoward activity” that will not avoid or discourage personnel from blowing the whistle. A whistle-blowers coverage, depending on the Guarded Disclosures Act 25 of 2000, is a need.”

Media studies Nene detailed
A ten December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Physical fitness Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and proprietor of the Limpopo Mirror, to reveal NLC corruption. “The article had things of information not offered in the general public area, thus raising concern on inner Facts stability breaches. The allegations within the media had been independently investigated,” Nene explained. “On the other hand, workforce responsible for divulging classified info have but for being recognized”;
A 28 January 2018 report revealed with the Dally Dispatch “citing several allegations in the Limpopo Mirror posting revealed on ten December 2017 plus a new allegation relating to a former staff through the title of Mzukisi Makatse. He was billed and summarily dismissed for your risk prompted towards the organisation.”
A 16 November 2018 report during the Lowvelder in regards to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has described how, Despite obtaining R27-million in lottery grants, the rehab has not been accomplished. “The Lowvelder report contained labeled data regarding NLC coverage, raising further fears of inside details stability breaches,” Nene explained in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an impartial Investigation, however [it] highlighted the heightened data security pitfalls throughout the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Key Treatment, a hijacked NPO. Nene stated GroundUp had confirmed in its story that it had been based upon leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Advertising of Usage of Information) request for particulars in regards to the task, she claimed

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