Previous Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Safety Company (SSA) in December 2018 to analyze the leaking of documents that exposed lottery corruption.
The NLC’s enterprise secretary at the time detailed media stories she reported were determined by “stolen” facts within an affidavit for that SSA.
The SSA did examine. It identified the information wasn't a make any difference of condition security and which the “prevalence of alleged corruption and irregularities” gave “ample motive” for the media to reveal it.
A whole new board and management has since taken in excess of the NLC and To this point have taken steps to finish corruption within the establishment.
A Point out Protection Agency (SSA) investigation uncovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied sufficient motive” for publicity with the media.
The probe into intended “data security breaches and sabotage of NLC operations” was undertaken just after then-NLC board chairperson Alfred Nevhutanda wrote to the SSA in December 2018 requesting it to investigate.
Here is
Nevhutanda’s letter,
an affidavit by at this time suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the security agency’s “private” conclusions and proposals.
Nevhutanda requested the SSA to research the position of NLC team during the alleged leaking of data, and Nene, in her affidavit identified particular media and reports that she claimed concerned these leaks.
From the letter outlining its conclusions, the SSA informed the NLC that even though protecting state data was “a authorized vital aimed at guarding the sovereignty and integrity from the state” this only placed on correctly labeled data.
Although it didn't say so instantly, the SSA results implied that the allegedly leaked information didn't drop into this classification.
Noticeably, the SSA designed it obvious that the necessity to guard state facts “will not reduce any specific from blowing the whistle on corruption or irregular or criminality”.
The SSA investigation identified the NLC information associated with the alleged breach was “sensitive and privileged in character, although not labeled with regards to the prescripts on the Least Information and facts Stability Standards (MISS)”.
“The leakage of the relevant delicate official NLC details for the media doesn't pose a danger to nationwide security,” the SSA reported, incorporating that the impression in the breaches was reputational.
The SSA report found “no evidence of the factual and incriminating nature from any from the suspected NLC staff members that might be determined from the data and information interrogated”.
In addition it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does supply sufficient motive to own these types of uncovered during the media”.
Conspiracy promises
In 2020, Nevhutanda explained to MPs during a session of Parliament’s trade, industry and Opposition portfolio committee that there was “a conspiracy” by which info “stolen” from the NLC was despatched towards the US, where he claimed it had been becoming bought to fund a smear campaign from the NLC.
He was repeating equivalent promises he had Formerly built in Parliament, which incorporated advertisement hominem assaults on GroundUp which reporter but was mindful not to name both.
“I arrived in this article On this August property past calendar year and reported to honourable members that information about our beneficiaries is stolen and place in one point out in the usa,” he instructed MPs.
“We identified as about the State Security Company to come look into the make any difference mainly because we're getting stories that our details is generating income for media platforms and journalists,” he stated. “There was talk, naturally from one supply, just one media, that spoke A lot about proactive-funding,” Nevhutanda explained (referring to GroundUp), but did not notify MPs which the SSA investigation were done almost a year before.
Proactive funding was at the guts in the looting in the lottery. It aspect-stepped the traditional grant process. The NLC could alone identify a project to fund and appoint a non-financial gain organisation to supervise it.
Right after Nevhutanda initial told Parliament in 2018 that he had questioned the SSA to investigate the intended breach, the South African Nationwide Editors Forum issued a statement stating that his remarks mirrored “an incredibly unsafe Perspective exactly where the media is being blamed to the NLC’s inherent issues”.
“In lieu of investigating why hundreds of thousands can not be accounted for, the NLC has alternatively made an effort to Forged question to the integrity in the journalists included and has questioned the SSA to investigate their resources.”
Proactive tasks manufactured top secret
Security flaws identified in the NLC grant funding procedure over the SSA’s investigation, look to are utilised being an excuse through the NLC to remove all proactive-funded projects from its central grants method.
“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘secret’ and initiatives had been faraway from the grant funding procedure and preserved manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Executive Supervisor Lawful so that you can safeguard [the] facts,” Nene mentioned in her affidavit.
“There was many interior dialogue, with many back and forth, about what to do to plug the alleged leaks”, a supply, who was in a senior place for the NLC at enough time, advised GroundUp. “In the end, the choice was taken to remove all the proactive initiatives from your procedure and limit use of A few men and women”.
Some in that handful of people have been implicated in corruption.
Maselwa, who resigned within the NLC numerous yrs back, is implicated in corruption involving lottery money. He gained R4.three-million from lottery cash allocated to create a library and museum advanced in Kuruman (see Taung Cultural New music and Arts Expo) which he made use of to make a dwelling within an upmarket gated progress in Pretoria. The house is one of several compensated for with lottery money that were frozen following the Asset Forfeiture Unit received a preservation purchase in December 2022.
The politically-related Nevhutanda, who was appointed as being the NLC board chairperson by former President Jacob Zuma in 2009 and was near to higher-ups during the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated in the corruption which overcome the NLC on their own check out.
Also implicated are former board associates William Huma, who resigned immediately after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have because died.
Each time a new administration, including the total board and government, took in excess of for the NLC in late 2022 and early 2023, they learned a “chaotic mess” from the documentation regarding proactive funding, Substantially of which was paper-dependent. Essential documents were being missing. Files held for safekeeping by doc storage business Metrofile were signed out and in no way returned.
The NLC was in a position to Get well copies of some ruay paperwork from its Mimecast e-mail archiving system as well as laptops of their assistants and assistance team.
News experiences
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has mentioned with grave worry feasible information and facts security breaches plus the unauthorised use and/or dissemination of private details received due to performing official functions inside the Commission by NLC staff. The functions are meant to undermine the integrity with the Commission even though disrupting the powerful features [in the NLC] and leading to insurmountable reputational harm into the Fee since the custodian of personal information and facts entrusted to it by its beneficiaries.”
His request for the SSA to analyze was supported in an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.
Nene is at the moment 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 said, was “to document the gatherings which transpired relating to details safety breaches for the Countrywide Lotteries Fee”.
She stated many information stories which she claimed ended up the final results of those “breaches” (see at the end of this post).
Nene mentioned that a whistle-blower approached the NLC alleging that among its workers, Sello Qhino, experienced “presented her classified NLC Information and facts and persistently encouraged her to deliver the information to GroundUp”.
Qhino, who blew the whistle with a series of dodgy lottery-funded assignments in Kuruman after makes an attempt to lift the issue internally have been overlooked, was subsequently fired.
Referring to an eighteen November 2018 post while in the Day by day Dispatch regarding the misappropriation of Lottery cash, Nene claimed which the NLC determined after which you can suspended Zintle Rungqu. She was an staff during the NLC’s East London office, who was the partner as well as mother of whistleblower Mzukise Makatse’s three little ones.
Rungqu and Makatse believe Rungqu was punished since Makatse blew the whistle. She was suspended and charged internally, While using the NLC expending R470,000 on attorneys to symbolize it, but was uncovered not guilty and permitted to return to operate.
“The frequent Think about these content articles is the fact that [they involve] labeled info concerning proactive funding tasks,” Nene explained in her affidavit.
When Runqu was suspended, Makatse moved out of your family members home to take the heat off her and his youngsters. Experiencing homelessness, he moved into an Business office in an empty manufacturing unit belonging to a colleague.
Both equally Makatse and Qhino are taking part in an NLC reparation course of action intended to recognise the hurt some people endured in the arms in the NLC. Apologies and, occasionally, economic payment are expected.
“Some persons were genuinely afflicted extremely negatively by this … This is absolutely unpleasant,” NLC Commissioner Jodi Scholtz told the Day-to-day Maverick very last calendar year.
“I achieved a couple of these folks. It had been just so coronary heart-wrenching that their complete life are actually turned the other way up,” claimed Scholtz.
Between People she met were being Qhino and Makatse.
Safe and sound platform needed for whistleblowers
The SSA observed the absence at time of an appropriate channel for whistleblowers to report corruption led them to turn into the media.
“Failure to have a committed anti-corruption channel will lead to workforce presenting these kinds of cases outside of the NLC,” the SSA claimed in its conclusions.
“Given the magnitude of corruption in state institutions, it stays important that it makes certain that the NLC complies with all security prescripts Which its focus is on ensuring that unlawful and irregular perform is sufficiently mitigated from and by making certain an ample channel for whistle-blowers to report untoward carry out without having currently being intimidated.”
It advisable that the NLC build a “Risk-free channel” for employees to offer information on any “untoward action” that would not protect against or discourage workers from blowing the whistle. A whistle-blowers coverage, according to the Secured Disclosures Act twenty five of 2000, is actually a prerequisite.”
Media reports Nene detailed
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Physical fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner from the Limpopo Mirror, to expose NLC corruption. “The post had elements of data not out there in the general public domain, thus increasing concern on interior Facts safety breaches. The allegations within the media were being independently investigated,” Nene explained. “Nevertheless, workforce to blame for divulging classified data have yet to get discovered”;
A 28 January 2018 write-up released by the Dally Dispatch “citing many allegations through the Limpopo Mirror short article posted on ten December 2017 and a new allegation relating to a former staff by the identify of Mzukisi Makatse. He was charged and summarily dismissed to the threat brought on to the organisation.”
A sixteen November 2018 report inside the Lowvelder in regards to the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of acquiring R27-million in lottery grants, the rehab has never been concluded. “The Lowvelder write-up contained categorised info concerning NLC policy, elevating even further concerns of inner facts stability breaches,” Nene said in her affidavit. “The prima facie proof with regard to these allegations didn't warrant an unbiased Investigation, however [it] highlighted the heightened info security risks within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene said GroundUp experienced confirmed in its Tale that it had been according to leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Use of Info) ask for for particulars about the job, she stated