Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda questioned 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 reports she stated had been determined by “stolen” data in an affidavit for the SSA.
The SSA did look into. It located the information wasn't a issue of state stability and the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for your media to expose it.
A completely new board and management has because taken about the NLC and To this point have taken actions to finish corruption within the establishment.
A Point out Security Company (SSA) investigation uncovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided enough motive” for exposure from the media.

The probe into meant “data security breaches and sabotage of NLC functions” was undertaken soon after then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by at present suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the security agency’s “private” results and recommendations.
Nevhutanda requested the SSA to investigate the purpose of NLC personnel inside the alleged leaking of data, and Nene, in her affidavit identified particular media and reports that she claimed included these leaks.

Within the letter outlining its results, the SSA told the NLC that even though defending point out information was “a legal critical geared toward protecting the sovereignty and integrity on the point out” this only applied to properly labeled details.

Even though it didn't say so instantly, the SSA conclusions implied that the allegedly leaked data did not tumble into this group.

Noticeably, the SSA built it obvious that the need to protect condition details “isn't going to protect against any unique from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation discovered the NLC information associated with the alleged breach was “delicate and privileged in mother nature, although not categorized concerning the prescripts from the Bare minimum Facts Protection Standards (MISS)”.

“The leakage from the pertinent sensitive Formal NLC information and facts into the media would not pose a menace to national security,” the SSA reported, incorporating that the effects with the breaches was reputational.

The SSA report identified “no proof of a factual and incriminating nature from any from the suspected NLC workforce that can be discovered from the information and facts interrogated”.

In addition, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does offer ample motive to own such uncovered inside the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs in the course of a session of Parliament’s trade, industry and Opposition portfolio committee that there was “a conspiracy” through which facts “stolen” within the NLC was despatched into the US, where he claimed it absolutely was being bought to fund a smear campaign against the NLC.

He was repeating identical statements he had Earlier created in Parliament, which incorporated advert hominem attacks on GroundUp which reporter but was thorough not to name either.

“I came in this article With this August residence past yr and described to honourable members that details about our beneficiaries has actually been stolen and set in one condition in the united states,” he instructed MPs.

“We termed within the State Stability Company to return look into the issue because we've been getting reviews that our details is producing cash for media platforms and journalists,” he mentioned. “There has been speak, of course from one resource, a single media, that spoke Substantially about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but failed to inform MPs which the SSA investigation had been finished almost a calendar year previously.

Proactive funding was at the heart from the looting in the lottery. It side-stepped the traditional grant method. The NLC could by itself identify a challenge to fund and appoint a non-gain organisation to oversee it.

Soon after Nevhutanda to start with told Parliament in 2018 that he had requested the SSA to analyze the supposed breach, the South African National Editors Discussion board issued a statement indicating that his remarks reflected “a particularly risky Frame of mind where the media is being blamed with the NLC’s inherent problems”.

“Rather then investigating why hundreds of thousands can not be accounted for, the NLC has instead tried to Forged doubt about the integrity of the journalists included and it has asked the SSA to research their resources.”

Proactive tasks created mystery
Safety flaws identified in the NLC grant funding system during the SSA’s investigation, appear to have been applied as an justification from the NLC to eliminate all proactive-funded tasks from its central grants system.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘magic formula’ and initiatives were being faraway from the grant funding method and preserved manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Workplace, Executive Manager Legal as a way to safeguard [the] details,” Nene explained in her affidavit.

“There was many inside discussion, with plenty of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was inside a senior position within the NLC at time, told GroundUp. “In the long run, the decision was taken to eliminate each of the proactive jobs through the system and Restrict use of a handful of individuals”.

Some in that handful of folks ended up implicated in corruption.

Maselwa, who resigned through the NLC a number of decades in the past, has been implicated in corruption involving lottery cash. He received R4.3-million from lottery cash allotted to construct a library and museum advanced in Kuruman (see Taung Cultural Songs and Arts Expo) which he utilised to make a home in an upmarket gated progress in Pretoria. The assets is among a number of paid for with lottery funds that were frozen after the Asset Forfeiture Device attained a preservation get in December 2022.

The politically-related Nevhutanda, who was appointed as being the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to higher-ups within the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated within the corruption which confused the NLC on their own view.

Also implicated are previous board associates William Huma, who resigned after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has since died.

Every time a new administration, such as the whole board and government, took around on the NLC in late 2022 and early 2023, they found out a “chaotic mess” within the documentation associated with proactive funding, A great deal of which was paper-primarily based. Crucial paperwork have been missing. Information held for safekeeping by document storage business Metrofile had been signed out and never returned.

The NLC was in a position to recover copies of some สลาก กิน files from its Mimecast email archiving technique as well as laptops in their assistants and support workers.

News studies
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave worry attainable data safety breaches along with the unauthorised use and/or dissemination of confidential details obtained on account of accomplishing official capabilities from the Commission by NLC employees. The functions are intended to undermine the integrity of your Commission when disrupting the efficient features [of the NLC] and triggering insurmountable reputational hurt towards the Commission given that the custodian of personal details entrusted to it by its beneficiaries.”

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

Nene is at present dealing with a disciplinary inquiry soon after she was unsuccessful in authorized action to set aside conclusions of irregular expenditure on her check out.

The goal of her affidavit, Nene claimed, was “to report the gatherings which transpired associated with details security breaches within the Nationwide Lotteries Commission”.

She stated different information studies which she claimed were the final results of these “breaches” (see at the end of this informative article).

Nene said that a whistle-blower approached the NLC alleging that one among its employees, Sello Qhino, had “offered her labeled NLC Information and persistently encouraged her to provide the information to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded tasks in Kuruman immediately after attempts to lift The difficulty internally ended up ignored, was subsequently fired.

Referring to an eighteen November 2018 post in the Everyday Dispatch regarding the misappropriation of Lottery funds, Nene mentioned which the NLC identified and afterwards suspended Zintle Rungqu. She was an personnel inside the NLC’s East London Business, who was the companion along with the mom of whistleblower Mzukise Makatse’s 3 kids.

Rungqu and Makatse believe Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, Together with the NLC expending R470,000 on legal professionals to stand for it, but was located not responsible and allowed to return to operate.

“The typical Think about these articles or blog posts is the fact that [they require] labeled information relating to proactive funding assignments,” Nene reported in her affidavit.

When Runqu was suspended, Makatse moved out from the family members property to go ahead and take heat off her and his small children. Going through homelessness, he moved into an office in an empty manufacturing unit belonging to a friend.

The two Makatse and Qhino are taking part in an NLC reparation system meant to recognise the harm some individuals suffered at the arms on the NLC. Apologies and, in some cases, economical compensation are predicted.

“Some folks were being actually influenced extremely negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz told the Everyday Maverick very last calendar year.

“I met a few these persons. It absolutely was just so coronary heart-wrenching that their total life are turned the other way up,” claimed Scholtz.

Between Those people she fulfilled have been Qhino and Makatse.

Protected System wanted for whistleblowers
The SSA located the absence at the 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 staff members presenting these kinds of cases outside of the NLC,” the SSA claimed in its conclusions.

“Offered the magnitude of corruption in condition establishments, it continues to be crucial that it ensures that the NLC complies with all safety prescripts and that its target is on guaranteeing that illegal and irregular conduct is adequately mitigated against and by ensuring an adequate channel for whistle-blowers to report untoward perform without the need of remaining intimidated.”

It proposed the NLC set up a “safe channel” for workers to supply info on any “untoward activity” that may not protect against or discourage staff from blowing the whistle. A whistle-blowers plan, depending on the Shielded Disclosures Act 25 of 2000, is usually a requirement.”

Media stories Nene listed
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Physical fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and proprietor in the Limpopo Mirror, to reveal NLC corruption. “The report had factors of information not obtainable in the public area, therefore elevating concern on interior Information and facts protection breaches. The allegations inside the media had been independently investigated,” Nene reported. “Having said that, personnel liable for divulging categorised data have yet being identified”;
A 28 January 2018 report posted through the Dally Dispatch “citing a lot of allegations from the Limpopo Mirror write-up revealed on ten December 2017 and also a new allegation concerning a previous staff by the identify of Mzukisi Makatse. He was billed and summarily dismissed for that menace induced on the organisation.”
A 16 November 2018 post within the Lowvelder regarding 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 not been completed. “The Lowvelder short article contained classified information and facts with regards to NLC coverage, increasing further more concerns of internal info safety breaches,” Nene mentioned in her affidavit. “The prima facie evidence with regard to these allegations didn't warrant an unbiased Investigation, on the other hand [it] highlighted the heightened facts protection hazards within the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Main Treatment, a hijacked NPO. Nene explained GroundUp had verified in its story that it had been according to leaked NLC files. This was despite the NLC rejecting a PAIA (Marketing of Access to Facts) ask for for specifics concerning the task, she said