Previous Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Point out Protection Agency (SSA) in December 2018 to analyze the leaking of documents that exposed lottery corruption.
The NLC’s organization secretary at some time detailed media experiences she mentioned were being based upon “stolen” info in an affidavit to the SSA.
The SSA did examine. It observed the data wasn't a make any difference of point out stability and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” to the media to reveal it.
A different board and management has considering that taken in excess of the NLC and So far have taken measures to finish corruption on the establishment.
A Condition Security Agency (SSA) investigation discovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “offered enough motive” for exposure because of the media.
The probe into supposed “facts security breaches and sabotage of NLC operations” was carried out after then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to analyze.
Here's
Nevhutanda’s letter,
an affidavit by presently suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the security agency’s “confidential” findings and recommendations.
Nevhutanda asked the SSA to investigate the role of NLC employees inside the alleged leaking of information, and Nene, in her affidavit identified unique media and stories that she claimed included these leaks.
Inside the letter outlining its findings, the SSA instructed the NLC that even though defending point out data was “a legal vital geared toward preserving the sovereignty and integrity in the point out” this only placed on appropriately labeled information and facts.
Although it did not say so specifically, the SSA conclusions implied which the allegedly leaked info did not drop into this class.
Appreciably, the SSA made it distinct that the need to protect point out information “does not prevent any individual from blowing the whistle on corruption or irregular or criminality”.
The SSA investigation observed the NLC info linked to the alleged breach was “sensitive and privileged in nature, but not classified concerning the prescripts in the Minimum Facts Security Criteria (MISS)”.
“The leakage on the relevant sensitive official NLC facts into the media isn't going to pose a danger to countrywide safety,” the SSA mentioned, adding the effect of your breaches was reputational.
The SSA report located “no proof of a factual and incriminating mother nature against any from the suspected NLC workers that could be identified from the data and data interrogated”.
What's more, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does give ample motive to have this kind of uncovered during the media”.
Conspiracy promises
In 2020, Nevhutanda informed MPs all through a session of Parliament’s trade, industry and competition portfolio committee that there was “a conspiracy” wherein data “stolen” through the NLC was despatched to your US, exactly where he claimed it had been currently being bought to fund a smear marketing campaign against the NLC.
He was repeating related statements he had previously made in Parliament, which bundled advertisement hominem attacks on GroundUp which reporter but was watchful not to name possibly.
“I came in this article During this August property last 12 months and noted to honourable users that details about our beneficiaries has long been stolen and put in one condition in the usa,” he informed MPs.
“We identified as on the State Safety Agency to come back check into the make any difference since we're receiving studies that our facts is making dollars for media platforms and journalists,” he claimed. “There was chat, needless to say from a single source, just one media, that spoke Substantially about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't explain to MPs that the SSA investigation had been done Practically a year earlier.
Proactive funding was at the center of the looting on the lottery. It facet-stepped the normal grant approach. The NLC could by itself identify a undertaking to fund and appoint a non-financial gain organisation to supervise it.
Just after Nevhutanda initial informed Parliament in 2018 that he had asked the SSA to investigate the meant breach, the South African Countrywide Editors Discussion board issued an announcement stating that his remarks reflected “an extremely dangerous attitude where by the media is staying blamed to the NLC’s inherent issues”.
“Instead of investigating why tens of millions can't be accounted for, the NLC has instead attempted to Forged doubt about the integrity of the journalists concerned and it has questioned the SSA to investigate their sources.”
Proactive assignments built magic formula
Safety flaws determined from the NLC grant funding procedure throughout the SSA’s investigation, seem to have already been utilised as an excuse from the NLC to remove all proactive-funded jobs from its central grants procedure.
“In or about 21 December 2019, the classification of all pro-actively funding tasks was heightened to ‘magic formula’ and jobs ended up removed from the grant funding process and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Workplace, Govt Supervisor Legal so that you can safeguard [the] details,” Nene claimed in her affidavit.
“There was lots of inside dialogue, with many back and forth, about what to do to plug the alleged leaks”, a source, who was within a senior situation for the NLC at time, explained to GroundUp. “In the end, the decision was taken to get rid of many of the proactive tasks from your process and Restrict usage of A few people today”.
Some in that handful of people were implicated in corruption.
Maselwa, who resigned in the NLC numerous a long time ago, continues to be implicated in corruption involving lottery funds. He received R4.three-million from lottery money allocated to make a library and museum advanced in Kuruman (see Taung Cultural Audio and Arts Expo) which he utilized to build a household in an upmarket gated enhancement in Pretoria. The house is among numerous paid for with lottery funds that were frozen once the Asset Forfeiture Unit obtained a preservation purchase in December 2022.
The politically-linked Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to high-ups within the ANC Management, previous NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated during the corruption which confused the NLC on their own watch.
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 may have because died.
Any time a new administration, including the full board and govt, took more than for the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” inside the documentation relating to proactive funding, much of which was paper-based mostly. Key documents have been lacking. Documents held for safekeeping by doc storage enterprise Metrofile had been signed out and by no means returned.
The NLC was capable to recover copies of some ตรวจ paperwork from its Mimecast email archiving procedure along with the laptops in their assistants and assistance staff members.
News reports
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem possible facts safety breaches and the unauthorised use and/or dissemination of private info acquired because of doing official features while in the Commission by NLC staff. The actions are meant to undermine the integrity on the Fee although disrupting the effective features [of your NLC] and leading to insurmountable reputational damage to your Fee given that the custodian of private information entrusted to it by its beneficiaries.”
His ask for for the SSA to investigate was supported within an affidavit by suspended NLC enterprise secretary, Nomphumelelo Nene.
Nene is now struggling with a disciplinary inquiry after she was unsuccessful in lawful action to put aside results of irregular expenditure on her view.
The goal of her affidavit, Nene claimed, was “to document the situations which transpired regarding info stability breaches on the Countrywide Lotteries Fee”.
She shown many news studies which she claimed were being the outcomes of those “breaches” (see at the end of this article).
Nene mentioned that a whistle-blower approached the NLC alleging that one among its staff members, Sello Qhino, experienced “furnished her labeled NLC Facts and persistently inspired her to supply the information to GroundUp”.
Qhino, who blew the whistle with a number of dodgy lottery-funded assignments in Kuruman right after attempts to boost the issue internally were overlooked, was subsequently fired.
Referring to an 18 November 2018 posting while in the Every day Dispatch about the misappropriation of Lottery money, Nene reported the NLC determined and after that suspended Zintle Rungqu. She was an personnel during the NLC’s East London Place of work, who was the husband or wife and also the mother of whistleblower Mzukise Makatse’s a few young children.
Rungqu and Makatse think Rungqu was punished simply because Makatse blew the whistle. She was suspended and billed internally, With all the NLC spending R470,000 on attorneys to stand for it, but was identified not responsible and permitted to return to work.
“The frequent Think about these posts is always that [they contain] classified info associated with proactive funding initiatives,” Nene claimed in her affidavit.
When Runqu was suspended, Makatse moved out of your family house to go ahead and take warmth off her and his little ones. Experiencing homelessness, he moved into an Office environment in an vacant manufacturing unit belonging to a buddy.
Each Makatse and Qhino are taking part in an NLC reparation approach intended to recognise the damage many people experienced on the hands with the NLC. Apologies and, in some cases, money compensation are anticipated.
“Some people today had been genuinely afflicted extremely negatively by this … This is absolutely distressing,” NLC Commissioner Jodi Scholtz explained to the Every day Maverick final yr.
“I satisfied several these men and women. It had been just so heart-wrenching that their entire life have been turned the other way up,” claimed Scholtz.
Amid 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 result in personnel presenting this kind of scenarios beyond the NLC,” the SSA stated in its results.
“Supplied the magnitude of corruption in point out establishments, it remains essential that it makes sure that the NLC complies with all safety prescripts and that its emphasis is on guaranteeing that illegal and irregular conduct is sufficiently mitigated against and by making sure an suitable channel for whistle-blowers to report untoward perform devoid of staying intimidated.”
It encouraged the NLC establish a “Harmless channel” for employees to deliver info on any “untoward activity” that could not avoid or discourage employees from blowing the whistle. A whistle-blowers coverage, based on the Secured Disclosures Act twenty five of 2000, can be a need.”
Media reviews Nene stated
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and 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 components of information not available in the general public area, therefore elevating concern on interior Information and facts protection breaches. The allegations while in the media had been independently investigated,” Nene said. “However, staff members answerable for divulging classified facts have but to generally be recognized”;
A 28 January 2018 posting printed via the Dally Dispatch “citing many allegations with the Limpopo Mirror article printed on 10 December 2017 plus a new allegation concerning a previous staff by the name of Mzukisi Makatse. He was billed and summarily dismissed with the danger prompted into the organisation.”
A sixteen November 2018 report while in the Lowvelder with regards to the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite obtaining R27-million in lottery grants, the rehab has never been done. “The Lowvelder report contained classified information and facts regarding NLC plan, elevating further worries of interior details protection breaches,” Nene said in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, having said that [it] highlighted the heightened info safety pitfalls in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Principal Care, a hijacked NPO. Nene mentioned 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 Details) request for aspects with regard to the job, she mentioned
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