Lottery bosses turned to State Security Agency to investigate leaks

Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Protection Company (SSA) in December 2018 to research the leaking of files that exposed lottery corruption.
The NLC’s enterprise secretary at time mentioned media reports she explained were based on “stolen” data within an affidavit for that SSA.
The SSA did examine. It observed the knowledge was not a issue of point out protection and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” to the media to expose it.
A completely new board and management has since taken over the NLC and So far have taken actions to finish corruption in the establishment.
A Condition Protection Company (SSA) investigation identified the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented ample motive” for exposure because of the media.

The probe into meant “information and facts stability breaches and sabotage of NLC functions” was carried out following then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to analyze.

Here is

Nevhutanda’s letter,
an affidavit by now suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “confidential” results and recommendations.
Nevhutanda asked the SSA to research the purpose of NLC workers within the alleged leaking of information, and Nene, in her affidavit discovered distinct media and reports that she claimed included these leaks.

Within the letter outlining its conclusions, the SSA told the NLC that when safeguarding condition details was “a legal crucial aimed at preserving the sovereignty and integrity with the condition” this only placed on properly categorized details.

Even though it didn't say so instantly, the SSA results implied which the allegedly leaked info did not slide into this classification.

Drastically, the SSA produced it distinct that the need to defend state facts “would not reduce any unique from blowing the whistle on corruption or irregular or illegal activity”.

The SSA investigation found the NLC details linked to the alleged breach was “delicate and privileged in character, although not categorized in terms of the prescripts from the Minimum Details Safety Standards (Skip)”.

“The leakage from the appropriate sensitive official NLC information and facts on the media isn't going to pose a risk to countrywide protection,” the SSA explained, introducing that the impact in the breaches was reputational.

The SSA report identified “no evidence of a factual and incriminating nature towards any of the suspected NLC workforce that could be determined from the data and knowledge interrogated”.

Furthermore, it mentioned that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does offer ample motive to obtain these types of exposed in the media”.

Conspiracy statements
In 2020, Nevhutanda explained to MPs through a session of Parliament’s trade, business and Competitors portfolio committee that there was “a conspiracy” where details “stolen” from the NLC was sent to your US, where he claimed it was staying sold to fund a smear campaign from the NLC.

He was repeating identical promises he experienced Earlier designed in Parliament, which involved advertisement hominem attacks on GroundUp and this reporter but was very careful not to call either.

“I came right here On this August home last calendar year and described to honourable associates that information about our beneficiaries continues to be stolen and place in a single state in the usa,” he instructed MPs.

“We identified as to the State Stability Agency to come back look into the make a difference for the reason that we are obtaining studies that our facts is building money for media platforms and journalists,” he stated. “There's been converse, certainly from one source, one particular media, that spoke A great deal about proactive-funding,” Nevhutanda said (referring to GroundUp), but failed to inform MPs which the SSA investigation were concluded Just about a yr before.

Proactive funding was at the center in the looting of your lottery. It side-stepped the traditional grant method. The NLC could itself detect a task to fund and appoint a non-revenue organisation to oversee it.

Following Nevhutanda 1st explained to Parliament in 2018 that he experienced asked the SSA to research the supposed breach, the South African National Editors Forum issued an announcement expressing that his remarks mirrored “an incredibly dangerous attitude where the media is being blamed for the NLC’s inherent complications”.

“Rather then investigating why tens of millions can't be accounted for, the NLC has rather tried to cast question about the integrity from the journalists associated and has asked the SSA to investigate their resources.”

Proactive initiatives designed solution
Security flaws determined within the NLC grant funding procedure in the course of the SSA’s investigation, surface to are used as an excuse from the NLC to get rid of all proactive-funded assignments from its central grants process.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘solution’ and jobs were being faraway from the grant funding system and taken care of manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business, Executive Supervisor Authorized in order to safeguard [the] data,” Nene claimed in her affidavit.

“There was plenty of inner discussion, with a lot of backwards and forwards, about how to proceed to plug the alleged leaks”, a resource, who was inside of a senior place on the NLC at time, told GroundUp. “Eventually, the choice was taken to remove many of the proactive initiatives in the technique and limit access to a handful of folks”.

Some in that handful of individuals were being implicated in corruption.

Maselwa, who resigned in the NLC many years ago, has long been implicated in corruption involving lottery resources. He been given R4.three-million from lottery money allocated to build a library and museum complicated in Kuruman (see Taung Cultural Tunes and Arts Expo) which he made use of to build a household in an upmarket gated improvement in Pretoria. The home is among numerous paid for with lottery resources that were frozen after the Asset Forfeiture Device obtained a preservation order 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 significant-ups within the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated in the corruption which overwhelmed the NLC on their watch.

Also implicated are previous board customers William Huma, who resigned soon after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have since died.

Every time a new administration, including the overall board and executive, took more than with the NLC in late 2022 and early 2023, they discovered a “chaotic mess” while in the documentation concerning proactive funding, Significantly of which was paper-centered. Crucial paperwork ended up lacking. Documents held for safekeeping by document storage organization Metrofile had been signed out and hardly ever returned.

The NLC was in a position to Recuperate copies of some ตรวจ สลากกินแบ่ง รัฐบาล documents from its Mimecast e mail archiving procedure and also the laptops of their assistants and assist employees.

News studies
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave issue possible data protection breaches as well as unauthorised use and/or dissemination of private information attained due to accomplishing Formal functions within the Fee by NLC personnel. The actions are meant to undermine the integrity of the Commission while disrupting the powerful capabilities [in the NLC] and producing insurmountable reputational harm into the Commission given that the custodian of non-public information and facts entrusted to it by its beneficiaries.”

His request for your SSA to research was supported in an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.

Nene is now facing a disciplinary inquiry right after she was unsuccessful in authorized action to set aside conclusions of irregular expenditure on her watch.

The purpose of her affidavit, Nene reported, was “to report the functions which transpired referring to info stability breaches on the Countrywide Lotteries Commission”.

She stated different information reports which she claimed ended up the outcomes of those “breaches” (see at the conclusion of this post).

Nene reported that a whistle-blower approached the NLC alleging that certainly one of its personnel, Sello Qhino, experienced “delivered her categorised NLC Info and persistently encouraged her to provide the data to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded initiatives in Kuruman immediately after makes an attempt to raise the issue internally were being overlooked, was subsequently fired.

Referring to an 18 November 2018 article during the Each day Dispatch with regards to the misappropriation of Lottery money, Nene reported the NLC discovered then suspended Zintle Rungqu. She was an staff inside the NLC’s East London Business, who was the spouse as well as mom of whistleblower Mzukise Makatse’s three youngsters.

Rungqu and Makatse believe that Rungqu was punished because Makatse blew the whistle. She was suspended and billed internally, With all the NLC paying out R470,000 on attorneys to depict it, but was observed not guilty and allowed to return to operate.

“The prevalent Consider these content articles is [they involve] categorised data referring to proactive funding jobs,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out of the relatives house to take the warmth off her and his children. Experiencing homelessness, he moved into an Place of work within an vacant manufacturing facility belonging to a friend.

Equally Makatse and Qhino are taking part in an NLC reparation procedure intended to recognise the harm lots of people experienced for the palms with the NLC. Apologies and, sometimes, fiscal payment are anticipated.

“Some folks had been truly afflicted incredibly negatively by this … This is de facto unpleasant,” NLC Commissioner Jodi Scholtz explained to the Each day Maverick final calendar year.

“I met two or three these men and women. It absolutely was just so heart-wrenching that their complete life happen to be turned the wrong way up,” said Scholtz.

Amongst All those she achieved were Qhino and Makatse.

Protected platform essential for whistleblowers
The SSA uncovered the absence at some time of an appropriate channel for whistleblowers to report corruption led them to show to your media.

“Failure to have a devoted anti-corruption channel will lead to workers presenting this sort of instances beyond the NLC,” the SSA claimed in its results.

“Given the magnitude of corruption in point out institutions, it continues to be critical that it ensures that the NLC complies with all protection prescripts Which its emphasis is on ensuring that illegal and irregular carry out is sufficiently mitigated towards and by guaranteeing an adequate channel for whistle-blowers to report untoward conduct devoid of being intimidated.”

It advised the NLC create a “Safe and sound channel” for workers to deliver info on any “untoward exercise” that will not protect against or discourage workforce from blowing the whistle. A whistle-blowers policy, dependant on the Protected Disclosures Act twenty five of 2000, is really a requirement.”

Media experiences Nene stated
A 10 December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Exercise Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and owner of the Limpopo Mirror, to show NLC corruption. “The posting had components of data not offered in the general public area, therefore raising worry on internal Information security breaches. The allegations in the media ended up independently investigated,” Nene mentioned. “However, personnel chargeable for divulging categorized facts have however to get discovered”;
A 28 January 2018 post printed because of the Dally Dispatch “citing many allegations with the Limpopo Mirror short article posted on ten December 2017 in addition to a new allegation referring to a former employee via the identify of Mzukisi Makatse. He was charged and summarily dismissed for the risk brought about for the organisation.”
A sixteen November 2018 write-up within the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, Regardless of acquiring R27-million in lottery grants, the rehab has not been done. “The Lowvelder article contained classified facts when it comes to NLC policy, elevating more worries of inner information safety breaches,” Nene claimed in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened information protection dangers throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Major Treatment, a hijacked NPO. Nene stated GroundUp experienced verified in its story that it had been according to leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Advertising of Entry to Facts) request for particulars about the undertaking, she mentioned

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