Former Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Point out Protection Company (SSA) in December 2018 to research the leaking of files that exposed lottery corruption.
The NLC’s company secretary at enough time listed media stories she stated ended up determined by “stolen” information and facts within an affidavit for the SSA.
The SSA did investigate. It found the knowledge was not a make any difference of condition protection and the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to show it.
A new board and administration has given that taken in excess of the NLC and Up to now have taken steps to finish corruption within the establishment.
A Point out Stability Company (SSA) investigation found which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered ample motive” for publicity with the media.
The probe into intended “details protection 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 corporation secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “private” results and suggestions.
Nevhutanda requested the SSA to analyze the role of NLC personnel inside the alleged leaking of data, and Nene, in her affidavit determined certain media and experiences that she claimed associated these leaks.
While in the letter outlining its conclusions, the SSA advised the NLC that whilst shielding point out data was “a legal vital aimed toward protecting the sovereignty and integrity on the point out” this only applied to properly labeled information.
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 built it clear that the necessity to protect state information “does not stop any person from blowing the whistle on corruption or irregular or illegal activity”.
The SSA investigation uncovered the NLC details involved in the alleged breach was “delicate and privileged in nature, although not categorized when it comes to the prescripts of your Bare minimum Info Protection Requirements (Miss out on)”.
“The leakage of the appropriate delicate Formal NLC info on the media would not pose a threat to national security,” the SSA mentioned, incorporating the affect with the breaches was reputational.
The SSA report uncovered “no proof of a factual and incriminating nature towards any from the suspected NLC workers that may be identified from the data and knowledge interrogated”.
Furthermore, it stated that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does give ample motive to acquire this sort of uncovered inside the media”.
Conspiracy promises
In 2020, Nevhutanda told MPs through a session of Parliament’s trade, business and Levels of competition portfolio committee that there was “a conspiracy” in which data “stolen” with the NLC was despatched into the US, where he claimed it was being sold to fund a smear marketing campaign versus the NLC.
He was repeating identical promises he had previously made in Parliament, which included advert hominem attacks on GroundUp which reporter but was thorough not to name possibly.
“I came here With this August property last 12 months and noted to honourable users that details about our beneficiaries has long been stolen and put in one point out in the usa,” he informed MPs.
“We identified as on the State Safety Agency to come back check into the matter since we've been obtaining studies that our information is producing dollars for media platforms and journalists,” he claimed. “There have been communicate, obviously from a person source, just one media, that spoke Considerably about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but failed to explain to MPs the SSA investigation were accomplished Practically a year earlier.
Proactive funding was at the center with the looting on the lottery. It facet-stepped the traditional grant system. The NLC could itself determine a venture to fund and appoint a non-profit organisation to supervise it.
Just after Nevhutanda to start with told Parliament in 2018 that he had asked the SSA to investigate the meant breach, the South African Nationwide Editors Forum issued a statement stating that his remarks mirrored “an especially harmful Angle where the media is staying blamed for that NLC’s inherent issues”.
“As opposed to investigating why hundreds of thousands can not be accounted for, the NLC has in its place made an effort to cast doubt within the integrity of the journalists associated and it has asked the SSA to analyze their resources.”
Proactive initiatives produced secret
Safety flaws recognized from the NLC grant funding method throughout the SSA’s investigation, appear to are already utilised as an justification with the NLC to eliminate all proactive-funded assignments from its central grants technique.
“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘mystery’ and tasks ended up faraway from the grant funding system and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Office environment, Government Manager Lawful in an effort to safeguard [the] facts,” Nene said in her affidavit.
“There was lots of interior discussion, with many forwards and backwards, about what to do to plug the alleged leaks”, a supply, who was inside of a senior placement for the NLC at some time, told GroundUp. “Ultimately, the choice was taken to eliminate each of the proactive assignments within the procedure and Restrict entry to a handful of folks”.
Some in that handful of folks have been implicated in corruption.
Maselwa, who resigned through the NLC various decades back, has been implicated in corruption involving lottery resources. He acquired R4.3-million from lottery money allotted to build a library and museum sophisticated in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to construct a dwelling in an upmarket gated development in Pretoria. The house is among numerous paid out for with lottery resources that were frozen following the Asset Forfeiture Device attained a preservation order in December 2022.
The politically-connected Nevhutanda, who was appointed since the NLC board chairperson by former President Jacob Zuma in 2009 and was close to higher-ups while in the ANC leadership, previous NLC previous Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated in the corruption which confused the NLC on their view.
Also implicated are previous board associates William Huma, who resigned following he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have due to the fact died.
Whenever a new administration, such as the entire board and government, took around on the NLC in late 2022 and early 2023, they found out a “chaotic mess” inside the documentation regarding proactive funding, much of which was paper-based mostly. Critical files were being lacking. Data files held for safekeeping by doc storage corporation Metrofile were signed out and hardly ever returned.
The NLC was able to Get better copies of some ตรวจ ล้อ ต เต อ รี่ documents from its Mimecast email archiving technique as well as laptops in their assistants and support employees.
News reports
In his one December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave issue attainable information safety breaches as well as unauthorised use and/or dissemination of private details received due to performing official functions within the Commission by NLC workers. The routines are intended to undermine the integrity in the Commission while disrupting the efficient capabilities [of your NLC] and producing insurmountable reputational damage for the Fee given that the custodian of non-public info entrusted to it by its beneficiaries.”
His ask for for your 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 observe.
The goal of her affidavit, Nene said, was “to record the occasions which transpired regarding details security breaches within the Countrywide Lotteries Fee”.
She shown many news reports which she claimed ended up the outcome of such “breaches” (see at the end of this post).
Nene stated that a whistle-blower approached the NLC alleging that considered one of its personnel, Sello Qhino, experienced “provided her categorized NLC Facts and persistently inspired her to offer the data to GroundUp”.
Qhino, who blew the whistle with a series of dodgy lottery-funded assignments in Kuruman just after tries to lift The difficulty internally had been overlooked, was subsequently fired.
Referring to an eighteen November 2018 post while in the Day-to-day Dispatch with regards to the misappropriation of Lottery money, Nene stated which the NLC identified and after that suspended Zintle Rungqu. She was an staff from the NLC’s East London Workplace, who was the lover and also the mother of whistleblower Mzukise Makatse’s 3 small children.
Rungqu and Makatse feel Rungqu was punished mainly because Makatse blew the whistle. She was suspended and billed internally, Using the NLC paying R470,000 on attorneys to depict it, but was located not responsible and allowed to return to work.
“The typical factor in these posts is [they include] classified information and facts regarding proactive funding assignments,” Nene mentioned in her affidavit.
When Runqu was suspended, Makatse moved out of the relatives residence to go ahead and take heat off her and his young children. Facing homelessness, he moved into an Business office within an vacant manufacturing unit belonging to a pal.
Both equally Makatse and Qhino are taking part in an NLC reparation process meant to recognise the damage many people experienced in the hands with the NLC. Apologies and, in some instances, economic payment are predicted.
“Some people today were actually influenced very negatively by this … This is basically unpleasant,” NLC Commissioner Jodi Scholtz advised the Day-to-day Maverick final year.
“I met a number of these folks. It absolutely was just so heart-wrenching that their entire life happen to be turned the other way up,” mentioned Scholtz.
Between Individuals she achieved were Qhino and Makatse.
Risk-free System essential for whistleblowers
The SSA observed the absence at some time of a proper channel for whistleblowers to report corruption led them to turn towards the media.
“Failure to have a dedicated anti-corruption channel will bring about employees presenting such conditions beyond the NLC,” the SSA stated in its conclusions.
“Presented the magnitude of corruption in state institutions, it continues to be critical that it ensures that the NLC complies with all safety prescripts Which its focus is on guaranteeing that unlawful and irregular perform is adequately mitigated in opposition to and by making sure an sufficient channel for whistle-blowers to report untoward carry out devoid of being intimidated.”
It suggested that the NLC set up a “Protected channel” for employees to supply information on any “untoward activity” that would not prevent or discourage workers from blowing the whistle. A whistle-blowers policy, based on the Protected Disclosures Act twenty five of 2000, can be a necessity.”
Media reports Nene stated
A 10 December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Health 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 posting had aspects of data not accessible in the public domain, therefore increasing worry on inside Information security breaches. The allegations inside the media have been independently investigated,” Nene claimed. “On the other hand, workforce responsible for divulging classified information and facts have nonetheless being recognized”;
A 28 January 2018 post published because of the Dally Dispatch “citing quite a few allegations in the Limpopo Mirror posting revealed on ten December 2017 as well as a new allegation relating to a former personnel by the title of Mzukisi Makatse. He was billed and summarily dismissed with the threat triggered to your organisation.”
A sixteen November 2018 article inside the Lowvelder concerning the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of getting R27-million in lottery grants, the rehab has never been completed. “The Lowvelder article contained categorised information and facts concerning NLC coverage, raising further fears of inside details stability breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations didn't warrant an independent Investigation, on the other hand [it] highlighted the heightened details protection dangers in the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Main Care, a hijacked NPO. Nene explained GroundUp experienced verified in its Tale that it absolutely was based on leaked NLC documents. This was despite the NLC rejecting a PAIA (Promotion of Usage of Information) ask for for details concerning the undertaking, she mentioned
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