Previous Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Condition Security Company (SSA) in December 2018 to investigate the leaking of files that exposed lottery corruption.
The NLC’s company secretary at enough time outlined media experiences she explained were dependant on “stolen” details within an affidavit to the SSA.
The SSA did investigate. It identified the data was not a make a difference of condition protection and which the “prevalence of alleged corruption and irregularities” gave “enough motive” for that media to reveal it.
A different board and management has since taken in excess of the NLC and To this point have taken steps to end corruption in the establishment.
A Condition Security Agency (SSA) investigation identified that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided sufficient motive” for exposure from the media.
The probe into meant “information and facts safety breaches and sabotage of NLC operations” was carried out immediately after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to analyze.
Here's
Nevhutanda’s letter,
an affidavit by at this time suspended NLC business secretary Nompumelelo Nene supporting the request, and
the security agency’s “private” findings and recommendations.
Nevhutanda asked the SSA to analyze the role of NLC workers within the alleged leaking of information, and Nene, in her affidavit recognized distinct media and reports that she claimed included these leaks.
Inside the letter outlining its results, the SSA advised the NLC that although preserving point out details was “a legal very important targeted at defending the sovereignty and integrity of the condition” this only placed on appropriately labeled details.
Even though it didn't say so straight, the SSA results implied which the allegedly leaked info did not drop into this group.
Considerably, the SSA manufactured it crystal clear that the necessity to secure point out information “doesn't stop any personal from blowing the whistle on corruption or irregular or illegal activity”.
The SSA investigation discovered that the NLC information and facts involved with the alleged breach was “sensitive and privileged in mother nature, although not classified in terms of the prescripts from the Minimum Facts Safety Standards (Miss out on)”.
“The leakage of the suitable delicate official NLC data to the media isn't going to pose a menace to countrywide stability,” the SSA stated, including the impression of your breaches was reputational.
The SSA report found “no proof of the factual and incriminating mother nature versus any of your suspected NLC employees that may be identified from the data and details interrogated”.
Additionally, it mentioned that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does give ample motive to have these types of exposed in the media”.
Conspiracy statements
In 2020, Nevhutanda told MPs through a session of Parliament’s trade, market and competition portfolio committee that there was “a conspiracy” through which information “stolen” from your NLC was despatched into the US, exactly where he claimed it had been currently being marketed to fund a smear marketing campaign versus the NLC.
He was repeating similar claims he experienced Beforehand designed in Parliament, which involved advertisement hominem attacks on GroundUp which reporter but was very careful not to call either.
“I arrived below With this August property final year and described to honourable associates that specifics of our beneficiaries has actually been stolen and put in one point out in America,” he explained to MPs.
“We referred to as over the Point out Protection Company to return check into the make any difference simply because we've been receiving reports that our details is producing money for media platforms and journalists,” he claimed. “There was converse, needless to say from one source, a person media, that spoke much about proactive-funding,” Nevhutanda reported (referring to GroundUp), but failed to inform MPs the SSA investigation were accomplished Virtually a calendar year earlier.
Proactive funding was at the guts of the looting in the lottery. It side-stepped the normal grant system. The NLC could alone discover a task to fund and appoint a non-financial gain organisation to oversee it.
Right after Nevhutanda first explained to Parliament in 2018 that he had requested the SSA to research the meant breach, the South African Countrywide Editors Discussion board issued a statement expressing that his remarks reflected “a particularly perilous Angle where the media is staying blamed for the NLC’s inherent complications”.
“Rather than investigating why hundreds of thousands can't be accounted for, the NLC has instead tried to Forged doubt within the integrity in the journalists associated and has requested the SSA to analyze their sources.”
Proactive initiatives produced solution
Security flaws recognized from the NLC grant funding system in the course of the SSA’s investigation, surface to have already been utilised being an excuse with the NLC to get rid of all proactive-funded assignments from its central grants technique.
“In or about 21 December 2019, the classification of all pro-actively funding tasks was heightened to ‘key’ and tasks were faraway from the grant funding technique and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Office environment, Executive Supervisor Legal so that you can safeguard [the] data,” Nene stated in her affidavit.
“There was many inner dialogue, with many forwards and backwards, about what to do to plug the alleged leaks”, a resource, who was inside of a senior placement at the NLC at enough time, explained to GroundUp. “In the end, the choice was taken to eliminate many of the proactive jobs from the system and Restrict use of a handful of individuals”.
Some in that handful of people were being implicated in corruption.
Maselwa, who resigned with the NLC various a long time back, has actually been implicated in corruption involving lottery money. He been given R4.3-million from lottery cash allocated to create a library and museum complicated in Kuruman (see Taung Cultural Tunes and Arts Expo) which he used to create a dwelling in an upmarket gated growth in Pretoria. The assets is among a number of paid for with lottery money that were frozen following the Asset Forfeiture Unit acquired a preservation purchase in December 2022.
The politically-connected Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was close to high-ups within the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated while in the corruption which overcome the NLC on their own enjoy.
Also implicated are former board users William Huma, who resigned immediately after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has considering the fact that died.
Each time a new administration, such as the complete board and govt, took more than for the NLC in late 2022 and early 2023, they found a “chaotic mess” while in the documentation relating to proactive funding, Significantly of which was paper-dependent. Key documents were missing. Files held for safekeeping by doc storage company Metrofile were signed out and never returned.
The NLC was able to Get better copies of some luckyvip77 documents from its Mimecast email archiving method along with the laptops of their assistants and assist personnel.
News reviews
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave worry attainable data security breaches and the unauthorised use and/or dissemination of private data obtained due to executing Formal functions from the Commission by NLC personnel. The activities are intended to undermine the integrity with the Fee although disrupting the helpful functions [in the NLC] and resulting in insurmountable reputational hurt to the Commission as the custodian of personal details entrusted to it by its beneficiaries.”
His request for your SSA to investigate was supported in an affidavit by suspended NLC company secretary, Nomphumelelo Nene.
Nene is presently struggling with a disciplinary inquiry following she was unsuccessful in authorized motion to put aside results of irregular expenditure on her look at.
The goal of her affidavit, Nene explained, was “to history the situations which transpired concerning info security breaches in the National Lotteries Commission”.
She mentioned several news stories which she claimed had been the effects of such “breaches” (see at the end of this text).
Nene mentioned that a whistle-blower approached the NLC alleging that one of its personnel, Sello Qhino, experienced “provided her labeled NLC Information and facts 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 after attempts to raise The difficulty internally ended up overlooked, was subsequently fired.
Referring to an 18 November 2018 report inside the Day-to-day Dispatch with regard to the misappropriation of Lottery resources, Nene reported which the NLC recognized after which suspended Zintle Rungqu. She was an employee within the NLC’s East London Workplace, who was the partner and the mother of whistleblower Mzukise Makatse’s a few young children.
Rungqu and Makatse feel Rungqu was punished simply because Makatse blew the whistle. She was suspended and charged internally, Along with the NLC paying R470,000 on attorneys to stand for it, but was uncovered not guilty and permitted to return to work.
“The widespread Think about these posts is the fact that [they include] classified information relating to proactive funding projects,” Nene reported in her affidavit.
When Runqu was suspended, Makatse moved out with the relatives property to go ahead and take heat off her and his children. Going through homelessness, he moved into an Workplace in an empty manufacturing facility belonging to a friend.
The two Makatse and Qhino are participating in an NLC reparation course of action meant to recognise the hurt some individuals suffered in the hands from the NLC. Apologies and, in some instances, monetary compensation are expected.
“Some individuals were being seriously impacted very negatively by this … This is really agonizing,” NLC Commissioner Jodi Scholtz informed the Day by day Maverick previous calendar year.
“I satisfied two or three these folks. It absolutely was just so coronary heart-wrenching that their entire lives are actually turned upside down,” mentioned Scholtz.
Between Those people she met had been Qhino and Makatse.
Risk-free System wanted for whistleblowers
The SSA uncovered the absence at some time of an appropriate channel for whistleblowers to report corruption led them to show on the media.
“Failure to have a dedicated anti-corruption channel will result in employees presenting these types of conditions outside of the NLC,” the SSA stated in its conclusions.
“Presented the magnitude of corruption in state establishments, it remains important that it ensures that the NLC complies with all protection prescripts Which its target is on making sure that illegal and irregular carry out is sufficiently mitigated against and by making certain an enough channel for whistle-blowers to report untoward perform with out currently being intimidated.”
It proposed which the NLC build a “Secure channel” for employees to provide info on any “untoward exercise” that may not reduce or discourage employees from blowing the whistle. A whistle-blowers plan, dependant on the Secured Disclosures Act 25 of 2000, is actually a requirement.”
Media experiences Nene shown
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Physical fitness 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 boosting issue on interior Info safety breaches. The allegations from the media were being independently investigated,” Nene reported. “However, workers liable for divulging categorized info have yet to be discovered”;
A 28 January 2018 report printed from the Dally Dispatch “citing various allegations with the Limpopo Mirror write-up posted on 10 December 2017 in addition to a new allegation associated with a previous employee with the identify of Mzukisi Makatse. He was billed and summarily dismissed for your menace prompted towards the organisation.”
A 16 November 2018 report during the Lowvelder regarding the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has described how, Regardless of obtaining R27-million in lottery grants, the rehab has not been finished. “The Lowvelder write-up contained categorized info when it comes to NLC plan, increasing more issues of interior facts safety breaches,” Nene reported in her affidavit. “The prima facie evidence with regards to these allegations did not warrant an impartial Investigation, nevertheless [it] highlighted the heightened facts security pitfalls throughout the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.5-million grant to Denzhe Key Treatment, a hijacked NPO. Nene stated GroundUp had confirmed in its story that it was determined by leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Marketing of Use of Facts) ask for for facts with regard to the project, she said
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