Lottery bosses turned to Point out Protection Company to research leaks

Lottery bosses turned to Point out Protection Company to research leaks

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Former National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Stability Company (SSA) in December 2018 to research the leaking of paperwork that exposed lottery corruption.
The NLC’s business secretary at time shown media experiences she said were determined by “stolen” data in an affidavit for your SSA.
The SSA did look into. It uncovered the data was not a matter of condition security and which the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to reveal it.
A brand new board and administration has given that taken around the NLC and thus far have taken actions to finish corruption in the establishment.
A State Safety Agency (SSA) investigation uncovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented enough motive” for exposure because of the media.

The probe into meant “information security breaches and sabotage of NLC operations” was carried out right after then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to analyze.

Here's

Nevhutanda’s letter,
an affidavit by currently suspended NLC business secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “private” results and suggestions.
Nevhutanda asked the SSA to analyze the job of NLC team from the alleged leaking of knowledge, and Nene, in her affidavit recognized distinct media and stories that she claimed concerned these leaks.

In the letter outlining its conclusions, the SSA instructed the NLC that while guarding point out data was “a lawful vital aimed toward preserving the sovereignty and integrity in the point out” this only placed on appropriately categorized data.

Even though it didn't say so directly, the SSA results implied which the allegedly leaked data did not fall into this category.

Appreciably, the SSA designed it obvious that the need to protect point out facts “won't reduce any individual from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation observed that the NLC data involved with the alleged breach was “sensitive and privileged in character, although not categorized in terms of the prescripts with the Minimum Data Security Criteria (Overlook)”.

“The leakage with the related sensitive official NLC data on the media doesn't pose a risk to nationwide security,” the SSA reported, including which the impact of your breaches was reputational.

The SSA report observed “no proof of a factual and incriminating nature from any from the suspected NLC personnel which could be discovered from the knowledge and information interrogated”.

In addition, it said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does give enough motive to obtain these types of exposed inside the media”.

Conspiracy claims
In 2020, Nevhutanda advised MPs throughout a session of Parliament’s trade, marketplace and Opposition portfolio committee that there was “a conspiracy” through which facts “stolen” with the NLC was sent towards the US, exactly where he claimed it was staying offered to fund a smear campaign towards the NLC.

He was repeating similar promises he experienced previously made in Parliament, which bundled advertisement hominem assaults on GroundUp and this reporter but was very careful not to name possibly.

“I came listed here During this August property past year and noted to honourable customers that specifics of our beneficiaries continues to be stolen and put in one point out in the usa,” he instructed MPs.

“We identified as to the Condition Security Company to come back investigate the issue due to the fact we are having studies that our info is building funds for media platforms and journalists,” he said. “There was talk, not surprisingly from 1 supply, a person media, that spoke Significantly about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't tell MPs that the SSA investigation had been finished Practically a 12 months previously.

Proactive funding was at the center in the looting on the lottery. It aspect-stepped the normal grant procedure. The NLC could alone detect a challenge to fund and appoint a non-financial gain organisation to oversee it.

Following Nevhutanda first explained to Parliament in 2018 that he had questioned the SSA to research the meant breach, the South African National Editors Discussion board issued a press release declaring that his remarks mirrored “an especially perilous Perspective where by the media is becoming blamed to the NLC’s inherent complications”.

“As opposed to investigating why thousands and thousands can not be accounted for, the NLC has instead tried to Forged question over the integrity of your journalists associated and it has requested the SSA to investigate their resources.”

Proactive jobs designed solution
Protection flaws determined during the NLC grant funding program during the SSA’s investigation, seem to have already been employed as an justification because of the NLC to get rid of all proactive-funded tasks from its central grants system.

“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘magic formula’ and assignments had been faraway from the grant funding program and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information Business office, Govt Supervisor Authorized so as to safeguard [the] info,” Nene reported in her affidavit.

“There was plenty of internal dialogue, with a lot of back and forth, about what to do to plug the alleged leaks”, a resource, who was inside a senior placement with the NLC at time, informed GroundUp. “In the end, the decision was taken to eliminate all of the proactive assignments from your technique and limit usage of a handful of people today”.

Some in that handful of men and women had been implicated in corruption.

Maselwa, who resigned within the NLC numerous decades ago, has actually been implicated in corruption involving lottery funds. He obtained R4.three-million from lottery cash allotted to make a library and museum complicated in Kuruman (see Taung Cultural Songs and Arts Expo) which he applied to build a property in an upmarket gated improvement in Pretoria. The house is one of many paid out for with lottery cash that were frozen after the Asset Forfeiture Unit obtained a preservation get 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 close to higher-ups in the ANC Management, former NLC previous Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated during the corruption which overcome the NLC on their own enjoy.

Also implicated are former board customers William Huma, who resigned right after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has because died.

Every time a new administration, such as the complete board and government, took around on the NLC in late 2022 and early 2023, they learned a “chaotic mess” in the documentation referring to proactive funding, Substantially of which was paper-dependent. Vital files were being lacking. Data files held for safekeeping by doc storage firm Metrofile had been signed out and in no way returned.

The NLC was capable to Recuperate copies of some luckyvip77 paperwork from its Mimecast e-mail archiving process and the 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 observed with grave worry attainable data safety breaches and also the unauthorised use and/or dissemination of private facts acquired on account of undertaking official features within the Fee by NLC workers. The functions are intended to undermine the integrity on the Fee whilst disrupting the productive functions [in the NLC] and producing insurmountable reputational harm towards the Commission since 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 company secretary, Nomphumelelo Nene.

Nene is presently dealing with a disciplinary inquiry right after she was unsuccessful in legal motion to put aside findings of irregular expenditure on her watch.

The goal of her affidavit, Nene claimed, was “to file the occasions which transpired relating to facts safety breaches within the Nationwide Lotteries Fee”.

She detailed many news stories which she claimed had been the final results of these “breaches” (see at the end of this information).

Nene stated that a whistle-blower approached the NLC alleging that considered one of its workforce, Sello Qhino, had “supplied her categorized NLC Data and persistently encouraged her to supply the knowledge to GroundUp”.

Qhino, who blew the whistle on the series of dodgy lottery-funded projects in Kuruman after tries to lift The problem internally had been ignored, was subsequently fired.

Referring to an eighteen November 2018 report inside the Every day Dispatch concerning the misappropriation of Lottery cash, Nene mentioned which the NLC recognized and then suspended Zintle Rungqu. She was an personnel in the NLC’s East London Office environment, who was the companion plus the mom of whistleblower Mzukise Makatse’s a few youngsters.

Rungqu and Makatse believe that Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Together with the NLC paying out R470,000 on legal professionals to stand for it, but was uncovered not responsible and permitted to return to work.

“The frequent factor in these posts is the fact that [they involve] categorised facts regarding proactive funding tasks,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out of your household house to go ahead and take warmth off her and his young children. Facing homelessness, he moved into an Business office within an empty factory belonging to a colleague.

Each Makatse and Qhino are participating in an NLC reparation approach meant to recognise the hurt some people suffered in the fingers in the NLC. Apologies and, in some instances, fiscal compensation are anticipated.

“Some folks had been actually affected very negatively by this … This is really distressing,” NLC Commissioner Jodi Scholtz advised the Everyday Maverick last 12 months.

“I satisfied two or three these persons. It was just so heart-wrenching that their full lives are actually turned upside down,” claimed Scholtz.

Among People she achieved had been Qhino and Makatse.

Risk-free System needed for whistleblowers
The SSA discovered the absence at time of a suitable channel for whistleblowers to report corruption led them to show to your media.

“Failure to possess a committed anti-corruption channel will cause staff members presenting these conditions beyond the NLC,” the SSA explained in its findings.

“Offered the magnitude of corruption in point out institutions, it remains very important that it makes sure that the NLC complies with all safety prescripts Which its target is on ensuring that unlawful and irregular perform is adequately mitigated versus and by making certain an adequate channel for whistle-blowers to report untoward carry out without the need of getting intimidated.”

It proposed that the NLC set up a “Safe and sound channel” for workers to provide information on any “untoward activity” that might not reduce or discourage employees from blowing the whistle. A whistle-blowers policy, according to the Safeguarded Disclosures Act 25 of 2000, is actually a necessity.”

Media reviews Nene outlined
A 10 December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Conditioning Centre in Limpopo. GroundUp has labored closely with Anton van Zyl, an investigative reporter and operator in the Limpopo Mirror, to show NLC corruption. “The short article had things of information not out there in the public area, thus elevating worry on interior Data stability breaches. The allegations within the media ended up independently investigated,” Nene reported. “Nonetheless, staff members responsible for divulging categorized data have nevertheless being discovered”;
A 28 January 2018 short article released via the Dally Dispatch “citing various allegations with the Limpopo Mirror short article revealed on 10 December 2017 as well as a new allegation concerning a previous staff through the title of Mzukisi Makatse. He was charged and summarily dismissed for your threat brought on towards the organisation.”
A 16 November 2018 posting during the Lowvelder concerning the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has described how, in spite of obtaining R27-million in lottery grants, the rehab has never been done. “The Lowvelder write-up contained categorised details in terms of NLC coverage, boosting additional problems of interior info security breaches,” Nene mentioned in her affidavit. “The prima facie evidence regarding these allegations did not warrant an independent Investigation, even so [it] highlighted the heightened information and facts stability challenges in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Main Treatment, a hijacked NPO. Nene stated GroundUp experienced confirmed in its story that it was depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Info) ask for for facts with regard to the project, she said