Former National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda asked the Point out Protection Agency (SSA) in December 2018 to research the leaking of paperwork that exposed lottery corruption.
The NLC’s business secretary at the time shown media reviews she reported ended up based on “stolen” information and facts in an affidavit with the SSA.
The SSA did examine. It identified the information wasn't a matter of condition stability and which the “prevalence of alleged corruption and irregularities” gave “ample motive” to the media to reveal it.
A new board and management has considering the fact that taken around the NLC and To this point have taken actions to end corruption for the institution.
A Point out Stability Company (SSA) investigation found which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered enough motive” for publicity through the media.
The probe into intended “facts security breaches and sabotage of NLC functions” was carried out right after then-NLC board chairperson Alfred Nevhutanda wrote into the SSA in December 2018 requesting it to research.
Here's
Nevhutanda’s letter,
an affidavit by at present suspended NLC firm secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” findings and suggestions.
Nevhutanda questioned the SSA to analyze the function of NLC staff in the alleged leaking of data, and Nene, in her affidavit recognized specific media and reviews that she claimed included these leaks.
During the letter outlining its findings, the SSA advised the NLC that whilst guarding point out data was “a legal vital aimed toward protecting the sovereignty and integrity on the point out” this only applied to appropriately labeled information.
Although it did not say so right, the SSA conclusions implied which the allegedly leaked information did not fall into this class.
Appreciably, the SSA made it clear that the necessity 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 details involved in the alleged breach was “delicate and privileged in nature, although not classified concerning the prescripts on the Minimum Facts Security Criteria (Skip)”.
“The leakage on the relevant sensitive official NLC data into the media doesn't pose a risk to nationwide protection,” the SSA claimed, introducing which the impression of your breaches was reputational.
The SSA report found “no proof of the factual and incriminating character in opposition to any in the suspected NLC staff that might be identified from the data and knowledge interrogated”.
What's more, 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 within the media”.
Conspiracy statements
In 2020, Nevhutanda told MPs for the duration of a session of Parliament’s trade, industry and Levels of competition portfolio committee that there was “a conspiracy” by which details “stolen” with the NLC was despatched into the US, where he claimed it was becoming sold to fund a smear marketing campaign versus the NLC.
He was repeating similar promises he experienced Formerly produced in Parliament, which integrated advert hominem attacks on GroundUp which reporter but was thorough not to name possibly.
“I came here During this August household past 12 months and documented to honourable users that information regarding our beneficiaries has actually been stolen and set in a single condition in the united states,” he informed MPs.
“We known as on the State Protection Company to come back check into the subject due to the fact we've been finding reports that our data is generating income for media platforms and journalists,” he mentioned. “There's been converse, obviously from one supply, one media, that spoke A lot about proactive-funding,” Nevhutanda reported (referring to GroundUp), but failed to explain to MPs the SSA investigation were accomplished Pretty much a 12 months previously.
Proactive funding was at the center of the looting with the lottery. It side-stepped the normal grant course of action. The NLC could alone discover a venture to fund and appoint a non-income organisation to supervise it.
After Nevhutanda first instructed Parliament in 2018 that he experienced questioned the SSA to investigate the intended breach, the South African Countrywide Editors Discussion board issued a press release stating that his remarks reflected “an extremely hazardous Frame of mind where by the media is getting blamed to the NLC’s inherent difficulties”.
“Rather than investigating why thousands and thousands cannot be accounted for, the NLC has as a substitute attempted to Solid question over the integrity on the journalists included and has questioned the SSA to analyze their resources.”
Proactive tasks produced secret
Stability flaws recognized while in the NLC grant funding program in the course of the SSA’s investigation, seem to have been utilised being an justification by the NLC to eliminate all proactive-funded initiatives from its central grants process.
“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘key’ and assignments ended up faraway from the grant funding procedure and preserved manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business, Government Supervisor Legal so that you can safeguard [the] data,” Nene said in her affidavit.
“There was a great deal of interior discussion, with a great deal of forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was inside a senior situation within the NLC at some time, told GroundUp. “In the end, the decision was taken to eliminate all the proactive projects from the system and Restrict use of a handful of individuals”.
Some in that handful of people ended up implicated in corruption.
Maselwa, who resigned through the NLC numerous many years back, has become implicated in corruption involving lottery funds. He acquired R4.three-million from lottery money allotted to build a library and museum advanced in Kuruman (see Taung Cultural Music and Arts Expo) which he applied to build a residence within an upmarket gated enhancement in Pretoria. The property is one of numerous paid out for with lottery cash which were frozen following the Asset Forfeiture Device acquired a preservation purchase in December 2022.
The politically-linked Nevhutanda, who was appointed since the NLC board chairperson by former President Jacob Zuma in 2009 and was close to higher-ups within the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated while in the corruption which overwhelmed the NLC on their own observe.
Also implicated are previous 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, who's got given that died.
Any time a new administration, including the overall board and executive, took in excess of at the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” during the documentation referring to proactive funding, Substantially of which was paper-centered. Key documents had been missing. Files held for safekeeping by document storage business Metrofile were signed out and never returned.
The NLC was in a position to recover copies of some หวย หุ้น documents from its Mimecast e-mail archiving process and the laptops in their assistants and support employees.
News reports
In his one December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave problem achievable details security breaches as well as unauthorised use and/or dissemination of private details attained due to carrying out Formal functions from the Commission by NLC personnel. The functions are intended to undermine the integrity on the Commission though disrupting the productive functions [of your NLC] and leading to insurmountable reputational hurt for the Fee as being the custodian of non-public information and facts entrusted to it by its beneficiaries.”
His request with the SSA to investigate was supported in an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.
Nene is presently going through a disciplinary inquiry just after she was unsuccessful in authorized motion to put aside results of irregular expenditure on her check out.
The goal of her affidavit, Nene mentioned, was “to report the activities which transpired regarding information and facts protection breaches on the National Lotteries Fee”.
She detailed different information reviews which she claimed had been the final results of those “breaches” (see at the conclusion of this informative article).
Nene claimed that a whistle-blower approached the NLC alleging that one among its workers, Sello Qhino, had “provided her categorised NLC Facts and persistently inspired her to supply the data to GroundUp”.
Qhino, who blew the whistle with a series of dodgy lottery-funded jobs in Kuruman immediately after tries to lift The difficulty internally were dismissed, was subsequently fired.
Referring to an 18 November 2018 post inside the Everyday Dispatch concerning the misappropriation of Lottery funds, Nene reported that the NLC identified and then suspended Zintle Rungqu. She was an personnel in the NLC’s East London Workplace, who was the associate and also the mom of whistleblower Mzukise Makatse’s 3 children.
Rungqu and Makatse believe that Rungqu was punished mainly because Makatse blew the whistle. She was suspended and billed internally, With all the NLC paying out R470,000 on legal professionals to represent it, but was uncovered not guilty and allowed to return to operate.
“The common Think about these article content is that [they involve] categorised data associated with proactive funding tasks,” Nene said in her affidavit.
When Runqu was suspended, Makatse moved out with the relatives house to go ahead and take heat off her and his small children. Going through homelessness, he moved into an office in an empty manufacturing facility belonging to a friend.
The two Makatse and Qhino are taking part in an NLC reparation system meant to recognise the hurt many people endured with the palms on the NLC. Apologies and, sometimes, money payment are anticipated.
“Some folks had been truly affected pretty negatively by this … This is admittedly unpleasant,” NLC Commissioner Jodi Scholtz told the Day by day Maverick previous year.
“I fulfilled a few these people today. It was just so coronary heart-wrenching that their whole lives are turned the other way up,” mentioned Scholtz.
Between those she satisfied have been Qhino and Makatse.
Harmless System needed for whistleblowers
The SSA discovered the absence at time of a correct channel for whistleblowers to report corruption led them to turn towards the media.
“Failure to have a focused anti-corruption channel will bring about workforce presenting these types of scenarios outside of the NLC,” the SSA stated in its conclusions.
“Supplied the magnitude of corruption in condition establishments, it stays crucial that it makes certain that the NLC complies with all safety prescripts Which its concentrate is on guaranteeing that illegal and irregular carry out is sufficiently mitigated against and by making certain an suitable channel for whistle-blowers to report untoward conduct devoid of being intimidated.”
It advised the NLC create a “Harmless channel” for workers to deliver info on any “untoward exercise” that would not prevent or discourage workers from blowing the whistle. A whistle-blowers policy, according to the Guarded Disclosures Act 25 of 2000, is usually a need.”
Media studies Nene detailed
A ten 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 operator from the Limpopo Mirror, to show NLC corruption. “The post had features of information not readily available in the general public domain, thereby increasing worry on interior Info safety breaches. The allegations from the media were being independently investigated,” Nene said. “Nonetheless, personnel to blame for divulging labeled facts have still being determined”;
A 28 January 2018 write-up printed by the Dally Dispatch “citing various allegations with the Limpopo Mirror write-up posted on 10 December 2017 and a new allegation associated with a previous worker via the name of Mzukisi Makatse. He was charged and summarily dismissed for that threat triggered into the organisation.”
A sixteen November 2018 write-up while in the Lowvelder concerning the misappropriation of NLC money involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Regardless of obtaining R27-million in lottery grants, the rehab has not been accomplished. “The Lowvelder report contained categorized details with regards to NLC policy, boosting even further problems of inner info stability breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, however [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 had been dependant on leaked NLC files. This was Regardless of the NLC rejecting a PAIA (Advertising of Usage of Information) request for particulars in regards to the task, she explained
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