Lottery bosses turned to Condition Security Agency to investigate leaks
Lottery bosses turned to Condition Security Agency to investigate leaks
Blog Article
Previous Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the State Stability Agency (SSA) in December 2018 to research the leaking of documents that uncovered lottery corruption.
The NLC’s enterprise secretary at enough time detailed media reports she mentioned were being based upon “stolen” info within an affidavit with the SSA.
The SSA did look into. It uncovered the data was not a make a difference of state protection and which the “prevalence of alleged corruption and irregularities” gave “enough motive” with the media to show it.
A new board and administration has because taken more than the NLC and So far have taken steps to end corruption for the institution.
A Point out Stability Agency (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “supplied enough motive” for exposure because of the media.
The probe into supposed “info protection breaches and sabotage of NLC functions” was carried out just after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to research.
Here is
Nevhutanda’s letter,
an affidavit by at present suspended NLC business secretary Nompumelelo Nene supporting the request, and
the security company’s “confidential” findings and recommendations.
Nevhutanda asked the SSA to research the purpose of NLC team from the alleged leaking of knowledge, and Nene, in her affidavit recognized distinct media and reports that she claimed concerned these leaks.
From the letter outlining its findings, the SSA instructed the NLC that while preserving state details was “a authorized very important geared toward defending the sovereignty and integrity in the state” this only applied to appropriately labeled facts.
Even though it didn't say so instantly, the SSA findings implied that the allegedly leaked information didn't slide into this category.
Appreciably, the SSA built it distinct that the need to secure point out information and facts “will not avert any specific from blowing the whistle on corruption or irregular or criminal activity”.
The SSA investigation identified the NLC information and facts involved with the alleged breach was “sensitive and privileged in mother nature, but not classified in terms of the prescripts with the Minimal Information and facts Stability Requirements (Overlook)”.
“The leakage on the suitable delicate official NLC data on the media isn't going to pose a risk to national stability,” the SSA explained, including which the impression on the breaches was reputational.
The SSA report discovered “no proof of a factual and incriminating mother nature in opposition to any in the suspected NLC employees which could be recognized from the data and information interrogated”.
It also said that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does offer ample motive to own this kind of exposed while in the media”.
Conspiracy promises
In 2020, Nevhutanda told MPs for the duration of a session of Parliament’s trade, marketplace and Competitors portfolio committee that there was “a conspiracy” during which data “stolen” within the NLC was despatched to your US, where by he claimed it had been currently being offered to fund a smear campaign against the NLC.
He was repeating similar statements he had Beforehand designed in Parliament, which provided ad hominem assaults on GroundUp which reporter but was thorough not to call both.
“I arrived here With this August residence past yr and claimed to honourable customers that details about our beneficiaries has been stolen and put in one condition in the united states,” he told MPs.
“We referred to as about the Condition Safety Agency to return take a look at the matter because we are getting reports that our info is producing funds for media platforms and journalists,” he claimed. “There have been speak, naturally from just one supply, a single media, that spoke Considerably about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but did not notify MPs that the SSA investigation were done almost a calendar year previously.
Proactive funding was at the guts in the looting of your lottery. It aspect-stepped the traditional grant procedure. The NLC could by itself identify a task to fund and appoint a non-profit organisation to oversee it.
Just after Nevhutanda very first instructed Parliament in 2018 that he experienced questioned the SSA to analyze the meant breach, the South African Countrywide Editors Discussion board issued a press release saying that his remarks reflected “a particularly harmful Mindset exactly where the media is getting blamed to the NLC’s inherent complications”.
“Rather then investigating why thousands and thousands cannot be accounted for, the NLC has alternatively made an effort to cast doubt about the integrity from the journalists included and has requested the SSA to investigate their sources.”
Proactive jobs produced mystery
Protection flaws discovered during the NLC grant funding method throughout the SSA’s investigation, seem to are utilised being an excuse with the NLC to remove all proactive-funded assignments from its central grants method.
“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘mystery’ and assignments ended up faraway from the grant funding method and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Business office, Executive Supervisor Authorized to be able to safeguard [the] information and facts,” Nene mentioned in her affidavit.
“There was loads of internal dialogue, with lots of forwards and backwards, about what to do to plug the alleged leaks”, a resource, who was inside a senior placement for the NLC at some time, informed GroundUp. “In the long run, the decision was taken to eliminate each of the proactive jobs within the system and Restrict use of a handful of people today”.
Some in that handful of men and women had been implicated in corruption.
Maselwa, who resigned in the NLC a number of many years ago, is implicated in corruption involving lottery resources. He acquired R4.three-million from lottery funds allocated to create a library and museum elaborate in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to create a household within an upmarket gated enhancement in Pretoria. The assets is one of various compensated for with lottery funds that were frozen once the Asset Forfeiture Device obtained a preservation purchase in December 2022.
The politically-linked Nevhutanda, who was appointed because 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 working officer Phillemon Letwaba, have all been implicated in the corruption which overcome the NLC on their check out.
Also implicated are former board users William Huma, who resigned immediately after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has because died.
Any time a new administration, including the overall board and govt, took in excess of in the NLC in late 2022 and early 2023, they learned a “chaotic mess” within the documentation associated with proactive funding, A great deal of which was paper-centered. Vital files were being lacking. Files held for safekeeping by document storage organization Metrofile had been signed out and never ever returned.
The NLC was in the position to Get better copies of some ruay documents from its Mimecast email archiving method plus the laptops in their assistants and support employees.
Information studies
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry feasible information safety breaches and the unauthorised use and/or dissemination of confidential information and facts acquired because of undertaking Formal capabilities within the Commission by NLC staff. The functions are meant to undermine the integrity from the Commission although disrupting the productive capabilities [of your NLC] and leading to insurmountable reputational harm towards the Commission as the custodian of personal information and facts entrusted to it by its beneficiaries.”
His ask for for that SSA to research was supported within an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.
Nene is at this time facing a disciplinary inquiry after she was unsuccessful in legal motion to set aside conclusions of irregular expenditure on her view.
The goal of her affidavit, Nene stated, was “to report the events which transpired associated with details stability breaches in the Nationwide Lotteries Fee”.
She outlined many news studies which she claimed were being the outcomes of those “breaches” (see at the end of this article).
Nene stated that a whistle-blower approached the NLC alleging that certainly one of its workers, Sello Qhino, experienced “delivered her classified NLC Info and persistently inspired her to offer the knowledge to GroundUp”.
Qhino, who blew the whistle on a number of dodgy lottery-funded projects in Kuruman just after makes an attempt to lift the issue internally were being dismissed, was subsequently fired.
Referring to an eighteen November 2018 report while in the Daily Dispatch about the misappropriation of Lottery resources, Nene explained that the NLC determined after which you can suspended Zintle Rungqu. She was an staff during the NLC’s East London Workplace, who was the companion and also the mother of whistleblower Mzukise Makatse’s a few small children.
Rungqu and Makatse believe that Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, Using the NLC spending R470,000 on attorneys to symbolize it, but was found not responsible and permitted to return to work.
“The popular Consider these articles is the fact [they include] labeled information associated with proactive funding jobs,” Nene stated in her affidavit.
When Runqu was suspended, Makatse moved out on the family property to go ahead and take heat off her and his youngsters. Going through homelessness, he moved into an Office environment in an empty manufacturing unit belonging to an acquaintance.
The two Makatse and Qhino are participating in an NLC reparation method intended to recognise the hurt many people suffered for the fingers of your NLC. Apologies and, sometimes, monetary payment are envisioned.
“Some men and women had been really influenced really negatively by this … This is actually distressing,” NLC Commissioner Jodi Scholtz advised the Daily Maverick very last calendar year.
“I satisfied several these people. It had been just so heart-wrenching that their complete lives are already turned the other way up,” claimed Scholtz.
Between Those people she achieved ended up Qhino and Makatse.
Harmless System wanted for whistleblowers
The SSA uncovered the absence at enough time of a correct channel for whistleblowers to report corruption led them to show on the media.
“Failure to have a committed anti-corruption channel will lead to employees presenting such situations beyond the NLC,” the SSA stated in its conclusions.
“Specified the magnitude of corruption in condition institutions, it remains crucial that it makes sure that the NLC complies with all stability prescripts and that its target is on making sure that illegal and irregular conduct is sufficiently mitigated towards and by guaranteeing an satisfactory channel for whistle-blowers to report untoward carry out with out currently being intimidated.”
It recommended that the NLC build a “Secure channel” for employees to offer info on any “untoward action” that might not avert or discourage staff members from blowing the whistle. A whistle-blowers plan, based on the Secured Disclosures Act 25 of 2000, can be a prerequisite.”
Media reviews Nene detailed
A ten December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and Health Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to show NLC corruption. “The post had features of information not readily available in the general public domain, thereby raising concern on internal Information and facts security breaches. The allegations in the media had been independently investigated,” Nene claimed. “Having said that, workforce accountable for divulging classified information and facts have nonetheless to get identified”;
A 28 January 2018 posting printed via the Dally Dispatch “citing many allegations within the Limpopo Mirror short article published on 10 December 2017 and also a new allegation referring to a former personnel from the name of Mzukisi Makatse. He was billed and summarily dismissed for that danger triggered to your organisation.”
A sixteen November 2018 article in the Lowvelder with regard to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has described how, Regardless of receiving R27-million in lottery grants, the rehab hasn't been concluded. “The Lowvelder report contained categorized information in terms of NLC plan, increasing even more issues of interior facts security breaches,” Nene claimed in her affidavit. “The prima facie proof with regard to these allegations did not warrant an impartial Investigation, nevertheless [it] highlighted the heightened information and facts security hazards in the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Primary Care, a hijacked NPO. Nene stated GroundUp had confirmed in its story that it was depending on leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Marketing of Entry to Facts) ask for for details regarding the venture, she said