Previous Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Stability Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s business secretary at time detailed media studies she explained ended up dependant on “stolen” information and facts within an affidavit to the SSA.
The SSA did investigate. It uncovered the knowledge was not a make any difference of condition stability and the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to show it.
A different board and management has since taken in excess of the NLC and thus far have taken measures to end corruption for the establishment.
A Point out Security Agency (SSA) investigation located the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered enough motive” for publicity via the media.
The probe into meant “information and facts stability 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 research.
Here is
Nevhutanda’s letter,
an affidavit by currently suspended NLC enterprise secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” results and recommendations.
Nevhutanda requested the SSA to investigate the purpose of NLC workers in the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and experiences that she claimed concerned these leaks.
From the letter outlining its conclusions, the SSA informed the NLC that even though protecting state data was “a legal critical directed at defending the sovereignty and integrity on the state” this only applied to appropriately categorized facts.
Even though it didn't say so directly, the SSA results implied the allegedly leaked facts didn't tumble into this category.
Significantly, the SSA built it obvious that the necessity to shield state information and facts “doesn't avoid any specific from blowing the whistle on corruption or irregular or criminal activity”.
The SSA investigation found that the NLC info linked to the alleged breach was “sensitive and privileged in mother nature, although not classified when it comes to the prescripts on the Minimum Information and facts Protection Expectations (Pass up)”.
“The leakage from the suitable sensitive official NLC info for the media would not pose a danger to countrywide protection,” the SSA explained, including that the effects with the breaches was reputational.
The SSA report observed “no evidence of the factual and incriminating character against any with the suspected NLC staff that might be discovered from the information and details interrogated”.
What's more, it stated that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does deliver ample motive to get such exposed inside the media”.
Conspiracy statements
In 2020, Nevhutanda instructed MPs during a session of Parliament’s trade, business and Competitiveness portfolio committee that there was “a conspiracy” where facts “stolen” with the NLC was despatched for the US, in which he claimed it was being marketed to fund a smear campaign against the NLC.
He was repeating very similar statements he experienced Formerly made in Parliament, which involved ad hominem assaults on GroundUp which reporter but was mindful not to call possibly.
“I came below Within this August household last yr and described to honourable users that information about our beneficiaries has become stolen and place in a single condition in the united states,” he instructed MPs.
“We identified as over the Point out Protection Agency to come back explore the issue due to the fact we're obtaining reports that our information and facts is making funds for media platforms and journalists,” he said. “There was speak, of course from one particular source, one particular media, that spoke much about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't inform MPs the SSA investigation were done Nearly a yr previously.
Proactive funding was at the center with the looting of your lottery. It facet-stepped the traditional grant system. The NLC could alone detect a challenge to fund and appoint a non-profit organisation to supervise it.
Immediately after Nevhutanda initially instructed Parliament in 2018 that he had questioned the SSA to research the supposed breach, the South African Countrywide Editors Forum issued a press release declaring that his remarks mirrored “a very harmful Angle the place the media is being blamed for that NLC’s inherent issues”.
“In lieu of investigating why millions can't be accounted for, the NLC has as a substitute made an effort to Forged question on the integrity in the journalists concerned and has asked the SSA to investigate their sources.”
Proactive projects made magic formula
Security flaws discovered during the NLC grant funding procedure in the SSA’s investigation, show up to are utilised as an excuse from the NLC to eliminate all proactive-funded assignments from its central grants procedure.
“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘top secret’ and jobs were faraway from the grant funding program and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Office, Executive Manager Authorized to be able to safeguard [the] facts,” Nene said in her affidavit.
“There was loads of inner dialogue, with many forwards and backwards, about how to proceed to plug the alleged leaks”, a supply, who was in the senior placement within the NLC at some time, instructed GroundUp. “In the long run, the decision was taken to get rid of every one of the proactive projects in the program and Restrict entry to a handful of individuals”.
Some in that handful of folks ended up implicated in corruption.
Maselwa, who resigned from your NLC several decades in the past, has been implicated in corruption involving lottery cash. He been given R4.three-million from lottery resources allotted to build a library and museum complicated in Kuruman (see Taung Cultural Songs and Arts Expo) which he employed to create a property in an upmarket gated advancement in Pretoria. The home is among various paid out for with lottery funds which were frozen after the Asset Forfeiture Device received a preservation purchase 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 near to higher-ups during the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated during the corruption which overwhelmed the NLC on their check out.
Also implicated are previous board members William Huma, who resigned soon after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have given that died.
Every time a new administration, such as the overall board and government, took about for the NLC in late 2022 and early 2023, they found out a “chaotic mess” during the documentation concerning proactive funding, A great deal of which was paper-centered. Critical paperwork were lacking. Files held for safekeeping by doc storage organization Metrofile were signed out and never ever returned.
The NLC was capable of Get better copies of some ผล หวย ลาว files from its Mimecast e mail archiving program as well as the laptops in their assistants and guidance workers.
Information stories
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry possible facts security breaches along with the unauthorised use and/or dissemination of private details received on account of carrying out official functions while in the Fee by NLC staff members. The activities are meant to undermine the integrity of the Fee while disrupting the efficient functions [of the NLC] and causing insurmountable reputational hurt to your Commission because the custodian of personal information and facts entrusted to it by its beneficiaries.”
His request for the SSA to analyze was supported in an affidavit by suspended NLC company secretary, Nomphumelelo Nene.
Nene is at this time going through a disciplinary inquiry following she was unsuccessful in legal action to put aside conclusions of irregular expenditure on her enjoy.
The objective of her affidavit, Nene explained, was “to file the activities which transpired referring to information protection breaches with the National Lotteries Fee”.
She outlined various news reports which she claimed ended up the outcomes of such “breaches” (see at the end of this information).
Nene mentioned that a whistle-blower approached the NLC alleging that amongst its staff, Sello Qhino, had “furnished her classified NLC Details and persistently encouraged her to offer the knowledge to GroundUp”.
Qhino, who blew the whistle over a number of dodgy lottery-funded initiatives in Kuruman just after tries to lift The problem internally have been overlooked, was subsequently fired.
Referring to an 18 November 2018 post within the Every day Dispatch concerning the misappropriation of Lottery resources, Nene claimed the NLC discovered after which you can suspended Zintle Rungqu. She was an worker in the NLC’s East London Business, who was the associate and the mother of whistleblower Mzukise Makatse’s 3 children.
Rungqu and Makatse imagine Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Along with the NLC spending R470,000 on lawyers to symbolize it, but was located not guilty and allowed to return to work.
“The frequent Consider these content articles is always that [they entail] categorized details referring to proactive funding projects,” Nene reported in her affidavit.
When Runqu was suspended, Makatse moved out with the household house to go ahead and take heat off her and his small children. Experiencing homelessness, he moved into an Workplace within an vacant manufacturing facility belonging to an acquaintance.
Each Makatse and Qhino are taking part in an NLC reparation procedure intended to recognise the damage some people suffered with the palms of your NLC. Apologies and, in some cases, economic compensation are anticipated.
“Some folks have been genuinely influenced quite negatively by this … This is absolutely unpleasant,” NLC Commissioner Jodi Scholtz informed the Every day Maverick last calendar year.
“I satisfied a few these individuals. It absolutely was just so heart-wrenching that their total lives are actually turned the wrong way up,” said Scholtz.
Amid those she satisfied were being Qhino and Makatse.
Protected System needed for whistleblowers
The SSA identified the absence at enough time of an appropriate channel for whistleblowers to report corruption led them to turn towards the media.
“Failure to have a devoted anti-corruption channel will cause staff members presenting such instances outside of the NLC,” the SSA said in its findings.
“Given the magnitude of corruption in point out establishments, it stays essential that it ensures that the NLC complies with all stability prescripts and that its concentrate is on making sure that illegal and irregular conduct is sufficiently mitigated towards and by making sure an ample channel for whistle-blowers to report untoward conduct devoid of getting intimidated.”
It recommended the NLC create a “Secure channel” for employees to deliver info on any “untoward activity” that might not reduce or discourage workers from blowing the whistle. A whistle-blowers coverage, based upon the Safeguarded Disclosures Act twenty five of 2000, is actually a requirement.”
Media experiences Nene listed
A ten December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and proprietor from the Limpopo Mirror, to reveal NLC corruption. “The post had elements of information not available in the public domain, therefore raising concern on internal Details safety breaches. The allegations while in the media ended up independently investigated,” Nene explained. “Nonetheless, staff members liable for divulging categorized information and facts have still to generally be recognized”;
A 28 January 2018 posting posted via the Dally Dispatch “citing many allegations in the Limpopo Mirror post revealed on ten December 2017 and also a new allegation referring to a former personnel from the title of Mzukisi Makatse. He was charged and summarily dismissed with the menace prompted on the organisation.”
A sixteen November 2018 short article in the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite receiving R27-million in lottery grants, the rehab hasn't been concluded. “The Lowvelder article contained categorized facts in terms of NLC coverage, raising even further worries of interior details stability breaches,” Nene reported in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an impartial Investigation, having said that [it] highlighted the heightened info security threats in the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Main Care, a hijacked NPO. Nene said GroundUp had confirmed in its Tale that it had been dependant on leaked NLC files. This was despite the NLC rejecting a PAIA (Marketing of Access to Facts) ask for for specifics with regards to the challenge, she said