Former National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the State Protection Company (SSA) in December 2018 to analyze the leaking of documents that exposed lottery corruption.
The NLC’s company secretary at time shown media experiences she stated had been dependant on “stolen” info within an affidavit with the SSA.
The SSA did look into. It observed the knowledge was not a matter of point out safety and which the “prevalence of alleged corruption and irregularities” gave “sufficient motive” for the media to reveal it.
A brand new board and administration has given that taken over the NLC and To this point have taken steps to finish corruption on the establishment.
A Condition Stability Company (SSA) investigation discovered that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented sufficient motive” for publicity because of the media.
The probe into meant “information and facts stability breaches and sabotage of NLC functions” was carried out immediately 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 presently suspended NLC business secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to analyze the part of NLC staff during the alleged leaking of knowledge, and Nene, in her affidavit identified precise media and studies that she claimed associated these leaks.
While in the letter outlining its conclusions, the SSA advised the NLC that though safeguarding point out details was “a authorized very important geared toward shielding the sovereignty and integrity of the state” this only applied to appropriately classified info.
Although it did not say so straight, the SSA findings implied which the allegedly leaked information didn't slide into this class.
Drastically, the SSA created it obvious that the need to secure condition info “does not reduce any particular person from blowing the whistle on corruption or irregular or illegal activity”.
The SSA investigation uncovered the NLC information and facts associated with the alleged breach was “delicate and privileged in nature, but not labeled when it comes to the prescripts on the Minimum amount Details Protection Benchmarks (MISS)”.
“The leakage in the appropriate delicate official NLC data to your media won't pose a menace to nationwide safety,” the SSA stated, adding which the impression on the breaches was reputational.
The SSA report identified “no proof of the factual and incriminating nature against any with the suspected NLC personnel that may be discovered from the information and facts interrogated”.
Furthermore, it mentioned that “the prevalence of alleged corruption and irregularities inside the NLC and at its beneficiaries does present ample motive to get these types of uncovered within the media”.
Conspiracy statements
In 2020, Nevhutanda instructed MPs all through a session of Parliament’s trade, business and Levels of competition portfolio committee that there was “a conspiracy” in which details “stolen” from your NLC was despatched to the US, the place he claimed it had been currently being offered to fund a smear campaign from the NLC.
He was repeating similar promises he experienced Earlier manufactured in Parliament, which incorporated advert hominem assaults on GroundUp and this reporter but was watchful not to call either.
“I came listed here in this August residence very last calendar year and reported to honourable members that details about our beneficiaries has actually been stolen and set in a single condition in America,” he informed MPs.
“We referred to as within the State Stability Company to come back explore the make a difference since we are having stories that our details is generating dollars for media platforms and journalists,” he mentioned. “There have been chat, of course from just one resource, a single media, that spoke A great deal about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but did not notify MPs which the SSA investigation were completed Virtually a yr previously.
Proactive funding was at the center on the looting on the lottery. It aspect-stepped the conventional grant method. The NLC could itself recognize a undertaking to fund and appoint a non-earnings organisation to oversee it.
Just after Nevhutanda initially instructed Parliament in 2018 that he had questioned the SSA to investigate the meant breach, the South African Nationwide Editors Discussion board issued a statement indicating that his remarks mirrored “an especially hazardous Perspective exactly where the media is remaining blamed for that NLC’s inherent difficulties”.
“Instead of investigating why tens of millions cannot be accounted for, the NLC has in its place tried to Solid question around the integrity with the journalists associated and has asked the SSA to research their sources.”
Proactive jobs made key
Protection flaws determined during the NLC grant funding system throughout the SSA’s investigation, seem to are already utilised as an excuse 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 projects was heightened to ‘secret’ and initiatives have been faraway from the grant funding technique and maintained manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Office, Government Supervisor Lawful in an effort to safeguard [the] information,” Nene mentioned in her affidavit.
“There was loads of internal discussion, with a great deal of forwards and backwards, about how to proceed to plug the alleged leaks”, a resource, who was in a senior place on the NLC at time, advised GroundUp. “In the long run, the decision was taken to remove all of the proactive tasks in the system and Restrict entry to a handful of people today”.
Some in that handful of men and women have been implicated in corruption.
Maselwa, who resigned in the NLC quite a few yrs ago, has long been implicated in corruption involving lottery money. He been given R4.three-million from lottery funds allotted to create a library and museum sophisticated in Kuruman (see Taung Cultural Music and Arts Expo) which he made use of to create a home within an upmarket gated improvement in Pretoria. The residence is one of many compensated for with lottery funds that were frozen following the Asset Forfeiture Device obtained a preservation purchase in December 2022.
The politically-linked Nevhutanda, who was appointed given that the NLC board chairperson by previous President Jacob Zuma in 2009 and was near higher-ups while in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated inside the corruption which overwhelmed the NLC on their watch.
Also implicated are previous board customers William Huma, who resigned immediately after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have considering the fact that died.
Every time a new administration, including the full board and government, took more than within the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” within the documentation concerning proactive funding, Significantly of which was paper-centered. Crucial paperwork were missing. Information held for safekeeping by document storage corporation Metrofile were signed out and never returned.
The NLC was capable to Get well copies of some ตรวจ ล้อ ต เต อ รี่ documents from its Mimecast electronic mail archiving program and the laptops of their assistants and help staff members.
Information reports
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave issue feasible data stability breaches and also the unauthorised use and/or dissemination of private information acquired due to carrying out official functions from the Commission by NLC employees. The actions are meant to undermine the integrity of the Commission although disrupting the powerful features [on the NLC] and resulting in insurmountable reputational hurt into the Fee given that the custodian of private facts entrusted to it by its beneficiaries.”
His request for the SSA to analyze was supported within an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.
Nene is now facing a disciplinary inquiry after she was unsuccessful in lawful action to put aside results of irregular expenditure on her observe.
The goal of her affidavit, Nene explained, was “to record the gatherings which transpired referring to information and facts security breaches for the Countrywide Lotteries Fee”.
She outlined several news stories which she claimed were being the outcomes of these “breaches” (see at the end of this text).
Nene reported that a whistle-blower approached the NLC alleging that amongst its employees, Sello Qhino, experienced “offered her classified NLC Information and persistently inspired her to provide the data to GroundUp”.
Qhino, who blew the whistle on the number of dodgy lottery-funded tasks in Kuruman after makes an attempt to lift The problem internally were being ignored, was subsequently fired.
Referring to an 18 November 2018 posting inside the Day by day Dispatch in regards to the misappropriation of Lottery resources, Nene said that the NLC recognized and afterwards suspended Zintle Rungqu. She was an staff during the NLC’s East London Workplace, who was the companion as well as the mother of whistleblower Mzukise Makatse’s a few small children.
Rungqu and Makatse consider Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, With all the NLC spending R470,000 on legal professionals to symbolize it, but was found not responsible and permitted to return to work.
“The prevalent factor in these article content is always that [they contain] categorized data relating to proactive funding tasks,” Nene claimed in her affidavit.
When Runqu was suspended, Makatse moved out of the loved ones property to take the heat off her and his young children. Experiencing homelessness, he moved into an Office environment within an empty factory belonging to an acquaintance.
Both of those Makatse and Qhino are taking part in an NLC reparation method intended to recognise the hurt a lot of people suffered in the arms in the NLC. Apologies and, in some cases, money compensation are predicted.
“Some people ended up truly influenced very negatively by this … This is de facto distressing,” NLC Commissioner Jodi Scholtz informed the Day-to-day Maverick very last calendar year.
“I met a few these men and women. It had been just so heart-wrenching that their entire lives have already been turned upside down,” stated Scholtz.
Amongst These she met were being Qhino and Makatse.
Safe and sound platform required for whistleblowers
The SSA found the absence at enough time of a correct channel for whistleblowers to report corruption led them to show for the media.
“Failure to possess a devoted anti-corruption channel will result in personnel presenting this kind of scenarios outside of the NLC,” the SSA explained in its conclusions.
“Offered the magnitude of corruption in condition establishments, it stays very important that it ensures that the NLC complies with all security prescripts and that its target is on guaranteeing that illegal and irregular carry out is adequately mitigated towards and by making certain an satisfactory channel for whistle-blowers to report untoward conduct with out becoming intimidated.”
It suggested which the NLC create a “Risk-free channel” for employees to deliver information on any “untoward exercise” that could not avoid or discourage employees from blowing the whistle. A whistle-blowers coverage, according to the Shielded Disclosures Act 25 of 2000, is often a requirement.”
Media stories Nene listed
A 10 December 2017 report from the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Well being and Health Centre in Limpopo. GroundUp has labored carefully with Anton van Zyl, an investigative reporter and proprietor of your Limpopo Mirror, to show NLC corruption. “The posting experienced features of data not available in the general public area, therefore elevating concern on interior Information and facts protection breaches. The allegations while in the media have been independently investigated,” Nene stated. “However, employees to blame for divulging categorized information have still to become determined”;
A 28 January 2018 post released by the Dally Dispatch “citing quite a few allegations from the Limpopo Mirror write-up revealed on ten December 2017 in addition to a new allegation referring to a former employee through the name of Mzukisi Makatse. He was charged and summarily dismissed for your threat brought on towards the organisation.”
A sixteen November 2018 posting during the Lowvelder about the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, in spite of acquiring R27-million in lottery grants, the rehab has not been completed. “The Lowvelder short article contained categorized information and facts with regard to NLC policy, elevating further worries of interior info protection breaches,” Nene reported in her affidavit. “The prima facie evidence with regard to these allegations did not warrant an independent Investigation, even so [it] highlighted the heightened information and facts stability risks within the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene reported GroundUp experienced confirmed in its story that it absolutely was dependant on leaked NLC files. This was despite the NLC rejecting a PAIA (Promotion of Usage of Data) request for aspects with regard to the task, she stated