Former Countrywide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Condition Safety Agency (SSA) in December 2018 to research the leaking of documents that uncovered lottery corruption.
The NLC’s company secretary at some time outlined media reviews she stated had been according to “stolen” information and facts in an affidavit for the SSA.
The SSA did look into. It found the knowledge wasn't a issue of point out security and the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to expose it.
A different board and administration has considering the fact that taken over the NLC and thus far have taken steps to finish corruption with the institution.
A State Security Company (SSA) investigation uncovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished sufficient motive” for exposure through the media.
The probe into meant “facts safety breaches and sabotage of NLC functions” was undertaken following then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to research.
Here's
Nevhutanda’s letter,
an affidavit by at this time suspended NLC organization secretary Nompumelelo Nene supporting the ask for, and
the safety agency’s “confidential” results and suggestions.
Nevhutanda requested the SSA to research the purpose of NLC staff within the alleged leaking of knowledge, and Nene, in her affidavit recognized certain media and stories that she claimed included these leaks.
From the letter outlining its results, the SSA advised the NLC that although defending point out information and facts was “a authorized essential aimed at protecting the sovereignty and integrity with the point out” this only placed on appropriately labeled details.
Even though it did not say so instantly, the SSA findings implied the allegedly leaked details didn't drop into this group.
Substantially, the SSA designed it very clear that the need to defend point out facts “won't protect against any personal from blowing the whistle on corruption or irregular or illegal activity”.
The SSA investigation found the NLC facts associated with the alleged breach was “sensitive and privileged in mother nature, although not categorized with regards to the prescripts of your Least Details Stability Expectations (Overlook)”.
“The leakage on the suitable sensitive official NLC facts towards the media would not pose a threat to nationwide security,” the SSA said, adding that the effect of your breaches was reputational.
The SSA report observed “no proof of a factual and incriminating character versus any of your suspected NLC employees that would be discovered from the knowledge and knowledge interrogated”.
What's more, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does offer sufficient motive to obtain these types of exposed while in the media”.
Conspiracy promises
In 2020, Nevhutanda told MPs in the course of a session of Parliament’s trade, sector and competition portfolio committee that there was “a conspiracy” by which information “stolen” within the NLC was despatched for the US, in which he claimed it absolutely was currently being offered to fund a smear campaign versus the NLC.
He was repeating very similar claims he had Earlier made in Parliament, which incorporated advertisement hominem assaults on GroundUp which reporter but was mindful not to name possibly.
“I arrived here In this particular August house final yr and described to honourable users that information about our beneficiaries has actually been stolen and place in one point out in the united states,” he told MPs.
“We called about the Point out Security Company to come check into the make a difference simply because we have been having studies that our information and facts is producing dollars for media platforms and journalists,” he stated. “There's been discuss, naturally from just one supply, one particular media, that spoke Significantly about proactive-funding,” Nevhutanda explained (referring to GroundUp), but failed to tell MPs which the SSA investigation had been done Virtually a year previously.
Proactive funding was at the heart of the looting of your lottery. It aspect-stepped the normal grant system. The NLC could by itself detect a undertaking to fund and appoint a non-gain organisation to supervise it.
Following Nevhutanda initially explained to Parliament in 2018 that he had requested the SSA to research the meant breach, the South African Countrywide Editors Discussion board issued a statement stating that his remarks reflected “an incredibly dangerous attitude exactly where the media is getting blamed for your NLC’s inherent issues”.
“As opposed to investigating why hundreds of thousands cannot be accounted for, the NLC has rather made an effort to cast question within the integrity of the journalists included and it has requested the SSA to analyze their sources.”
Proactive projects built top secret
Safety flaws determined within the NLC grant funding procedure over the SSA’s investigation, surface to have already been made use of being an justification through the NLC to get rid of all proactive-funded assignments from its central grants technique.
“In or about 21 December 2019, the classification of all Professional-actively funding tasks was heightened to ‘magic formula’ and projects were being faraway from the grant funding method and managed manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Office, Government Supervisor Legal so that you can safeguard [the] data,” Nene said in her affidavit.
“There was a great deal of interior dialogue, with numerous back and forth, about how to proceed to plug the alleged leaks”, a supply, who was inside a senior situation on the NLC at the time, advised GroundUp. “Ultimately, the choice was taken to get rid of all of the proactive projects through the program and Restrict use of A few individuals”.
Some in that handful of men and women were being implicated in corruption.
Maselwa, who resigned from the NLC several decades back, has long been implicated in corruption involving lottery cash. He acquired R4.three-million from lottery cash allocated to build a library and museum elaborate in Kuruman (see Taung Cultural Audio and Arts Expo) which he utilized to make a household in an upmarket gated progress in Pretoria. The home is among a number of paid out for with lottery cash which were frozen after the Asset Forfeiture Unit acquired a preservation purchase in December 2022.
The politically-linked Nevhutanda, who was appointed as the NLC board chairperson by former President Jacob Zuma in 2009 and was near to significant-ups within the ANC Management, previous NLC previous Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated in the corruption which overwhelmed the NLC on their own check out.
Also implicated are previous board associates William Huma, who resigned immediately after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who's got because died.
When a new administration, including the entire board and govt, took in excess of at the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” in the documentation associated with proactive funding, A great deal of which was paper-based. Crucial paperwork have been missing. Information held for safekeeping by document storage organization Metrofile had been signed out and in no way returned.
The NLC was capable to Recuperate copies of some หวย files from its Mimecast email archiving method along with the laptops in their assistants and guidance team.
Information experiences
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 safety breaches and also the unauthorised use and/or dissemination of private facts attained as a result of executing official functions inside the Commission by NLC personnel. The functions are intended to undermine the integrity in the Commission whilst disrupting the efficient functions [of your NLC] and producing insurmountable reputational damage for the Fee as being the custodian of non-public information entrusted to it by its beneficiaries.”
His ask for for your SSA to analyze was supported in an affidavit by suspended NLC corporation secretary, Nomphumelelo Nene.
Nene is at the moment facing a disciplinary inquiry immediately after she was unsuccessful in legal action to set aside results of irregular expenditure on her watch.
The purpose of her affidavit, Nene explained, was “to history the occasions which transpired associated with information and facts security breaches at the National Lotteries Commission”.
She listed numerous news reports which she claimed had been the outcome of those “breaches” (see at the end of this short article).
Nene stated that a whistle-blower approached the NLC alleging that one of its workforce, Sello Qhino, experienced “supplied her categorised NLC Data and persistently encouraged her to offer the data to GroundUp”.
Qhino, who blew the whistle on the number of dodgy lottery-funded tasks in Kuruman just after attempts to boost The difficulty internally were dismissed, was subsequently fired.
Referring to an eighteen November 2018 posting inside the Each day Dispatch concerning the misappropriation of Lottery money, Nene mentioned the NLC determined and afterwards suspended Zintle Rungqu. She was an staff from the NLC’s East London Business, who was the husband or wife as well as mom of whistleblower Mzukise Makatse’s 3 kids.
Rungqu and Makatse think Rungqu was punished because Makatse blew the whistle. She was suspended and charged internally, Using the NLC spending R470,000 on attorneys to signify it, but was observed not guilty and allowed to return to operate.
“The common Consider these article content is [they contain] classified details regarding proactive funding jobs,” Nene stated in her affidavit.
When Runqu was suspended, Makatse moved out in the relatives dwelling to go ahead and take warmth off her and his little ones. Experiencing homelessness, he moved into an Business within an empty factory belonging to an acquaintance.
Both equally Makatse and Qhino are participating in an NLC reparation procedure meant to recognise the damage some individuals experienced on the hands on the NLC. Apologies and, in some cases, money compensation are predicted.
“Some individuals have been definitely affected really negatively by this … This is admittedly painful,” NLC Commissioner Jodi Scholtz advised the Each day Maverick past year.
“I satisfied a number of these persons. It absolutely was just so coronary heart-wrenching that their total lives are already turned the wrong way up,” explained Scholtz.
Amid Individuals she met were Qhino and Makatse.
Harmless System necessary for whistleblowers
The SSA found the absence at some 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 bring about personnel presenting such scenarios beyond the NLC,” the SSA mentioned in its conclusions.
“Given the magnitude of corruption in state institutions, it stays important that it makes certain that the NLC complies with all security prescripts and that its concentrate is on making certain that illegal and irregular conduct is adequately mitigated towards and by making certain an satisfactory channel for whistle-blowers to report untoward conduct without having getting intimidated.”
It advised that the NLC build a “Safe and sound channel” for employees to provide info on any “untoward activity” that may not protect against or discourage staff from blowing the whistle. A whistle-blowers plan, based upon the Guarded Disclosures Act twenty five of 2000, is really a prerequisite.”
Media reviews Nene stated
A ten December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Physical fitness Centre in Limpopo. GroundUp has worked carefully with Anton van Zyl, an investigative reporter and operator of your Limpopo Mirror, to expose NLC corruption. “The post had factors of knowledge not offered in the public domain, thereby raising issue on inside Facts protection breaches. The allegations while in the media have been independently investigated,” Nene stated. “Nevertheless, employees chargeable for divulging labeled info have nonetheless to get identified”;
A 28 January 2018 short article printed because of the Dally Dispatch “citing many allegations in the Limpopo Mirror short article posted on ten December 2017 in addition to a new allegation concerning a former staff because of the name of Mzukisi Makatse. He was charged and summarily dismissed with the threat brought about towards the organisation.”
A 16 November 2018 short article within the Lowvelder with regards to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has reported how, in spite of receiving R27-million in lottery grants, the rehab has never been completed. “The Lowvelder write-up contained categorized details regarding NLC coverage, raising further concerns of interior facts safety breaches,” Nene claimed in her affidavit. “The prima facie proof regarding these allegations didn't warrant an impartial Investigation, nonetheless [it] highlighted the heightened info protection dangers throughout the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Primary Care, a hijacked NPO. Nene reported GroundUp had confirmed in its Tale that it was according to leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Advertising of Usage of Details) ask for for facts with regards to the challenge, she said
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