Lottery bosses turned to Point out Protection Company to research leaks

Lottery bosses turned to Point out Protection Company to research leaks

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Previous National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Point out Security Company (SSA) in December 2018 to analyze the leaking of files that uncovered lottery corruption.
The NLC’s enterprise secretary at time listed media stories she stated have been based on “stolen” data within an affidavit with the SSA.
The SSA did look into. It found the data wasn't a make any difference of condition safety and which the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to expose it.
A new board and management has considering that taken in excess of the NLC and So far have taken measures to finish corruption for the institution.
A Condition Stability Company (SSA) investigation found that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished ample motive” for exposure by the media.

The probe into intended “facts security breaches and sabotage of NLC functions” was undertaken just after then-NLC board chairperson Alfred Nevhutanda wrote to the SSA in December 2018 requesting it to analyze.

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC business secretary Nompumelelo Nene supporting the request, and
the security company’s “confidential” conclusions and recommendations.
Nevhutanda questioned the SSA to investigate the function of NLC staff within the alleged leaking of data, and Nene, in her affidavit discovered particular media and reports that she claimed involved these leaks.

While in the letter outlining its conclusions, the SSA told the NLC that even though guarding state info was “a lawful essential geared toward safeguarding the sovereignty and integrity with the point out” this only placed on correctly labeled info.

Even though it did not say so straight, the SSA results implied which the allegedly leaked information and facts did not fall into this group.

Drastically, the SSA produced it obvious that the necessity to protect state facts “would not stop any specific from blowing the whistle on corruption or irregular or criminal activity”.

The SSA investigation discovered that the NLC information involved in the alleged breach was “delicate and privileged in nature, but not labeled with regards to the prescripts with the Minimum amount Data Security Benchmarks (Overlook)”.

“The leakage of your related delicate Formal NLC info into the media doesn't pose a risk to national protection,” the SSA claimed, introducing the impression with the breaches was reputational.

The SSA report discovered “no evidence of the factual and incriminating mother nature against any from the suspected NLC workers that may be identified from the information and data interrogated”.

It also said that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does provide ample motive to have such exposed in the media”.

Conspiracy promises
In 2020, Nevhutanda advised MPs in the course of a session of Parliament’s trade, business and competition portfolio committee that there was “a conspiracy” through which info “stolen” through the NLC was sent for the US, the place he claimed it absolutely was remaining sold to fund a smear campaign towards the NLC.

He was repeating comparable claims he experienced Beforehand produced in Parliament, which integrated advert hominem assaults on GroundUp and this reporter but was cautious not to call both.

“I arrived here During this August dwelling final calendar year and reported to honourable associates that specifics of our beneficiaries has long been stolen and place in a single condition in America,” he explained to MPs.

“We named over the State Security Agency to come back look into the make a difference mainly because we've been getting reports that our data is producing cash for media platforms and journalists,” he mentioned. “There's been discuss, naturally from just one source, one media, that spoke A great deal about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but did not inform MPs which the SSA investigation had been concluded Practically a yr previously.

Proactive funding was at the center with the looting from the lottery. It aspect-stepped the traditional grant method. The NLC could by itself detect a undertaking to fund and appoint a non-profit organisation to oversee it.

Immediately after Nevhutanda first informed Parliament in 2018 that he had asked the SSA to research the supposed breach, the South African Nationwide Editors Forum issued an announcement indicating that his remarks reflected “an especially dangerous Frame of mind where by the media is being blamed for the NLC’s inherent troubles”.

“Instead of investigating why hundreds of thousands can not be accounted for, the NLC has rather attempted to Solid question to the integrity on the journalists associated and it has asked the SSA to investigate their sources.”

Proactive projects created key
Security flaws determined during the NLC grant funding process over the SSA’s investigation, seem to are applied being an justification with the NLC to eliminate all proactive-funded jobs from its central grants technique.

“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘secret’ and tasks were being faraway from the grant funding method and taken care of manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Business office, Government Manager Legal as a way to safeguard [the] data,” Nene explained in her affidavit.

“There was plenty of internal discussion, with plenty of back and forth, about what to do to plug the alleged leaks”, a supply, who was in the senior posture with the NLC at enough time, informed GroundUp. “Eventually, the choice was taken to eliminate all the proactive jobs in the system and Restrict use of A few folks”.

Some in that handful of individuals have been implicated in corruption.

Maselwa, who resigned from the NLC numerous many years back, is implicated in corruption involving lottery funds. He gained R4.3-million from lottery funds allocated to make a library and museum sophisticated in Kuruman (see Taung Cultural Tunes and Arts Expo) which he utilized to build a home in an upmarket gated improvement in Pretoria. The residence is among quite a few paid out for with lottery cash that were frozen following the Asset Forfeiture Unit obtained a preservation order in December 2022.

The politically-related Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to substantial-ups within the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their view.

Also implicated are previous board associates William Huma, who resigned right after he was confronted with evidence of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has given that died.

When a new administration, including the entire board and govt, took in excess of with the NLC in late 2022 and early 2023, they identified a “chaotic mess” during the documentation referring to proactive funding, Substantially of which was paper-based. Critical files were lacking. Documents held for safekeeping by document storage organization Metrofile had been signed out and in no way returned.

The NLC was in the position to Get well copies of some หวย หุ้น paperwork from its Mimecast electronic mail archiving procedure plus the laptops of their assistants and help workers.

News stories
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave issue doable data stability breaches and the unauthorised use and/or dissemination of private data acquired on account of doing Formal capabilities in the Commission by NLC personnel. The functions are meant to undermine the integrity of the Fee while disrupting the successful features [in the NLC] and triggering insurmountable reputational damage for the Commission as the custodian of private information and facts entrusted to it by its beneficiaries.”

His ask for for your SSA to investigate was supported within an affidavit by suspended NLC business secretary, Nomphumelelo Nene.

Nene is currently facing a disciplinary inquiry just after she was unsuccessful in authorized motion to put aside results of irregular expenditure on her watch.

The objective of her affidavit, Nene said, was “to document the functions which transpired relating to details protection breaches within the Countrywide Lotteries Fee”.

She mentioned various news reports which she claimed were the outcomes of these “breaches” (see at the end of this post).

Nene explained that a whistle-blower approached the NLC alleging that considered one of its staff members, Sello Qhino, had “supplied her classified NLC Information and facts and persistently encouraged her to provide the information to GroundUp”.

Qhino, who blew the whistle over a series of dodgy lottery-funded initiatives in Kuruman soon after tries to raise The difficulty internally had been overlooked, was subsequently fired.

Referring to an eighteen November 2018 write-up during the Every day Dispatch with regard to the misappropriation of Lottery funds, Nene stated the NLC recognized after which you can suspended Zintle Rungqu. She was an staff inside the NLC’s East London office, who was the companion along with the mom of whistleblower Mzukise Makatse’s 3 small children.

Rungqu and Makatse believe Rungqu was punished simply because Makatse blew the whistle. She was suspended and billed internally, with the NLC expending R470,000 on attorneys to signify it, but was observed not guilty and allowed to return to operate.

“The common Think about these articles or blog posts is the fact that [they require] classified data relating to proactive funding tasks,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out with the household house to take the heat off her and his kids. Experiencing homelessness, he moved into an Place of work within an vacant factory belonging to a friend.

Both of those Makatse and Qhino are taking part in an NLC reparation procedure meant to recognise the hurt some individuals experienced for the fingers from the NLC. Apologies and, in some cases, financial payment are anticipated.

“Some individuals ended up genuinely affected really negatively by this … This is actually unpleasant,” NLC Commissioner Jodi Scholtz instructed the Every day Maverick previous calendar year.

“I achieved a few these men and women. It had been just so heart-wrenching that their total life happen to be turned upside down,” stated Scholtz.

Amongst Individuals she satisfied had been Qhino and Makatse.

Protected platform required for whistleblowers
The SSA identified the absence at the time of a proper channel for whistleblowers to report corruption led them to show to your media.

“Failure to have a focused anti-corruption channel will cause personnel presenting these kinds of circumstances beyond the NLC,” the SSA reported in its results.

“Given the magnitude of corruption in condition establishments, it stays crucial that it makes sure that the NLC complies with all stability prescripts Which its concentrate is on making certain that unlawful and irregular carry out is adequately mitigated in opposition to and by making certain an ample channel for whistle-blowers to report untoward perform with out currently being intimidated.”

It encouraged that the NLC build a “Harmless channel” for workers to supply information on any “untoward exercise” that could not protect against or discourage staff members from blowing the whistle. A whistle-blowers coverage, determined by the Guarded Disclosures Act twenty five of 2000, can be a need.”

Media studies Nene mentioned
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and proprietor with the Limpopo Mirror, to expose NLC corruption. “The write-up had things of data not available in the general public area, therefore raising concern on internal Info safety breaches. The allegations inside the media had been independently investigated,” Nene stated. “Nevertheless, workers liable for divulging classified facts have but to be recognized”;
A 28 January 2018 article revealed by the Dally Dispatch “citing quite a few allegations from the Limpopo Mirror post revealed on 10 December 2017 in addition to a new allegation relating to a former employee from the name of Mzukisi Makatse. He was charged and summarily dismissed for your threat triggered for the organisation.”
A 16 November 2018 report while in the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has described how, in spite of acquiring R27-million in lottery grants, the rehab has not been finished. “The Lowvelder article contained labeled info in terms of NLC coverage, boosting more fears of internal data stability breaches,” Nene stated in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, nevertheless [it] highlighted the heightened details protection pitfalls in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Major Care, a hijacked NPO. Nene stated GroundUp had verified in its Tale that it was depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Advertising of Entry to Details) request for aspects about the challenge, she claimed