Former Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Condition Safety Agency (SSA) in December 2018 to investigate the leaking of files that exposed lottery corruption.
The NLC’s organization secretary at some time detailed media reports she claimed had been according to “stolen” information and facts in an affidavit for your SSA.
The SSA did examine. It discovered the knowledge wasn't a matter of condition stability and the “prevalence of alleged corruption and irregularities” gave “enough motive” for your media to reveal it.
A completely new board and administration has due to the fact taken about the NLC and To date have taken measures to finish corruption for the establishment.
A Point out Safety Agency (SSA) investigation identified the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished sufficient motive” for publicity through the media.
The probe into meant “info protection breaches and sabotage of NLC operations” was undertaken right 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 at present suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the security agency’s “confidential” results and recommendations.
Nevhutanda questioned the SSA to investigate the part of NLC staff during the alleged leaking of data, and Nene, in her affidavit identified unique media and reports that she claimed included these leaks.
While in the letter outlining its results, the SSA informed the NLC that while guarding point out details was “a lawful vital geared toward shielding the sovereignty and integrity in the state” this only placed on appropriately classified information and facts.
Although it did not say so straight, the SSA findings implied which the allegedly leaked details didn't fall into this classification.
Appreciably, the SSA created it crystal clear that the need to protect state details “doesn't protect against any person from blowing the whistle on corruption or irregular or criminality”.
The SSA investigation discovered which the NLC details involved in the alleged breach was “sensitive and privileged in nature, but not categorized with regard to the prescripts in the Minimal Details Security Specifications (Skip)”.
“The leakage of your relevant sensitive Formal NLC information to your media isn't going to pose a danger to national stability,” the SSA claimed, including the impression with the breaches was reputational.
The SSA report discovered “no proof of a factual and incriminating nature towards any of your suspected NLC workers that could be determined from the information and information interrogated”.
Furthermore, it stated that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does present sufficient motive to have these kinds of exposed while in the media”.
Conspiracy statements
In 2020, Nevhutanda instructed MPs during a session of Parliament’s trade, business and Competitors portfolio committee that there was “a conspiracy” wherein details “stolen” from the NLC was sent to your US, where by he claimed it absolutely was staying marketed to fund a smear campaign against the NLC.
He was repeating comparable statements he had Formerly manufactured in Parliament, which provided advertisement hominem attacks on GroundUp and this reporter but was careful not to call possibly.
“I came listed here With this August household previous year and documented to honourable users that details about our beneficiaries is stolen and set in a single state in the usa,” he told MPs.
“We identified as to the State Safety Agency to come back explore the issue since we're acquiring stories that our information is building money for media platforms and journalists,” he claimed. “There was talk, of course from one particular source, one particular media, that spoke Significantly about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but didn't notify MPs the SSA investigation had been completed Just about a year previously.
Proactive funding was at the heart of the looting in the lottery. It aspect-stepped the normal grant process. The NLC could alone identify a project to fund and appoint a non-revenue organisation to supervise it.
Right after Nevhutanda initial explained to Parliament in 2018 that he had asked the SSA to analyze the meant breach, the South African National Editors Forum issued a press release expressing that his remarks mirrored “a very perilous Frame of mind the place the media is remaining blamed for that NLC’s inherent problems”.
“In lieu of investigating why millions can not be accounted for, the NLC has as an alternative tried to Solid doubt around the integrity in the journalists involved and has requested the SSA to investigate their resources.”
Proactive assignments built key
Protection flaws determined in the NLC grant funding method over the SSA’s investigation, appear to are already applied being an justification via the NLC to get rid of all proactive-funded initiatives from its central grants process.
“In or about 21 December 2019, the classification of all Professional-actively funding initiatives was heightened to ‘solution’ and initiatives were being removed from the grant funding system and maintained manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Office environment, Executive Manager Legal so as to safeguard [the] information and facts,” Nene mentioned in her affidavit.
“There was a great deal of inside discussion, with plenty of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was in the senior place at the NLC at some time, advised GroundUp. “In the end, the decision was taken to eliminate the many proactive tasks within the technique and Restrict access to a handful of people today”.
Some in that handful of individuals ended up implicated in corruption.
Maselwa, who resigned from the NLC many decades back, is implicated in corruption involving lottery cash. He gained R4.three-million from lottery cash allotted to develop a library and museum elaborate in Kuruman (see Taung Cultural New music and Arts Expo) which he used to build a house within an upmarket gated progress in Pretoria. The house is one of several compensated for with lottery money which were frozen following the Asset Forfeiture Unit received a preservation purchase in December 2022.
The politically-related Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to superior-ups while in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main functioning officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their own view.
Also implicated are former board customers William Huma, who resigned just after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have given that died.
Each time a new administration, including the total board and government, took above with the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation associated with proactive funding, Significantly of which was paper-primarily based. Important files have been lacking. Documents held for safekeeping by document storage corporation Metrofile had been signed out and hardly ever returned.
The NLC was in the position to recover copies of some ตรวจ หวย documents from its Mimecast email archiving procedure plus the laptops of their assistants and aid personnel.
Information studies
In his one December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave problem probable details protection breaches and also the unauthorised use and/or dissemination of confidential data attained as a result of carrying out official functions inside the Commission by NLC personnel. The functions are meant to undermine the integrity on the Commission although disrupting the successful functions [from the NLC] and causing insurmountable reputational hurt to your Commission as the custodian of private details entrusted to it by its beneficiaries.”
His request to the SSA to investigate was supported in an affidavit by suspended NLC business secretary, Nomphumelelo Nene.
Nene is now going through a disciplinary inquiry after she was unsuccessful in authorized motion to put aside findings of irregular expenditure on her observe.
The goal of her affidavit, Nene said, was “to document the gatherings which transpired concerning info safety breaches with the Nationwide Lotteries Commission”.
She detailed different news reviews which she claimed had been the outcomes of such “breaches” (see at the conclusion of this information).
Nene reported that a whistle-blower approached the NLC alleging that amongst its staff members, Sello Qhino, had “delivered her labeled NLC Info and persistently inspired her to provide the knowledge to GroundUp”.
Qhino, who blew the whistle with a series of dodgy lottery-funded initiatives in Kuruman following makes an attempt to lift the issue internally had been overlooked, was subsequently fired.
Referring to an eighteen November 2018 article inside the Each day Dispatch about the misappropriation of Lottery money, Nene explained which the NLC discovered after which suspended Zintle Rungqu. She was an worker inside the NLC’s East London Business office, who was the lover plus the mother of whistleblower Mzukise Makatse’s three children.
Rungqu and Makatse consider Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and charged internally, Using the NLC spending R470,000 on legal professionals to signify it, but was identified not guilty and permitted to return to work.
“The common Consider these content is usually that [they entail] classified information associated with proactive funding jobs,” Nene mentioned in her affidavit.
When Runqu was suspended, Makatse moved out with the family members property to take the heat off her and his young children. Experiencing homelessness, he moved into an Business 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 many people suffered within the palms from the NLC. Apologies and, occasionally, fiscal payment are anticipated.
“Some people today have been definitely affected quite negatively by this … This is actually unpleasant,” NLC Commissioner Jodi Scholtz instructed the Daily Maverick final yr.
“I satisfied a handful of these people today. It absolutely was just so coronary heart-wrenching that their full life have been turned upside down,” said Scholtz.
Among the Those people she achieved ended up Qhino and Makatse.
Safe and sound platform needed for whistleblowers
The SSA uncovered the absence at enough time of a proper channel for whistleblowers to report corruption led them to show towards the media.
“Failure to possess a focused anti-corruption channel will cause employees presenting these instances outside of the NLC,” the SSA claimed in its findings.
“Provided the magnitude of corruption in condition establishments, it continues to be very important that it ensures that the NLC complies with all security prescripts and that its concentrate is on making certain that illegal and irregular conduct is sufficiently mitigated versus and by making sure an enough channel for whistle-blowers to report untoward carry out devoid of currently being intimidated.”
It advisable that the NLC build a “Safe and sound channel” for employees to deliver information on any “untoward exercise” that might not stop or discourage workforce from blowing the whistle. A whistle-blowers coverage, dependant on the Safeguarded Disclosures Act twenty five of 2000, is really a prerequisite.”
Media reports Nene detailed
A ten December 2017 report in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Exercise Centre in Limpopo. GroundUp has labored intently with Anton van Zyl, an investigative reporter and operator of your Limpopo Mirror, to show NLC corruption. “The posting experienced features of data not readily available in the general public domain, thus boosting worry on inner Info stability breaches. The allegations from the media have been independently investigated,” Nene stated. “However, staff members to blame for divulging classified facts have but to generally be recognized”;
A 28 January 2018 short article published with the Dally Dispatch “citing various allegations in the Limpopo Mirror report posted on ten December 2017 and a new allegation referring to a former employee from the name of Mzukisi Makatse. He was billed and summarily dismissed with the danger brought about to your organisation.”
A 16 November 2018 write-up within the Lowvelder regarding the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has claimed how, Regardless of receiving R27-million in lottery grants, the rehab has not been completed. “The Lowvelder short article contained categorized information and facts with regards to NLC plan, raising even more concerns of inner facts stability breaches,” Nene stated in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, even so [it] highlighted the heightened information and facts stability threats throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.5-million grant to Denzhe Principal Care, a hijacked NPO. Nene stated GroundUp experienced verified in its story that it absolutely was dependant on leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Advertising of Entry to Info) ask for for specifics concerning the challenge, she explained