Former 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 organization secretary at time shown media experiences she reported were being according to “stolen” info within an affidavit for that SSA.
The SSA did examine. It discovered the data was not a matter of point out security and which the “prevalence of alleged corruption and irregularities” gave “ample motive” for that media to expose it.
A completely new board and management has since taken in excess of the NLC and thus far have taken measures to end corruption within the establishment.
A State Safety Agency (SSA) investigation located the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided ample motive” for publicity by the media.
The probe into supposed “info security 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 currently suspended NLC company secretary Nompumelelo Nene supporting the ask for, and
the security company’s “confidential” results and recommendations.
Nevhutanda requested the SSA to investigate the function of NLC team during the alleged leaking of knowledge, and Nene, in her affidavit identified specific media and studies that she claimed associated these leaks.
In the letter outlining its results, the SSA explained to the NLC that whilst preserving state details was “a legal crucial targeted at safeguarding the sovereignty and integrity on the point out” this only placed on appropriately categorised data.
Even though it didn't say so immediately, the SSA findings implied that the allegedly leaked facts did not tumble into this category.
Drastically, the SSA made it very clear that the necessity to shield state information and facts “does not reduce any personal from blowing the whistle on corruption or irregular or criminality”.
The SSA investigation discovered the NLC data involved with the alleged breach was “delicate and privileged in mother nature, although not categorized when it comes to the prescripts on the Minimum amount Facts Security Benchmarks (Skip)”.
“The leakage with the relevant sensitive official NLC information for the media would not pose a threat to national security,” the SSA stated, adding which the effects with the breaches was reputational.
The SSA report located “no evidence of the factual and incriminating character in opposition to any from the suspected NLC workforce which could be determined from the information and details interrogated”.
In addition it stated that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does supply enough motive to acquire this sort of uncovered within the media”.
Conspiracy statements
In 2020, Nevhutanda told MPs through a session of Parliament’s trade, business and Levels of competition portfolio committee that there was “a conspiracy” wherein information “stolen” in the NLC was despatched to the US, where he claimed it was getting offered to fund a smear marketing campaign versus the NLC.
He was repeating identical statements he had previously designed in Parliament, which incorporated ad hominem assaults on GroundUp which reporter but was watchful not to call either.
“I came here With this August residence past year and described to honourable users that details about our beneficiaries has long been stolen and put in a single state in America,” he instructed MPs.
“We identified as over the Point out Security Company to return take a look at the make any difference because we've been finding stories that our information is generating cash for media platforms and journalists,” he stated. “There's been speak, obviously from 1 source, a person media, that spoke Substantially about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but didn't convey to MPs the SSA investigation were accomplished Nearly a calendar year earlier.
Proactive funding was at the guts of the looting of your lottery. It side-stepped the traditional grant approach. The NLC could alone recognize a challenge to fund and appoint a non-revenue organisation to oversee it.
Immediately after Nevhutanda initial advised Parliament in 2018 that he had requested the SSA to research the intended breach, the South African National Editors Forum issued a statement stating that his remarks mirrored “an extremely perilous Mind-set where by the media is being blamed with the NLC’s inherent problems”.
“As an alternative to investigating why tens of millions cannot be accounted for, the NLC has alternatively tried to Forged doubt within the integrity of the journalists concerned and has questioned the SSA to research their resources.”
Proactive projects made secret
Safety flaws discovered from the NLC grant funding method over the SSA’s investigation, surface to are already applied as an justification via the NLC to eliminate all proactive-funded projects from its central grants method.
“In or about 21 December 2019, the classification of all pro-actively funding jobs was heightened to ‘key’ and assignments have been removed from the grant funding system and managed manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Workplace, Govt Manager Legal as a way to safeguard [the] details,” Nene reported in her affidavit.
“There was loads of inner discussion, with a lot of forwards and backwards, about what to do to plug the alleged leaks”, a supply, who was in the senior position for the NLC at some time, informed GroundUp. “Eventually, the choice was taken to remove all the proactive initiatives in the method and limit usage of a handful of folks”.
Some in that handful of individuals ended up implicated in corruption.
Maselwa, who resigned through the NLC numerous many years back, is implicated in corruption involving lottery funds. He gained R4.three-million from lottery resources allocated to construct a library and museum advanced in Kuruman (see Taung Cultural Music and Arts Expo) which he utilised to make a home in an upmarket gated advancement in Pretoria. The residence is among various paid out for with lottery cash that were frozen after the Asset Forfeiture Device received a preservation purchase in December 2022.
The politically-connected Nevhutanda, who was appointed as the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to superior-ups from the ANC leadership, former NLC previous Commissioner Thabang Mampane, and ex-chief running officer Phillemon Letwaba, have all been implicated inside the corruption which confused the NLC on their own watch.
Also implicated are former board customers William Huma, who resigned following he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have given that died.
Every time a new administration, such as the entire board and executive, took more than with the NLC in late 2022 and early 2023, they found out a “chaotic mess” during the documentation relating to proactive funding, much of which was paper-based. Key documents were being missing. Files held for safekeeping by doc storage firm Metrofile had been signed out and hardly ever returned.
The NLC was in the position to Recuperate copies of some cat888 files from its Mimecast e mail archiving program as well as the laptops in their assistants and guidance workers.
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 facts stability breaches as well as the unauthorised use and/or dissemination of private information acquired due to accomplishing Formal capabilities within the Commission by NLC workers. The pursuits are meant to undermine the integrity on the Fee when disrupting the helpful features [on the NLC] and triggering insurmountable reputational harm to the Fee because the custodian of private facts entrusted to it by its beneficiaries.”
His request with the SSA to research was supported within an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.
Nene is at present facing a disciplinary inquiry immediately after she was unsuccessful in legal action to set aside conclusions of irregular expenditure on her observe.
The goal of her affidavit, Nene said, was “to file the situations which transpired relating to details safety breaches with the Nationwide Lotteries Commission”.
She shown many information experiences which she claimed were being the effects of those “breaches” (see at the end of this post).
Nene explained that a whistle-blower approached the NLC alleging that among its workers, Sello Qhino, experienced “offered 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 projects in Kuruman soon after tries to raise the issue internally ended up disregarded, was subsequently fired.
Referring to an eighteen November 2018 post while in the Day by day Dispatch regarding the misappropriation of Lottery cash, Nene explained the NLC recognized then suspended Zintle Rungqu. She was an personnel during the NLC’s East London Business, who was the partner and also the mom of whistleblower Mzukise Makatse’s 3 kids.
Rungqu and Makatse consider Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, With all the NLC spending R470,000 on attorneys to represent it, but was uncovered not guilty and permitted to return to operate.
“The typical Consider these content is the fact [they require] categorized info concerning proactive funding initiatives,” Nene mentioned in her affidavit.
When Runqu was suspended, Makatse moved out from the spouse and children property to take the heat off her and his children. Experiencing homelessness, he moved into an Workplace in an vacant factory belonging to a buddy.
Both of those Makatse and Qhino are participating in an NLC reparation method intended to recognise the damage lots of people experienced at the hands in the NLC. Apologies and, in some instances, fiscal compensation are anticipated.
“Some people had been truly affected very negatively by this … This is really distressing,” NLC Commissioner Jodi Scholtz advised the Everyday Maverick last 12 months.
“I achieved a number of these people today. It had been just so coronary heart-wrenching that their entire life have already been turned the wrong way up,” said Scholtz.
Amid All those she achieved have been Qhino and Makatse.
Protected platform required for whistleblowers
The SSA observed the absence at the time of an appropriate channel for whistleblowers to report corruption led them to show to your media.
“Failure to have a committed anti-corruption channel will result in staff members presenting this kind of circumstances beyond the NLC,” the SSA explained in its conclusions.
“Offered the magnitude of corruption in condition institutions, it continues to be crucial that it ensures that the NLC complies with all safety prescripts and that its focus is on making certain 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 no currently being intimidated.”
It encouraged the NLC set up a “Secure channel” for workers to provide info on any “untoward activity” that may not avoid or discourage workers from blowing the whistle. A whistle-blowers coverage, according to the Secured Disclosures Act 25 of 2000, can be a need.”
Media reports Nene detailed
A ten December 2017 report during 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 proprietor with the Limpopo Mirror, to show NLC corruption. “The short article experienced things of knowledge not offered in the public area, thus increasing worry on inner Data safety breaches. The allegations inside the media were independently investigated,” Nene reported. “Having said that, staff members to blame for divulging classified facts have but to generally be identified”;
A 28 January 2018 short article published through the Dally Dispatch “citing various allegations in the Limpopo Mirror write-up released on ten December 2017 in addition to a new allegation relating to a previous staff by the identify of Mzukisi Makatse. He was billed and summarily dismissed to the risk triggered for the organisation.”
A sixteen November 2018 short article from the Lowvelder with regard to the misappropriation of NLC cash involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Despite getting R27-million in lottery grants, the rehab hasn't been completed. “The Lowvelder short article contained classified data in terms of NLC policy, elevating further more issues of inner facts stability breaches,” Nene said in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, having said that [it] highlighted the heightened information stability threats throughout the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Main Treatment, a hijacked NPO. Nene claimed GroundUp had verified in its story that it was dependant on leaked NLC paperwork. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Facts) request for facts in regards to the project, she claimed