Former Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda asked the Condition Stability Company (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s company secretary at time shown media experiences she stated have been based on “stolen” info in an affidavit for the SSA.
The SSA did look into. It uncovered the data was not a make a difference of state stability and the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to reveal it.
A fresh board and management has considering the fact that taken in excess of the NLC and So far have taken actions to finish corruption on the establishment.
A State Safety Company (SSA) investigation found the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished enough motive” for exposure through the media.
The probe into intended “information and facts stability breaches and sabotage of NLC functions” was carried out following then-NLC board chairperson Alfred Nevhutanda wrote for the 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 request, and
the safety agency’s “confidential” conclusions and suggestions.
Nevhutanda asked the SSA to analyze the purpose of NLC personnel inside the alleged leaking of information, and Nene, in her affidavit determined certain media and reports that she claimed included these leaks.
Within the letter outlining its results, the SSA told the NLC that even though guarding condition information and facts was “a legal critical directed at defending the sovereignty and integrity on the point out” this only placed on properly labeled information and facts.
Even though it didn't say so instantly, the SSA conclusions implied the allegedly leaked facts didn't tumble into this category.
Considerably, the SSA created it distinct that the need to guard state information and facts “doesn't prevent any particular person from blowing the whistle on corruption or irregular or criminality”.
The SSA investigation discovered that the NLC details associated with the alleged breach was “delicate and privileged in character, although not labeled with regards to the prescripts in the Least Information and facts Security Specifications (Skip)”.
“The leakage with the pertinent delicate official NLC information and facts on the media does not pose a threat to nationwide protection,” the SSA claimed, adding which the impact of the breaches was reputational.
The SSA report discovered “no proof of the factual and incriminating character from any with the suspected NLC staff members that can be discovered from the information and knowledge interrogated”.
In addition, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does provide ample motive to get these types of uncovered in the media”.
Conspiracy promises
In 2020, Nevhutanda told MPs throughout a session of Parliament’s trade, business and Levels of competition portfolio committee that there was “a conspiracy” where data “stolen” from your NLC was sent to your US, the place he claimed it was staying offered to fund a smear marketing campaign towards the NLC.
He was repeating similar statements he experienced previously manufactured in Parliament, which included advertisement hominem assaults on GroundUp which reporter but was cautious not to name both.
“I arrived in this article Within this August household past year and reported to honourable associates that details about our beneficiaries has become stolen and place in one state in the usa,” he explained to MPs.
“We termed over the Condition Safety Agency to return investigate the make a difference simply because we've been receiving reports that our information and facts is creating money for media platforms and journalists,” he claimed. “There has been converse, obviously from just one resource, 1 media, that spoke Substantially about proactive-funding,” Nevhutanda stated (referring to GroundUp), but failed to explain to MPs the SSA investigation were concluded Pretty much a calendar year before.
Proactive funding was at the guts of your looting of your lottery. It facet-stepped the traditional grant course of action. The NLC could by itself recognize a venture to fund and appoint a non-revenue organisation to supervise it.
Just after Nevhutanda initially informed Parliament in 2018 that he experienced requested the SSA to analyze the supposed breach, the South African Countrywide Editors Forum issued an announcement saying that his remarks reflected “an extremely unsafe attitude the place the media is remaining blamed for your NLC’s inherent challenges”.
“Instead of investigating why thousands and thousands can't be accounted for, the NLC has in its place made an effort to Forged question to the integrity of your journalists associated and it has requested the SSA to investigate their resources.”
Proactive jobs designed solution
Protection flaws recognized in the NLC grant funding procedure in the SSA’s investigation, look to happen to be made use of as an justification from the NLC to eliminate all proactive-funded tasks from its central grants process.
“In or about 21 December 2019, the classification of all pro-actively funding assignments was heightened to ‘top secret’ and tasks ended up faraway from the grant funding system and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Govt Supervisor Authorized so as to safeguard [the] information and facts,” Nene explained in her affidavit.
“There was loads of internal discussion, with a great deal of backwards and forwards, about what to do to plug the alleged leaks”, a resource, who was inside of a senior situation for the NLC at time, advised GroundUp. “In the end, the choice was taken to remove many of the proactive jobs through the method and limit access to A few people”.
Some in that handful of individuals were being implicated in corruption.
Maselwa, who resigned from the NLC quite a few several years in the past, has become implicated in corruption involving lottery cash. He gained R4.3-million from lottery money allotted to build a library and museum intricate in Kuruman (see Taung Cultural New music and Arts Expo) which he used to create a dwelling within an upmarket gated enhancement in Pretoria. The property is among various paid out for with lottery cash which were frozen following the Asset Forfeiture Device acquired a preservation get in December 2022.
The politically-related Nevhutanda, who was appointed because the NLC board chairperson by former President Jacob Zuma in 2009 and was near superior-ups from the ANC leadership, previous NLC former Commissioner Thabang Mampane, and ex-Main running officer Phillemon Letwaba, have all been implicated while in the corruption which overwhelmed the NLC on their view.
Also implicated are previous board associates William Huma, who resigned just after he was confronted with evidence of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, that has since died.
Whenever a new administration, including the whole board and executive, took above on the NLC in late 2022 and early 2023, they uncovered a “chaotic mess” while in the documentation associated with proactive funding, Substantially of which was paper-based mostly. Crucial documents were being missing. Data files held for safekeeping by document storage company Metrofile were signed out and in no way returned.
The NLC was in a position to Get well copies of some หวย ลาว ย้อน หลัง files from its Mimecast e mail archiving technique along with the laptops of their assistants and aid personnel.
News stories
In his 1 December 2018 letter, resolved to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has noted with grave worry feasible facts security breaches plus the unauthorised use and/or dissemination of private details received on account of carrying out official functions while in the Fee by NLC workforce. The activities are meant to undermine the integrity of the Fee though disrupting the effective capabilities [of your NLC] and producing insurmountable reputational damage on the Commission given that the custodian of private data entrusted to it by its beneficiaries.”
His request for that SSA to investigate was supported within an affidavit by suspended NLC organization secretary, Nomphumelelo Nene.
Nene is currently experiencing a disciplinary inquiry right after she was unsuccessful in lawful action to set aside results of irregular expenditure on her watch.
The purpose of her affidavit, Nene claimed, was “to record the functions which transpired concerning info safety breaches with the Nationwide Lotteries Commission”.
She shown several information stories which she claimed ended up 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 staff, Sello Qhino, experienced “presented her categorized NLC Information and persistently encouraged her to provide the knowledge to GroundUp”.
Qhino, who blew the whistle on a series of dodgy lottery-funded jobs in Kuruman right after tries to raise The problem internally ended up ignored, was subsequently fired.
Referring to an 18 November 2018 report during the Every day Dispatch with regards to the misappropriation of Lottery resources, Nene reported that the NLC identified and after that suspended Zintle Rungqu. She was an worker inside the NLC’s East London Business office, who was the associate along with the mother of whistleblower Mzukise Makatse’s a few small children.
Rungqu and Makatse believe that Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and charged internally, While using the NLC shelling out R470,000 on lawyers to characterize it, but was identified not responsible and allowed to return to work.
“The prevalent factor in these articles or blog posts is that [they entail] categorised information referring to proactive funding assignments,” Nene claimed in her affidavit.
When Runqu was suspended, Makatse moved out of the family members residence to take the heat off her and his children. Facing homelessness, he moved into an Workplace within an vacant factory belonging to a friend.
Both Makatse and Qhino are taking part in an NLC reparation procedure intended to recognise the damage some people suffered with the arms of your NLC. Apologies and, in some cases, economic compensation are anticipated.
“Some men and women have been genuinely influenced quite negatively by this … This is de facto agonizing,” NLC Commissioner Jodi Scholtz advised the Everyday Maverick final calendar year.
“I fulfilled a number of these people. It absolutely was just so heart-wrenching that their whole lives happen to be turned the other way up,” mentioned Scholtz.
Among the Individuals she achieved had been Qhino and Makatse.
Safe and sound platform necessary for whistleblowers
The SSA uncovered the absence at the time of a correct channel for whistleblowers to report corruption led them to turn on the media.
“Failure to possess a focused anti-corruption channel will result in workers presenting these kinds of scenarios beyond the NLC,” the SSA explained in its results.
“Presented the magnitude of corruption in condition institutions, it continues to be important that it makes sure that the NLC complies with all safety prescripts Which its aim is on guaranteeing that illegal and irregular carry out is adequately mitigated versus and by guaranteeing an sufficient channel for whistle-blowers to report untoward perform without having being intimidated.”
It advisable which the NLC set up a “Harmless channel” for employees to offer info on any “untoward exercise” that will not protect against or discourage employees from blowing the whistle. A whistle-blowers policy, determined by the Shielded Disclosures Act twenty five of 2000, is a requirement.”
Media reviews Nene detailed
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Physical fitness Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor in the Limpopo Mirror, to expose NLC corruption. “The posting experienced factors of data not readily available in the public area, thereby increasing concern on inside Info stability breaches. The allegations inside the media were being independently investigated,” Nene stated. “Having said that, workers chargeable for divulging classified details have still to generally be identified”;
A 28 January 2018 post revealed with the Dally Dispatch “citing a lot of allegations with the Limpopo Mirror posting posted on ten December 2017 plus a new allegation associated with a former staff because of the title of Mzukisi Makatse. He was charged and summarily dismissed with the risk brought on into the organisation.”
A 16 November 2018 article from the Lowvelder in regards to the misappropriation of NLC funds 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 finished. “The Lowvelder article contained categorised facts with regard to NLC policy, increasing even more concerns of inner information and facts security breaches,” Nene explained in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an unbiased Investigation, nonetheless [it] highlighted the heightened facts stability risks inside the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Main Care, a hijacked NPO. Nene mentioned GroundUp had confirmed in its story that it was according to leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Entry to Info) ask for for facts about the challenge, she explained