Former National Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the State Stability Agency (SSA) in December 2018 to investigate the leaking of files that exposed lottery corruption.
The NLC’s organization secretary at some time mentioned media reports she reported were based on “stolen” information and facts in an affidavit for that SSA.
The SSA did look into. It discovered the knowledge wasn't a subject of condition stability and that the “prevalence of alleged corruption and irregularities” gave “ample motive” for your media to expose it.
A different board and administration has considering the fact that taken in excess of the NLC and To this point have taken measures to finish corruption for the institution.
A Point out Protection Company (SSA) investigation observed the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered ample motive” for exposure through the media.

The probe into supposed “information safety breaches and sabotage of NLC functions” was undertaken immediately after then-NLC board chairperson Alfred Nevhutanda wrote for the SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by at this time suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the security company’s “confidential” results and proposals.
Nevhutanda questioned the SSA to investigate the function of NLC staff while in the alleged leaking of data, and Nene, in her affidavit identified specific media and experiences that she claimed associated these leaks.

Inside the letter outlining its conclusions, the SSA advised the NLC that although defending condition data was “a legal imperative aimed at shielding the sovereignty and integrity of your point out” this only applied to appropriately categorised facts.

Although it didn't say so immediately, the SSA findings implied the allegedly leaked data didn't drop into this category.

Noticeably, the SSA designed it obvious that the need to secure state data “would not stop any particular person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation uncovered which the NLC facts associated with the alleged breach was “delicate and privileged in nature, although not categorized with regards to the prescripts from the Minimum amount Information and facts Protection Expectations (MISS)”.

“The leakage on the relevant delicate official NLC details for the media doesn't pose a danger to national stability,” the SSA said, incorporating which the effect of your breaches was reputational.

The SSA report located “no proof of a factual and incriminating nature in opposition to any in the suspected NLC employees which could be identified from the information and knowledge interrogated”.

Furthermore, it stated that “the prevalence of alleged corruption and irregularities in the NLC and at its beneficiaries does offer sufficient motive to own this kind of uncovered during the media”.

Conspiracy statements
In 2020, Nevhutanda told MPs through a session of Parliament’s trade, marketplace and competition portfolio committee that there was “a conspiracy” during which facts “stolen” from your NLC was despatched into the US, where he claimed it was becoming marketed to fund a smear campaign against the NLC.

He was repeating similar statements he experienced Earlier made in Parliament, which incorporated advert hominem attacks on GroundUp and this reporter but was very careful not to name possibly.

“I came in this article On this August dwelling past year and noted to honourable customers that details about our beneficiaries continues to be stolen and place in one state in America,” he explained to MPs.

“We identified as within the State Protection Agency to return look into the matter simply because we've been receiving experiences that our facts is producing funds for media platforms and journalists,” he explained. “There was speak, naturally from 1 source, 1 media, that spoke A lot about proactive-funding,” Nevhutanda stated (referring to GroundUp), but didn't inform MPs which the SSA investigation had been concluded Just about a yr earlier.

Proactive funding was at the guts on the looting of the lottery. It side-stepped the conventional grant process. The NLC could by itself determine a task to fund and appoint a non-gain organisation to supervise it.

Just after Nevhutanda to start with instructed Parliament in 2018 that he experienced questioned the SSA to analyze the meant breach, the South African Nationwide Editors Forum issued a press release stating that his remarks reflected “an extremely dangerous Angle the place the media is becoming blamed with the NLC’s inherent challenges”.

“As an alternative to investigating why millions can't be accounted for, the NLC has in its place made an effort to cast question around the integrity in the journalists included and it has requested the SSA to analyze their resources.”

Proactive projects made magic formula
Security flaws identified in the NLC grant funding system throughout the SSA’s investigation, seem to have already been utilised as an justification with the NLC to remove all proactive-funded jobs from its central grants technique.

“In or about 21 December 2019, the classification of all Professional-actively funding assignments was heightened to ‘top secret’ and assignments were being removed from the grant funding technique and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Details Business, Executive Manager Legal as a way to safeguard [the] facts,” Nene reported in her affidavit.

“There was a lot of internal dialogue, with lots of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was in the senior placement for the NLC at enough time, advised GroundUp. “In the end, the choice was taken to remove all the proactive initiatives through the method and Restrict access to a handful of people today”.

Some in that handful of individuals were being implicated in corruption.

Maselwa, who resigned from your NLC several a long time in the past, has long been implicated in corruption involving lottery resources. He acquired R4.three-million from lottery resources allocated to build a library and museum complicated in Kuruman (see Taung Cultural Audio and Arts Expo) which he made use of to develop a property in an upmarket gated advancement in Pretoria. The house is among many compensated for with lottery money that were frozen following the Asset Forfeiture Device received a preservation get in December 2022.

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

Also implicated are previous board customers William Huma, who resigned after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have because died.

When a new administration, including the overall board and govt, took above within the NLC in late 2022 and early 2023, they identified a “chaotic mess” in the documentation associated with proactive funding, A great deal of which was paper-based. Crucial paperwork ended up missing. Information held for safekeeping by doc storage company Metrofile were signed out and under no circumstances returned.

The NLC was in the position to recover copies of some สลาก กิน paperwork from its Mimecast e mail archiving procedure as well as laptops in their assistants and aid team.

Information studies
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has observed with grave problem feasible information and facts protection breaches along with the unauthorised use and/or dissemination of private details attained as a result of accomplishing Formal functions inside the Fee by NLC workforce. The activities are intended to undermine the integrity on the Fee when disrupting the effective features [with the NLC] and causing insurmountable reputational harm on the Commission since the custodian of personal data entrusted to it by its beneficiaries.”

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

Nene is currently dealing with a disciplinary inquiry after she was unsuccessful in authorized motion to set aside results of irregular expenditure on her view.

The goal of her affidavit, Nene stated, was “to file the occasions which transpired regarding information safety breaches for the Countrywide Lotteries Fee”.

She mentioned numerous news reviews which she claimed had been the outcome of such “breaches” (see at the conclusion of this informative article).

Nene explained that a whistle-blower approached the NLC alleging that amongst its employees, Sello Qhino, experienced “furnished her categorized NLC Info and persistently inspired her to supply the information to GroundUp”.

Qhino, who blew the whistle with a series of dodgy lottery-funded jobs in Kuruman immediately after attempts to boost The difficulty internally have been ignored, was subsequently fired.

Referring to an 18 November 2018 posting while in the Every day Dispatch about the misappropriation of Lottery money, Nene reported that the NLC recognized then suspended Zintle Rungqu. She was an personnel from the NLC’s East London Business, who was the partner and also the mother of whistleblower Mzukise Makatse’s a few children.

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

“The typical Think about these articles or blog posts is [they contain] classified facts associated with proactive funding initiatives,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out from the relatives dwelling to go ahead and take warmth off her and his children. Going through homelessness, he moved into an Business office in an empty factory belonging to a friend.

Both of those Makatse and Qhino are taking part in an NLC reparation approach intended to recognise the harm some individuals experienced with the hands with the NLC. Apologies and, in some instances, economical compensation are predicted.

“Some individuals have been definitely affected really negatively by this … This is really painful,” NLC Commissioner Jodi Scholtz advised the Each day Maverick past calendar year.

“I achieved a few these folks. It was just so heart-wrenching that their whole life have been turned the other way up,” reported Scholtz.

Among the All those she satisfied had been Qhino and Makatse.

Secure System desired for whistleblowers
The SSA observed the absence at time of a proper channel for whistleblowers to report corruption led them to turn to the media.

“Failure to have a focused anti-corruption channel will cause employees presenting these instances beyond the NLC,” the SSA said in its results.

“Given the magnitude of corruption in condition establishments, it remains critical that it makes certain that the NLC complies with all stability prescripts Which its concentrate is on making certain that illegal and irregular carry out is adequately mitigated from and by making sure an adequate channel for whistle-blowers to report untoward perform without the need of being intimidated.”

It recommended which the NLC set up a “safe channel” for workers to provide info on any “untoward exercise” that could not stop or discourage workforce from blowing the whistle. A whistle-blowers policy, dependant on the Guarded Disclosures Act twenty five of 2000, is a necessity.”

Media stories Nene listed
A 10 December 2017 report inside the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellbeing and Fitness 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 short article experienced aspects of information not obtainable in the public area, thereby raising worry on inner Info stability breaches. The allegations from the media had been independently investigated,” Nene said. “Having said that, staff accountable for divulging labeled info have nonetheless for being determined”;
A 28 January 2018 posting printed because of the Dally Dispatch “citing various allegations in the Limpopo Mirror write-up released on ten December 2017 and also a new allegation concerning a previous personnel with the title of Mzukisi Makatse. He was charged and summarily dismissed with the danger brought about to your organisation.”
A 16 November 2018 article during the Lowvelder about 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 finished. “The Lowvelder short article contained classified facts when it comes to NLC coverage, boosting additional worries of interior information security breaches,” Nene mentioned in her affidavit. “The prima facie evidence regarding these allegations did not warrant an independent Investigation, nonetheless [it] highlighted the heightened data protection pitfalls inside the NLC.”
A 22 November 2018 GroundUp expose about a dodgy R27.five-million grant to Denzhe Key Care, a hijacked NPO. Nene mentioned GroundUp had verified in its story that it absolutely was based upon leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Usage of Facts) request for facts in regards to the venture, she claimed