Previous National Lotteries Commission (NLC) board chairperson Alfred Nevhutanda questioned the Point out Security Agency (SSA) in December 2018 to investigate the leaking of documents that exposed lottery corruption.
The NLC’s corporation secretary at enough time mentioned media reviews she stated had been based upon “stolen” facts in an affidavit for your SSA.
The SSA did look into. It uncovered the knowledge wasn't a subject of state stability and the “prevalence of alleged corruption and irregularities” gave “enough motive” to the media to show it.
A different board and management has due to the fact taken above the NLC and To date have taken measures to end corruption with the establishment.
A Point out Stability Company (SSA) investigation discovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “furnished enough motive” for publicity via the media.
The probe into meant “information and facts stability breaches and sabotage of NLC functions” was undertaken right after then-NLC board chairperson Alfred Nevhutanda wrote on the SSA in December 2018 requesting it to investigate.
Here's
Nevhutanda’s letter,
an affidavit by now suspended NLC corporation secretary Nompumelelo Nene supporting the request, and
the safety agency’s “private” results and recommendations.
Nevhutanda requested the SSA to investigate the purpose of NLC workers in the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and experiences that she claimed involved these leaks.
While in the letter outlining its conclusions, the SSA told the NLC that although preserving point out info was “a legal essential targeted at shielding the sovereignty and integrity of your point out” this only placed on properly classified info.
Even though it didn't say so immediately, the SSA findings implied which the allegedly leaked facts did not tumble into this group.
Substantially, the SSA produced it apparent that the need to secure condition information “isn't going to stop any particular person from blowing the whistle on corruption or irregular or illegal activity”.
The SSA investigation located which the NLC info associated with the alleged breach was “delicate and privileged in character, although not categorised when it comes to the prescripts in the Bare minimum Facts Protection Benchmarks (Pass up)”.
“The leakage of your applicable delicate official NLC info towards the media does not pose a danger to nationwide security,” the SSA reported, incorporating that the impression in the breaches was reputational.
The SSA report discovered “no proof of a factual and incriminating nature in opposition to any from the suspected NLC personnel which could be identified from the information and details interrogated”.
Furthermore, it stated that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does give ample motive to possess this sort of uncovered during the media”.
Conspiracy statements
In 2020, Nevhutanda told MPs all through a session of Parliament’s trade, marketplace and Competitors portfolio committee that there was “a conspiracy” during which info “stolen” from your NLC was sent to the US, where by he claimed it had been being bought to fund a smear marketing campaign in opposition to the NLC.
He was repeating related promises he had Beforehand made in Parliament, which included advertisement hominem assaults on GroundUp which reporter but was watchful not to name either.
“I came here On this August property very last calendar year and noted to honourable users that specifics of our beneficiaries continues to be stolen and put in a single point out in the united states,” he told MPs.
“We identified as within the Condition Stability Company to return explore the make any difference since we have been finding experiences that our information is producing dollars for media platforms and journalists,” he reported. “There has been communicate, certainly from a person resource, a person media, that spoke Substantially about proactive-funding,” Nevhutanda explained (referring to GroundUp), but failed to convey to MPs the SSA investigation were finished Pretty much a yr previously.
Proactive funding was at the guts from the looting on the lottery. It side-stepped the normal grant course of action. The NLC could alone determine a undertaking to fund and appoint a non-financial gain organisation to supervise it.
Just after Nevhutanda first told Parliament in 2018 that he experienced questioned the SSA to investigate the intended breach, the South African Countrywide Editors Discussion board issued an announcement indicating that his remarks reflected “a very perilous Angle where the media is becoming blamed to the NLC’s inherent challenges”.
“Rather then investigating why tens of millions can't be accounted for, the NLC has alternatively attempted to Forged doubt around the integrity of your journalists included and has questioned the SSA to investigate their resources.”
Proactive tasks built mystery
Stability flaws recognized in the NLC grant funding technique throughout the SSA’s investigation, look to happen to be made use of as an excuse with the NLC to get rid of all proactive-funded jobs from its central grants method.
“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘key’ and tasks have been removed from the grant funding program and maintained manually underneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Information and facts Office, Govt Supervisor Authorized as a way to safeguard [the] info,” Nene claimed in her affidavit.
“There was lots of interior discussion, with many forwards and backwards, about what to do to plug the alleged leaks”, a supply, who was inside of a senior placement within the NLC at time, informed GroundUp. “Ultimately, the decision was taken to remove all of the proactive projects in the system and Restrict entry to a handful of individuals”.
Some in that handful of people have been implicated in corruption.
Maselwa, who resigned through the NLC numerous many years back, is implicated in corruption involving lottery resources. He been given R4.three-million from lottery funds allocated to make a library and museum intricate in Kuruman (see Taung Cultural New music and Arts Expo) which he employed to develop a house in an upmarket gated growth in Pretoria. The property is one of several paid for with lottery money which were frozen once the Asset Forfeiture Unit received a preservation purchase in December 2022.
The politically-linked Nevhutanda, who was appointed since the NLC board chairperson by previous President Jacob Zuma in 2009 and was close to high-ups while in the ANC Management, previous NLC previous Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated from the corruption which overcome the NLC on their check out.
Also implicated are former board customers William Huma, who resigned right after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have considering the fact that died.
Whenever a new administration, including the complete board and government, took around on the NLC in late 2022 and early 2023, they found out a “chaotic mess” in the documentation relating to proactive funding, Significantly of which was paper-based. Essential paperwork were missing. Information held for safekeeping by document storage firm Metrofile were signed out and hardly ever returned.
The NLC was able to recover copies of some luckyvip77 documents from its Mimecast email archiving system and also the laptops in their assistants and help team.
News reports
In his one December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave concern probable facts security breaches along with the unauthorised use and/or dissemination of private information and facts obtained on account of executing official capabilities during the Commission by NLC personnel. The functions are intended to undermine the integrity with the Fee although disrupting the helpful functions [in the NLC] and resulting in insurmountable reputational hurt for the Commission since the custodian of personal information entrusted to it by its beneficiaries.”
His ask for for your SSA to analyze was supported in an affidavit by suspended NLC company secretary, Nomphumelelo Nene.
Nene is now experiencing a disciplinary inquiry right after she was unsuccessful in lawful action to put aside findings of irregular expenditure on her enjoy.
The purpose of her affidavit, Nene reported, was “to document the situations which transpired referring to facts stability breaches in the National Lotteries Commission”.
She outlined different news studies which she claimed ended up the effects of those “breaches” (see at the conclusion of this informative article).
Nene mentioned that a whistle-blower approached the NLC alleging that among its staff, Sello Qhino, experienced “furnished her categorized NLC Information and persistently inspired her to supply the data to GroundUp”.
Qhino, who blew the whistle on the number of dodgy lottery-funded projects in Kuruman just after attempts to boost The difficulty internally had been disregarded, was subsequently fired.
Referring to an eighteen November 2018 write-up during the Every day Dispatch about the misappropriation of Lottery money, Nene explained the NLC discovered and after that suspended Zintle Rungqu. She was an staff while in the NLC’s East London Workplace, who was the husband or wife along with the mom of whistleblower Mzukise Makatse’s 3 small children.
Rungqu and Makatse feel 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 attorneys to represent it, but was located not responsible and permitted to return to operate.
“The typical factor in these content is that [they include] categorized data regarding proactive funding assignments,” Nene stated in her affidavit.
When Runqu was suspended, Makatse moved out from the family dwelling to take the warmth off her and his young children. Dealing with homelessness, he moved into an Business in an vacant manufacturing unit belonging to a buddy.
Both Makatse and Qhino are participating in an NLC reparation course of action meant to recognise the damage some people suffered with the palms of your NLC. Apologies and, in some cases, economic compensation are anticipated.
“Some persons were being definitely afflicted pretty negatively by this … This is actually painful,” NLC Commissioner Jodi Scholtz told the Daily Maverick last year.
“I achieved a handful of these persons. It absolutely was just so coronary heart-wrenching that their full lives have already been turned the other way up,” explained Scholtz.
Amongst those she fulfilled were Qhino and Makatse.
Risk-free System required for whistleblowers
The SSA located the absence at the time of a correct channel for whistleblowers to report corruption led them to turn to your media.
“Failure to possess a focused anti-corruption channel will lead to personnel presenting these types of cases beyond the NLC,” the SSA reported in its conclusions.
“Supplied the magnitude of corruption in condition institutions, it remains essential that it ensures that the NLC complies with all stability prescripts Which its emphasis is on making certain that unlawful and irregular carry out is adequately mitigated against and by guaranteeing an satisfactory channel for whistle-blowers to report untoward perform devoid of currently being intimidated.”
It recommended the NLC build a “Protected channel” for workers to provide information on any “untoward action” that would not avert or discourage workforce from blowing the whistle. A whistle-blowers plan, according to the Secured Disclosures Act twenty five of 2000, is a requirement.”
Media reports Nene outlined
A 10 December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Health Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and operator on the Limpopo Mirror, to expose NLC corruption. “The article experienced factors of data not readily available in the public area, thereby increasing concern on inner Information safety breaches. The allegations during the media have been independently investigated,” Nene reported. “Nonetheless, workforce liable for divulging labeled information and facts have however to get determined”;
A 28 January 2018 posting posted by the Dally Dispatch “citing many allegations in the Limpopo Mirror write-up printed on 10 December 2017 along with a new allegation relating to a previous personnel through the name of Mzukisi Makatse. He was billed and summarily dismissed for your danger prompted to your organisation.”
A 16 November 2018 short article inside the Lowvelder regarding the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite acquiring R27-million in lottery grants, the rehab has not been finished. “The Lowvelder article contained labeled details when it comes to NLC plan, elevating further worries of interior details stability breaches,” Nene said in her affidavit. “The prima facie evidence regarding these allegations didn't warrant an unbiased Investigation, nevertheless [it] highlighted the heightened data protection threats throughout the NLC.”
A 22 November 2018 GroundUp expose a few dodgy R27.five-million grant to Denzhe Key Care, a hijacked NPO. Nene explained GroundUp had verified in its Tale that it was depending on leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Marketing of Access to Information and facts) request for particulars concerning the project, she claimed