Previous Countrywide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda requested the Point out Safety Company (SSA) in December 2018 to research the leaking of files that exposed lottery corruption.
The NLC’s organization secretary at some time detailed media reports she explained were being based on “stolen” details within an affidavit for that SSA.
The SSA did look into. It found the information was not a make a difference of state security and that the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to show it.
A new board and administration has since taken around the NLC and Up to now have taken actions to end corruption within the institution.
A Point out Protection Agency (SSA) investigation uncovered the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “provided sufficient motive” for publicity through the media.

The probe into meant “details stability 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 analyze.

Here is

Nevhutanda’s letter,
an affidavit by currently suspended NLC enterprise secretary Nompumelelo Nene supporting the request, and
the security company’s “private” results and suggestions.
Nevhutanda questioned the SSA to investigate the job of NLC workers during the alleged leaking of knowledge, and Nene, in her affidavit discovered distinct media and stories that she claimed concerned these leaks.

While in the letter outlining its findings, the SSA advised the NLC that although guarding point out data was “a lawful crucial targeted at safeguarding the sovereignty and integrity of your condition” this only applied to correctly categorized facts.

Even though it didn't say so specifically, the SSA findings implied which the allegedly leaked facts didn't tumble into this group.

Drastically, the SSA manufactured it distinct that the necessity to shield point out info “won't reduce any individual from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation found which the NLC facts involved in the alleged breach was “sensitive and privileged in nature, although not categorized with regards to the prescripts from the Least Details Stability Expectations (MISS)”.

“The leakage on the applicable sensitive official NLC data into the media doesn't pose a risk to nationwide protection,” the SSA claimed, introducing which the effects of your breaches was reputational.

The SSA report found “no proof of the factual and incriminating character towards any in the suspected NLC staff that can be recognized from the data and facts interrogated”.

In addition it said that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does present ample motive to obtain these kinds of uncovered inside the media”.

Conspiracy promises
In 2020, Nevhutanda informed MPs through a session of Parliament’s trade, business and Level of competition portfolio committee that there was “a conspiracy” by which data “stolen” within the NLC was despatched to the US, exactly where he claimed it was becoming offered to fund a smear campaign against the NLC.

He was repeating similar promises he experienced Formerly produced in Parliament, which integrated advert hominem assaults on GroundUp and this reporter but was cautious not to name possibly.

“I arrived listed here In this particular August residence final year and described to honourable associates that information about our beneficiaries has been stolen and place in one condition in the usa,” he advised MPs.

“We known as to the State Protection Company to come investigate the matter due to the fact we've been obtaining studies that our information and facts is generating funds for media platforms and journalists,” he explained. “There was communicate, of course from 1 source, 1 media, that spoke Significantly about proactive-funding,” Nevhutanda mentioned (referring to GroundUp), but failed to convey to MPs the SSA investigation had been completed almost a 12 months earlier.

Proactive funding was at the guts on the looting from the lottery. It facet-stepped the conventional grant process. The NLC could by itself determine a job to fund and appoint a non-earnings organisation to supervise it.

Following Nevhutanda initially told Parliament in 2018 that he had requested the SSA to analyze the intended breach, the South African Countrywide Editors Discussion board issued a press release saying that his remarks reflected “a particularly hazardous Mind-set exactly where the media is staying blamed for your NLC’s inherent problems”.

“In lieu of investigating why thousands and thousands can not be accounted for, the NLC has as an alternative tried to cast question about the integrity in the journalists included and has asked the SSA to investigate their resources.”

Proactive assignments made top secret
Safety flaws discovered inside the NLC grant funding procedure in the course of the SSA’s investigation, surface to are already employed being an justification via the NLC to remove all proactive-funded assignments from its central grants procedure.

“In or about 21 December 2019, the classification of all Professional-actively funding jobs was heightened to ‘secret’ and assignments were removed from the grant funding procedure and managed manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Info Office environment, Government Manager Lawful to be able to safeguard [the] details,” Nene mentioned in her affidavit.

“There was lots of interior discussion, with a lot of forwards and backwards, about how to proceed to plug the alleged leaks”, a source, who was within a senior placement within the NLC at some time, told GroundUp. “In the end, the decision was taken to eliminate all the proactive projects from the system and Restrict use of a handful of individuals”.

Some in that handful of people 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 money allotted to construct a library and museum elaborate in Kuruman (see Taung Cultural Songs and Arts Expo) which he applied to build a property within an upmarket gated development in Pretoria. The home is one of many paid out for with lottery cash which were frozen following the Asset Forfeiture Device acquired a preservation purchase in December 2022.

The politically-connected Nevhutanda, who was appointed since the NLC board chairperson by former President Jacob Zuma in 2009 and was close to high-ups in the ANC Management, former NLC former Commissioner Thabang Mampane, and ex-Main working officer Phillemon Letwaba, have all been implicated inside the corruption which overwhelmed the NLC on their own observe.

Also implicated are former board customers William Huma, who resigned right after he was confronted with proof of how he had profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who may have considering that died.

When a new administration, including the entire board and government, took about in the NLC in late 2022 and early 2023, they learned a “chaotic mess” in the documentation associated with proactive funding, A great deal of which was paper-based. Crucial documents have been missing. Information held for safekeeping by document storage business Metrofile had been signed out and by no means returned.

The NLC was capable of Recuperate copies of some ผล หวย หุ้น paperwork from its Mimecast e mail archiving process and the laptops in their assistants and support staff.

News experiences
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has pointed out with grave concern attainable information security breaches along with the unauthorised use and/or dissemination of private information and facts obtained as a result of executing official functions within the Commission by NLC workers. The actions are intended to undermine the integrity of the Fee when disrupting the powerful features [from the NLC] and causing insurmountable reputational hurt on the Commission as being the custodian of non-public information entrusted to it by its beneficiaries.”

His ask for for the SSA to research was supported within an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.

Nene is presently experiencing a disciplinary inquiry right after she was unsuccessful in authorized motion to put aside findings of irregular expenditure on her observe.

The goal of her affidavit, Nene reported, was “to document the functions which transpired concerning information security breaches in the National Lotteries Commission”.

She listed various information experiences which she claimed ended up the final results of those “breaches” (see at the end of this informative article).

Nene stated that a whistle-blower approached the NLC alleging that certainly one of its employees, Sello Qhino, had “supplied her categorised NLC Data and persistently inspired her to supply the data to GroundUp”.

Qhino, who blew the whistle on a series of dodgy lottery-funded jobs in Kuruman soon after tries to raise the issue internally have been disregarded, was subsequently fired.

Referring to an eighteen November 2018 post while in the Day by day Dispatch concerning the misappropriation of Lottery money, Nene explained the NLC recognized and afterwards suspended Zintle Rungqu. She was an personnel from the NLC’s East London Office environment, who was the lover plus the mother of whistleblower Mzukise Makatse’s a few small children.

Rungqu and Makatse imagine Rungqu was punished due to the fact Makatse blew the whistle. She was suspended and billed internally, Along with the NLC paying R470,000 on legal professionals to depict it, but was discovered not responsible and permitted to return to work.

“The frequent Think about these posts is the fact [they involve] categorized facts concerning proactive funding projects,” Nene mentioned in her affidavit.

When Runqu was suspended, Makatse moved out on the relatives dwelling to go ahead and take heat off her and his children. Dealing with homelessness, he moved into an Office environment within an vacant manufacturing unit belonging to a colleague.

Equally Makatse and Qhino are participating in an NLC reparation process meant to recognise the damage many people endured at the hands of your NLC. Apologies and, in some cases, economic payment are expected.

“Some individuals were being genuinely impacted really negatively by this … This is de facto agonizing,” NLC Commissioner Jodi Scholtz instructed the Daily Maverick final year.

“I met a few these people. It absolutely was just so heart-wrenching that their entire lives have already been turned upside down,” claimed Scholtz.

Between Those people she met have been Qhino and Makatse.

Harmless System wanted for whistleblowers
The SSA observed the absence at time of a suitable channel for whistleblowers to report corruption led them to show to your media.

“Failure to possess a committed anti-corruption channel will end in staff presenting these conditions outside of the NLC,” the SSA mentioned in its findings.

“Offered the magnitude of corruption in state establishments, it stays very important that it ensures that the NLC complies with all safety prescripts and that its aim is on making certain that unlawful and irregular conduct is sufficiently mitigated versus and by making sure an enough channel for whistle-blowers to report untoward perform without having staying intimidated.”

It recommended that the NLC set up a “Safe and sound channel” for workers to deliver info on any “untoward exercise” that may not prevent or discourage workers from blowing the whistle. A whistle-blowers coverage, determined by the Secured Disclosures Act twenty five of 2000, can be a necessity.”

Media reports Nene listed
A 10 December 2017 report during the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Health and fitness and Exercise Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and operator from the Limpopo Mirror, to show NLC corruption. “The post had aspects of data not offered in the general public domain, therefore boosting problem on inside Information and facts security breaches. The allegations while in the media ended up independently investigated,” Nene said. “Nonetheless, staff members accountable for divulging classified details have nevertheless being discovered”;
A 28 January 2018 article revealed by the Dally Dispatch “citing a lot of allegations from your Limpopo Mirror posting revealed on ten December 2017 along with a new allegation referring to a previous employee via the title of Mzukisi Makatse. He was billed and summarily dismissed for your menace brought on on the organisation.”
A sixteen November 2018 posting within the Lowvelder about the misappropriation of NLC funds involving a lottery-funded drug rehabilitation centre. GroundUp has noted how, Regardless of getting R27-million in lottery grants, the rehab has never been finished. “The Lowvelder write-up contained classified info with regards to NLC policy, boosting even further problems of inner info stability breaches,” Nene explained in her affidavit. “The prima facie evidence regarding these allegations did not warrant an impartial Investigation, however [it] highlighted the heightened facts security challenges within the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Most important Care, a hijacked NPO. Nene explained GroundUp experienced verified in its Tale that it absolutely was according to leaked NLC paperwork. This was despite the NLC rejecting a PAIA (Marketing of Use of Facts) ask for for aspects concerning the venture, she stated

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