Previous Nationwide Lotteries Fee (NLC) board chairperson Alfred Nevhutanda questioned the State Security Agency (SSA) in December 2018 to investigate the leaking of documents that uncovered lottery corruption.
The NLC’s organization secretary at time detailed media stories she reported were being determined by “stolen” facts within an affidavit for that SSA.
The SSA did examine. It uncovered the information wasn't a matter of condition safety and which the “prevalence of alleged corruption and irregularities” gave “ample motive” with the media to expose it.
A new board and administration has considering that taken in excess of the NLC and To date have taken measures to end corruption on the establishment.
A Condition Stability Company (SSA) investigation discovered which the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “delivered sufficient motive” for exposure with the media.

The probe into meant “data protection breaches and sabotage of NLC operations” was carried out right after then-NLC board chairperson Alfred Nevhutanda wrote to your SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by at this time suspended NLC organization secretary Nompumelelo Nene supporting the request, and
the security agency’s “confidential” findings and recommendations.
Nevhutanda asked the SSA to analyze the role of NLC personnel within the alleged leaking of knowledge, and Nene, in her affidavit discovered certain media and experiences that she claimed concerned these leaks.

From the letter outlining its findings, the SSA informed the NLC that when protecting state details was “a authorized vital directed at protecting the sovereignty and integrity of the state” this only placed on properly categorized details.

Although it didn't say so specifically, the SSA results implied that the allegedly leaked information and facts didn't fall into this classification.

Noticeably, the SSA designed it very clear that the necessity to defend state data “doesn't protect against any personal from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation discovered the NLC information and facts involved in the alleged breach was “sensitive and privileged in nature, but not categorized concerning the prescripts of the Minimum Details Safety Expectations (Miss out on)”.

“The leakage on the suitable sensitive official NLC information into the media would not pose a menace to national stability,” the SSA explained, adding the effect of the breaches was reputational.

The SSA report observed “no evidence of a factual and incriminating mother nature towards any of your suspected NLC personnel that could be recognized from the data and data interrogated”.

What's more, it mentioned that “the prevalence of alleged corruption and irregularities within the NLC and at its beneficiaries does offer sufficient motive to own these types of uncovered during the media”.

Conspiracy promises
In 2020, Nevhutanda explained to MPs all through a session of Parliament’s trade, industry and Competitors portfolio committee that there was “a conspiracy” in which information “stolen” within the NLC was despatched towards the US, where he claimed it had been becoming bought to fund a smear campaign from the NLC.

He was repeating equivalent promises he had Formerly made in Parliament, which provided advert hominem assaults on GroundUp and this reporter but was mindful not to call possibly.

“I arrived here On this August household past year and noted to honourable members that details about our beneficiaries has become stolen and place in one condition in the usa,” he explained to MPs.

“We called around the State Security Company to return look into the matter simply because we are having experiences that our information and facts is generating dollars for media platforms and journalists,” he explained. “There has been communicate, needless to say from one resource, a single media, that spoke A lot about proactive-funding,” Nevhutanda explained (referring to GroundUp), but failed to convey to MPs the SSA investigation had been concluded Virtually a year previously.

Proactive funding was at the center from the looting on the lottery. It side-stepped the normal grant system. The NLC could by itself recognize a job to fund and appoint a non-financial gain organisation to oversee it.

Immediately after Nevhutanda initially advised Parliament in 2018 that he had questioned the SSA to research the meant breach, the South African Nationwide Editors Discussion board issued an announcement saying that his remarks mirrored “an especially dangerous Mind-set wherever the media is being blamed for the NLC’s inherent issues”.

“Rather then investigating why thousands and thousands cannot be accounted for, the NLC has as a substitute tried to Solid doubt on the integrity from the journalists concerned and has questioned the SSA to investigate their resources.”

Proactive jobs made secret
Stability flaws recognized within the NLC grant funding system during the SSA’s investigation, show up to are employed being an excuse because of the NLC to remove all proactive-funded assignments from its central grants system.

“In or about 21 December 2019, the classification of all pro-actively funding initiatives was heightened to ‘secret’ and assignments ended up faraway from the grant funding system and taken care of manually beneath the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Data Business, Govt Supervisor Authorized so that you can safeguard [the] information and facts,” Nene said in her affidavit.

“There was a lot of interior dialogue, with a lot of back and forth, about how to proceed to plug the alleged leaks”, a supply, who was inside a senior position for the NLC at time, told GroundUp. “In the long run, the choice was taken to get rid of all the proactive assignments from the technique and Restrict access to a handful of persons”.

Some in that handful of people have been implicated in corruption.

Maselwa, who resigned with the NLC several a long time in the past, has become implicated in corruption involving lottery cash. He been given R4.three-million from lottery cash allocated to create a library and museum intricate in Kuruman (see Taung Cultural Audio and Arts Expo) which he utilised to create a residence in an upmarket gated enhancement in Pretoria. The residence is one of several paid out for with lottery funds which were frozen after the Asset Forfeiture Device obtained a preservation buy in December 2022.

The politically-connected Nevhutanda, who was appointed as being the NLC board chairperson by former President Jacob Zuma in 2009 and was near to superior-ups inside the ANC Management, previous NLC former Commissioner Thabang Mampane, and ex-chief working officer Phillemon Letwaba, have all been implicated during the corruption which overwhelmed the NLC on their observe.

Also implicated are previous 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's got because died.

Every time a new administration, such as the complete board and government, took over on the NLC in late 2022 and early 2023, they learned a “chaotic mess” within the documentation associated with proactive funding, A great deal of which was paper-based. Important documents had been missing. Files held for safekeeping by doc storage enterprise Metrofile were signed out and under no circumstances returned.

The NLC was ready to Get well copies of some lottovip files from its Mimecast electronic mail archiving method as well as the laptops of their assistants and assist staff members.

Information stories
In his 1 December 2018 letter, tackled to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave problem feasible info security breaches as well as unauthorised use and/or dissemination of private details obtained on account of doing Formal features in the Fee by NLC employees. The functions are intended to undermine the integrity on the Fee although disrupting the helpful functions [on the NLC] and causing insurmountable reputational harm on the Fee given that the custodian of personal details entrusted to it by its beneficiaries.”

His request to the SSA to research was supported in an affidavit by suspended NLC firm secretary, Nomphumelelo Nene.

Nene is at this time struggling with a disciplinary inquiry just after she was unsuccessful in lawful action to set aside conclusions of irregular expenditure on her check out.

The objective of her affidavit, Nene mentioned, was “to document the events which transpired concerning data security breaches within the Nationwide Lotteries Fee”.

She detailed various news stories which she claimed had been the effects of these “breaches” (see at the end of this information).

Nene mentioned that a whistle-blower approached the NLC alleging that considered one of its personnel, Sello Qhino, experienced “supplied her classified NLC Data and persistently encouraged her to provide the knowledge to GroundUp”.

Qhino, who blew the whistle on a number of dodgy lottery-funded tasks in Kuruman after makes an attempt to raise The problem internally were being ignored, was subsequently fired.

Referring to an 18 November 2018 posting inside the Each day Dispatch regarding the misappropriation of Lottery cash, Nene reported which the NLC discovered and afterwards suspended Zintle Rungqu. She was an staff within the NLC’s East London Place of work, who was the associate as well as mother of whistleblower Mzukise Makatse’s a few small children.

Rungqu and Makatse think Rungqu was punished for the reason that Makatse blew the whistle. She was suspended and billed internally, Together with the NLC shelling out R470,000 on attorneys to depict it, but was discovered not responsible and allowed to return to operate.

“The frequent Think about these article content is always that [they involve] categorized facts relating to proactive funding assignments,” Nene claimed in her affidavit.

When Runqu was suspended, Makatse moved out of the family residence to go ahead and take warmth off her and his young children. Dealing with homelessness, he moved into an Office environment within an empty manufacturing unit belonging to a friend.

The two Makatse and Qhino are taking part in an NLC reparation procedure meant to recognise the harm some people experienced on the hands of your NLC. Apologies and, sometimes, money compensation are anticipated.

“Some people were being actually influenced really negatively by this … This is actually agonizing,” NLC Commissioner Jodi Scholtz told the Every day Maverick past 12 months.

“I met several these people. It had been just so coronary heart-wrenching that their whole lives have been turned the wrong way up,” stated Scholtz.

Amid Those people she met had been Qhino and Makatse.

Risk-free platform desired for whistleblowers
The SSA discovered the absence at the time of a proper channel for whistleblowers to report corruption led them to show to the media.

“Failure to have a focused anti-corruption channel will bring about staff members presenting these types of conditions outside of the NLC,” the SSA said in its results.

“Given the magnitude of corruption in condition establishments, it continues to be essential that it makes sure that the NLC complies with all stability prescripts Which its focus is on ensuring that illegal and irregular conduct is adequately mitigated in opposition to and by guaranteeing an suitable channel for whistle-blowers to report untoward perform without becoming intimidated.”

It suggested that the NLC establish a “safe channel” for workers to offer information on any “untoward activity” that would not prevent or discourage workers from blowing the whistle. A whistle-blowers plan, depending on the Shielded Disclosures Act 25 of 2000, is often a requirement.”

Media studies Nene mentioned
A ten December 2017 report within the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Overall health and Health and fitness Centre in Limpopo. GroundUp has worked closely with Anton van Zyl, an investigative reporter and owner in the Limpopo Mirror, to expose NLC corruption. “The write-up had components of data not out there in the general public domain, thereby boosting issue on inside Details security breaches. The allegations during the media have been independently investigated,” Nene stated. “However, staff members to blame for divulging classified facts have however being identified”;
A 28 January 2018 write-up released by the Dally Dispatch “citing several allegations with the Limpopo Mirror posting published on 10 December 2017 along with a new allegation associated with a former employee from the name of Mzukisi Makatse. He was billed and summarily dismissed for that menace induced on the organisation.”
A 16 November 2018 posting 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 finished. “The Lowvelder short article contained classified facts when it comes to NLC coverage, boosting additional worries of interior info safety breaches,” Nene explained in her affidavit. “The prima facie proof regarding these allegations did not warrant an impartial Investigation, even so [it] highlighted the heightened facts protection challenges in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.5-million grant to Denzhe Primary Treatment, a hijacked NPO. Nene claimed GroundUp had confirmed in its Tale that it was according to leaked NLC files. This was despite the NLC rejecting a PAIA (Advertising of Entry to Info) ask for for particulars about the job, she stated