Previous Nationwide Lotteries Commission (NLC) board chairperson Alfred Nevhutanda requested the Point out Protection Company (SSA) in December 2018 to research the leaking of documents that exposed lottery corruption.
The NLC’s organization secretary at enough time mentioned media reviews she reported were based on “stolen” details in an affidavit to the SSA.
The SSA did examine. It uncovered the information was not a matter of state security and that the “prevalence of alleged corruption and irregularities” gave “ample motive” to the media to expose it.
A fresh board and management has given that taken in excess of the NLC and thus far have taken actions to finish corruption at the institution.
A State Safety Company (SSA) investigation found that the “prevalence” of alleged corruption and irregularities involving the NLC and its beneficiaries “presented sufficient motive” for publicity via the media.

The probe into supposed “details safety breaches and sabotage of NLC operations” was carried out just after then-NLC board chairperson Alfred Nevhutanda wrote towards the SSA in December 2018 requesting it to investigate.

Here is

Nevhutanda’s letter,
an affidavit by at present suspended NLC firm secretary Nompumelelo Nene supporting the ask for, and
the safety company’s “private” results and recommendations.
Nevhutanda requested the SSA to research the function of NLC staff members within the alleged leaking of data, and Nene, in her affidavit identified particular media and reviews that she claimed concerned these leaks.

While in the letter outlining its results, the SSA told the NLC that whilst safeguarding condition information and facts was “a lawful vital directed at preserving the sovereignty and integrity of your condition” this only applied to properly categorised details.

Even though it did not say so directly, the SSA conclusions implied which the allegedly leaked information and facts did not drop into this classification.

Substantially, the SSA designed it clear that the need to safeguard state info “would not avoid any particular person from blowing the whistle on corruption or irregular or criminality”.

The SSA investigation identified which the NLC info involved with the alleged breach was “delicate and privileged in nature, but not labeled with regards to the prescripts with the Bare minimum Information and facts Security Criteria (MISS)”.

“The leakage of your relevant sensitive official NLC info for the media isn't going to pose a risk to national security,” the SSA reported, introducing the affect in the breaches was reputational.

The SSA report identified “no evidence of the factual and incriminating nature versus any on the suspected NLC workers that could be determined from the data and knowledge interrogated”.

In addition, it said that “the prevalence of alleged corruption and irregularities throughout the NLC and at its beneficiaries does supply ample motive to acquire these kinds of exposed during the media”.

Conspiracy claims
In 2020, Nevhutanda advised MPs during a session of Parliament’s trade, business and Competitiveness portfolio committee that there was “a conspiracy” where facts “stolen” with the NLC was sent towards the US, exactly where he claimed it absolutely was becoming bought to fund a smear marketing campaign in opposition to the NLC.

He was repeating identical statements he had Formerly created in Parliament, which integrated advert hominem attacks on GroundUp which reporter but was mindful not to call either.

“I came in this article On this August dwelling final 12 months and reported to honourable customers that specifics of our beneficiaries is stolen and place in a single condition in the usa,” he informed MPs.

“We referred to as about the Condition Safety Agency to come explore the make a difference due to the fact we're obtaining experiences that our information and facts is making income for media platforms and journalists,” he mentioned. “There have been chat, certainly from a person source, one media, that spoke A great deal about proactive-funding,” Nevhutanda claimed (referring to GroundUp), but did not notify MPs the SSA investigation were done Pretty much a year previously.

Proactive funding was at the guts in the looting of the lottery. It side-stepped the normal grant approach. The NLC could by itself establish a project to fund and appoint a non-earnings organisation to oversee it.

Right after Nevhutanda 1st advised Parliament in 2018 that he had questioned the SSA to research the supposed breach, the South African National Editors Discussion board issued an announcement expressing that his remarks reflected “a particularly unsafe Frame of mind in which the media is remaining blamed for your NLC’s inherent challenges”.

“In lieu of investigating why hundreds of thousands can't be accounted for, the NLC has in its place made an effort to cast question over the integrity with the journalists included and it has questioned the SSA to investigate their sources.”

Proactive projects built mystery
Stability flaws identified while in the NLC grant funding process during the SSA’s investigation, appear to are already applied being an justification by the NLC to remove all proactive-funded assignments from its central grants program.

“In or about 21 December 2019, the classification of all Professional-actively funding projects was heightened to ‘magic formula’ and assignments had been faraway from the grant funding system and maintained manually under the custody of [Tsietsi Maselwa] the NLC’s [then] Deputy Facts Workplace, Government Manager Lawful so that you can safeguard [the] information,” Nene stated in her affidavit.

“There was loads of interior discussion, with lots of backwards and forwards, about how to proceed to plug the alleged leaks”, a supply, who was within a senior position with the NLC at enough time, explained to GroundUp. “In the long run, the choice was taken to remove each of the proactive initiatives within the system and limit usage of a handful of persons”.

Some in that handful of folks had been implicated in corruption.

Maselwa, who resigned from your NLC many several years ago, has become implicated in corruption involving lottery funds. He received R4.three-million from lottery funds allotted to develop a library and museum advanced in Kuruman (see Taung Cultural Tunes and Arts Expo) which he applied to construct a dwelling in an upmarket gated advancement in Pretoria. The residence is among various compensated for with lottery funds which were frozen once the Asset Forfeiture Unit obtained a preservation get in December 2022.

The politically-linked Nevhutanda, who was appointed because the NLC board chairperson by previous President Jacob Zuma in 2009 and was near to large-ups inside the ANC Management, former NLC previous Commissioner Thabang Mampane, and ex-chief operating officer Phillemon Letwaba, have all been implicated in the corruption which confused the NLC on their view.

Also implicated are previous board associates William Huma, who resigned right after he was confronted with proof of how he experienced profited from corrupt lottery grants, and Muthuhadini Madzivhandila, who has considering the fact that died.

Whenever a new administration, including the total board and government, took about for the NLC in late 2022 and early 2023, they found out a “chaotic mess” in the documentation referring to proactive funding, Substantially of which was paper-based. Important paperwork ended up missing. Files held for safekeeping by doc storage firm Metrofile had been signed out and never returned.

The NLC was able to Get better copies of some ผล หวย หุ้น documents from its Mimecast electronic mail archiving procedure as well as laptops of their assistants and support team.

News reports
In his 1 December 2018 letter, dealt with to then SSA Minister Dipuo Letsatsi-Duba, Nevhutanda wrote: “The NLC has famous with grave problem possible data security breaches along with the unauthorised use and/or dissemination of private details received on account of carrying out official features while in the Fee by NLC workforce. The activities are intended to undermine the integrity from the Commission whilst disrupting the successful functions [from the NLC] and creating insurmountable reputational hurt into the Fee 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 at this time going through a disciplinary inquiry following she was unsuccessful in authorized motion to set aside findings of irregular expenditure on her check out.

The purpose of her affidavit, Nene claimed, was “to record the activities which transpired concerning info safety breaches with the Countrywide Lotteries Fee”.

She stated various information experiences which she claimed were the results of such “breaches” (see at the conclusion of this article).

Nene said that a whistle-blower approached the NLC alleging that certainly one of its workers, Sello Qhino, experienced “delivered her categorised NLC Info and persistently inspired her to offer the information to GroundUp”.

Qhino, who blew the whistle with a number of dodgy lottery-funded projects in Kuruman just after attempts to boost The difficulty internally had been overlooked, was subsequently fired.

Referring to an eighteen November 2018 post while in the Daily Dispatch in regards to the misappropriation of Lottery resources, Nene said that the NLC identified then suspended Zintle Rungqu. She was an worker while in the NLC’s East London Office environment, who was the husband or wife as well as mom of whistleblower Mzukise Makatse’s three kids.

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

“The prevalent Think about these articles or blog posts is that [they entail] categorised info associated with proactive funding initiatives,” Nene said in her affidavit.

When Runqu was suspended, Makatse moved out from the household household to go ahead and take warmth off her and his young children. Experiencing homelessness, he moved into an Office environment within an empty factory belonging to an acquaintance.

Both equally Makatse and Qhino are participating in an NLC reparation procedure meant to recognise the harm some individuals suffered for the fingers of your NLC. Apologies and, in some instances, economical payment are anticipated.

“Some individuals ended up truly afflicted extremely negatively by this … This is admittedly painful,” NLC Commissioner Jodi Scholtz instructed the Daily Maverick final calendar year.

“I achieved several these men and women. It was just so heart-wrenching that their complete lives are turned upside down,” stated Scholtz.

Amid All those she met were Qhino and Makatse.

Secure platform needed for whistleblowers
The SSA found the absence at some time of a correct channel for whistleblowers to report corruption led them to show on the media.

“Failure to possess a devoted anti-corruption channel will result in staff members presenting these situations beyond the NLC,” the SSA explained in its conclusions.

“Offered the magnitude of corruption in condition institutions, it stays very important that it ensures that the NLC complies with all security prescripts and that its target is on making certain that illegal and irregular conduct is adequately mitigated towards and by making certain an ample channel for whistle-blowers to report untoward carry out without having getting intimidated.”

It advisable that the NLC set up a “Protected channel” for employees to deliver information on any “untoward exercise” that could not avoid or discourage workers from blowing the whistle. A whistle-blowers plan, based upon the Protected Disclosures Act twenty five of 2000, is a prerequisite.”

Media studies Nene mentioned
A 10 December 2017 report while in the Limpopo Mirror about corruption and maladministration involving the Lottery-funded Vhembe Wellness and Fitness Centre in Limpopo. GroundUp has worked intently with Anton van Zyl, an investigative reporter and proprietor of your Limpopo Mirror, to expose NLC corruption. “The report had features of information not out there in the public area, thus boosting issue on inside Information and facts security breaches. The allegations within the media have been independently investigated,” Nene claimed. “Nevertheless, staff chargeable for divulging labeled data have but to be determined”;
A 28 January 2018 post posted with the Dally Dispatch “citing numerous allegations through the Limpopo Mirror article printed on 10 December 2017 and also a new allegation relating to a former employee with the name of Mzukisi Makatse. He was billed and summarily dismissed to the threat caused to your organisation.”
A 16 November 2018 posting while in the Lowvelder in regards to the misappropriation of NLC resources involving a lottery-funded drug rehabilitation centre. GroundUp has documented how, Despite receiving R27-million in lottery grants, the rehab has not been concluded. “The Lowvelder article contained categorized facts when it comes to NLC policy, elevating even more fears of interior information security breaches,” Nene said in her affidavit. “The prima facie proof with regards to these allegations didn't warrant an impartial Investigation, nonetheless [it] highlighted the heightened details security threats in the NLC.”
A 22 November 2018 GroundUp expose a couple of dodgy R27.five-million grant to Denzhe Key Care, a hijacked NPO. Nene said GroundUp experienced confirmed in its story that it absolutely was based upon leaked NLC documents. This was Regardless of the NLC rejecting a PAIA (Advertising of Entry to Information and facts) request for aspects in regards to the project, she mentioned