GroundUp reports that the National Lottery paid R500,000 to company to probe a computer breach that never happened.
In 2020 the National Lotteries Commission paid R498,000 to a private company to investigate a computer software breach that never happened.The amount paid was just under the R500,000 limit above which the NLC would have had to put the job out for tender.
The hack-that-never-happened was treated as a “cybersecurity emergency” leading to the appointment of Neo at a fee of R498,000, just R2,000 below the level at which the NLC would have had to put the job out for tender. as a service provider to the NLC, including for the supposed “cybersecurity breach”, according to answers supplied in response to a 2022
In its report, dated 23 June 2023, TSU said of the security breach contract that “given the context of this transaction, we believe that there may be an element of criminal conduct involved and that the NLC should strongly consider reporting the transaction and all employees involved in recommending and approving the transaction to the South African Police Service for further investigation”. towards a luxury mansion for Alfred Nevhutanda, the NLC’s former board chairperson.
While there were “several entities that appear to be linked to Neo Solutions …none of these companies perform the services required by the NLC”. The amount paid to Neo was “strangely just below the limit of R500,000 which would otherwise require a public bidding tender” in terms of the NLC’s supply chain management policy. The difference of R2,000 appears to be a deliberate attempt to circumvent the need to seek approval from National Treasury, TSU said.
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