whistle blowing for public sector · pdf fileqthe concept of whistle blowing qdimensions of...
TRANSCRIPT
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WHISTLE BLOWING FOR PUBLIC SECTOR ACCOUNTANTS: SITUATION ANALYSIS
AND THE PENDING LEGISLATION
Presentation by:
CPA Charles N. RasuguDeputy Director, Ethics and LeadershipEthics and Anti Corruption Commission
Thursday, 16th November, 2017
Uphold public interest
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Outline
qIntroductionqInstitutional frameworkqThe Concept of Whistle blowingqDimensions of whistleblowing?qThe public sector accountant as a whistle blowerqLegal framework for whistleblowingqBarriers and challengesqWay forward
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Introduction
Theme:Towards the call of professionalism and
accountability
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The Ethics and Anti Corruption Commission
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The Ethics and Anti Corruption Commission
An Agency established pursuant to Article 79 of the Constitution to enforce Chapter 6 of the Constitution on leadership and integrity and related laws through:• Investigations; • Asset recovery;• Public education and awareness;• Prevention (review of systems of public bodies);• Development and promotion of standards and best
practices in ethics and integrity;
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Complaints and Investigation Status (2013-2017)
Particulars No.
Number of complaints received 28,556
Number of cases taken up forinvestigations
5,961
Number of cases under activeinvestigationsNumber of cases currently in court:Criminal:Civil:
4,674
450700
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CONVICTIONS
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Some Convictions In Counties (SEP 2016 - JUNE 2017)
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Recovery of corruptly acquired assets
• Assets worth Kshs 6.1B recovered (2010-2017)• Assets traced Kshs 14B (Including former local
authorities)e.g. Kilifi 104M, Nairobi 531M, Kajiado 250M
• Recovery proceedings for assets worth Kshs 5.5B.
(Kshs. 74 million recovered from a former Managing Director KPA (September 2017))
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Sources of Corruption Reports
• Individual members of the public• Suppliers• Civil society organizations• Insider (whistle-blowers)• Management • Official reports –PAC, auditors• Media reports • Intelligence
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How to Report Corruption
• Walk in- HQ, Regional offices and Hudumacenters
• Telephone• E-mail• Letters• EACC Website – www.eacc.go.ke• Anonymous - BKMS- web based reporting• Media• Statutory Reports.
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Whistleblowing
qThe disclosure by organization members (former or current) of illegal, immoral, or illegitimate practices under the control of their employers, to persons or organizations that may be able to effect action
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Whistleblowing is not a Grievance
• A whistleblowing disclosure affects others parties -workers, the organization or the public;
• While a grievance is a personal complaint about someone’s own employment situation.
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Forms of Whistleblowing
• Internal -reporting inside the organization e.g.to designated officer, workers or bosses in thesame organization.
• It is a good corporate governance best practice
• External -reporting to external lawenforcement agencies or to teams concernedwith the matters for example law enforcement,civil society organization, mass media, etc.
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Dimensions of whistleblowing
Aspect ConsiderationWhat Fraud & corruption risks and
unethical conduct etcWhen Exhausted internal soft optionsWhy In public interest, safeguard
organization and employeesWhere Relevant trusted authority
(officer and agency)How Carefully as per circumstances
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What to whistle-blow
• Bribery, fraud and corruption
• Embezzlement and misappropriation of funds
• Ethical breaches against Code of Conduct;
• Maladministration -not adhering to procedures, negligence;
• Abuse of power;
• Unlawful acts such as theft
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Public Sector Accountants as Whistleblowers
Accountants are ideal whistleblowers because• They are strategically at the scene-authorization
revenue points, payment points, budgeting, audit • Expertise knowledge- the law, policies and
procedures hence the violations• Insider reports are quality reports • Reports of accounting nature are usually self
propelling hence a whistleblower need not be a witness
• A further opportunity to ‘uphold public interest’
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Barriers to whistleblowing
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Barriers to whistleblowing
• Fear of retaliation- Swallow the whistle
• Fear of alienation from peers
• Lawful liability: I may be required to testify!
• Culture of complicity: it is the norm here• Is it the only wrong here? Drawing attention to
other issues - Questionable integrity• Integrity versus loyalty to the institution
• Lack of legal framework
• Lack of institutional policy and procedures
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Barriers to whistleblowing
• No cover since one is a definite source• No incentive/reward
• Confidentiality obligation not to divulge client information as per institutional and professional Code of conduct
• Apathy: Inefficient action by the authorities
• Other considerations: Whistle blow against who? –Management /employer? a fellow accountant? ‘my tribe’?
• Impunity
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Research findings
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Whistleblower assessment.
• Is the whistleblower settling scores against a supervisor with false accusations?
• Is the whistleblower is bringing genuine problems to the fore but is also a non performer?
• Is it undermining management decision making?• Is whistleblowing a means of escaping the
consequences of what an employee participation in? (Deal gone sower)
• Is the whistleblower targeting a specific employee because of his or her race, gender, or ethnicity?
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Legal framework on whistleblowing
• No dedicated whistleblower statute in place
• Draft Whistleblower Protection Bill developed by Task Force for the Review of the Legal, Policy and Institutional Framework for Fighting Corruption in Kenya.
• Only Witness Protection Act exists –Which provides for protection of persons who testify in investigations
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Proposed Whistleblower Protection Bill
• Immunity from legal proceedings
• Establishment of national and institutional whistleblowing policies & procedures
• Provision for anonymous disclosures
• Measures to curb victimization
• Establishment of whistleblower fund
• Administration/Investigations by the CAJ
• Whistleblower Review Committee
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Bribery Act ,2016– Sec 21
• Applies to public and private sector providing for whistleblowers protection mechanisms
• A person who intimidates , harasses or demotes a whistleblower etc. is guilty of an offence
• Penalty of up to 1 year imprisonment or fine not exceeding 1 million or both
• It is an offence to disclose whistleblower information
• Law enforcement Agency to put in place mechanisms to conceal identity of informants, whistleblowers and witnesses
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Other Provisions
• ACECA 2003- Sec. 65- provides for protection of informers, and concealment of identity
• POEA 2003-sec 41- Prohibits and criminalizes unlawful divulging of information
• UNICAC-Article 33. Protection of reporting persons: State Party to legislate protection against any unjustified treatment reporters
• Institutional policies : Have protection policies e.g. KRA, KPLC
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Conclusion
• Accountants should embrace whistleblowing as a good governance practice & corruption will certainly reduce
• Caution and prudence is necessary
• Adequate legal and policy framework is necessary to promote and protect whistleblowers
• Remember the calling- Uphold public interest
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Parting Shot