Tipoffs could put paid to ripoffs

Published Oct 8, 1999

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Janet Schofield spent three years blowing the whistle on corruption in Midrand. There were no rewards - only intimidation, threats and victimisation. In some cases, she has influenced change, but in others she and her information have been undermined or ignored.

Whatever documented proof she uncovers, she hands over to Public Protector Selby Baqwa. "I know he writes letters to the relevant people, but they never seem to respond, so we get nowhere," Schofield says.

Former director-general of housing Billy Cobbett was fired by Housing Minister Sankie Mthembi-Mahanyele for whistle-blowing, after going to the auditor-general with evidence of serious maladministration.

An Mpumalanga traffic officer lost his job after blowing the whistle on a driving licence scandal involving parliamentary deputy speaker Baleka Kgositsile - who retained her position.

The proposed law on protecting whistle-blowers forms part of the Open Democracy Bill, which has been in draft form for several years.

Deficiencies

This week, the whistle-blowing law was discussed in two conferences - one involving the private sector, and the other, the public sector. They emphasised how important and urgent such policies are in business as well as for the government. They also alerted the relevant people about the proposed policy's deficiencies.

Unfortunately, the fact that the policy still has problems could mean that the law will not be implemented next year because they might not be ironed out by then.

The parliamentary committee on justice will hold public hearings on the issue this month.

The biggest deficiency in the bill, as Baqwa noted, is that private sector whistle-blowers are not protected.

Richard Calland, of the Idasa Political Information and Monitoring Service, says the proposed law does not seek to protect the identity of a whistle-blower.

If whistle-blowers are prejudiced in terms of the proposed law, they would have to take the matter to the High Court, which is an expensive and lengthy process.

The bill also doesn't specify where potential whistle-blowers can seek advice and support.

It is clear that if there is corruption, maladministration and fraud, it is in the interests of top management in the government or the private sector to know about it. So it is essential to encourage whistle-blowing.

But in South Africa, as in many countries, there is a stigma attached to people regarded as snitches, informers, impimpi or rats.

During the apartheid years, people were paid by policemen to rat on their own friends and family. Sometimes, innocent people, believed to be impimpi, were necklaced (burnt alive with a tyre doused in petrol around their necks).

But, as Guy Dehn, a visiting British expert on whistle-blowing, explains, whistle-blowing is about relaying essential information to stop unethical, illegal or dangerous behaviour, and is not about betrayal.

Any government or organisation that encourages whistle-blowing is "demonstrating their accountability and taking a stand to deter and detect malpractice" he says. Only management with something to hide has reason to avoid a whistle-blowing policy, he adds.

Dehn explains that if someone doesn't blow the whistle, it could result in loss of lives in dangerous work conditions; job losses if the company goes bankrupt due to fraud or maladministration; fines; damages; and destruction of the organisation's reputation.

"It has a knock-on effect; when things go wrong, the leaders get into crisis management and make matters uglier to try to salvage their company."

Dehn says people don't blow the whistle for fear of losing their jobs and/or victimisation.

"Because of this, whistle-blowing protection policies ensure that staff feel safe to bring suspicions to the fore which could rescue an organisation," he adds.

People don't blow the whistle because they think "it is only a suspicion". But any suspicion involving corruption can be investigated only if the authorities know about it, Dehn believes. If there are clear policies, no one should be hurt if the suspicion is unfounded, he says.

Dehn makes the point that if there is no whistle-blowing policy that encourages people to come forward with information, they will either keep quiet - to the organisation's detriment - or disclose it elsewhere. But staff need to know where they can blow the whistle outside the organisation if they still feel threatened.

Nedcor is one of the private enterprises that encourages staff to blow the whistle, because it discovered that more than 60 percent of all fraud involving Nedcor funds has a staff connection.

"In most cases, fraud cannot be perpetrated unless there is some kind of way into the bank," Nedcor management services divisional director Peter Hibbit says. He cites blackmail and financial gain as factors that make it easier for staff to be "coerced into crime".

So Nedcor began creating an ethical culture in the bank through a mass fraud awareness campaign and zero tolerance for staff fraudsters.

Credibility

"Every case of suspicion, even in top management, is investigated," Hibbit says. "If a person is found guilty in the internal investigation, he is dismissed and the whole staff are told of the reasons. We have had dismissals on all levels, which increases credibility."

To encourage whistle-blowing, Nedcor sent out a memo guaranteeing that whistle-blowers' jobs would be safe. The company also has a loss-prevention incentive scheme where staff members are rewarded for whistle-blowing.

More than 30 organisatins, mostly in the private sector, including a medical aid and a parastatal, have hired Tip-Offs Anonymous to encourage whistle-blowing. The company provides an independent service that enables its clients' management, employees, suppliers and customers to confidentially report workplace corruption, fraud, or any other unethical or illegal behaviour.

Tip-Offs Anonymous was tipped off about a dentist who helped out cash-strapped patients by giving them money and adding it to their medical aid claim.

The company found a senior manager defrauding his company of millions by creating fake orders for materials. Another executive put in claims for overseas holidays as work-related expenses.

So, encouraging the Janet Schofields of this world to dish the dirt is the best way to find out about corruption and crime.

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