Whistleblower Protection Research Articles

The Effectiveness of the Internal Whistleblowing System in Fraud Detection and Prevention (Empirical Study at PT Asuransi Jiwasraya (Persero)

This research mainly aims to test and analyze the effectiveness of the Internal Whistleblowing System in Fraud Prevention. The population in this study are all employees who work in the Division of Finance & Accounting, Internal Audit PT. Asuransi Jiwasraya (Persero). While the sample used the purposive sampling method, amounting to 50 respondents. The independent/independent variables of the study are the influence of the Internal Auditor, Internal Control System, Whistleblowing System, Whistleblower Protection, Organizational Commitment. The dependent/dependent variable is Fraud Prevention. The research methodology uses Structural Equation Modeling (SEM) using smartPLS 3.2.7 software. The tests carried out are the Outer model, Inner model, indirect effect test, and hypothesis testing. The test results show the influence and significance of the internal control system on the prevention of fraud, the influence and significance of the internal auditor on the prevention of fraud, the influence and significance of the audit committee on the prevention of fraud, there is a significant effect of the independent commissioner on the prevention of fraud and there is a significant effect on the protection of the whistleblower on preventing fraud, there is a significant effect of the whistleblowing system on fraud prevention, there is a significant influence on the internal control system, internal auditors, audit committees, independent commissioners through the protection of whistleblowers against fraud prevention, and there is a significant influence on internal control, internal auditors, audit committees

Striving for Protection: Whistleblowers in Jordan

Whistleblowers take it upon themselves to protect public goods and resources by blowing the whistle on corruption. Yet, they are at risk of facing retaliation from their employers, as well as of experiencing firing, unfair appraisal, and isolation at work. In this article, we investigate the extent of whistleblower protection in Jordan. We discuss whistleblowers’ significant role in reporting wrongdoings and fighting corruption, as well as the price that whistleblowers pay to protect the public interest. In this study, we used the protection analysis approach by identifying the potential risks to which whistleblowers are exposed. Specifically, we used official documents analysis. The results are based on the analysis of Jordanian laws and policies, regional and international conventions, the investigation of whistleblower cases in the media, transparency international reports, and the Jordan Transparency Center. The review of spoken whistleblower cases revealed that legal policies stipulate protection; still, whistleblowers in Jordan face retaliation. We recommend considering judicial review to close the loopholes and to include protection principles into the rules of organizations’ procedures to provide better guarantees for protecting whistleblowers in Jordan.

Effects of external whistleblowing in Poland

In Poland, reporting of irregularities by employees has been largely ignored. This topic is not part of the professional-ethical or normative discourse. External disclosure involves reporting the irregularity to an external entity that can react or take follow-up action. The issue of external reporting is a highly controversial problem of labor law in Poland, which is limited by the primary obligation of an employee specified in the Labor Code in Art. 100 § 2 points 4. Under such conditions, employees who report irregularities to repair the organization are treated as persons violating their loyalty to the employer, even though they demonstrated the will to rectify the offense and the accompanying readiness to act. An attempt to go beyond this dilemma is to be the new Directive of the European Union on the protection of whistleblowers and the presented draft Polish act on the protection of whistleblowers submitted on October 18, 2021. The transposition of the Directive provisions turned out to be a failure on December 17, 2021. For employees who decide to report irregularities externally, reporting irregularities is a complex dilemma that may break the ties of trust and dismissal by employer-relevant regulations. The Polish Labor Code requires the conceptualization of the rationality of notifications, despite the lack of appropriate regulations in this regard.

Identification and Protection of Corporate Whistle-blowers: A Legal Perspective

Purpose: Internal audit, management review, and account reconciliation are popular tools for combating corporate fraud, but whistle-blowing is the most prevalent. Whistle-blowers frequently fear reprisal from coworkers and bosses. That is why they require protection and support. Many international organizations have advocated that countries adopt regulatory frameworks for protecting whistle-blowers. Therefore, the current study investigates the notion of whistle-blowing to compare it to Public Interest Disclosure Act 2017 of Pakistan, which was enacted. It identifies the influence of legal and ethical cultural norms in organizations on whistle-blowing behaviour.
 Design/Methodology/Approach: Qualitative method was used to analyze statutes, local and international protocols, rules and regulations of Pakistan and developed countries.
 Findings: The results suggest that the development of legal and ethical culture in a business may inspire whistle-blowing, and whistle-blowers may feel psychologically safe when reporting wrongdoings. Further, whistle-blowers must be legally supported and encouraged to function as corporate monitors, discouraging wrongdoers to the point of elimination.
 Implications/Originality/Value: It is suggested that the Act be revised to address the existed flaws. The Act is specifically amended to cover private-sector whistle-blowers, and an impartial, external reporting channel is established under one of the existing specialized organizations that deal with fraud. In particular, anti-corruption bodies, like National Accountability Bureau, has established as an external reporting and investigative channel.

Can investigative audit and whistleblowing systems prevent fraud?

This study aims to analyze the effect of investigative audits and the implementation of a whistleblowing system on fraud prevention. The data collection method is done by sending a research questionnaire contained in the google form link. The population in this study was 90 auditors at the Deputy for Investigation at the Central Office of the Financial and Development Supervisory Agency (BPKP) of the Special Capital Region of Jakarta. The sampling technique uses saturated samples so that the total sample is 90 auditors. This research method uses descriptive statistics, which are processed with the help of PLS. The study results found that the investigative audit has no significant effect on fraud prevention while implementing the Whistleblowing System significantly impacts fraud prevention. The investigative audit cannot prevent the possibility of abuse early on. This is because investigative audits are conducted after indications of abuse are found or a systematic investigation of evidence is ongoing. Investigative audits conducted by auditors at BPKP DKI Jakarta can now be reactive, meaning that the auditors conduct audits after receiving or obtaining information from other parties regarding the possibility of fraud and fraud crime. Implementing a sound whistleblowing system must also have a whistleblower protection policy. This policy was formed to avoid detrimental actions to the whistleblower so that the whistleblower will feel that his security is maintained.

Fundamental issues and pandemic pushes pharmacists past their limits

Fundamental issues and pandemic pushes pharmacists past their limits

Nowe europejskie prawo sygnalizowania nieprawidłowości. Rozwiązania modelowe a polski projekt ustawy o ochronie osób zgłaszających naruszenia prawa

Due presentation the topic “The new European whistleblowing law. Model Solutions and the Polish Draft Act on the Protection of Whistleblowers” the author set himself three goals. First, he briefly describes the most important and most characteristic provisions of the new Directive on whistleblowers to give the reader at least a general idea of the model solution prepared by the EU legislator. Second, the paper gives a brief presentation of the draft law on the protection of whistleblowers that implements the Directive in the Polish legal system, taking into account the differences and divergences from the model solution noticed by the literature, the legal literature, and the author himself, so as to provide the reader with knowledge about the most important problems of implementation. Finally, the author aims to present individual conclusions and postulates de lege ferenda within the presented topic. In this last element, the author pays special attention to opportunities and threats connected with the new legislation.

“Challenges for improving the legal framework for protection of whistblowers in the Macedonian legislation”

The paper deals with the Macedonian legal framework for the protection of whistleblowers, emphasizing the "weak points" in the implementation of the law and by-laws. A brief overview of the basic features of the Macedonian system for the protection of whistleblowers has been made, especially in the part of types of whistleblowing as well as the forms of protection of whistleblowers. A comparison is made of specific legal solutions with the acts of the European Union and the Council of Europe, and potential solutions for improving the legal framework for the protection of whistleblowers are presented. Reports of relevant institutions are analyzed and the "weak points" in the legal framework are presented through the analysis.     A special aspect is devoted to the protection of whistleblowers in legal entities in the private sector, that is, to the vagueness of legal decisions, the existence of legal gaps and the need for full regulation of specific issues. The improvement of the legal framework for the protection of whistleblowers combined with taking measures to strengthen public awareness are factors for a better practical application of the Macedonian regulation for the protection of whistleblowers. Whistleblowers are one of the strongest anti-corruption instruments, while the effective fight against corruption is a prerequisite for building a legal state, rule of law, respect for human rights, economic prosperity, stability and security.

Lack of Protection for Whistleblowers at the Workplace in Nigeria: Drawing Lessons from Selected Jurisdictions

The Nigerian government has created anti-corruption agencies, such as the Economic and Financial Crimes Commission and the Independent Corrupt Practices and other related offences Commission (ICPC), to contend with corruption. In 2015, the Federal Ministry of Finance introduced the whistleblowing policy. The policy enables corrupt practices in any workplace, either private or public, to be exposed. However, following the policy, there is no legal framework for the implementation nor protection of the whistleblower. This article adopts doctrinal and comparative methodology to examine the utilitarian values and the propriety of whistleblowing vis-à-vis the employee’s obligation to act in good faith under Nigeria’s labor jurisprudence. It relies on primary and secondary data. It discusses the challenges confronting whistleblowing at the workplace in Nigeria. It also examines the practice in Britain, India, South Africa, and Ghana to be compared with Nigeria. It reveals that whistleblowing is an effective tool to combat corruption/malpractices in the workplace. Unlike in Britain, India, South Africa, and Ghana, there is no specific legislation on whistleblowing in Nigeria. It recommends awareness on the need of Nigerians’ active participation in whistleblowing and enactment of a subject-specific law to protect whistleblowing and whistleblowers as in ones in Britain, India, South Africa, and Ghana.

Las recompensas económicas al alertador (whistleblower). ¿Límite infranqueable o justa contraprestación?

This article analyzes the political-criminal strategies to encourage complaints in public and private entities, in particular the whistleblowers protection programs. The utilitarian arguments of the insiders collaboration in the white collar crime law enforcement are analyzed, as well as the controversies about the rewards to citizens who decide to report corporate irregularities.

Protection of Whistleblowers by the European Union, the Council of Europe, and the European Court of Human Rights

Whistleblower protection in the European Union is undergoing significant developments. The new Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons reporting breaches of Union law sets a minimum standard for the protection of whistleblowers. It is awaiting implementation in Member States' national law by December 2021. However, a certain level of protection is also guaranteed by the European Court of Human Rights case law principles. Reports of illegal activities provided from close internal sources can strengthen the protection of the EU's financial interests. Adequate protection is needed to prevent retaliation against whistleblowers. As the deadline for transposing this directive approaches, the article aims to analyse the Directive 2019/1973 and compare it with the protection guaranteed by Article 10 of the European Convention on Human Rights.

A Study on the Protection System for whistleblowers in U.S.A

최근 국민권익위의 보도자료(2021. 7. 6)에 따르면 지난해 공공기관은 약 330만 건의 공익신고를 접수했고 약 2,315,149건에 대한 혐의가 확인돼 행정처분되거나 수사기관에 송부‧송치됐다고 한다. 혐의가 확인된 피신고자에게는 총 2,915억 원의 과징금‧과태료 등이 부과됐다고 한다. 또한 지난해 공공기관에 접수된 공익신고 건수는 「공익신고자 보호법」이 제정된 2011년 418,182건에 비해 약 8배 증가한 것이다. 이러한 통계는 이제 공익신고자 보호제도는 더욱 청렴한 사회를 만들기 위한 유용한 도구라는 것이 우리 사회에 널리 인식되고 있다는 것을 보여 주고 있다. 이는 우리 사회에서 공익신고자의 보호 문제는 진부한 것이 아니고 여전히 사회적으로 큰 파장을 일으키는 사안임을 여실히 보여주고 있다. 또한 해외 각국에서도 지속적이고 효과적인 공익신고자보호를 위해 계속 관련 법률들을 입법하거나 개정하고 있는 사정에 있다. 본 연구는 이러한 배경 하에서 합리적인 공익신고자 보호를 도모하기 위한 필요성에서 시작되었다고 할 수 있다. 특히 본 연구에서는 미국의 공익신고자 보호 법률에 대해 살펴보고자 한다. 미국에서는 공익신고자 보호를 위한 단일 법률은 존재하지 않고 개개의 법률에 의해 당해 분야의 공익신고자 보호에 관한 규칙이 정해져 있다. 미국의 법 제도상 연방법 및 주법이 존재하지만 본 연구에서는 연방 법률을 연구 대상으로 하고자 한다. 그 주된 연구대상 법률은 다음과 같다. ◦ SOX법(Sarbances-Oxley Act of 2002) ◦ 도드-프랭크 법(Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010) ◦ 내부고발자보호법(Whistleblower Protection Act of 1989) 및 내부고발자보호강화법(Whistleblower Protection Enhancement Act of 2012) ◦ 부정청구방지법(Federal False Claims Act of 1986)

EVALUATION OF THE WHISTLEBLOWER PROTECTION DIRECTIVE IN THE LIGHT OF POLISH PREPARATIONS FOR THE TRANSPOSITION OF THE REPORTING MODEL

On October 23, 2019, the European Union adopted the Directive on protecting whistleblowers. The Directive was intended to be a groundbreaking tool in protecting whistleblowers. The Directive introduces essential and correct standards to protect the interests of the European Union and whistleblowers who report breaches of EU law. The whistleblower protection model is designed to go beyond any standards of whistleblower protections in the Member States. Nevertheless, the effectiveness of the Directive is difficult to assess without complete transposition in the Member States. The process did not end with the saying as of December 17, 2021 in Poland, which is only at the draft bill stage. The author notes that the Directive does not provide a comprehensive model for reporting irregularities, which results in an incomplete conceptualization of this institution.

EMPLOYEE LOYALTY IN RELATION TO THE WHISTLEBLOWER DIRECTIVE

The whistleblower protection directive may have a significant impact on the essence of understanding employee loyalty in employment relationships. In this paper I argue that the possibility of whistleblowing does not contradict employee duties as expressed in Article 100 § 2 section 4 of the Labor Code. In my opinion, the thesis should be put forward that the employee’s duty of loyalty is limited to the employer’s lawful actions. It would be unacceptable to state that the employment relationship restricts the employee’s freedom of speech in the sense that it prohibits the employee from opposing the employer’s unlawful conduct. Moreover, in my view, the employee’s duty of loyalty should be interpreted in such a way that it is horizontal in nature. This is because it refers to business relations between market entities. The doctrine and judicature extensively describe breaches of the duty of loyalty by employees in the context of horizontal relationships, relating to other market players, particularly those engaged in competitive activity (the unit-unit relationship). In contrast, the provisions of the Directive on the protection of whistleblowers are vertical standards, relating to the relationship between the individual and the state (public interest). Thus, in my view, the duty of loyalty to the employer cannot outweigh the possibility of acting in the public interest, which is emanated by the provisions of the Directive.

The New European Union Whistleblowing Directive: In Comparison to Indonesia’s Practice

With the European Union Whistleblowing Directive (2019), the topic of whistleblowing is becoming increasingly important for EU MS’s public and private entities. Whistle-blowers might play a vital role in exposing corruption, fraud and mismanagement of the EU’s supranational norms. The Directive introduced minimum standards for the protection of whistle-blowers and obliges many public and private entities to introduce their own internal whistleblowing channels. The EU also can take some lessons from Indonesia about the practice and obstacle in implementing whistleblowing system. The aim of this article is to introduce the new EU Whistleblowing Directive’s main features and some presumable obstacles for implementation. The hypothesis is that the new Directive might enhance the fairwork-place environment, roll back fraud and corruption, reduce work-related wrongdoing and manage equal treatment and no-discrimination policy including bullying and sexual harassment. However, some theoretical and pragmatic discrepancies will be introduced as well.

Measuring Whistleblowing Perceptions among the Civil Service of the Republic of Kosovo

Abstract In 2018, the Parliament of the Republic of Kosovo approved the Law on the Protection of Whistleblowers, setting up the foundations of the whistleblower protection system for the public and private sectors in the country. In line with the international principles for drafting legislation for the protection of whistleblowers, the law provides three channels for reporting wrongdoing and grants protection against any form of retaliation for whistleblowers. Noting the absence of institutional data on whistleblowing in the public sector, for this research article, a survey was implemented with individual members of civil service in Kosovo (n=400), during the period from September to November 2019, to collect primary data related to factors incentivizing and / or discouraging the decision to whistleblow. Data were collected at the national and local levels of state administration, as per the scope of the definition of the civil service by Kosovo legislation. In this contribution, research results reveal that the protection against any form of retaliation guaranteed by the law is not sufficient for members of civil service in Kosovo to support the decision to whistleblow, as concerns arise for the security and physical integrity of their respective family members. Law does not provide financial incentives for civil servants to whistleblow. Data reveal that a satisfactory level of trust is missing on organizational indicators such as trust in the responsible officer, protection of data confidentiality and anonymity, across different levels of categories of civil service. In line with the concerns voiced by members of civil service and international standards for whistleblower protection, the following actionable recommendations are proposed to advance the whistleblowing system in Kosovo: 1) Improve the provision of training for members of civil service on whistleblowing legislation, organizational procedures, whistleblower protection, and rights; 2) Establish strategies to support employees for whistleblowing. Such strategies would include programs enabling whistleblowers access to professional services such as stress management, counseling, and legal services; 3) Enhance security measures for the physical integrity of whistleblowers and their respective family members; 4) Establish incentives to encourage whistleblowing, such as financial rewards.

Comments on Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the Protection of Persons Who Report Breaches of Union Law

Abstract Without some of the important information brought into light by whistleblowers, many current scandals would not have occurred. It is undeniable that whistleblowing brought into the public domain can insert a previously unforeseen and incorrigible milestone in the biography of whistleblowers, which can lead to financial loss, loss of work, affect private life, and even health. Even in situations where the whistleblower acts in good faith, he runs the risk of being publicly judged and having his reputation tarnished by lack of protection. Reporting persons may even be driven to complete isolation or pay with their lives or that of their families. In view of this, the European Union has foreseen in a new directive a better protection for whistleblowers, through the implementation of a trilateral whistleblower system. The main new feature of the European Whistleblower Protection Directive is the obligation to establish internal whistleblower channels for legal entities in the public and private sectors with at least 50 or more employees. In the public sector, Member States may exempt cities with fewer than 10,000 inhabitants or fewer than 50 employees working in the public body from the obligation to establish whistleblowing channels. If the report to the company or public body is not successful, the whistleblower may report to the press. European legislators have until December 2021 to transpose the provisions of this directive into national whistleblower protection regulations.

Whistleblower protection in developing countries: a review of challenges and prospects

Whistleblower protection in developing countries: a review of challenges and prospects

WHISTLEBLOWING PADA INDUSTRI PERBANKAN DI INDONESIA

This study aims to analyze the effect of whistleblowing hotline on internal fraud in the banking industry in Indonesia and to further examine whether the whistleblowing hotline can limit fraud. Observations were made over a period of 10 years. The sample in this study was 270 banking companies listed on the Indonesia Stock Exchange (IDX) which were determined through purposive sampling technique. The research data uses the company's annual report for the 2010-2019 period obtained from the Indonesia Stock Exchange (IDX) and Good Corporate Governance data obtained from the company's official website. The analytical method used is linear regression using SPSS software. The results showed that the whistleblowing hotline had a significant negative effect on internal fraud. However, in order for the whistleblowing hotline to run effectively, adequate resources are needed in managing the hotline and definite legal protection for whistleblowers.

In the Public Interest: Protections and Risks in Whistleblowing to the Media

Whistleblowing and a free press are vital to facilitating public accountability for powerful institutions and thereby improving integrity across the public and private sectors. But when is a whistleblower permitted to disclose information to the media? Once a whistleblower speaks to a journalist, what protections and assurances will they be entitled to? This article addresses these questions by examining existing protections for private and public sector whistleblowers and, relatedly, journalists’ confidential sources under federal law. In this way, it explores the intersection between whistleblowing and press freedom and reveals gaps and weaknesses in existing legal frameworks.