Setting the Tone at the Top with a Robust Whistleblowing Policy in Africa

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GUEST BLOGGER

Mustafa Yusuf-Adebola, ACCA
Risk Consultant

In late 2016, the Nigerian government introduced a whistleblowing policy that awarded individuals between 2.5% to 5% of the amounts recovered based on information about violations of financial regulations, mismanagement of public funds and assets, financial malpractice, fraud and theft. Within a three-month period, the government received 282 tips from whistleblowers through:

  1. Text messages (34%);
  2. Phone calls (31%);
  3. Emails (18%);
  4. A whistleblowing portal (17%).

While 55% of these tips were actionable, the medium of communication whistleblowers chose gives an indication of what Nigerians are more comfortable with.

Until recently, whistleblowing was not seen as a serious and viable detection technique in Africa. Whenever one brought up the topic, it sounded like a textbook term used only for academic purposes. Though codes of corporate governance, regulations and international affiliations forced a number of companies to have a whistleblowing policy, in the companies I reviewed I noticed what accountants call ”substance over form.” Essentially, the regulatory (or affiliate) substance of having a whistleblowing policy overrode the working form.

Regarding the tone at the top, the government’s policy has made the whistleblowing immersion and enlightenment a more engaging discourse. “I am going to blow the whistle” is now a popular phrase within the country and people use the whistle as a metaphorical expression of reporting wrongdoing.

The publicity of this policy has also spurred discussions concerning the protection of whistleblowers, rewards for whistleblowing and punishment for false reporting. Similarly, there have also been questions raised on the safeguarding of tips provided by whistleblowers to ensure they are not leaked by those who receive or work on these tips (thus making the whistleblower appear like a false informant). In response to some of these concerns, the country’s senate passed a Whistleblower Protection Bill last June.

As these discussions gain traction, organizations in the private and public sectors are now either introducing whistleblowing policies or reviewing existing ones. Recently, I have observed more Nigerian companies having a whistleblowing link on their websites while some publicize the existence of these portals on their social media pages.

Despite all of these changes, it is important that companies do not just have whistleblowing policies in place but the top hierarchy display and are seen to display a strong commitment to act ethically in order to encourage a whistleblowing culture whose “form supersedes its substance."

 

Does Your Organization NEED a Whistleblower Policy?

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GUEST BLOGGER

Eileen Leslie, CFE, CPA
Forensic Analyst, Forensic Strategic Solutions

I envision a resounding “yes” is crossing your mind, no matter who you are or where you fall in the organizational chain of command.

But seriously, stop and think. You are the organization’s owner, president, human resources manager, executive, employee, etc., and in your opinion, should your organization have a whistleblower policy or does it need one?

The difference I am trying to convey has to do with your organization’s ethical culture.

Of course most, if not all, organizations should have a whistleblower policy in place. It should include all of the standard and essential elements: definition of covered individuals, encouragement to report wrongdoings, non-retaliation and non-discrimination provisions, confidentiality of individuals and a defined process of reporting. The policy should be effectively communicated to pertinent individuals and the implementation and enforcement processes should be functional.

The question of needing a policy depends on the culture or values of the organization.

While working as a financial analyst in the U.S. Attorney’s Office, I investigated many whistleblowers’ allegations of companies violating the False Claims Act. I recall one time sitting across the table from a CEO who clearly did not foster an ethical culture when it came to doing business with the federal government. When asked if he knew or had read the federal regulations governing the company’s business, he responded by chuckling and saying the regulations were “too boring to read.” His sentiment, obviously, trickled down to the company’s management and employees, resulting in whistleblower allegations, a federal investigation and ultimate settlement with the company.   

So, what are the best practices for an organization to not need a whistleblower policy?

  1. Hire ethical people.
  2. Hire competent people who have the knowledge to perform their work in accordance with state and federal laws and regulations.
  3. Create an environment where people are encouraged to report problems or concerns.
  4. Take reported problems seriously, investigate and resolve if needed.
  5. Reward good faith reporting.
  6. Take the negativity out of whistleblowing or filing complaints, and create opportunities to better the organization.

Sounds simple, right? No organization wants to suffer the embarrassment and negative publicity that can occur as a result of whistleblower allegations. Review your organization’s current whistleblower policy if it has one. Ask yourself, “Do you need that policy?”