Reward for whistleblowers
The Federal Executive Council (FEC) unveiled a new anti-graft policy last week that provides for up to 5 percent reward for whistleblowers that expose fraud in both public and private sectors. Minister of Finance Kemi Adeosun disclosed this to reporters soon after the FEC meeting. The new measure is meant to boost the Buhari administration’s […]
The Federal Executive Council (FEC) unveiled a new anti-graft policy last week that provides for up to 5 percent reward for whistleblowers that expose fraud in both public and private sectors. Minister of Finance Kemi Adeosun disclosed this to reporters soon after the FEC meeting. The new measure is meant to boost the Buhari administration’s anti-corruption fight.
Adeosun explained that if there is a voluntary return of stolen or concealed public funds or assets on account of the information provided, “the whistle blower may be entitled to anywhere between 2.5 percent (minimum) and 5 percent (maximum) of the total amount recovered.” She further said the whistleblower must have provided government with information it does not already have and could not otherwise obtain from any other publicly available source to government.
The new policy, according to Adeosun, is designed to encourage anyone with information about a violation or misconduct that impacts negatively on Nigerians and government to report it. The policy also aims at increasing exposure of financial or finance related crimes; improving the level of public confidence in public entities; enhancing transparency and accountability in the management of public funds; improving Nigeria’s open Government Ranking and Ease of Doing Business Indicators and recovering public funds that can be deployed to finance Nigeria’s infrastructure deficit.
The Federal Ministry of finance from where the new anti-corruption policy originated defines whistleblower to be “any person who voluntarily discloses information in good faith about a possible misconduct or violation that has occurred, is ongoing, or is about to occur.” Information that can be submitted has been classified to include mismanagement or misappropriation of public funds and assets (e.g. properties and vehicles); financial malpractice or fraud; collecting or soliciting for bribes; corruption; diversion of revenues; fraudulent and unapproved payments; splitting of contracts; procurement fraud [kickbacks, over-invoicing] etc. While the policy does not apply to personal matters concerning private contracts or agreements, criminal cases when reported shall be referred to relevant agencies including the Independent Corrupt Practices Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC). Information received from whistleblowers would first be reviewed and analyzed to determine whether or not to open an investigation on the matter.
Minister Adeosun said an online portal has been created for whistleblowers to submit information, adding that the status of such information could be verified on the portal after its receipt by government. Information could be provided by individuals or agencies. One challenge that could arise in the course of implementation which this policy has noticeably not addressed is a situation where more than one person blows the whistle on one and the same corruption case. Nonetheless, Adeosun affirmed that protection from false or malicious claims would be provided for suspects as malicious information providers would be liable to prosecution after due investigations.
Critical to the success of the policy is the management of the pieces of information provided by whistle blowers. Although Adeosun said whistleblowers are free to submit information anonymously and that they would be fully protected if they choose to disclose their identities, the failure to properly manage all information provided by whistleblowers with utmost confidentiality would not only jeopardize the policy but could further discourage other information providers from blowing their whistles. Leakage of certain classified information has, in the past, led to suspects under investigation jumping bail or escaping arrest.
This anti-graft initiative is a welcome development as it has the efficacy, if sincerely implemented, to break the back of conspiracy that has always characterized most corruption cases in Nigeria. The monetary reward for whistleblowers which value has been clearly defined by the policy would help to a great extent in the recovery of looted public funds, a major policy thrust of the President Muhammadu Buhari-led administration. For this policy to yield the desired results, every piece of information supplied by whistleblowers must be carefully managed with the utmost discretion and confidentiality.