Whistle-blowing (”varsling”)

Bistandstorget19. april 2011Laget av Yul Shah Malde for Bistandstorget, presentert av Marianne Jorddal

Challenges with whistle-blowing

• The challenges with whistle-blowing are fear of reprisals.

• It is important to work hard to earn staff trust – both in the safety of the whistle-blowing mechanism, and that using it really can result in change.

• A confidential and independent mechanism (whether internal or external) helps create an environment intolerant of corruption, in which staff feel safe to blow the whistle without fear of reprisal.

Who discovers fraud in reality?

KPMG survey 2007(consistent with many other surveys):

Who discovered misconduct in your company/org?

• Authorities 1%• Accidental 4%• External auditors 10%• Senior management 16%• Internal auditor 24%• Whistle-blower 45%

”The email”• Wen you come to the office there is an

anonymous hotmail in the inbox.• What do you do?

– Nothing – better wait and see?– Call a staff meeting and inform everyone,

someone else might have received a similar call, to discuss the issue?

– Report it to the Norwegian Embassy? Or the police?

– Something completely different – what?

But…

• The telephone rings (Someone calls) – You answer it...

• What do you do?

What to keep in mind?

• Don’t scare the person – it is a witness

• Allow him/her to be anonymous (but be honest)

• Establish a contact

• Try to get some verifiable facts

• Try to establish the motives of the informer. Why? Why now?

Reacting to information

• ”A stitch in time saves nine”

• But never assume anything– Hidden agendas– ”Two sides to every story”

• Everyone is innocent until proven guilty

• 10 action points (handout)

Sanctions

• Financial support will be stopped - If suspicion of corruption

• Suspended – immediately- If corruption has been demonstrated

• Reimbursement of grants• Each level are responsible to the one who

has given grants

Fighting corruption effectively

Leadership and priorities

Organisational culture,

transparency and knowledge

management

Policies, routines and guidelines

Fighting corruption effectively

Learning and training

Working together and “Advocacy”

It’s about people

Necessary routines and guidelines• Authorisation and approval routines• Segregation of duties surrounding payment• Discipline on contracts and agreements• Project visits (operational and partner)• Documentation of project visits• Evaluations• Budget monitoring• Functions focusing on control (finance management, financial control,

internal audit)• External audit • Monitoring and checking all partners’ audited accounts• Monitoring and review of all external audit reports (eg management

letters) • FAT (handout)