Whistleblowers: should they get more protection?

The process could be simplified.

With the current emphasis on corporate governance and paying your fair share of tax, whistleblowing is centre stage - isn’t it time the government revisited our laws in this controversial area?

With major scandals affecting our MP’s, financial institutions, the media and the police it is little wonder that by the end of 2012 corporate governance was the new “black” in the business world and looks set stay. The emphasis upon appropriate corporate controls and culture has been reinforced by the highly publicised tax offensive targeting the former no man’s land of offshore companies and bank accounts.

The overriding theme is clear - times are difficult, mistakes have been made and businesses and individuals have a duty to do the right thing.

Unfortunately, there is not a lot of money available to help promote this cultural shift and so 2012 also saw publication of the government’s plans for the introduction of deferred prosecution agreements – the newest weapon in the cash strapped armoury of the Serious Fraud Office (SFO) – where, if the case is suitable, entities self reporting on fraud can hope to do a deal. It is no coincidence that this has been put in place with an anticipated 2013 focus from the SFO and its new director on enforcing the provisions of the Bribery Act.

One has only to look carefully at the UK government’s guidance on whistleblowing to see where the problems lie

The SFO’s confidential reporting hotline is also doing brisk business and the soon to be reconfigured FSA has had a whistleblowing hotline for many years. So-called “bounty payments” by HMRC have also been in the press where informants have received discretionary payments for information that has led to additional tax recoveries.

In this climate the role of the whistleblower has never been more prominent and yet UK legislation does little to recognise the increased importance of this role. Any auditor will tell you that two of the most effective weapons a business can deploy against fraud are the establishment of a zero tolerance culture backed up by a fraud reporting hotline available to employees, customers, suppliers and anyone else who has dealings with the company.

In the UK whistleblowing legislation is set out within the Public Interest Disclosure Act 1998 although this will be amended by Vince Cable’s Enterprise and Regulatory Reform Bill which is expected to become law later this year and will remove a loophole where concerns about a personal employment contract could be raised.

Unfortunately, it is proposed the whistleblower will now also have to decide what is in the public interest.

In an environment where government, regulators and prosecutors are seeking to both reinforce and enhance controls within the business and wider community a more fundamental review of whistleblowing legislation in the UK is long overdue.

One has only to look carefully at the UK government’s guidance on whistleblowing to see where the problems lie. Potential whistleblowers are invited to check their employment contract or HR department to ascertain if their company has a whistleblowing procedure.

If I were an employee I would already be worried – the process seems likely to become legal and HR departments are not renowned for supporting the employee in a matter involving the behaviour of management. What do I do if I’m not an employee but a third party or a sub- contractor and if I am an employee what do I do if there is no whistleblowing policy? Government guidance fails to clearly address these points and the law itself is unclear.

The rest of this article appears on economia.

whistleblowing is centre stage. Photograph: Getty Images

Paul Smethurst is a partner in the forensic and investigation practice at accountancy firm, Carter Backer Winter LLP

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19 things wrong with Daniel Hannan’s tweet about the women’s march

The crackpot and these women.

Since Daniel Hannan, a formerly obscure MEP, has emerged as the anointed intellectual of the Brexit elite, The Staggers is charting his ascendancy...

State of this:

I mean honestly, where do you even begin? Even by Daniel’s rarefied standards of idiocy, this is a stonker. How is it stupid? Let me count the ways.

1. “Our female head of government” implies the existence of “their female head of government”. Which is odd, because the tweet is clearly aimed at Hillary Clinton, who isn’t anybody’s head of government.

Way to kick someone when they’re down, Dan. What next? “So pleased that my daughter received a wide selection of Christmas presents, unlike those of certain families”?

2. I dunno, I’m no expert, but it’s just possible that there are reasons why so few women make it to the top of politics which don’t have anything to do with how marvellous Britain is.

3. Hillary Clinton was not “the last guy’s wife”. You can tell this, because she was not married to Barack Obama, whose wife is called Michelle. (Honestly, Daniel, I’m surprised you haven’t spotted the memes.)

4. She wasn’t married to the guy before him, come to that. Her husband stopped being president 16 years ago, since when she’s been elected to the Senate twice and served four years as Secretary of State.

5. I’m sure Hillary would love to have been able to run for president without reference to her husband – for the first few years of her marriage, indeed, she continued to call herself Hillary Rodham. But in 1980 Republican Frank White defeated Bill Clinton’s campaign to be re-elected as govenor of Arkansas, in part by mercilessly attacking the fact his wife still used her maiden name.

In the three decades since, Hillary has moved from Hillary Rodham, to Hillary Rodham Clinton, to Hillary Clinton. You can see this as a cynical response to conservative pressure, if you so wish – but let’s not pretend there was no pressure to subsume her political identity into that of her husband, eh? And let’s not forget that it came from your side of the fence, eh, Dan?

6. Also, let’s not forget that the woman you’re subtweeting is a hugely intelligent former senator and secretary of state, who Barack Obama described as the most qualified person ever to run for president. I’m sure you wouldn’t want to be so patronising as to imply that the only qualification she had was her husband, now, would you?

7. I’d love to know what qualifications Dan thinks are sufficient to become US president, and whether he believes a real estate mogul with an inherited fortune and a reality TV show has them.

8. Hillary Clinton got nearly 3m more votes than Donald Trump, by the way.

9. More votes than any white man who has ever run for president, in fact.

10. Certainly a lot more votes than Theresa May, who has never faced a general election as prime minister and became leader of the government by default after the only other candidate left in the race dropped out. Under the rules of British politics this is as legitimate a way of becoming PM as any, of course, I’m just not sure how winning a Tory leadership contest by default means she “ran in her own right” in a way that Hillary Clinton did not.

11. Incidentally, here’s a video of Daniel Hannan demanding Gordon Brown call an early election in 2009 on the grounds that “parliament has lost the moral mandate to carry on”.

So perhaps expecting him to understand how the British constitution works is expecting too much.

12. Why the hell is Hannan sniping at Hillary Clinton, who is not US president, when the man who is the new US president has, in three days, come out against press freedom, basic mathematics and objective reality? Sorry, I’m not moving past that.

13. Notice the way the tweet says that our “head of government” got there on merit. That’s because our “head of state” got the job because her great, great, great, great, great, great, great, great grandmother happened to be a protestant in 1701 and her uncle wanted to marry a divorcee – all of which makes it a bit difficult to say that our head of government “ran in her own right”.  But hey, whatever makes you happy.

14. Is Daniel calling the US a banana republic? I mean, it’s a position I have some sympathy with in this particular week, but it’s an odd fit with the way he gets all hot and bothered whenever someone starts talking about the English-speaking peoples.

15. Incidentally, he stole this tweet from his 14-year-old daughter:

16. Who talks, oddly, like a 45-year-old man.

17. And didn’t even credit her! It’s exactly this sort of thing which stops women making it to the top rank of politics, Daniel.

18. He tweeted that at 6.40am the day after the march. Like, he spent the whole of Saturday trying to come up with a zinger, and then eventually woke up early on the Sunday unable to resist stealing a line from his teenage daughter. One of the great orators of our age, ladies and gentlemen.

19. He thinks he can tweet this stuff without people pointing and laughing at him.

Jonn Elledge edits the New Statesman's sister site CityMetric, and writes for the NS about subjects including politics, history and Daniel Hannan. He is on Twitter, almost continously, as @JonnElledge.