Whistle Blowing by Tommy Seah in IIA Australia


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TOMMY SEAH IIA Melbourne Australia presentation on Whistle Blowing

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Whistle Blowing by Tommy Seah in IIA Australia

  1. 1. Whistleblower Hotline – A Powerful Tool to Combat Fraud SOPAC ® 2007, 25-28 March 2007 , Melbourne
  2. 2. <ul><li>Code of Corporate Governance </li></ul><ul><li>The Audit Committee should review arrangements by which staff of the company may, in confidence, raise concerns about possible improprieties in matters of financial reporting and other matters. </li></ul><ul><li>Para 11.7 Singapore Code of Corporate Governance 2005 </li></ul>
  3. 3. <ul><li>Code of Corporate Governance </li></ul><ul><li>The Audit Committee’s objective should be to ensure that arrangements are in place for independent investigation on such matters and for appropriate follow up action. </li></ul><ul><li>Para 11.7 Singapore Code of Corporate Governance 2005 </li></ul>
  4. 4. Whistleblowers are told to take comfort in knowing they have done the right thing.
  5. 5. SOX <ul><li>SEC. 806. PROTECTION FOR EMPLOYEES OF PUBLICLY TRADED COMPANIES WHO PROVIDE EVIDENCE OF FRAUD. </li></ul><ul><li>(a) IN GENERAL.—Chapter 73 of title 18, United States Code, </li></ul><ul><li>is amended by inserting after section 1514 the following: </li></ul><ul><li>‘‘ § 1514A. Civil action to protect against retaliation in fraud </li></ul><ul><li>Cases </li></ul><ul><li>‘‘ (a) WHISTLEBLOWER PROTECTION FOR EMPLOYEES OF PUBLICLY TRADED COMPANIES .—No company with a class of securities registered under section 12 of the Securities Exchange Act of 1934(15 U.S.C. 78l), or that is required to file reports under section15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o(d)),………………………………. </li></ul>
  6. 6. <ul><li>Divided views </li></ul><ul><li>regarding </li></ul><ul><li>Whistleblowing </li></ul><ul><li>“ Whistleblowing: betrayal or public duty ?” </li></ul>
  7. 7. “ For those who argue that employees owe strict loyalty to the company , Whistleblowing seems to be an act of extreme disloyalty. But loyalty cannot imply that we should not report the unethical conducts of others ……”
  8. 8. Conflict of Laws: Whistle-blowing Hotlines Under Fire in Europe ……. a French court issued an order prohibiting McDonald’s in France from continuing with their system on data protection grounds. ( Sarbanes Oxley and European data protection laws)
  9. 9. <ul><li>Some board members against whistle blowing: </li></ul><ul><li>: a “whistleblower” mechanism is already in place in the company. </li></ul><ul><li>: weaken the esprit de corps amongst the staff. </li></ul>
  10. 10. <ul><li>Dilemmas of whistleblowers </li></ul>
  11. 11. <ul><li>Whistleblowing </li></ul><ul><li>Implementation issues </li></ul><ul><li>What should be in the </li></ul><ul><li>Whistle Blowing Policy </li></ul>
  12. 12. <ul><li>Whistleblowing </li></ul><ul><li>Implementation issues </li></ul><ul><li>Commitment </li></ul><ul><li>of </li></ul><ul><li>Board of Directors </li></ul>
  13. 13. <ul><li>Whistleblowing </li></ul><ul><li>Implementation issues </li></ul><ul><li>Purpose of the Policy </li></ul>
  14. 14. <ul><li>Whistleblowing </li></ul><ul><li>Implementation issues </li></ul><ul><li>What safeguards can people expect? </li></ul>
  15. 15. <ul><li>Whistleblowing </li></ul><ul><li>Implementation issues </li></ul><ul><li>Reporting Procedures </li></ul><ul><li>Whistle Blowing </li></ul><ul><li>Hotline </li></ul><ul><li>or </li></ul><ul><li>Management </li></ul>
  16. 16. <ul><li>Whistleblowing </li></ul><ul><li>Implementation issues </li></ul><ul><li>How an investigation </li></ul><ul><li>is carried out </li></ul>
  17. 17. <ul><li>Whistleblowing </li></ul><ul><li>Implementation issues </li></ul><ul><li>Outcome </li></ul><ul><li>Report to explain findings and actions taken to the full extend possible within commercial, legal and confidential constraints. </li></ul>
  18. 18. <ul><li>Is Whistle Blowing </li></ul><ul><li>Hotline effective ? </li></ul><ul><li>A plea for Whistleblowing legislation </li></ul>
  19. 19. <ul><li>The reason why…. A plea for Whistleblowing legislation </li></ul>Guilty Guilty Guilty US $82 billion FRAUD Bribery Embezzlement US$30 million
  20. 20. <ul><li>Thank you </li></ul><ul><li>Ladies and Gentlemen </li></ul><ul><li>for the privilege. </li></ul><ul><li>Please feel very welcome to call me at </li></ul><ul><li>Tel. 65 9106 9872 </li></ul><ul><li>to know more. </li></ul><ul><li>You may also visit </li></ul><ul><li>http://www.cfe-in-practice.com </li></ul>CFE- In-Practice Visit us at http://www.cfe-in-practice.com Integrity|Intelligence|Independence