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Whistle blower final


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Whistle blower final

  1. 1. A Presentation on Whistle-Blowers Manoranjan Kumar John Kopchinski Presented by : Shubhamveer Singh MB15 Saurabh Pratap Rao MB43
  2. 2. Table of Contents 1. Manoranjan Kumar  Introduction  Port of Scam  Blowing the Whistle  Consequences 2. John Kopchinski  Introduction  The Case  Outcomes
  3. 3. Manoranjan Kumar (Kandla Port Trust Scam)
  4. 4. Introduction  Kumar is a 1986-batch Indian Economic Service officer  He was sent from the Textiles Ministry to the Kandla Port Trust (KPT) as Chief Vigilance Officer  Kumar blew the whistle on a multi-crore land scam at the (KPT)  He exposed the mammoth land scam in which 16,000 acres of prime land were leased out for a mere rent of Rs. 144/acre  Kumar prepared a detailed report on the lease of land, which he submitted to the Shipping Ministry in 2007. He was shifted to Delhi in January 2008 without a post and was not paid any salary since August 2008 untill he won the case in 2009
  5. 5. The Port of Scam  Kandla Port is one of the most important ports servicing western India  The Kandla Port Trust owns 2,44,000 acres of land  Nearly 16000 acres of land belonging to Kandla Port Trust have been leased out to salt manufacturing firms for as low as Rs.144 per acre  leases were twice renewed in 1996 and 2000 for a period of four years  The land is now said to be worth Rs. two crore per acre
  6. 6. Blowing the whistle  Kumar blew the whistle in August 2007 by submitting his report  Kumar's report stated that in 1960s and 70s, 16,000 acres were leased out arbitrarily to a few parties on nominal rates, without any valuation or auction  Kandla Port Trust authorities were aware of the scam and were doing nothing about it.  Kumar, along with four other colleagues, was asked to proceed on leave by the shipping ministry in January 2008
  7. 7. Consequences  Kumar moved to the Central Administrative Tribunal (CAT) , which gave orders to the Shipping Ministry for his repatriation  The Shipping Ministry did not act on the CAT order and went to Delhi High Court for seeking a stay on CAT order  A divisional bench of Delhi High Court rejected the Shipping Ministry's plea to seek a stay on the Central Administrative Tribunal (CAT) order  The High Court also observed that KPT must pay his entire salary which has been held back since August 2008, along with the arrears'
  8. 8. John Kopchinski (Sales Representative at Pfizer)
  9. 9. John Kopchinski "In the Army, I was expected to protect people at all costs. At Pfizer I was expected to increase profits at all costs, even when sales meant endangering lives. I couldn't do that.” John Kopchinski
  10. 10. Introduction  Former Pfizer sales representative hired by Pfizer when he left the Army in 1992  worked in South Florida until he was fired by the company in 2003  In pursuing a case against Pfizer for fraudulently promoting drugs that eventually led to the largest health fraud settlement in US history  At the time of his dismissal after raising his concerns with the company, Kopchinski had a baby son and his wife was pregnant with twins
  11. 11. Continued…..  He went from earning about $125,000 a year to living off his retirement fund before landing a job with an insurance company for $40,000 a year.  His 2009 qui tam lawsuit launched a massive government investigation into Pfizer’s illegal and dangerous marketing of Bextra, a prescription painkiller  Pfizer paid $1.8 billion to the government to settle the case, including a $1.3 billion criminal fine — the largest healthcare fraud settlement in U.S. history
  12. 12. The Case  Pfizer company was engaged in illegal and unethical marketing of Bextra, a painkiller, in dangerous doses and for unapproved, unsafe uses  The FDA approved Bextra to treat arthritis as well as menstrual pain in very limited doses. Kopchinski alleged in his qui tam lawsuit that Pfizer promoted Bextra for uses and in doses that far exceeded what the FDA had approved.  This put patients at risk for serious health problems such as heart attack, stroke and pulmonary embolism (blood clot in the lung)
  13. 13. Continued…  Kopchinski exposed the company's illegal sales and marketing campaign for uses and in doses that endangered patients' health and lives  Kopchinski also reported that Pfizer paid doctors money in various ways to influence them to prescribe and endorse Bextra for these "off-label" uses  He first complained to management about aggressive promotion of Bextra far beyond the uses approved by FDA. But his concerns were brushed aside, and, over time, the company kept moving in the wrong direction. He didn't want to go along with that
  14. 14. Outcomes  Bextra was withdrawn from the market in 2005  Pfizer paid $1.8 billion in September 2009 to the government to settle Kopchinski's qui tam lawsuit  John Kopchinski received $51.5 million for his allegations involving the marketing of Bextra  Pfizer settled four other whistle blower lawsuits at the same time, bringing the total settlement to $2.3 billion  Ethisphere, a think tank that focuses on business ethics, corporate social responsibility, anti-corruption and sustainability, named Kopchinski number one on its 2009 list of 100 most influential people in business ethics
  15. 15. References  accessed on 19/09/13  accessed on 19/09/13  accessed on 19/09/13  accessed on 19/09/13 
  16. 16. Thank You