Whistleblowing should be extended to private sector — KPMG survey

Business advisory and audit firm KPMG is urging Parliament to consider amending the 14-year-old Whistleblower Act to cater for acts of financial impropriety and crime that occur within the private sector.

A survey conducted by the firm on whistleblowing found that the act is heavily skewed towards whistleblowing in the public sector but is not very clear in its application to the private sector and non-public-interest situations.

“Specifically, publicly-traded institutions and others of public interest should be mandated to institutionalise whistleblowing to help secure and engender trust and confidence in stakeholders,” the survey report said.

Citing some of the key limitations of the act, KPMG noted that it does not make it mandatory for public-interest entities such as financial institutions to provide a whistleblowing hotline for stakeholders.

“Nonetheless, it does provide some protection for people who blow the whistle. Despite the protection it offers, most people do not blow the whistle,” it said.

The survey

Commenting on the rationale behind the survey, Andy Akoto, Partner and Head, Advisory, at KPMG, stated that the study was undertaken to understand how organisations use whistleblowing facilities, and how management and staff perceive this valuable tool for improvement in governance, transparency and accountability.

The survey, which was conducted in the latter part of 2019, found that most respondents do not blow the whistle primarily due to the lack of trust in authorities and the perception that no action would be taken.

But the report urged organisations to put in place an independent or confidential whistleblowing hotline to demonstrate an open and honest culture, where employees can report wrongdoing without fear of victimisation.

“Additionally, whistleblower reports received must be evaluated in a timely manner and investigated by a professional and independent team as needed. This will restore trust and engender confidence in employees regarding whistleblowing and transparent governance and culture,” the report said.

Speaking at the virtual launch of the survey results, the head of the Commission on Human Rights and Administrative Justice (CHRAJ), Joseph Whittal, stated that the commission on average investigates 30-40 whistleblower disclosures annually and submits its reports to the Attorney General.

However, he said, the commission has not received feedback on whether the reports and recommendations have been accepted or rejected.

“It appears Ghana is more interested in the form and not the substance of the fight against corruption through an effective whistleblower regime.

Nevertheless, the passage of the Office of the Special Prosecutor Act gives hope that there is the possibility of moving the ‘institutional home’ of Act 720 [the Whistleblower Act] out of the overburdened AG’s Office to give real meaning to the whistleblower regime in Ghana,” Mr. Whittal added.