whistle blowing by tommy seah in iia australia
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TOMMY SEAH IIA Melbourne Australia presentation on Whistle BlowingTRANSCRIPT
Whistleblower Hotline –
A Powerful Tool to
Combat Fraud
SOPAC® 2007, 25-28 March 2007 , Melbourne
Code of Corporate Governance
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.
Para 11.7 Singapore Code of Corporate Governance 2005 Para 11.7 Singapore Code of Corporate Governance 2005
Code of Corporate Governance
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.Para 11.7 Singapore Code of Corporate Governance 2005 Para 11.7 Singapore Code of Corporate Governance 2005
Whistleblowers are told to take comfort in knowing they have done the right thing.
SOX • SEC. 806. PROTECTION FOR EMPLOYEES OF PUBLICLY
TRADED COMPANIES WHO PROVIDE EVIDENCE OF FRAUD.
• (a) IN GENERAL.—Chapter 73 of title 18, United States Code,• is amended by inserting after section 1514 the following:• ‘‘§ 1514A. Civil action to protect against retaliation in fraud• Cases
• ‘‘(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)),……………………………….
Divided views
regarding
Whistleblowing
““Whistleblowing: Whistleblowing: betrayalbetrayal or or public dutypublic duty?”?”
““For those who argue that For those who argue that employees employees owe strict loyalty to the companyowe strict loyalty to the company, ,
Whistleblowing seems to be an act of Whistleblowing seems to be an act of extreme disloyalty.extreme disloyalty.
But loyalty But loyalty cannot imply that we should cannot imply that we should not report the unethical conducts of not report the unethical conducts of
othersothers……” ……”
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)
Some board members against whistle blowing:
: a “whistleblower” mechanism is : a “whistleblower” mechanism is already in place in the company.already in place in the company.
: weaken the esprit de corps amongst : weaken the esprit de corps amongst the staff.the staff.
Dilemmas of whistleblowersDilemmas of whistleblowers
WhistleblowingWhistleblowing
Implementation issuesImplementation issues
What should be in the What should be in the
Whistle Blowing PolicyWhistle Blowing Policy
WhistleblowingWhistleblowing
Implementation issuesImplementation issues
Commitment Commitment
of of
Board of DirectorsBoard of Directors
WhistleblowingWhistleblowing
Implementation issuesImplementation issues
Purpose of the PolicyPurpose of the Policy
WhistleblowingWhistleblowing
Implementation issuesImplementation issues
What safeguards can people What safeguards can people expect?expect?
WhistleblowingWhistleblowing
Implementation issuesImplementation issues
Reporting ProceduresReporting ProceduresWhistle Blowing Whistle Blowing
Hotline Hotline
or or
ManagementManagement
WhistleblowingWhistleblowing
Implementation issuesImplementation issues
How an investigation How an investigation
is carried outis carried out
WhistleblowingWhistleblowing
Implementation issuesImplementation issues
OutcomeOutcomeReport to explain findings and actions taken to the full Report to explain findings and actions taken to the full
extend possible within commercial, legal and extend possible within commercial, legal and confidential constraints.confidential constraints.
Is Whistle Blowing Is Whistle Blowing
Hotline effective ?Hotline effective ?
A plea for Whistleblowing A plea for Whistleblowing legislationlegislation
The reason why….The reason why….A plea for A plea for Whistleblowing legislationWhistleblowing legislation
US $82 billion FRAUD
Bribery EmbezzlementUS$30 million
Thank you Thank you Ladies and Gentlemen Ladies and Gentlemen
for the privilege.for the privilege.Please feel very welcome to call me atPlease feel very welcome to call me at
Tel. 65 9106 9872 Tel. 65 9106 9872 to know more.to know more.
You may also visitYou may also visithttp://www.cfe-in-practice.com
Visit us at http://www.cfe-in-practice.com
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