The introduction of the whistleblower policy designed to fight corruption and encourage anyone with information about the stealing of public funds, by the federal government in December 2016, has attracted debates from Nigerians. TUNDE OGUNTOLA in this piece, writes on the gains of the policy, as well as controversies that might blight the noble idea.
Barely two months after the whistleblower policy was introduced by the federal government, Nigerians, not minding their political affiliation described the whistle-blower policy as a welcome development. This is even as some observers have expressed some concerns about the fate of the whistleblowers and the policy.
The whistleblower policy is coming as a follow up to the President Muhammadu Buhari avowed commitment to fight corruption in the country to a standstill. Despite previous efforts to fight corruption in the country there is still high rate of corruption. For instance, the budget padding was publicly introduced into the nation budgeting lexicon in 2016, logically, “padding” in whatever form, is one of the elements of corruption.
Recall that President Buhari had said corruption will kill Nigeria if it is not fought by government and Nigerians. But, corruption seems to be fighting back in the country, just recently, drama ensued on the floor of the Senate at the ongoing budget defence as the Minister of Power, Works and Housing, Mr. Babatunde Fashola could not explain how N2bn ‘walked into his proposal’. However, Fashola denied knowledge of the N2bn allocated to Regional Housing Scheme in the 2017 budget proposal of the ministry but referred the lawmakers to the Ministry of Finance for information on the controversial item. The item was labeled FMOW99934089.
The whistleblower policy became imperative in a bid to entrench and support the fight against financial crimes and corruption, by increasing exposure of financial crimes and rewarding whistleblowers.
In order to promote such exposure, whistleblowers are encouraged and offered protection from harassment or intimidation by their bosses or employers. The hope is that more looted funds will be recovered through the encouragement of voluntary information about corrupt practices.
The selling point of the whistleblower policy aims at snow-balling the possibility of increased accountability and transparency in the management of public funds, and that the nation’s economy will start looking up given the initiatives so far put in place by the government. The policy identifies increasing the exposure of financial or financial-related crimes; supporting the fight against financial crimes and corruption; improving the level of public confidence in public entities; enhancing transparency and accountability in the management of public funds; improving Nigeria’s open government ranking and ease of doing business; the recovery of public funds that can be deployed to finance Nigeria’s infrastructure deficit and also delist Nigeria among the corrupt countries in the world.
One of the greatest tests of the whistleblower policy is the removal of the former House Appropriations Committee Chairman, Albumumin Jibrin, for blowing the whistle on budget padding. Instead of his effort to be lauded, he was suspended in what they described as serial betrayal of his colleagues and other government officials.
However, corruption remains wide spread today, thus affecting virtually all public institutions despite the incumbent administration’s well publicised intention to fight it. For instance the $6 billion fuel subsidy scam, police pension fraud, Stella Odua car purchase scandal, the $9 billion loot recovered, NNPC missing $20 billion, $15 million in private jet arm scandal, crude oil theft, still to watch the Dasuki scandal. The amount represents financial fraud perpetrated by state officials ranging from outright embezzlement, payment for jobs not done, over invoicing, double debiting, inflating of contracts to release funds without the consent of the approving authority.
The British Government’s whistleblower policy states that “You’re a whistle-blower if you’re a worker and you report certain types of wrongdoing. This will usually be something you’ve seen at work –though not always. The wrongdoing you disclose must be in the public interest. This means it must affect others, e.g. the general public.
As a whistle-blower, you’re protected by law – you shouldn’t be treated unfairly or lose your job because you ‘blew the whistle’. You can raise your concern at any time about an incident that happened in the past, is happening now, or you believe will happen in the near future.”
According to the minister of Finance, Mrs. Kemi Adeosun, the type of information that could be reported includes mismanagement or misappropriation of public funds and assets (e.g. properties and
vehicles), financial malpractice or fraud. She enlisted some of the financial malpractices such as “collecting and soliciting bribes, corruption, diversion of revenues, fraudulent and unapproved payments, splitting of contracts and procurement fraud (kickbacks and over-invoicing etc).”
Adeosun had explained that the whistle-blower policy consists of three major components; the first component basically deals with channels for reporting information and the type of information to be reported. Which includes anyone, said the minister, who has “authentic information about violation, misconduct, or improper activity which can impact negatively on the Nigerian people and government” should report it through one or the other of three channels: via SMS to 0909 806 7946; via email to Whistle@finance.gov.ng; or by logging on to the whistle-blowers’ portal at <http://www.finance.gov.ng>. The violations include, but are not limited to mismanagement or misappropriation of public funds and assets; financial malpractice or fraud; collecting/soliciting bribes; diversion of revenue; fraudulent and unapproved payments; and procurement fraud (notably, kickbacks and over-invoicing).
The second component is the reward for reporting fraud, which stipulated that the whistle-blower will get between 2.5 per cent (minimum) and five per cent (maximum) of the recovered loot, provided that “there is a voluntary return of stolen or concealed public funds or assets on the account of the information provided”. It is still not clear how the exact amount of the reward will be calculated. The policy is also silent on whether whistle-blowers will be entitled to a share of the loot recovered after the looter has been duly convicted.
A whistleblower is responsible for providing the government with information that directly leads to the voluntary return of stolen or concealed public funds or assets. In order to qualify for the reward, the whistleblower must provide the government with information it does not already have and could not otherwise obtain from any other publicly available source to the government. The actual recovery must also be on account of the information provided by the Whistleblower.
The third assures protection to whistle-blowers, which categorically stated that if anyone feels that they have been treated badly because they reported or filed a formal complaint, or anyone has suffered harassment, intimidation or victimisation, for sharing his or her concerns, restitution will be made for any loss suffered. However, it is hoped that the details of the restitution will be fully specified in the policy.
So far, the policy has led to the recovery of $151 million and N8 billion looted funds respectively, since it came into effect. The looted funds were recovered via the clues provided by three whistleblowers who gave actionable information to the office of the Minister of Justice and Attorney-General of the Federation.
This is aside the $9.2 million cash allegedly belonging to a former group managing director (GMD) of the Nigerian National Petroleum Corporation (NNPC), which was recently recovered through the same policy. The looted funds were said to have been recovered from three sources through whistleblowers who gave actionable information to the office of the Minister of Justice and Attorney-General of the Federation.
Minister of Information and Culture, Alhaji Lai Mohammed, who disclosed this, said that the $136,676,600.51 was recovered from a commercial bank where the money was kept under an apparently fake account, followed by N7 billion and $15 million from another person and N1 billion from yet another. The minister explained that whatever has been recovered so far, including the $9.2 million by the EFCC, is just a tip of the iceberg.
‘’When we told Nigerians that there was a primitive and mindless looting of the national treasury under the last administration, some people called us liars. Well, the whistleblower policy is barely two
months old and Nigerians have started feeling its impact, seeing how a few people squirrelled away public funds.”
“It is doubtful if any economy in the world will not feel the impact of such mind-boggling looting of the treasury as was experienced in Nigeria.”
Mohammed appealed to Nigerians with useful information on looted funds to continue to provide the authorities with such information, even as he assured that confidentiality will be maintained in respect to the source of the information.
Alhaji Mohammed reminded Nigerians of the financial reward aspect of the policy, saying ”If there is a voluntary return of stolen or concealed public funds or assets on the account of the information provided, the whistle blower may be entitled to anywhere between 2.5 per cent (Minimum) and 5.0 per cent (Maximum) of the total amount recovered.”
The minister also disclosed that a whistle-blower rejected commission from recovered N1 billion loot, recently. The minister said the whistle-blower declined any remuneration because he believed it was service rendered to the country. He did not name the whistleblower, neither did he name the bank from which the money was recovered.
‘’But, I can assure you that we are not going to renege on our promise of the appropriate commission to anyone who gives us information that leads to recovery of money through this policy, ‘’ he said.
Mohammed noted that the challenge facing the nation’s economy was as a result of the alleged looting by the previous administration.
He said government would remain determined and focused to end the difficult times the people are passing through and added that treasury looters are the greatest assaults to the collective human rights of Nigerians.
The minister however explained that those who looted the country’s treasury have reduced Nigeria to nothingness. He said the government has also intensified the war against corruption to ensure that all
those who abused the collective human rights of Nigerians through mindless looting of the treasury are brought to book.
A Pro-Buhari group, Buhari Media Support Group (BMSG) has urged Nigerians to embrace the federal government’s whistle-blower policy, saying that the recent recovery of looted funds was a proof that the strategy was dependable. The group noted that the policy had started aiding the Economic and Financial Commission’s (EFCC) in recovering funds stolen by former government officials.
A statement by the group’s coordinator, Mallam Muhammad Labbo, and Secretary, Chief Cassidy Madueke, particularly attributed recent recovery of 9.8 million dollars from former Group Managing Director of Nigerian National Petroleum Corporation (NNPC) to the policy.
Acknowledging that corruption in Nigeria is a highly infectious social disease which has spread its roots to the mind of the bad citizens; the whistle blower policy should be carefully drafted, aggressively sold to the public and quickly delivered to the National Assembly for processing. Corruption is a cankerworm that has eaten deep into the fabrics of Nigeria. The whistle blower policy is a welcome development. However, the purpose and expected outcome of the programme should be closely monitored. Laws that protect whistleblowers from being fired or mistreated for reporting misconduct should be enacted accordingly.