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Tag: whistle blowing

  • FG probes over 200 whistle-blowing tips on tax fraud

    FG probes over 200 whistle-blowing tips on tax fraud

    The Federal Government has begun investigation into over 200 whistleblowing tips on tax officials demanding gratification and taxpayers involved in under declaration of taxes.

    The Federal Ministry of Finance had requested and secured the suspension of two senior Tax Officials in Delta and Benue States based on verified tips from Whistle-blowers.

    The Ministry is currently analysing over 200 additional whistleblowing tips including recordings between tax officials and potential taxpayers in which various practices, designed to reduce tax payable, were detailed.

    A press release signed by Oluyinka Akintunde, Special Adviser, Media and Communications to the Minister of Finance, said the federal government through the Federal Ministry of Finance has also commenced the process of sanitising the tax administration and revenue collection system of dishonest operatives.

    Akintunde said the Minister of Finance, Mrs. Kemi Adeosun, disclosed this on Sunday in Abuja while presiding over the meeting of the Whistleblower Unit in the Federal Ministry of Finance and the Presidential Initiative on Continuous Audit (PICA).

    Adeosun was quoted to have said that the sanitization of the tax administration and revenue collection system was part of the government’s efforts at enhancing the willingness of citizens to pay their taxes.

    She confirmed that some of unwholesome practices perpetuated against tax administration and collection “include demands for personal gratification by tax officers, promises to procure backdated tax clearance certificates, and offers to conspire to reduce taxes payable.”

    In order to deal with the influx of the whistleblowing tips, the Minister has directed the reorganization of the Whistleblower Unit to fast track reports relating to those in the revenue generating agencies.

    “Encouraging our citizens to pay taxes is a matter of law but it is also a matter of trust. Those who work in our tax offices must therefore demonstrate the highest level of integrity.  However, people will not be encouraged to pay if they believe that those involved in the assessment are not transparent or are dishonest. We will continue to sanitise the system and also improve our controls,” the Minister stated.

    She assured that the Ministry would continue to root out fraudsters from compromising the integrity of the tax administration and revenue collection system.

    The Minister further enjoined members of the public to desist from the procurement of tax certificates that were not consistent with their true income.

    She warned against relying on such documents and therefore advised those who might have procured such tax certificates in the past to take advantage of the Voluntary Assets and Income Declaration Scheme (VAIDS) to regularise their tax profile.

    She disclosed that government, “has cases of procurement of tax clearance certificates with no corresponding records or assessments in the tax offices. In such cases, although payments have been made but there are no underlying assessment. So automatically, we will flag such companies for investigation.

    “The data analysis being undertaken within the Federal Ministry of Finance is readily   exposing those who have obtained tax clearance certificates that are either forged or are not consistent with their true income levels” she said.

  • Govt: whistle-blowing way out of building collapse

    How can building collapse be tamed? By whistle-blowing, the government said yesterday in its reaction to the building which crashed on Lagos Island.

    That is the surest way to tackle the incessant building collapse, it said, urging the public to assist it by raising the alarm wherever illegal development is sighted.

    Commissioner for Physical Planning and Urban Development Wasiu Anifowoshe, who gave the charge at the site of the collapsed building, said: “This is one out of several worrisome experiences we face every day on the job. Dealing with illegal developments here and there in Lagos State should be a joint effort between Lagosians and government. We need information of such unlawful activities from responsible Lagosians so as to be able to curb the excesses of unscrupulous developers and owners of property in Lagos State.”

    To avert such occurrences, the government, he said, had recruited additional field officers to ensure effective monitoring of defective structures.

     

  • National Assembly to pass bill on whistle blowing soon, says Rep

    National Assembly to pass bill on whistle blowing soon, says Rep

    The House of Representatives member representing Iseyin/Iwajowa/Kajola/Itesiwaju Federal Constituency, Hon. Abiodun Olasupo, has said the bill on whistle blowing is at the stage of being passed by the National Assembly.

    Olasupo also said the National Assembly was working hard to ensure that all enabling laws protect the identity of whistle blowers and strengthen the principle.

    The federal lawmaker spoke with the News Agency of Nigeria (NAN) in Iseyin during a routine tour of his constituency to inaugurate projects and brief constituents.

    “You should not be surprised that all the measures used in the anti-corruption crusade today were developed by President Goodluck Jonathan’s administration.

    “The Jonathan administration developed the policies of whistle blowing, Bank Verification Number (BVN), Treasury Single Account (TSA) but lacked the political will to implement them.

    “You can see that the implementation by President Muhammadu Buhari’s administration is bringing the desired results,” he stated

    Reacting to the N125 billion National Assembly Budget for 2017, he said that the budget was only N10 billion above that of 2016.

    The lawmaker stated that the increment in the budget was not limited to the National Assembly but also affected the State House, Judiciary, Nigeria Customs Service and other parastatals and agencies.

    “When the 2017 Appropriation Bill is signed into law by the President or Acting President, it will be accessible to all and you will see that it was increased across board.

    “When you look into the budget and do the analysis properly, I am sure you will believe that the National Assembly is one of the most poorly funded arms of this government.

    “For the first time in the history of the nation, the eighth National Assembly made the details of the budget public and you will see a budget of economic recovery.

    “The old, present and future National Assembly members should know that legislatures the world over cannot win popularity contest when it comes to budgeting,’’ he said.

    Appraising the implementation of the 2016 budget, Olasupo said it was the first time the budget of the country passed the threshold of N1 trillion in terms of capital expenditure.

    He said that apart from this, funds were judiciously used inspite of the nation’s low income.

    The lawmaker also said that it was the first time in a long while that there was a budget of less than 30 per cent capital expenditure and over 60 percent recurrent expenditure.

    “This is a very good development for the nation and I am sure that by the time

    the 2017 budget is fully implemented, we would be a little over 40 percent in terms of capital expenditure.

    “When Buhari came on board, he said that he was looking forward to seeing more of the budget going for capital expenditure and lower recurrent expenditure,’’ he said.

  • Illegal arms and magic of whistle-blowing

    Illegal arms and magic of whistle-blowing

    Through whistle-blowing, the Federal Government has recovered billions of naira hidden in slums, ‘safe houses’ and shops. It is considering using the policy to track illegal weapons. Will it achieve the same result? ADEBISI ONANUGA asked lawyers

    NIGERIA, according to those who should know, is awash with illicit weapons. But they differ on the quantity.

    According to a report by the United Nations Regional Centre for Peace and Disarmament in Africa (UNREC), Nigeria accounts for about 350 million of the 500 million illegal small arms circulating in West Africa.

    UNREC director Olatokunbo Ige, made this known last year at the National Consultation on Physical Security and Stockpile Management (PSSM) in Abuja, organised by the Agency and Presidential Committee on Small Arms and Light Weapons (PRESCOM).

    Ms. Ige said the country was awash with illicit weapons which found their way into unauthorised hands that are threatening the country’s existence.

    She warned that if not checked, it would jeopardise the gains of the last 50 years and impede the nation’s capacity to achieve its targets.

    But last February 19, the Presidential Committee on Small Arms and Light Weapons, (PRESCOM), gave a lower figure.

    Its chairman, Ambassador Emmanuel Imohe, said there were over 1.3 million illicit weapons in the country.

    He spoke at the launch of the integration of Nigeria into the ECOWAS-EU small arms project, held at the ECOWAS Commission, Abuja.

     

    Deluge of illegal arms, ammunition

    Whatever the true figure, the claims of illegal weapons proliferation in Nigeria are difficult to controvert. For several years now, hardly a month passes without the security forces seizing large caches of arms.

    In 2010, the Department of State Services (DSS) intercepted 13 containers of weapons from Iran. Embedded in the consignment were rocket launchers, grenades and other explosives labelled as “building materials.”

    In 2013, Joint Task Force officers uncovered a trove of weapons linked to a Lebanese Hezbollah terror cell in Kano State. The bunker contained 17 AK-47 rifles, 44 magazines, four land mines, 12 RPG bombs, 11 66mm anti-tank weapons, one SMG, one pistol and magazine, 76 hand grenades, rocket propelled guns, 122 calibre artillery and 433 rounds of 7.26mm special.

    In December 2016, the Customs also intercepted a cache of arms, ammunition and military gadgets, smuggled into the country from the United States at the Tin Can Islands Port.

    The weapons include one Omin American Tactical Rifle, one Mossberg American Pump Action; Permier Hollow Point (air gun pallets) 7,500 pieces, nine pieces of military bullet proof vest, one piece of military helmet with rainproof, pistol punch, rifle punch and 26 packs of already made military food.

    Last January 30, the Nigeria Customs Service seized 661 pump action rifles imported into the country from China illegally.

    The weapons, which were packed in 49 boxes and concealed with steel doors and other merchandise goods in a 40ft container, had already been cleared at the Apapa Port before being intercepted at Mile 2 area of Lagos.

    These are just a few examples of illicit weaponry seized from unauthorised persons.

    It is also difficult to dispute that much of the illegal weapons have found their way into circulation.

    Hardly a week goes by without the involvement of gangs of heavily armed men posing as militants, herdsmen, or just plain armed robbers in killings and abductions of civilians and security forces across the country.

    According to information on the website of the Presidential Committee on Small and Light Weapons, illicit weapons have had a serious effect on the life and livelihood of Nigerians.

    It said by 2010, 24,794 lives and N13.2 billion were lost to kidnapping and hostage taking as well as illegal oil bunkering by attackers using these weapons.

     

    Govt’s response

     

    The Federal Government is obviously worried. So are many state governments affected by serious armed violence.

    On June 25, 2009, the late President Umaru Musa Yar’Adua initiated an amnesty programme through which many Niger Delta militants laid down their arms.

    However, soon after the President Muhammadu Buhari was sworn into office, armed violence in the region continued.

    In 2015, the president initiated a disarmament, demobilisation, and re-integration (DDR) programme for the Niger Delta.

    The approach appeared to record immediate success in that it forced a ceasefire, engaged militants in planned programmes to rehabilitate and reintegrate them into civilian society, and opened up the oil wells (many of which had been shut due to the crisis) with the effect of increasing government revenue.

    Also Benue State governor Samuel Ortom, whose state has been under the siege of violent clashes between Fulani herdsmen and the local farmers, introduced an illegal arms recovery initiative.

    He gave a deadline of three months for those in possession of illegal firearms to return them or face the wrath of government authorities.

    Last July 9, 700 illegal arms collected through the programme were destroyed. The exercise was carried out in partnership with the PRESCOM in commemoration of the United Nations’ Arms Destruction Day.

    Nevertheless, violence involving the use of illegal arms and ammunition still continues between herdsmen and farmers.

    On February 28, the Senate expressed concern over the proliferation of small arms and light weapons and called for urgent measures to stem the trend.

    In a motion moved by Senator Hope Uzodinma (Imo West), the Senate faulted the porous nature of Nigerian border, saying this signalled “grave security implications for the country.”

    “If this ugly trend of illegal importation of small arms and light weapons into the country is not checked, there won’t be an end to the menace of armed robbery, cultism, cattle rustling, kidnapping and even the deadly Boko Haram disturbing the peace of the country”, he added.

     

    Whistle-blowing for arms recovery?

     

    Encouraged by its success in the war against corruption, President Buhari is considering extending the whistle-blower policy to illegal firearms acquisition by powerful individuals and groups in the country.

    The Presidency on Sunday disclosed that the Federal Government was putting finishing touches to apply the whiste-blower policy to prevent illegal ownership of weapons in the country.

    The government in the past months has applied the policy in the Ministry of Finance, which has lead to discoveries of hidden looted funds across the country.

    According to a statement by the Senior Special Assistant on Media and Publicity, Garba Shehu, the Office of the National Security Adviser (ONSA) will soon release the Whistleblower Policy on Illegal Weapons.

    He said “In a bold move to prevent and eradicate illegal ownership of small arms and light weapons, the Presidency has started drawing up the rules of a whistleblower mechanism to throw a spotlight on the regime of gun ownership and control in the country.

    “In the last few days, we had discussed the efforts the administration is making to strengthen the whistle-blower mechanism in the Ministry of Finance which, to date has proved to be very effective in bringing the attention of the government to stolen assets and unexplained wealth.

    “In line with Presidential directives, the National Security Adviser, Maj-Gen. Babagana Munguno (rtd) has begun work on a template for the discovery and recovery of illegal weapons through a reward system following the success of the whistleblower policy under the Ministry of Finance.

    “The ONSA Initiative may be an independent line of inquiry or in active collaboration with what the government is doing in Finance. This will be a sort of searchlight on weapons ownership in the country. Whatever form or shape it takes, the administration wants to take a tough line to curtail the large number of illegal weapons in circulation used in intra and inter-communal conflicts. The aim is to disarm communities especially those with proclivity to violence.”

    He said that the ONSA, which already has a committee on the recovery of small arms and light weapons in the country, has decided to adopt the whistle-blower approach so as to eradicate mass shooting incidents and remove the harassment of law abiding citizens by holders of illegal weapons

    Observers, however, believe that the decision to extend it to other crimes may not be unconnected with the way Nigerians have embraced the whistle-blowing policy.

     

    Whistle-blowing policy, components

     

    Minister of Finance, Mrs. Kemi Adeosun, said the primary goal of the policy is to support the fight against financial crimes and corruption, by increasing exposure of financial crimes and rewarding whistle-blowers and that in order to promote such exposure, whistle-blowers would be encouraged and offered protection from harassment or intimidation by their bosses or employers.

     

    Policy selling points

     

    She listed the selling points of the policy to include: the possibility of increased accountability and transparency in the management of public funds and the possibility that more funds would be recovered that could be deployed in financing Nigeria’s infrastructural deficit.

    The minister also listed the three major components of the policy, to include: Channels for reporting information and the type of information to be reported.

    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: SMS:   09098067946; Email: whistle@ finance.gov.ng  and the Web:   http://whistle.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 whistle-blowing policy

     

    The whistle-blowing policy is seen by observers as one of the several mechanisms of the Federal Government to fight corruption and mismanagement of public funds. The Federal Ministry of Finance has also launched an online whistle blowing portal to provide a platform for people who wanted to report and provide tip-off on cases of suspected abuse of public office. To ensure the success of the  policy, a bill, ‘Whistleblowers’ Protection Act, 2016’, sponsored by an anti-corruption crusader, Dr. George Uboh, is already receiving the  attention of the National Assembly and has passed through second reading.

     

    The whistle-blowing bill

     

    Although media reports have been scanty, it is said that the draft bill for Whistle-blowing in Nigeria is in seven parts. Part one is an interpretative section of the law; part two deals with protective disclosures which details disclosure of impropriety, persons qualified to make disclosures, persons to whom and institutions to which disclosures of impropriety must be made and compulsory receipt of disclosures; part three is on procedure for disclosure, and reduction of disclosures into writing; part four of the bill deals with action to be taken by persons who receive disclosures of impropriety while part five deals with protection of whistleblowers and other details such as state protection, protection from victimization, court action and others.

    Part six lists offences under the Act such as: disclosing the identity of a whistleblower, disclosing details of disclosure, victimisation of a whistleblower, and making false disclosures; part seven borders on the miscellaneous aspects of the Act such as failure to take action on disclosure, recoveries from whistleblowers and funding of the office of whistleblowers’ protection and annual returns to the National Assembly’s House and Senate Committees on Whistleblowers’ protection.

     

    Reactions to whistle-blowing

     

    Observers of political developments in the country are, however, wondering why there is no policy document for the implementation for this new policy of the government except for a document titled, “Federal Ministry of Finance (FMF)Whistle Blowing Frequently Asked Questions (FAQs) which defines who a whistle blower is and answers other questions related to the operation of the policy. The most important provisions of the FMF FAQs are financial reward and protection for whistle blowers. They are calling for caution by would be whistle-blowers until the bill becomes a law and details becomes public.

     

    Lawyers’ position

     

    Will a Whistle-blower Bill be effective in fighting illegal acquisition of firearms and how can the policy be made more effective?

    Constitutional lawyers versed in the rule of law, including Mr. Abiodun Owonikoko (SAN), Mr Wahab Shittu, Second Vice President of Nigerian Bar Association (NBA), Mr Monday Ubani, Former Chairman, Ikorodu NBA, Dotun Adetunji, Welfare Secretary of the Nigerian Bar Association (NBA), Mr Adesina Adegbite,  Ikechukwu Ikeji, Publicity Secretary, NBA Ikorodu, AdemolaAdenaike and Lagos lawyer, Akintunde Iwilade suggested that the policy should cover all aspects of our national life to reduce corruption, crime and other forms of impunity.

    Owonikoko, while not opposing its extension to cover fire arms, pointed out whistle-blowing already has legislative backing under the ICPC Act in the context of anti-corruption. He also noted that it is part of the remit of the economic and financial crime fighting agency to contain terrorism.

    “That is heinous a crime as corruption if not more. They are indeed interconnected. One would however expect government to design a proper policy framework to prevent abuse of the facility with sufficiently deterrent sanction. In our country, it doesn’t take long before people bastardise otherwise laudable policies. We should watch out for unscrupulous elements that may seize the window for blackmail and extortionate racketeering. On the flip side, government has to support the initiative with effective information protection framework. That will be an added incentive for citizens to confidently participate . Only living informants can benefit from the promised financial reward of whistleblowing”, he advised.

    Chief Shittu remarked that beyond the policy however, there should be a legal framework detailing parameters and guidelines for its operation. This should cover scope, powers, limitations, protections, endorsement and remedies.

    Shittu described the whistleblowing policy as an excellent idea that should cover all aspects of our national life to reduce corruption, crime and other forms of impunity.

    Second Vice President of Nigerian Bar Association (NBA), Mr Monday Ubani remarked that for any government  policy to be effective, the peoples’  participation must be employed. Ubani noted that the whistle blowing policy has recorded a measured success in the anti corruption fight.

    Ubani, who was a former Chairman of Ikeja branch of the NBA said:” I have the belief that extending it to the issue of fighting illegal acquisition of firearms will also yield positive result. The point is that the whistleblowing policy should be enacted in a substantive law by the National Assembly. That law will extend the policy to all other sectors beside financial crime.

    According to him, a cursory look at the recoveries of illicit money after the introduction of the policy showcased the fact that it is very effective and should be extended to other sectors and we should be faithful in honoring those who give out the vital information that leads to success unless they opt out of being paid.

    He praised the present government for the introduction of what he described as a wonderful policy and that would go a long in reducing the crime  of corruption and other crimes(if included) in Nigeria provided it is enacted as a substantive law and there is faithfulness in the full implementation of the law.

    Adetunji agreed with the proposal to extend the whistle blower policy to cover issues of illegal weapons/firearms acquisition by powerful individuals and groups in the country.

    According to him, weapons in the hands of most citizens in the country are causing and had caused a lot of mayhem and that same were used to fuel intra and inter-communal violence, armed robbery, kidnapping and all sorts of vices.

    He pointed out that there are laws guiding acquisition of firearms but it seems the law is no more applicable in the country as same has been relegated to the background.

    He believed that Nigerians would be encouraged to expose the presence of illegal weapons in the homes of powerful politicians, other public figures, miscreants in the society etc who are using those deadly arms for sinister political agenda or other illegal purposes.

    He argued that the probability of whistle blowing working in fighting illegal acquisition of firearms is very high. Just like there is a high level of cooperation from Nigerians on exposing corruption, Nigerians will likely do better in whistle blowing illegal acquisition of firearms especially when the citizens have come to realize that they are the victims of such act.

    ‘’Passage of the whistle blower bill to me will be one the best things that would happen to Nigeria if and when same is passed. Absolute confidentiality of the blowers identity would make it effective and more effective when security of life, property etc of the blower is guaranteed.

    Adegbite described the new policy of the government as a good thing by the Federal Government pointing out that its efficacy in exposing corrupt practices is glaring for all to see.’’ I am more delighted that there’s now a Whistle-Blower Bill. I do not have facts about  the proposals in the bill but I hope the policy will cut across all crime heads not just corruption or firearms. It should be extended to Kidnapping, Terrorism, Militancy, Armed Robbery, Cyber Crimes and many more.

    “I have no doubt in my mind that the Whistle Blowing policy will enhance the fight against corruption and crimes in general, if it is extended to other sectors. The policy can only be effective and strengthened if supported by legislative enactment. With an enabling law which clearly states the security arrangements for the whistle blower, the effect of the policy will be beyond our imaginations”.

    Lead Advocate, Constitutional Rights (and Peoples Development) Advocacy Initiative (CRAI), Mr Ikechukwu Ikeji pointed out that Whistle blowing as a policy is not actually restricted to financial crimes and that it will be effective in fighting illegal acquisition of firearms.

    He, however, remarked that it is however riskier than ordinary financial whistle blowing because those engaged in arms running could be deadlier and ready to kill.

    He said that as a matter of good governance, the policy should be extended to all areas of the societal existence. It should not be restricted to only financial crimes. “Indeed, we have whistle blowing situations even before now. When you give information to the law enforcement agencies about the commission of any crime, what you have done is whistle blow on the culprits. It would be drug trafficking, child trafficking, arson, kidnapping just to name a few.

    ‘’Just so long as your information leads to the prevention of crime or the apprehension of criminals, you have engaged in whistle blowing. The old term used is police informants”, he argued..

  • Whistle-blowing: Building confidence, accountability in public spending

    For the corrupt and those with itchy hands for enriching themselves with public funds, it is no longer business as usual.

    The story of the country is changing from one where the system knowingly rewards unethical behavior and punishes ethical practices to where there is no hiding place for corrupt individuals or companies, being they local or multinational firms.

    This change came after the Minister of Finance, Mrs Kemi Adeosun, initiated and began the implementation of the Federal Government-driven Whistle Blower Policy. Under her leadership, the Federal Government unveiled the Federal Ministry of Finance- Whistle, a secure, online portal through which information bordering on violation of financial regulations, mismanagement of public funds and assets, financial malpractice or fraud and theft that is deemed to be in the interest of the public can be disclosed.

    The whistle blowing policy, which came with rewards for the whistle blower, has recorded significant success in the last few months when its execution began. The objective is to broaden the attack on corruption by encouraging the general public to expose corrupt practices.

    The feedback so far is revolutionary as it is already broadening the attack on corruption by encouraging the general public to expose corrupt practices. 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 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.” Commenting on the domestic agenda to ensure significant reductions in ‘leakages’ of public funds, and improved efficiency in public expenditure, a source in the Presidency said:

    “The Federal Government is going after those who have stolen our hard-earned money. We have put in place a very successful whistle blower programme that is delivering results and allows those who report illicit activity to receive up to five per cent of any funds that we recover. We are also significantly improving our financial management controls to ensure that it is considerably more difficult for public funds to be diverted. We have to do more though.

    ” Just recently, $9.8 million cash was found in a secret bunker belonging to the former managing director of the National Nigerian Petroleum Corporation (NNPC), Andrew Yakubu. With this development, it seems that resources have been allegedly redistributed from the people into the pocket of one.

    The former aide turned whistle blower, who informed the authorities of the loot, argued that there are as many as three other bunkers – each with about the same amount of cash – that are yet to be discovered. Also, the Economic and Financial Crimes Commission stormed a residential building in the 7th Floor of a four-bedroom apartment at Osborne Towers located at 16, Osborne Road Ikoyi, Lagos, where a find of foreign currencies and naira notes to the tune of $43.4m, £27,800 and N23.2m was made.

    The EFCC announced on Facebook that they had received a whistleblower’s tip that someone had been moving bags in and out of the apartment. Managing Director, Financial Derivatives Company Limited, Bismarck Rewane, said in an emailed report that these stories are just a tip of the iceberg compared to the many other cases of corrupt and unethical practices that go on in this country and which are rewarded if you have the good and common chance of not getting caught.

    “A major challenge to ethical decision-making is cognitive bias. Most people pride themselves on their ‘ethical and moral’ views on life and business without factoring human bias that may contaminate ethical behaviour and practices and produce unintended consequences.

    Overconfidence is a very important factor to consider as we get caught up on internal traits and incentives such as ‘I’m honest’ or ‘I can never steal’ and do not factor in the fact that when push comes to shove, human beings are capable of committing acts that are not first nature to them,” Rewane said. He therefore praised the whistle blowing policy of the Federal Government, adding that it is paying off positively.

    He said that situational influences may skew ethical behaviour of people except there is ready punishment for defaulters. “For example, in government, a civil servant might be inclined towards unethical behaviour if everyone in his ministry is engaging in unethical practices. Undue influence from his bosses and peers might push him to go against his own ethical principles,” he said. Rewane said the key word here is trust.

    “I am less inclined to do business with someone in Rangpur Bangladesh who I’m not familiar with and might not easily have access to inspections and tests. The major force that propels me to incur the risk associated with international transactions such as this one is trust.

    What fosters trust is a solid ethical culture and framework irrespective of the location of the market and the product offerings in these markets,” he said. Explaining further, Rewane said: “If you give an average manager of a Small and Medium Enterprises (SME), who has be conditioned to the ‘Nigerian way’ of doing things, the decision between doing the right thing or ‘saving’ your business from undue attention from regulator, the latter is the go to option.

    Doing the right thing will go a long way in ensuring longevity of the business. However, it may come with certain consequences that might be painful to the business in the short term. It ensures that the manager is free from any practices that may be used against him or his company in the future”. Michael Obinna, a Lagos-based civil servant, also commended the Federal Government on the whistle blower policy, adding that it will help businesses and civil servants to build an ethically-aware culture of conducting business that ultimately fosters trust in the sector as a whole.

    He said that previously, the Nigerian system allows those elected to office and those in charge of serving the public to fail their most important stakeholders, the Nigerian population because of loopholes in public expenditure. He however, said that Adeosun is fixing these gaps and that the whistle blowing policy are keeping all public officials on their toes. According to him, 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,” he said. He said the policy selling points include the possibility of increased accountability and transparency in the management of public funds. It is also expected to ensure that more funds would be recovered that could be deployed in financing Nigeria’s infrastructural deficit.

    The channels for reporting information and the type of information to be reported indicated that anyone with “authentic information about violation, misconduct, or improper activity which can impact negatively on the Nigerian people and government” should report it through SMS text message and email. In the final analysis, it is hoped that the more accountable the government becomes, the higher will be Nigeria’s ranking on the indicators of openness and ease of doing business.

    The ultimate goal is to develop a corruption-free society and attract more and more foreign investors.

    •Ewulu, a financial consultant, works with Lagos-based Angelstege Advisory Services Ltd

  • Whistle blowing: Bank workers under close watch

    Whistle blowing: Bank workers under close watch

    ·‘Big’ customers mount pressure on owners

    Banks have placed their workers under close watch following intense pressure by ‘big’ customers on majority shareholders and directors to monitor overzealous staff eager to take advantage of the whistle blowing initiative of the federal government.

    Account Officers from different banks told our correspondent the development was to prevent them from squealing on classified accounts by perceived looters and corrupt government officials.

    One of them, who confirmed the development off-record yesterday, said: “The close monitoring is very intense now as everyone now watches each other’s back.”

    But a Senior Account Manager in one of the commercial banks in Lagos, who also pleaded not to be named because of the sensitive nature of the matter, said the development was not new.

    He however admitted it has been increased lately.

    According to him: “Monitoring of bank workers is not new but it may be true we are more closely monitored today than what obtained before the introduction of the whistle blowing initiative.

    “That is understandable because there is the feeling amongst the top management that some overzealous workers, in a bid to take advantage of the initiative, may embarrass genuine prime customers.

    “This may account for introduction of measures to ensure no staff abuses his or her office to the detriment of the bank.

    “Besides this internal precaution, bank staff members and indeed banks are closely monitored by the Economic and Financial Crimes Commission (EFCC) and Central Bank of Nigeria(CBN) in a bid to recover looted funds,” he said.

    Explaining how bankers are being monitored, the top banker said: “Today, bank workers are closely monitored in two ways; officially and unofficially.

    “Officially, we are monitored by regulators like the Central Bank of Nigeria (CBN) and the Economic and Financial Crimes Commission (EFCC).

    “There are also internal measures to ensure that bank members of staff do only what they are supposed to do.

    “This may differ from bank to bank. The practice is real though I cannot say here that such measures were introduced because the so-called big customers are mounting pressure on directors.

    “Perhaps, because the anti-corruption agencies know that bank workers occupy sensitive positions that may enable them to collude with public funds looters, they are today monitored more closely than politicians.”

    Another top bank worker at the Corporate Headquarters of one of the commercial banks in Lagos Island, who also pleaded not to be named, gave our correspondent a more precise description of how government agencies and bank management monitor workers in banks.

    “Recently, we were asked to fill Assets Declaration Forms. With this, they are able to monitor the progress rate of each staff.

    “Of course you know that with BVN, everybody’s accounts can be traced easily. Even if a banker has ten accounts in different banks, it would be easy to trace them.

    “In anticipation of false claims of sudden financial windfalls, they have also banned bank workers from betting. This means that no banker, found with suspicious huge sums of bank balance or assets he cannot ordinarily acquire with his income can claim to have become a billionaire overnight through betting.”

    The banker also explains that the regulators have set out certain guidelines that will help monitor workers and the banks themselves.

    “One of the policies currently employed to achieve this is the directive that all of us must regularly make Suspicious Transaction Report (STR).

    “Another is the requirement to report to the Nigerian Financial Intelligence Unit (NFIU), the Nigerian arm of the global Financial Intelligence Units (FIUs) domiciled within the EFCC.

    “These are part of the official monitoring procedures in practice today. It is perhaps the increasing demand to abide by these requirements that some workers are referring as undue monitoring,” he said.

    Efforts to get the confirmation of the CBN could not yield result as the Acting Director of Communication of CBN, Isaac Okoronkwo, neither picked his calls yesterday nor responded to our text message.

    But Chief Iheanacho Uko, a former banker and Principal Partner of U & A Consulting Ltd, said there is nothing strange with banks monitoring the activities of their staff.

    Quoting the “general guidelines on institutional policy of anti-money laundering/ combating,” he said there is nothing wrong with banks initiating internal measures to ensure their staff behave appropriately because “every financial institution is required to adopt policies stating its commitment to comply with AML/CFT obligations under the law and regulatory directives and to actively prevent any transaction that otherwise facilitates criminal activity or terrorism.”

    “Every financial institution is requested to formulate and implement internal controls and other procedures that will deter criminals from using its facilities for money laundering and terrorist financing and to ensure that its obligations are always met.”

  • Whistle-blowing: Lacuna that may hamper anti-graft fight

    SIR: Whistle blowing as an adjunct to the current anti-corruption war should have been a great boost but for the lacuna in the law. In countries with well-developed anti-graft regimes, whistle-blowing has played a pivotal role which is not likely to be so in Nigeria unless there is a major amendment to the EFCC Act.

    The procedure for prosecuting the corruption war under the present regime has assumed a straight-jacket format of; receiving complaints or petitions; investigation of the petitions by scrutinising public documents to fish out illegal deals; arrest of suspects; tracing of proceeds of the illegal deals either to the bank or elsewhere for the purpose of attachment; and prosecution of suspects and if successful, forfeiture of illegal proceeds to the government.

    It is the application of this formal procedure engendered by our adversarial criminal justice system that is the bane of the anti-corruption war, particularly the onus on the prosecution to establish that the proceeds in question are derived from illegal act(s). This is even when international instruments, for example, the United Nations Convention Against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988, (Art 5 para. 7) enjoins signatory nations to consider reversing the onus of proving the legitimate origin of such proceeds and placing same on the accused because of the covert nature of the transactions giving birth to the illegal proceeds.

    Consciously or unconsciously, the Nigerian Constitution has provided for the reversal of the onus of proof of the legitimate origin of proceeds of illegal acts in the proviso to Section 36(5) which reads thus:

    “Provided that nothing in this section shall invalidate any law by reason only that the law imposes upon any such person the burden of proving particular facts”.

    With the above constitutional provision, all that is required to accomplish the task is to insert a provision in the EFCC Act to that effect otherwise, the Andrew Yakubu’s dollars cannot be legally forfeited to the government without proof by the prosecution that the dollars are proceeds of illegal acts. In other words, even though whistle-blowing has led to the physical recovery of the dollars, conviction under the current law and procedure is still illusive. Without conviction any attempt to forcibly take the dollars will be illegal.

    However, if Andrew Yakubu is to prove that the dollars are proceeds of lawful acts, failing which the dollars will be forfeited in addition to his conviction and sentence, then the whistle would have sounded a distinct call. This marks the difference between the acquittal of the former Governor of Delta State in Nigeria and his conviction in London.

    Apart from the limitation of whistle-blowing under the current anti-corruption regime, it is expedient to sound a note of warning to potential whistle-blowers. This has become necessary because of the prevailing public opinions as to whether whistle-blowing should be a permanent feature of the anti-corruption war and how it can be sustained. The writer’s concern here is the range of the protection that avails a potential whistle-blower. Much as the writer knows that as soon as the whistle is blown, the blower runs under the protection of the state as provided by the law, the level of insecurity in the country may allow mysterious deaths of potential whistle-blowers before they would have had the opportunity to put their mouths on the whistle. This is because; desperate corrupt officials are going to embark on elimination spree of all who played a part in hiding the loot or illegally gotten wealth. Nonetheless, the writer’s position is that whistle-blowing can only be a boost to the anti-corruption war if the necessary amendment to the EFCC Act is carried out.

     

    • Dr. Moses Ediru

    Lafia, Nasarawa State.

  • Whistle blowing: A lesson to learn

    It is a common saying in America that “A man gotta do what a man gotta do”; in other words, a man does what he must, in spite of personal difficulties, dangers or obstacles. This is what I believe is the basis of all human moralities.

    In his column in The Nation of Monday, February 24, Sam Omatseye commenced his article by quoting a former U.S. Congresswoman – Barbara Jordan as having said that “If the society today allows wrongs to go unchallenged, the impression is created that those wrongs have the approval of the majority.

    This article, however, is not an advocate for any partisan cause, for the issues between President Goodluck Jonathan and the just suspended CBN Governor – Mallam Sanusi Lamido Sanusi are fundamental and reach quite beyond the realm of partisan considerations. They must be resolved on the highest plane of national interest if our cause is to prove sound and our future protected. I trust, therefore, that the National Assembly and the judiciary in whose domain the issues have been placed will do the justice of receiving that which I have to say here as solely expressing the considered viewpoint of a fellow Nigerian.

    The issue at stake in this country which we all claimed to be political disorderliness/insecurity, corruption and abject poverty pervading the society, are becoming more of national embarrassment and so interlocked that to consider the problems of one sector oblivious to those of another is but to court disaster for the whole.

    While NNPC is commonly referred to as the economic lifeline to the Central Bank of Nigeria, it is no less true that the CBN is the financial gateway to economy, and the broad influence of the one cannot fail to have its impact upon the other.

    Reconciling a nationalist’s right to dissent with his employer’s demand for loyalty is not easy. Sanusi is a genuine and patriotic Nigeria nationalist who was the governor of an autonomous Nigerian institution– the Central Bank of Nigeria which is a non-democratic institution, is under no compulsion to tolerate what they may consider to be recalcitrant behaviour of federal government officials elected or appointed in the matter of assets/financial management. The erstwhile CBN governor disagreed with illegal, dangerous and corrupt practices going unabated at the NNPC. Many otherwise faithful servants may decide that the price for keeping silent is too high. Keeping silent versus speaking out is usually a no win situation. Certainly, by speaking out on the corrupt practices in the NNPC, Sanusi himself knows he risks reprisal. As a nationalist, if he keeps silent, he may be judged later by himself or others as irresponsible. Of course, he always has the option to quit his job. But interrupting a satisfying career in the hope that he will find another equally beneficial job opportunity is not easy.

    No doubt, Sanusi’s whistle-blowing seemed to have courted the anger of the PDP controlled government in Abuja which it saw as being very disruptive. It puts the spotlights on information that other members of the institution have disregarded, suppressed or falsified. Calling attention to this information invariably causes tension and embarrassment and triggers a defensive reaction from the Presidency. This, the federal government’s reaction was exceedingly harsh because the whistle-blower singles out suspected offenders and let the general public second-guess their motives.

    A typical whistle-blower is often quick to personalize the issue. Thus, his personality becomes part of the problem because in executive management view, only an eccentric or maverick would risk alienating his colleagues or compatriots in other government institutions. Even if a whistle-blower does not actually fit this category, the power that be might still portray him as such to divert attention from the disclosure.

    Employees possess several characteristics that can hamper their causes in potential whistle-blowing situations. They tend to regard disputes as being either technical or personal in nature. An employee engaged in a conflict with his immediate boss or with upper management in trying to turn the issue into a personal matter. In reality, both technical and personal elements are usually combined in such an organization or institutional conflict, and both must be dealt with in the appropriate manner.

    Another potential failing of employees arise when they must deal with information concerning environmental quality or educational institution corruption. Most of these issues require an assessment of risk-which often involves political considerations as well as scientific ones.

    Thus, such issues call for subjective judgments as well as objective analyses. Employees often have difficulty distinguishing between the two approaches and tend to shy away from political considerations when they are faced with them. The whistle-blower eventually has to prove his case by accumulating documentary evidence and lining up witnesses. The problem here is that the whistle-blower rarely has the legal training to understand problems of legal evidence. An engineer or accountant may understandably confuse proof in the technical sense with proof in the legal sense. While the detailed problems of proof should be entrusted to someone trained in law, the would-be whistle-blower must become somewhat versed in the necessary legalism if he hopes to produce a solid case.

    Perhaps, the ultimate surprise to an employee comes when a particular litigation is decided on a procedure – how the whistle was blown – rather than on his merits of his claims. To guide against this, logic must prevail over emotion in following the prescribed procedures for whistle –blowing. Most experts advise that an employee seeks legal advice before going too far with his protest.

    Another subtle distinction that escapes the typical employee is the difference between proving that he was fired in reprisal. In a legal challenge to retaliatory action, the issue is not whether the original disclosure was correct, but whether the challenged action was motivated in whole or substantial part by the disclosure. More so, evidence of the correctness, propriety, or truth of the disclosure may be excluded altogether on grounds of irrelevancy.

    It is very unfortunate that Sanusi is currently going through persecution for daring President Jonathan to remove him from office in the consequence of his blowing the whistle on the alleged fraud in the petroleum industry. If the civil rights community and the Nigerian labour organisation failed in this course of rallying round Sanusi at this moment of his travesty of justice, we might as well forget about any rule of law adherence by this federal government whose administration thrives on corruption and impunity of the highest order.

    National ideologies play little part in Nigeria’s masses thinking and are little understood. What the people strive for is the opportunity for a little more food in their stomachs, a little better clothing on their backs, roof over their heads, and the realization of a normal nationalist urge for political freedom. These political-social conditions have but an indirect bearing upon our own national security, but they form a backdrop to contemporary planning which must be thoughtfully considered if we are to avoid the pitfalls of unrealism.

     

    • Engr. Shoyebo, an author/publisher writes from Mushin, Lagos.

  • ‘Whistle blowing vital to risk control’

    ‘Whistle blowing vital to risk control’

    The Nigerian Stock Exchange (NSE) and the Corporate Affairs Commission (CAC) have called for whistle blowing as a means of promoting sound risk management and corporate governance in organisations.

    Speaking during the IOD Centre for Corporate Governance workshop in Lagos, NSE Chief Executive officer, Mr Oscar Enyema, said by disclosing sensitive information anonymously, workers can help promote sound risk management practices.

    Onyema, who was represented by NSE Director, Bola Adeeko, said some staff of the NSE had signed a code of conduct agreement that act as a check and balance on their activities. This, he said, is to ensure that personal interest of each employee is not in conflict with that of the organisation.

    Also, CAC Registrar-General, Mr Bello Mahmud, represented by the Assistant Director, Compliance, Adaguusu Moses, said there was need for entrepreneurs to consider the characters and reputations of persons they want to partner with in business, especially if such persons are to become directors.

    One of the participants, Olayimikah Soetan, said organisations are confronted by events that affect the execution of their strategies and achievement of their goals, which he said, can have negative impact (risks), a positive impact (opportunities), or an both risk and opportunities.

    “The goal of risk management is to create, protect, and enhance shareholder value by managing the uncertainties that could either negatively or positively influence achievement of the organisation’s objectives,” he said.

    He said although organisations’ face various types of risk, much of the focus of risk management have traditionally been on fluctuations in interest rates, exchange rates and stock indices as well as management of hazard risks.

    He said: “Another mistake which many organisations make, is dealing with risk in a piecemeal fashion. Typically, within the same company, different functions, such as finance, treasury, human resources and legal cover risks independently. Now, the traditional approach to risk management is giving way to an integrated approach.”

    He explained that integrated risk management is all about the identification and assessment of the risks of the company as a whole and formulation and implementation of a companywide strategy to manage them.

     

  • NSE introduces internal whistle blowing

    TO have an effective corporate governance regime, the management of the Nigerian Stock Exchange (NSE) is set to introduce an internal whistle blowing for the organisation.

    The Nation learnt that the council has approved the proposal to incorporate the scheme into the staff handbook, adding that the handbook has been given to the staff.

    By last week, notices had been served on staff members, requiring that they endorse a portion of the document signifying compliance by the rules in the book.

    According to investigation, a proper structure needs to be put in place for those interested in using the instrument to take advantage of it. It was learnt that the internal whistle blowing was meant to protect employees.

    “For an effective Corporate Governance, every organisation should have such scheme in place. Management of any organisation that is worth its salt should have a good corporate governance structure where a channel will provide a means of getting the pulse of the staff, rather than from outsiders or through the media.”, the source said.

    It would be recalled that the legal and regulation of the exchange under which the Marketing Surveillance Department operates, recently stated that the whistle blowing scheme for the market will be launched this year.

    The exchange said it would be needed and that they are in the plan.