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Category: Government and Politics / Federal Government / Law, Crime and Justice / Fraud and Corporate Crime / Corporate Governance / Business, Economics and Finance / Laws

Government open to considering financial rewards for corporate whistleblowers

Monday, 29 Aug 2016 07:55:57 | Michael Edwards

A former BHP Billiton employee was paid a multi-million dollar reward for assisting in a US investigation. (AFP)

The Federal Government says it will consider introducing US-style laws that offer financial rewards for corporate whistleblowers.

Key points:

  • Fairfax reports say US Government paid former BHP Billiton employee reward
  • Whistleblower gave information about BHP Billiton's overseas activities
  • Questions over how an Australian bounty system could be funded

Fairfax has reported that the US Government paid a multi-million dollar reward to a former BHP Billiton employee who helped an investigation into the mining company, becoming the first Australian employee to receive a US whistleblower bounty.

The revelations come as crossbench senators are aiming to ramp up the pressure on the Federal Government to change Australia's whistleblower protection laws.

Under US law, authorities can reward whistleblowers by giving them a cut of a fine extracted from a company — in this case $3.75 million.

The former senior BHP Billiton employee provided detailed information to US investigators about the mining giants' overseas activities several years ago.

Warren Day, a senior executive at the Australian Securities and Investments Commission (ASIC), said whistleblowers could provide "unique insight and information" into what goes on within a company.

"Obviously someone who puts themselves in the position of telling regulatory agencies about that, often at great expense to themselves, needs to be afforded a certain level of protection and security around that," he said.

Mr Day said a bounty system in Australia was worth considering, but he questioned how it would be funded.

"Is it going to be funded as a cut of penalties, as is the US situation, or is there some other mechanism that needs to be set up and provided for?" he said.

"And that might depend on the type of situation that the whistleblower is involved with."

Fairfax has detailed a $25 million settlement BHP Billiton made to the US Securities and Exchange Commission in May last year.

They reported the deal was made to settle an inquiry into trips to the Beijing Olympics that the company gave to foreign government officials.

It said the officials were from countries where the miner was operating and sometimes seeking government permits.

Fairfax also reported that the Australian Federal Police (AFP) were investigating the claims.

We're developing ways to protect whistleblowers: Kelly O'Dwyer

The Federal Government has acknowledged that whistleblower protection laws could be strengthened.

Kelly O'Dwyer, the Minister for Revenue and Financial Services, said she would not rule out a US-style system of rewards for whistleblowers.

She said the Government had always been "open" to looking at what other international jurisdictions were doing.

New laws for whistleblowers, do they actually offer any protection? Video: New laws for whistleblowers, do they actually offer any protection? (The Business)

"The Government is reforming Australia's corporate whistleblower regime — we're updating it and we're extending it," she said.

"And at the same time we're developing new legislation to protect individuals who blow the whistle on tax evasion.

"When we go through this process we'll look at what works overseas, we'll follow the usual process and we'll consult publicly."

Key independent parliamentarians, including Jacqui Lambie, Nick Xenophon and Andrew Wilkie, have all placed pressured on the Government to establish tougher laws to protect whistleblowers.

The Greens and Labor have also added their weight to the push.

AustraliaPlus


 

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