WHISTLEBLOWING IN EUROPE AND INTERNATIONAL ORGANISATIONS

New Challenges for Anti-Corruption Measures and for the Protection of EU Financial Interests

IACA, Laxenburg, 15 May 2014

Figures – Private Sector

A 2007 survey of 5,400 companies worldwide by PriceWaterhouseCoopers found that whistle-blowers detect more fraud than corporate security, audits, rotation of personnel, fraud risk management and law enforcement combined.

The United Nations Convention against

Corruption and Whistleblowing

Whistleblower Protection: Article 33

Transparency International Study 2013 :

The UNCAC Review Process has shown that there is a wide variation among States Parties in whistleblower protection.

Thematic Framework Whistleblowing does not stand alone; it is intimately connected with democratic issues of

political accountability

freedom of information

human rights

freedom of expression

Institutional Framework

G-20 Anti Corruption Plan (Point 7 on Whistleblower Protection) & G-20 Compendium of Best Practices and Guiding Principles for Legislation ion the Protection of Whistleblowers

OECD “Whistleblower Protection – Encouraging Reporting”

Council of Europe - European Committee on Legal Co-operation

Council of Europe Latest Developments – 02.05.2014

The Council of Europe called on its 47 member states … to adopt national legal frameworks for the protection of whistleblowers.

The Committee recommends that these individuals are protected by national law and offers member states a set of principles to guide them when introducing legislation. Some of these principles are the following:

- As a minimum, protection should be given to whistleblowers who disclose information of public interest concerning violations of law and human rights, and risks to public health, to public safety and to the environment.

- There should be an effective mechanism in place for acting on public interest reports and disclosures (whether they are made within organisations or enterprises, to relevant regulatory bodies and law enforcement agencies, or to the public, e.g. via journalists or parliamentarians).

- Whistleblowers should be protected against retaliation of any form, whether directly or indirectly, and be entitled to have the confidentiality of their identity maintained, subject to fair trial guarantees.

- Whistleblowers’ disclosures should be investigated promptly, and where necessary, the employer and the appropriate body should take action to address the issues of public concern.

- A special scheme of rules may apply to information relating to national security, defence, intelligence, public order or international relations of the state.

How Strong are Whistleblower Laws in EU Countries

© Transparency International

Advanced: Luxembourg, Romania, Slovenia, UK

Partial: Austria, Belgium, Cyprus, Czech Republic, Denmark, Estonia, France, Germany, Hungary, Ireland, Italy, Latvia, Malta, Netherlands Poland, Sweden

None or very limited: Bulgaria, Finland, Greece, Lithuania, Portugal, Slovakia, Spain

See also country specific information in the EU-Anti-Corruption Report, for instance Austria

Whistleblowing in the UN

Origin : Oil for Food scandal 2005

the programme suffered from widespread corruption and abuse. Throughout its existence, the programme was dogged by accusations that some of its profits were unlawfully diverted to the government of Iraq and to UN officials. These accusations were made in many countries

Consequence: 20 December 2005 ST/SGB/2005/21: It is the duty of staff members to report any breach of of the Organizations regulations and rules …Retaliation against individuals who have reported misconduct violates the fundamental obligation of staff members

Wasserstrom case 2012: fundamental failure on the part of the Ethics office The UN's dispute tribunal has ruled that the organisation's ethics office failed to protect Wasserstrom against such reprisals from his bosses, and that the UN's mechanisms for dealing with whistleblowers were "fundamentally flawed", to the extent the organisation had failed to protect the basic rights of its own employees.

Whistleblowers in the UN- Culture of Impunity

© The Economist 30.06.2012

According to the UN Dispute Tribunal (UNDT/2010/054, para. 1) A senior manager had, „inter alia, deliberately misused the UN rental subsidy scheme; engaged in misrepresentation and false certification in connection with his application; abused his authority by involving a UNDP staff member and a UN volunteer in the construction project involving his rental property; and abused tax exemtion privileges.“

In January 2008, the UN-Executive Director, upon the manager’s forced departure of the senior manager, said that „We will miss (his) inspiring leadership as Director ... and I thank him for his strategic vision and his dynamic services …“.

The Secretary-General’s attention needs to be called to the actions of those of his officials who trample the enduring principle of the rule of law and thereby enthrone and elevate impunity (UNDT/2012/114, para. 94) .

On Whistleblower Protection in the UN System (UN Staff Union)

Whistleblower Protection in the United Nations (Working Group on Investigations, Disciplinary Matters and Administration of Justice)

Reaction of the United States

According to Ethics Office reports to the Secretary-General, from 1 August 2006 to 2012, a prima facie case of retaliation was found in 1.5% of the requests for protection from retaliation received by the Office (13 of 343 cases).

In only one person was adjudicated damages by the Ethics Office. So 99.7 percent of U.N. staff members who sought protection under the Secretariat's whistleblower protection policy were ultimately not protected from retaliation," said Shelley Walden, GAP's international program officer.

CONSEQUENCE:

The US Secretary of State is required to certify that each agency at the United Nations which receives U.S. contributions is adhering to "best practices" for the protection of whistleblowers. Agencies that lack such certification would lose 15 percent of their U.S. funding. (Sec 7048 (a) Consolidated Appropriations Act 2014)

Reaction of the United Nations

The UN Secretariat has engaged Justice Louise Otis of Canada to conduct an independent review of the Organization's protection against retaliation policy for the purpose of issuing recommendations to the Secretary-General to enhance policy effectiveness (report due end 2013).

In 2007, Louise Otis was appointed by the United Nations Secretary-General Kofi Annan to a 5-member panel of independent international experts in charge of redesigning the United Nations system of administration of Justice.

In 2012, she was appointed by the International Monetary Fund (IMF) as an expert in the review of the system of Administrative Justice.

In 2013, Louise Otis was appointed by the United Nations’ Executive Office of the Secretary General (UN) as an expert in charge of the review of the UN Whistleblowing and Protection against retaliation Policy

European Union Guidelines on Whistleblowing

06.12.2012: Maroš Šefčovič Commissioner responsible for inter-institutional relations said, “whistleblowing is a key weapon in the Commission's armoury against corruption and fraud”.

23.10.2013: European Parliament calls on the Commission, by the end of 2013, to submit a legislative proposal establishing an effective and comprehensive European whistleblower protection programme in the public and in the private sector ; calls also on the Member States to put in place appropriate and effective protection for whistleblowers.

2014: Transparency International reports poor protection of whistleblower protection within the EU institutions

Whistleblowers at the IMF

Integrity Hotline since 2008

The IMF recognizes whistleblowing as one important way to ensure good governance. Employees and others who report instances of suspected misconduct are fully protected against any form of retaliation.the programme suffered from widespread corruption and abuse. Throughout its existence, the programme was dogged by accusations that some of its profits were unlawfully diverted to the government of Iraq and to UN officials. These accusations were made in many countries. (IMF)

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Contact

Walter Gehr c/o Austrian Ministry for

European and International Affairs

Minoritenplatz 8

A - 1014 Vienna

Austria

E-mail: walter.gehr@bmeia.gv.at