Effective Whistle-blowing Hotlines by Robin Singh

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Hotlines
must have the confidence that not only
will his identity be respected. This can be
best done by establishing whistle-blower
protection program in the whistle-blowing
policy which speaks about sanctions
against any staff or a senior management
involved in retaliation towards a whistleblower.
3. Should you treat anonymous reports as
unreliable?
This is a double-edged sword. Anonymous
reports are to protect employees and in no
way delegitimize the report. An employee’s
information (not his /her name) is critical
to the success of an investigation.
How do you avoid this?
One important aspect of whistle-blowing
is to ensure that vindictive reporting is
not only ignored but the person involved
cautioned against for the same. The ability
to distinguish between valid and vindictive
claim / allegation is an important part of
the zig-saw puzzle.
“Effective hotlines are the
best way to detect fraud”
4. Confusing between vindictive and
genuine complaints
The department must be able to
differentiate between the two. Failure to
do this can lead to diminishing confidence
of the employees in management and
functions like Ethics and Compliance.
How do you avoid this?
It is advisable to have an initial information
check An initial information check always
helps, e.g. if an employees named look at
the personal file, review declarations, speak
to his/her manager in confidence, etc..
The cardinal principle of jurisprudence
“Innocent until proved guilty” should be
the guiding tenet.
5. Information versus integrity / honesty.
Not being able to show a correct picture
to a non-anonymous whistle-blower can
lead to a collapse of the entire governance
structure. Don’t keep a whistle-blower in
the darkness of being able to protect his
identity when you can’t.
How do you avoid this?
Key pillar of a governance structure is
accountability with its nucleus being
integrity. Non-anonymous Whistle-blowers
should be made aware that if the case goes
for prosecution and the authorities seek
details for indictment, then his /her name
would have to be disclosed.
However, if a personnel from the
management such as board of director or
the CXO makes any attempt to identify the
whistle-blower, the Ethics and Compliance
function must make it a point to say
“STOP”. The biggest problem is, if it is not
written it is not true, so put it in the policy.
6. Identify the essence of an investigation.
The aim of an investigation is not to focus
on a single employee but take in the entire
gamut of the case and identify who all are
involved. The key is to identify, interpret
and resolve various scenarios arising from
the allegation.
How do you avoid this?
Consider creating a linked analysis and
though job descriptions of the alleged
(whom you have received direct evidence
about) and try to see whom all can be
encompassed. A wide horizon, reference
to previous complaints, advice from Legal
Counsel is essential while evaluating the
case / report (not the person!)
7. Who should control the interview?
Letting the witness or reporter lead the
interview can greatly twist the facts and the
scope of an investigation.
How do you avoid this?
Determine the objective of the interview;
Define guidelines (A one-pager) to define
boundaries in an admission seeking or
Information gathering interviews. Make it
a point to have a clear picture of the case
and identify the role of the cogs (confidants
and others) in the larger picture of the
crime. Unless you are able to join all
the dots with appropriate and adequate
evidence the alleged is “INNOCENT”.
8. Confidentiality and protecting alleged
/ suspect unless proven guilty.
Information leaks are pretty common
between Chinese walls during an
investigation. An unexpected / negligent
leak, before a conclusion, can ruin the
reputation of the accused.
How do you avoid this?
No promises should be made to any of
the parties. In a conflict of Interests case,
an information leak can be damaging to
a person’s reputation, specially “In case”
it turns out that a perceived conflict does
not exist. Place a comprehensive chapter
in Compliance Program Manual on
Investigation, the methodology, basis for
disclosing information, etc. to safeguard a
compliance officer / investigator and their
rights. Lately, with the issuance of the Yates
Memo in the United States, it is clear that
governments are defining mechanisms
to hold individuals accountable for a
corporate wrong doing, which was never
the case earlier. This can go to the extent
of prosecuting a person administering a
compliance program.
Conclusion
A hotline is single most important
contact of Compliance officer with all
the employees. The analysis of the data
and the types of concerns recorded give a
tremendous insight into what is happening
within the organization, what are the
pain points and what type of support is
needed at the bottom of the organizational
pyramid. It is imperative that a compliance
officer never stops employees from
reporting other side concerns (such as
regulatory reporting, etc.) but at the
same time it should not stretch out to
the spectrum of useless concerns. Thus,
mature management across the world are
naming it as “Helpline” rather than just
“Hotline”. Useless concerns can dilute
the analysis, final outcome and impair
the management’s sight to take diligent
decisions. Keep an eye on the same.
Lastly, For a Ethics / Compliance or a
Fraud Examiner, the buck doesn’t stop with
the implementation of the hotline but the
core work starts after the implementation
of the hotline
ROBIN SINGH, MSc.– LAW, MBA, MIT,
CFE, CFAP is Senior Ethics / Fraud Control
Officer at Abu Dhabi Health Services Company
(SEHA).
JUNE 2016
INTERNAL AUDITOR - MIDDLE EAST 21