Article by the Forensic and Investigation Services Department

Many European countries, together with the United States, have legal regulations governing an employee's right to file evidence of illegal or unethical behaviour that has come to the employee's attention as a result of his employment. To ensure that the employee does not fear reprisals, he is protected by whistleblower legislation. The Federal Republic of Germany intended to introduce such regulation in a new Section of the German Civil Code (Bürgerliches Gesetzbuch), however the Federal Government postponed it, and with it, an opportunity in the fight against fraud.

What is a whistleblower? A whistleblower is a person who alleges misconduct, such as corruption. Usually, he or she acts out of conscience and contrary to widespread opinion, is loyal, motivated to protect the employer, and in so doing prevent risks such as the loss of jobs. However the act is often seen as one of treachery and the whistleblower is ostracised, deemed to have damaged the company by his or her actions. Too frequently the whistleblower's "reward" will be the loss of employment and social status.

Why is a Whistleblower Hotline advisable? With the help of a Whistleblower Hotline, employees and other stakeholders can communicate on matters of misconduct in the company anonymously, with the benefit that potential risks to the company are identified early. Indeed, the effectiveness of a Whistleblower Hotline is often underestimated. Over 60 percent of all reported crimes were discovered thanks to information from an "informant". This ratio is much higher than other methods of discovery, such as through the internal audit function, where the rate is about 15 percent. However, only 20 percent of German companies have such hotlines, even though practical experience has shown that 97 percent of incoming information to such hotlines is significant.

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