Vertical Markets

Whistle-blower protection proposed

by Mark Rowe

A proposed EU-wide Whistle-blower Directive has been praised by an anti-corruption campaign group.

The European Commission’s (EC) proposed law covers reporting by whistle-blowers (first internal, then to ‘competent authorities’, and then if clear danger to the public interest, in public), feedback obligations, and, if a whistle-blower suffers retaliation, he or she should have access to free advice and adequate remedies (for example measures to stop workplace harassment or prevent dismissal). National authorities would have to inform citizens and provide training for public authorities on how to deal with whistle-blowers. It’s a bold step in recognising the importance and rights of whistle-blowers, according to Transparency International EU. The proposal could not come at a more vital time, said the anti-corruption group.

Nicholas Aiossa, of Transparency International EU, said: “Behind each and every major scandal, from Lux Leaks, to the Panama Papers and Cambridge Analytica, change in our time is being driven by whistle-blowers. The European Commission has produced an ambitious proposal, which will need to be strengthened to ensure that whistle-blowers, no matter who they are or where they work, will be protected.”

As with other laws such as data protection, EU countries have had different protection for those who wish to expose fraud or other wrong-doing, with some countries such as Ireland having good laws says TI and some such as Cyprus having practically none. This proposal will have to be negotiated between the European Parliament and European Council. TI urged these institutions to uphold the commitments in the EC text and to examine where it might be improved in line with international best practices.

First Vice-President Frans Timmermans said: “Many recent scandals may never have come to light if insiders hadn’t had the courage to speak out. But those who did took enormous risks. So if we better protect whistle-blowers, we can better detect and prevent harm to the public interest such as fraud, corruption, corporate tax avoidance or damage to people’s health and the environment. There should be no punishment for doing the right thing. In addition, today’s proposals also protect those who act as sources for investigative journalists, helping to ensure that freedom of expression and freedom of the media are defended in Europe.” The proposals would cover companies with more than 50 employees or with an annual turnover of over ten million euros, and large councils, which would have to for example set up an internal procedure to handle whistle-blowers’ reports.

A public consultation last year by the European Commission heard from most respondents that workers very rarely or rarely report concerns about threat or harm to the public interest.

For the EC whistleblower protection package of measures visit http://ec.europa.eu/.

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