Securities and Exchange Commission

In announcing its first two whistleblower awards of the year, the Securities and Exchange Commission notes:

As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.

In one case, a whistleblower alerted the agency to a fraudulent scheme and received a share of the recovery — $277,000.  In another case, an investor alerted the SEC. That person was awarded $45,000.

The SEC also notes: All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violation.

We await action on proposed changes to the SEC whistleblower law that could hurt whistleblowers.

Nigeria

Worldwide, whistleblowers have much less protection than they do in the U.S. Nigeria, for example, did poorly on this week’s Corruption Perception survey, scoring a 26 out of 100. A new video from an ongoing anti-corruption effort tells the stories of several Nigerian whistleblowers.

Continue Reading Whistleblower news round-up: DOD, SEC and all the way to Africa

The Department of Defense Inspector General (DOD IG) should coordinate with the military services to do a better job of protecting whistleblower confidentiality and addressing delays in handling cases, according to a new report.

The Government Accountability Office report found the IG offices have made progress since past reviews, but needs to do more to protect confidentiality. The review found that employees without “the need to know” have had access to sensitive whistleblower information.

While the timeliness of handling cases has improved in some areas, delays persist in others, according to the report. For example, the average number of days to complete military and contractor reprisal investigations increased between 2017 and 2018 from 394 days to 541 days.

The DOD IG completed closed 73 investigations in 2018, including 13 senior official misconduct cases and 60 military, contractor, and civilian reprisal cases. However, about 85 percent of all investigations “did not meet the timeliness goals.”

Continue Reading GAO: Department of Defense is getting better at dealing with whistleblowers, but has some work to do.