Through the implementation of various public sector financial management reforms, over N700bn had been saved by the Federal Government. In addition to the N700bn savings, about N300bn had been recovered by the anti-graft agencies of government through the collaborative efforts of the Ministry of Finance, Budget and National Planning. The outgoing Permanent Secretary (Special Duties) in the Ministry of Finance, Dr Mohammed Dikwa, gave these figures during a send-off dinner held in his honour by the ministry as he retired from civil service.
He gave some of the public financial management reforms introduced by the government as Government Integrated Financial Management Information System aimed at improving public expenditure management processes, and the Integrated Personnel and Payroll Information System to improve the effectiveness and efficiency of payroll administration for government workers. Others are the adoption of International Public Sector Accounting Standards for greater transparency and accountability in government financial statements; the Treasury Single Account for consolidating and managing government’s cash resources and the Presidential Initiative on Continuous Audit.
There is also the Efficiency Unit aimed at reducing cost of governance; whistleblowing policy aimed at exposing corrupt practices; Asset Tracing Project for identification and recovery of government assets that are redundant and the Strategic Revenue Growth Initiative for boosting of government revenue. Dikwa said that the Federal Government had been recording consistent growth in the economy because of the conceptualisation and implementation of the initiatives. He urged his former colleagues in the civil service to put necessary measures in place to block leakages, curtail wastage, and improve efficiency in the public sector.
Since the adoption of the whistle-blower policy in 2016, the Federal Government has so far recovered N594.09bn through the policy. The Permanent Secretary, Special Duties, Ministry of Finance, Budget and National Planning, Dr. Muhammed Dikwa, said this at a workshop in Abuja. Dikwa, according to a statement issued recently by the ministry, said the whistle-blower policy had come to stay in Nigeria. He added that Nigeria had joined other countries of the world to accept the policy as a global acceptable norm. Dikwa noted that the Federal Government decided to introduce the policy to fight corruption and other financial crimes. He also said that through the policy, the government was able to recover salaries from retired diplomats who were still being paid for almost two years to the tune of N192m. Dikwa added that the policy had assisted in reducing corruption in the public sector.
On the challenges encountered in the course of implementing the policy, the Permanent Secretary highlighted a lack of proper legal framework, poor funding, lack of coordination and diverse information among relevant organizations. Charting the way forward, Dikwa said the Whistle-blower and Witness Protection Bill 2019 was being put together to make the policy effective and provide legal backing and administrative guide for the policy. He, however, urged participants to critically review the draft bill and make additional input before it could be sent to the National Assembly for parliamentary scrutiny. The meeting was attended by top officials from ministries of Finance and Justice, representatives from the Economic and Financial Crimes Commission, National Financial Intelligent Unit, Department of State Service, and members of the civil society.
It would be recalled that Zainab Ahmed, minister of finance, says the federal government has recovered N605 billion through the implementation of the whistleblower policy. Ahmed made this known during a briefing on the ministry’s activities in Abuja, recently. The whistleblower policy is an anti-corruption program that was launched in December 2016. It encourages individuals to report cases of financial mismanagement or stolen funds. As of the end of 2018, the government had recovered over N540 billion. The finance minister described the whistleblower policy as a huge success, adding that the program was ongoing. “The whistleblower policy of government subsists and it is still being implemented. The total amount of collection that has been made through various efforts in the whistleblower policy is about N605 billion,” she said. “This is an improvement over the last amount that was reported.”
Recalled that, the Federal Government recently announced a policy, which offers a five per cent financial reward to any whistleblower whose information leads to recovery of looted funds and other monies obtained through fraudulent means. Tagged ‘Whistle Blowing Programme,’ is aimed at encouraging anyone with information about a violation, misconduct or improper activity that impacts negatively on the Nigerian people and government to report it. Official reward for whistleblowers will strengthen the fight against corruption by encouraging more Nigerians to identify with the government’s efforts in that regard. The country would have recovered a substantial part of the looted funds if a similar policy were adopted in an effort to recover the Abacha loot running into billions of dollars. Briefing State House correspondents after a meeting of the Federal Executive Council (FEC) presided over by President Muhammadu Buhari, former Minister of Finance, Kemi Adeosun said if a whistleblowing leads to a voluntary return of stolen or concealed public funds or assets, the blower may be entitled to between 2.5 per cent (minimum) and 5.0 per cent (maximum) of the total amount recovered. Adeosun explained that to qualify for the reward, the whistleblower must have provided the government with information it does not already have and could not otherwise obtain from any other source available to the government.
She further explained that the government had already created a secure online portal where information could be submitted, as well as the facility to check the status of the report on the portal. Adeosun categorized the information that could be reported to include cases bothering on mismanagement or misappropriation of public funds and assets such as properties and vehicles, financial malpractice or fraud, and collecting or soliciting a bribe. Others are corruption, diversion of revenues, fraudulent and unapproved payments, splitting of contracts, and procurement fraud including kickbacks and over-invoicing, among others. The policy, however, does not apply to personal matters concerning private contracts or agreements. While assuring of absolute confidentiality on the use of the portal, Mrs. Adeosun said that government employees, agencies, institutional stakeholders and members of the public were also at liberty to avail themselves of the facility. “You can submit documentary evidence on the portal. You can also provide specific and fact-based information such as what occurred, amount involved, who was involved and dates of the occurrence on the portal. “Confidentiality will be maintained to the fullest extent within the limitations of the law. If you choose not to disclose your identity, there will be no record of who you are. If you choose to disclose your identity, it will be fully protected.” If you whistle-blow in public-spirit and in good faith, you will be protected. If you feel that you have been treated badly because of your report, you can file a formal complaint. If you have suffered harassment, intimidation or victimization for sharing your concerns, restitution will be made for any loss suffered.”
The Nigerian Institute of Management has expressed its support for the five per cent reward promised by the Federal Government to anyone who exposes fraud and other related crimes in the public and private sectors. The former Minister of Finance, Mrs. Kemi Adeosun, had, after the Federal Executive Council meeting recently, announced a resolution that the whistle-blowers would be rewarded with five per cent of the total amount recovered as a result of the tip-off. Speaking after its Annual General Meeting and end-of-year dinner in Calabar, Cross River State, the Chairman of NIM, Calabar chapter, Mr. Evong Evong, described the decision as the right initiative. He said the plan would go a long way to help in the fight against corruption.
Evong added, “Anything that will help reduce, mitigate and eventually eradicate corruption at all levels is a welcome development as long as it is within the ambit of the law and doesn’t infringe on the rights of the people. “Our tenets include professionalism, integrity, and transparency and we believe in the prudent management of funds. So, if the Federal Government has made a policy to encourage more whistle-blowers, it would make a lot of people to sit up and a lot of people will also come forward since they know they have a lot to benefit from it.” Evong expressed the hope that the ongoing recession would soon be a thing of the past, adding that a lot of professionals were already proffering solutions at various levels to assist the government. He said, “It would take creativity and thinking outside the box. We have the human resources to help us out because Nigeria has a lot of resources that can compete anywhere in the world. So, the economic recession will soon be a thing of the past once we can block all loopholes and manage our funds prudently. “The institute has already keyed into the Federal Government’s change initiative, which, of course, is a paradigm shift. It must not be seen as if it is a witch-hunt. “We must look at the bright side of the fight against corruption and this policy of rewarding whistle-blowers, as initiated by the Federal Ministry of Finance, is indeed a step forward in the right direction and a win-win for Nigeria.”
It is important to note that, simply put; whistleblowing is the reporting of misconduct of an employee or superior. Misconduct, of course, can range from minor issues to complex, corporate-changing deeds of bad behaviour/ leadership. Prime examples of how important whistleblowing can be for an organization are the past scandals of Enron, WorldCom, and the Bernie Madoff scandal of 2008.
Every organization desires honesty from and among its employees. The presence of honesty allows for complete dedication to the organization’s mission and success. By encouraging a whistleblowing culture, the organization promotes transparent structure and effective, clear communication. More importantly, whistleblowing can protect the organization’s clients. For example, if a hospital employs a number of negligent staff members, other, more ethically inclined, employees would need to bring such issues to the hospital’s attention, protecting the organization from possible lawsuits or severe mishaps resulting in a patient’s demise.
As with most matters, there are positives and negatives. Whistleblowing, too, has some negative aspects. For instance, in a 1972 case, an arbitrator told a whistle-blowing employee that the employee could not, “Bite the hand that feeds you and insist on staying on the banquet.” If the entire organization does not have the same positive attitude in regards to whistleblowing, employees may fear speaking up. A second consideration includes employees taking advantage of whistleblowing. Forbes.com cites an example of Douglas Durand. As vice president of sales at TAP Pharmaceutical Products, Durand suspected the company was conspiring with doctors in overcharging Medicare. Instead of gathering evidence and blowing the whistle, Durand spent 7 months gathering information, quit, and then filed a lawsuit against TAP. Durand spent the next 8 years in cooperation with the government in order to build the case. Durand received $126 million in the case settlement. Trouble surfaced after the settlement when prosecutors filed criminal fraud charges against TAP executives. Durand’s story fell apart as defence attorneys poked holes in his claims. Durand’s example shows the ugly side of whistleblowing resulting from greed.
Although these two negative aspects of whistleblowing can be quiet unsettling, both can be curbed. By promoting a whistleblowing culture within the organization, employees will feel comfortable speaking up when necessary. Here are some tips for promoting a whistleblowing culture:
- Create and publicize a whistleblowing policy.
- Emphasize communications about bans on retaliation for whistleblowing activities.
- Top Management must demonstrate the inclusion of whistleblowing in the culture.
- The organization’s commitment to whistleblowing must be emphasized and promoted.
- Follow through with a complete investigation after a whistleblowing event.
- Discuss with employees their personal thoughts on topics to make sure everyone has a similar mindset.
Clear communication is key to building an organization where employees feel comfortable raising their concerns. In the resulting positive work environment, organization goals are foremost, allowing employees to focus on the success of the organization and its members. Whistleblowing is an essential tool for an organization. Without it, fraud, misconduct, and failure may dominate an organization. By promoting clear communication and keeping the organization’s goals in focus for everyone, one can minimize their chances of being the next Enron.
The importance of the drive for a corruption-free society is underscored by the fact that the institutional mechanisms put in place to check corruption may not be effective without whistleblowing, especially from insiders who identify and draw attention to corrupt acts that other mechanisms may fail to pick up. Corruption has remained a major challenge to development in most developing countries. An analysis of the Corruption Perception Index (CPI), a measure of perceived level of public sector corruption in countries and territories around the world, indicates that Nigeria, for example, consistently occupied appalling positions in the list of most corrupt countries in the world between 2001 and 2012. One can not but question the effectiveness, efficiency, and relevance of the Nigeria anticorruption agencies such as Economic and Financial Crime Commission (EFCC), Independent Corrupt Practices and Related Offences Commission (ICPC), and Code of Conduct Bureau (CCB), if one analyzes the country’s ranking on the CPI and the number of corruption cases effectively prosecuted by the anti-corruption agencies. These agencies focus more on the legal framework and draw corruption; believing that when corrupt individuals are prosecuted and convicted, it would deter others from engaging in corruption.
There has been a substantial increase in the recognition of the importance of whistleblowing as a means of reducing corruption and defusing dangerous situations by improving the disclosure of information about illegal, dangerous or unethical activities by government and private organizations. Whistleblowing can also be a means of improving the internal organizational culture of organizations in both the public and private sectors to prevent or reveal mistakes and accidents and improve internal management and efficiency. Around the world, whistleblowers have been hailed as heroes for revealing corruption and fraud in organizations and for preventing potentially harmful mistakes from leading to disasters. The disclosures range from revealing the theft of millions of money in the public and private businesses and other dangerous transactions that threaten businesses and help save wealth. However, many who bring these issues to light face severe repercussions for their actions. They lose their jobs or are ostracized for their actions. Some are charged with crimes for violating laws or employment agreements. In extreme cases, they face physical danger. Countries around the world are now working to develop legal regimes to encourage these important disclosures and protect whistleblowers from retribution.
Again, following the directive of President Muhammadu Buhari in August 2015, Federal Ministries, Departments and Agencies (MDA’s) are to implement the Treasury Single Account (TSA) with immediate effect.
The TSA has been defined as a process and tool that unifies all government accounts in a single unit for the effective management of its finances, bank and cash position. Therefore, MDA’s that are yet to comply must close all revenue accounts maintained in different Banks or branches and transfer the proceeds to the TSA maintained by the CBN. Under this directive, it is only by the TSA that MDA’s can access funds approved in their budget. It is noteworthy that the directive is based on section 80 and 162 of the 1999 Constitution (as amended) which presumes that all revenue expended are captured in the national budget and are authorised by the National Assembly. It is also in accord with a directive to the National Economic Council to ensure MDA’s comply with the relevant laws of accounting, allocation and disbursement of funds. Therefore, MDA’s are to close all the revenue accounts they maintain in different Banks and transfer the proceeds to the TSA maintained by the CBN.
Among others, the benefits of the implementation of the TSA are mainly financial as the absence of multiple banking arrangements will bolster the monitoring and transparency of MDA operations and prevent funds from been easily diverted from their original purpose. This is because the Treasury will at all times have an accurate view of the Government’s cash position as against the present system where the positions of different agencies have to be pooled together to get an overall picture. It will also curb financial excesses on MDA’s and the Federal Government. For instance, prior to the directive, some MDA’s deposited their earnings in commercial banks who ironically lent same to the Federal Government at a high-interest rate. Therefore by introducing economy and efficiency in the management of scarce public resources, the Government is in a better position to realise its policy goals.
Presently, although the TSA directive includes all government agencies including partially funded establishments like teaching hospitals and medical centres, there have been fears that its effect may be averse to certain agencies such as the Nigerian National Petroleum Corporation (NNPC) and the Nigerian Ports Authority (NPA) if special rules or conditions are not drafted to take their numerous operations and cash obligations into account. There is also the salient point that the Executive and Legislative arm of Government will have to live up to their responsibilities by presenting and approving the budget in a timely manner as late presentation and approval of budget in Nigeria has become a recurrent theme.
Beyond this, although the implementation of the TSA, presents an opportunity for banks to creatively think of other means of raising money, there are fears that the concentration of government funds in the TSA may affect the liquidity of some banks leading to their collapse and an increase in unemployment. However, while the influence of banks to maintain Government revenues is reduced under a full implementation of the TSA, it should be remembered that the funding of projects by the Government as well as the sale of treasury bills and bonds approved by the CBN still pass through commercial banks.
Some analysts also think that the implementation of the TSA should be followed by the passage of a “Fiscal Sunshine Bill”, which will open up the financial activities of the Government in the budgetary process and its implementation. There have also been calls for strong legal sanctions where money is being spent outside a purpose it is appropriated for.
It is also clear that a major challenge of the implementation of the TSA will lie on the political will for its enforcement, as it will be recalled that the call for its use had emerged under the framework of Government Integrated Financial Management Information System (GIFMIS) in former President Olusegun Obasanjo’s regime. Former President Jonathan had also called for its implementation at the end of February this year. Thus, it would seem that the chances of a successful implementation would be higher once political will is secured.
The Buhari led government has been working round the clock to ensure that the suffering of Nigerians are assuaged and ameliorated, by laying a solid foundation for a greater and better tomorrow. The campaign of calumny against the government of President Buhari has been largely predicated on ethnicity and tribal particularism as well as politics of vendetta, especially by the opposition party that roundly defeated at the polls after many years of misrule, bad governance and monumental fraud. The other point which cannot be waved aside is the fact that one of the cardinal policies of this administration is the war against corruption, and since this government came on board, never like before, it has consistently waged relentless war against graft in the country; and the high and mighty are not spared; now in a surreptitious manner, corruption is fighting back in a very dirty and desperate manner.
*** Written by Jide Ayobolu.
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