Financial Times

Need for whistle-blowing hotline facilities emphasized

By Bandula Sirimanna

Corruption is so widespread both in Sri Lanka’s public and private sectors causing grave loss and damage to the whole community, that exposure must be encouraged because without exposure past malpractice cannot be remedied and future malpractice cannot be prevented.

Individual prejudices and loyalties must give way to the public interest. Speaking up from inside an organisation to bring these malpractices to light in the public interest is called whistle-blowing. The need to provide whistle-blowing hotline facilities for the reporting of possible illegal, unethical, or improper conduct when the normal channels of communication have proven ineffective or difficult was emphasized at a seminar on whistle-blowing in Colombo this week.

Addressing the audience, Parliamentarian Wijeyadasa Rajapakse, a former chairman of the Parliamentary Committee on Public Enterprises (COPE) said that the fight against corruption and malpractice should come from top to bottom and not the other way round.

He disclosed that the Bribery or Corruption Investigation Commission and other relevant authorities had so far failed to take necessary action following the recent Supreme Court judgments against those who were involved in Lanka Marine Services and Sri Lanka Insurance Corporation privatization deals. He added that no action was taken against perpetrators of frauds in 16 public sector institutions although these malpractices were highlighted by the COPE report submitted in parliament in 2007.

COPE had also brought to the notice of the Governor of the Central Bank in December 2006, about 27 unlicensed finance companies but no action was taken to close down these companies, he said.
Mr. Rajapakse pointed out that it is unfortunate that the profit-oriented private sector always goes behind politicians and public officers to secure favours and gains.

Referring to the lethargic attitude of the Bribery Commission, he said that for the first five years since 1994, the Commission investigated only a single case, of a teacher who was accused of accepting a tea set as a bribe.

Under this set up it is essential to strengthen these institutions to fight against corruption, he said.
Former Director General SEC Aritha Wickremanayake, now a top corporate lawyer, noted that officers of companies have a duty to highlight wrongdoings within their establishments. Some responsibilities may be inferred while others are directly set out in the Companies Act or the corporate disclosure rules of the Colombo Stock Exchange. He noted that a cardinal point attributed in favour of whistle-blowing is that it can lead to an end in unethical business practices and save the lives of the employees and much valued customers.

The collapse of Pramuka Bank and Golden Key Credit Card Company are cases in point. Had a whistle-blower exposed the unethical business transactions well in advance, the lives of the large number of depositors and their deposits amounting to billions of rupees could have been saved, leave aside the livelihood of the employees, he said.

Deputy Solicitor General Sarath Jayamanna said that money laundering is often committed through the abuse of the banking system of a country and therefore a proper regulatory framework is necessary to minimize such abuse.

Lawyer Kandiah Neelakandan, in his presentation, outlined the violations of the Exchange Control Act, Inland Revenue Act Excise Ordinance, Excise (Special Provisions) Act and the Customs Ordinance.


 
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