Friday, January 13, 2006

TODAYonline-a small downside but many pluses

TODAYonline: "a small downside but many pluses
Fear of scurrilous allegations shouldn't stop whistleblowing law

Siew Kum Hong

ON Monday, this newspaper published a commentary by Mr Charles Tan ('It's not easy to whistle in the dark') advocating for whistleblowing legislation in Singapore.
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While nobody disputes the importance of people within an organisation raising concerns about possible abuses, there is much less consensus on the desirability of a whistleblowing legislation.
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In a recent newspaper interview, Minister for Community Development, Youth and Sports Vivian Balakrishnan called it unnecessary, saying that people were free to contact the authorities.
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It was, therefore, ironic to find a reader's letter in the same newspaper on the same day, describing how he was victimised after he blew the whistle on suspected irregularities at his employer. He eventually resigned, finding his working conditions untenable.
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The Government has espoused a three-pronged position on whistleblowing legislation. Firstly, the Government questions its necessity, in light of the numerous reforms in recent years to strengthen corporate governance.
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Secondly, the Government fears a flood of unfounded allegations of fraud, which would undermine employers and disrupt operations. Finally, it doubts the very efficacy of such legislation.
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Many disagree with the government's views.
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In a 2005 survey of institutional investors in Singapore, 68 per cent agreed that Singapore should introduce whistleblowing legislation — marginally less than the 70 per cent who supported companies introducing whistleblowing arrangements for corporate governance.
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In other words, a substantial majority seem to find the recent corporate governance reforms insufficient.
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Furthermore, focusing on whistleblowing merely as a means of ensuring good corporate governance is unduly restrictive. Whistleblowing is also relevant outside the corporate context, such as in government bodies, "

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