The Zondo Commission report includes a recommendation that bounties be introduced to encourage whistleblowers in South Africa to lift the lid on corruption.
Bounties for whistleblowers have long been a point of debate for enforcement agencies and compliance practitioners, and are a well-developed part of the system in the US. The idea behind paying whistleblowers bounties is that there should be some incentive for them to take the personal and professional risk of blowing the whistle over and above simply doing the right thing. Some argue that without this incentive, many whistle-blowers will consider the adverse consequences of whistleblowing and simply choose to turn a blind eye.
While bounties alone will not solve South Africa’s anti-corruption challenges overnight, they will undoubtedly strengthen what commission chair Raymond Zondo described as “one of the most effective weapons” against corruption. If the recommendation is adopted, companies that operate in South Africa will need to be even more vigilant to ensure that they do not engage in any form of corruption as any employee may be lured to blow the whistle not only because it is the right thing to do, but also based on the prospect of huge financial rewards.
As part of his inquiry into alleged ‘state capture’, Zondo reviewed the current legislation that applies to whistleblowers in South Africa and their protection. He concluded that the legislation, “although well intended”, is “...
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