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As part of a whistleblowing investigation (malicious or not), organizations need to clearly understand their legal obligations and what risks they need to be aware of. In this article, we discuss the importance of working with expert private forensic investigators when navigating malicious reports.

Malicious whistleblowing poses serious risks to a company’s reputation if not dealt with properly. These include risks such as sanctions, financial loss (considering the cost of an investigation and employee resources), reputational damage and compromised employee morale in the workplace.

Investigation procedure

When faced with what may be a case of malicious whistleblowing, organizations are responsible for investigating reports to (i) help them meet all their regulatory reporting requirements and (ii) mitigate the risks posed by malicious whistleblowing.

Organizations routinely investigate allegations made by a whistleblower against certain employees, despite the fact that they are malicious and without merit. In such cases, the most commercially sensible approach is to launch a multi-stage investigation into the allegation despite there being such a suspicion.

Formally hiring experts to assist in the investigation as one of these steps is most advisable. This is an effective method of handling suspected malicious whistleblowing cases as it helps an organisation:

1. to determine whether the allegations are unfounded,
2. manage financially the expenses for such investigation,
3. and determine what its regulatory reporting obligations are and how best to meet them.

When faced with suspected malicious whistleblowing, management’s first steps should be to consider whether the report contains enough information to be treated as substantial. Experts can advise on this aspect, given their enhanced experiences with similar matters.

Reporting obligations

Then, if there is sufficient information to warrant further investigation, an organization must consider reporting and other legal obligations, such as those under the Prevention and Combating of Corrupt Activities Act, 12 of 2004 (Amended) (Precca), PDA and the Financial Intelligence Center Act, 38 of 2001 (as amended) (Fica). Especially because South Africa’s legislative obligations are very extensive.

For example, Precca obliges any person in a position of authority when he or she knows or should have known or suspected that another person has committed certain crimes involving an amount of 100,000 lei or more) to report suspected or actual crimes. These reports relate in particular to crimes of corruption, fraud, theft, extortion, forgery and/or uttering a false document that meets or exceeds the monetary threshold.

Forensic experts guide organizations on how comprehensive an investigation should be. While in some cases a quick conclusion is feasible and an expert can advise you as such, in other cases deeper analysis and reporting obligations are required. However, depending on how soon an organization determines this, it can influence expenses and damages in such matters.

Disciplinary action

In addition to helping an organization determine what it is dealing with and how best to respond to it, forensic experts help an organization determine the identity of a malicious whistleblower, which enables it to take disciplinary action against the whistleblower malicious with the help of forensic professionals. the disciplinary process.

It is known that there are various considerations that an organization needs to take when handling a whistleblower’s report. It is essential to work with experts when considering how to navigate the whistleblower investigation.

Malicious whistleblowers can cause significant internal and external instability if their reports are not adequately investigated. Organizations should work with experts to create an enabling environment that encourages legitimate whistleblowers to step forward while actively pursuing false whistleblowing claims.

The best protection against malicious whistleblowing is to ensure that a robust and procedurally fair investigation and inquiry is conducted (if necessary). Given the legislative, procedural and more common internal policy requirements, as well as the complexity of a high-quality investigation, organizations are encouraged to engage the services of experienced and credible forensic professionals to manage the risks associated with whistleblowing.