Lamola presents bill to cushion whistle-blowers against financial ruin

The government wants to create a special fund for whistle-blowers facing financial troubles stemming from their decisions to expose corruption and other forms of wrongdoing.

This is one of the proposals that have come out of extensive research on how to better protect whistle-blowers, conducted by the department of justice and constitutional development.

The government’s research has shown the need to amend the Protected Disclosures Act and Witness Protection Act, which govern whistle-blowing.

Among other proposals is to criminalise threats, coercion or use of force to block someone who intends to expose corruption.

The amendments to the act, if passed, will also see the provision of a legal assistance mechanism for said whistle-blowers.

On Tuesday justice minister Ronald Lamola presented the proposed measures to parliament during a debate on his department’s spending plans for the 2023/24 financial year.

Lamola said his department had been allocated R23.2bn. Of this, R5.4bn has been allocated to the National Prosecuting Authority (NPA), with the Investigating Directorate (ID) receiving R336m to bolster their fight against corruption.

“The department conducted a comparative analysis with other jurisdictions to ensure adequate and effective whistle-blower protection. According to our research, there are better ways to promote organisational transparency and accountability than incentivising whistle-blowers,” said Lamola.

“We intend to release the research paper for public comment in June. The research paper includes recommendations such as providing legal assistance to whistle-blowers, enhancing internal policy oversight, and creating a fund for those experiencing retaliations with financial Implications.”

This is a major policy shift given how a number of whistle-blowers have either had to flee the country, beg for financial assistance or live in fear.

Lamola said their research has revealed gaps in the law and would soon be released for public comment.

“Ensuring the safety and protection of whistle-blowers is crucial to serving justice. Without their cooperation, obtaining convictions can prove challenging,” he said.

“Therefore, it is imperative to implement strong measures to safeguard them. Extensive research and evaluation of the protected disclosures and witness protection legislation in South Africa has uncovered gaps and shortcomings in the current system.”

Lamola also announced steps to amend the NPA legislation “to make the Investigating Directorate a permanent agency in the NPA and not one created and disbanded by proclamation.

“The bill also aims to enhance the powers of the ID.”

Lamola said the government had also introduced new laws to address the grey-listing of the country by global financial watchdogs for its shortcomings in dealing with illicit financial flows.

The Financial Action Task Force (FATF) in February added South Africa to a list of countries flagged as risks for illicit financial flows after finding that the country failed to effectively deal with money-laundering and financing of terrorism.

“Government has introduced new laws to address FATF findings and enhance its capacity to prosecute financial crimes. The regulation of trusts bill seeks to regulate the establishment of trusts and provide for legislative measures on par with the current socio-economic, jurisprudential and practical landscapes in which trusts are created and operated,” said Lamola.

“Additionally, the SIU and the Council for Scientific and Industrial Research are collaborating to enhance the use of technology to fight the scourge of corruption and maladministration in the country.

“The department is committed to developing partnerships in the public service, the private sector, professional bodies, media and international networking to mobilise all sectors to engage in the fight against corruption.”

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