WHISTLEBLOWERS

WHISTLEBLOWERS who expose major government fraud would be financially rewarded with a proportion of public funds recovered, under a radical scheme presented to the Rudd Government.A similar reward scheme helped the US reclaim more than $US2 billion in 2003, a parliamentary inquiry into the whistleblowing laws was told. Australian National University associate professor Thomas Faunce told the house legal and constitutional affairs committee whistleblowers often faced reprisals and risked losing their jobs. He said a reward system would encourage people to report wrongdoing. "This legislation ... provides them not just with an incentive (to report) but security if they've lost their jobs," he said. In his submission, Dr Faunce said the scheme would "send an important public signal that the actions of the whistleblower are of value to the community". Dr Faunce said Medicare fraud alone was estimated to costAustralia more than $1 billion ayear. Under his scheme, an independent tribunal would determine the reward, and it would be based on a proportion of the public funds recovered as a result of the disclosure. In the US, whistleblowers receive between 15 and 20 per cent of damages recovered. Dr Faunce said disclosures should be made to regulators or an independent body such as the Commonwealth Ombudsman rather than the media. The Ombudsman is pushing to take charge of the whistleblower laws. A report released last week found less than 2 per cent of whistleblowers received support from their government agency.
Dr Faunce suggested the Commonwealth Ombudsman be given powers to recommend whistleblowers for Australia Day honours if their disclosure led to significant public benefit. Labor pledged before last year's election to introduce new public interest disclosure laws.