According to the Economist edition of ‘The World in 2012’ the year 2012 will become the “Year of the Bounty Hunter”. The prediction is that life of the whistle blower will become easier, and a lot more lucrative, as countries around the world seek to further strengthen protection for them. Monetary incentives to entice people to come forward are expected to grow.
Your editor is inclined to agree with the Economist that regulators have failed abysmally to identify and root out irresponsible lending and other ‘wrongdoings’ leading up to the credit crunch. People associated with the Enron, Tyco, Global Crossing debacles went to jail, but apart from Bernie Madoff none of the Banker involved in the subprime mortgage lending disaster have been arrested.
Of interest are the numbers in the chart which indicate that only 8% of commercial fraud was detected by external audit, which seems to be ineffective. 36% of fraud was due to a tip-off; therefore it is quite obvious that more credence should be given to whistleblowers.
Where regulators have failed governments are now turning to whistleblowers to stamp out all types of fraud from financial, medical, military procurement. Perhaps a bit late, but better late than never. As an afterthought, why would one need regulators if governments are now turning to whistleblowers?
Source: The Economist – The World in 2012