ADB comes up with tougher whistle-blower policy

The Asian Development Bank (ADB) has upgraded its whistle blower policy to encourage and protect those who report fund abuses. The lender’s Whistle-blower and Witness Protection administrative order, which took effect last Dec. 11, consolidates earlier policies into a seven-page document and details how informants’ anonymity and data confidentiality will be shielded. Governments including that of the Philippines, the ADB’s fifth largest borrower, may also be roped in to secure whistle-blowers. "ADB does not tolerate corruption in any form. By improving the information and protection available to whistle-blowers and others who also provide evidence of misconduct, ADB is strengthening its ongoing efforts to combat fraud and corruption," Peter E. Pedersen, head of ADB’s Office of Anti-corruption and Integrity, said in a statement. The order’s provisions were consulted with experts before being presented for public comment last year. The order clarifies, among others, that informants may remain anonymous and also details which ADB officials will have access to confidential data from the exposés. It further states that whistle-blowers who are also linked to fund abuses will not be granted immunity, although their decision to cooperate in investigations will be considered in determining their penalty. The ADB, in the order, said it was also committed to protecting informants by "using its good offices with the member country government to endeavor to secure transfer or adequate security protection." For whistle-blowers within the ADB staff, the organization said it may grant paid leave while investigations are ongoing. The order adds that "parties who make false or malicious allegations or who retaliate against whistle-blowers and witnesses may have their contracts terminated or be declared ineligible to participate in ADB-financed or ADB-supported activities." A Philippine business group hailed the policy, but noted that projects are also imperiled by red tape. "That’s a good policy," Philippine Chamber of Commerce and Industry chairman emeritus Donald G. Dee said in a telephone interview, referring to the provisions that allow the ADB to still punish informants who are also guilty of fund abuse. "But while corruption is a problem, it is really the bureaucracy that delays projects and turns off investors," he added. Last year, the ADB approved $567.496 million in grants, loans and technical assistance for the Philippines. — Jessica A. Hermosa, BusinessWorld