7341890 Whistle Blower Final

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WHISTLE BLOWER POLICY

Group No. 10

Chandra kant 16

Pushkar 23

Prashant 27

Magan 57

Satyameva Jayate!

Lives of great men all remind us

We can make our lives sublime,

And, departing, leave behind us

Footprints on the sands of time...



³ A man does what he must

inspite of personal

consequences,inspite of obstacles and

dangers and pressures

That is the basis for all

morality... ³

Satyendra Dubey



Born in 1973 in the village of Shahpur in the

Sewan district of Bihar. B.Tech f r om IIT Kanpur in 1990.

Passed Indian Engineering Service (IES) in

1994 and joined the Ministry

of Sur

f acetransport in Delhi.

Join National Highway Authority of

India (NHAI) in July 2002 as an Assistant

Pr o ject Manager at Koder ma

Forced contractor to suspend three

engineers.



Contracted f ir m L&T for GQ pr o ject

subcontracted work to smaller low technology

gr oup contr olled by local maf ias.

NHAI off icials showed a great hurry in giving

mobilisation advance to selected contractors

for f inancial consideration. Transf erred to Gaya.

At Gaya he exposed large-scale f louting of

NHAI rules regarding sub-contracting. Appointed as Pr o ject Director Koder ma

Pr o ject Implementation Unit (PIU) handling

the 5,200-km stretch at Gaya.



Letter To Prime Minister



Mobilisation of advances to selectedcontractors for f inancial consideration by

NHAI off icials.

Poor monitoring of the f inal use of money. Sub-contracting by the primary contractors.

"A dream project of unparalleled importance to the

Nation but in reality a great loot of public money because of very poor implementation at every state."



The Investigation

CBI f inally concluded that it was a case of an

attempted r obbery

Curr ent Status

Supreme Court is currently overlooking

investigations into the corruption charges

initially raised by the Dubey letter.

Several off icial have been indicted and a

technical team is overseeing the actual

construction

Assassinated on November 27, 2003



Law ministry was about to intr oduce legislation

to pr otect whistleblowers. Dubey's murder drew several pr otests in India and

abr oad

S. K. Dubey Foundation for Fight AgainstCorruption in India was launched.

Satyendra K Dubey Memorial Award, to be givento an IIT alumnus.

Whistleblower of the year award f r om the London-based Index of sensorship.

Transparency International's Annual integrityaward and the Service Excellence award f r om the

All India Management Association.



" My conscience is my biggest virtue, my wealthiest

treasure and my best guide or friend. I always do

what my conscience tells or compels me to do. Iwant to keep this candle of humanity ever glowing in

my heart .µ

± S K Dubey



Socrates knew that he had done

right and had been treated unfairlyby the court. He then faced anunenviable choice: to turn down

the offer to escape and face hispunishment as a good citizen, or toleave Athens for sanctuaryelsewhere and continue to lead hisown life with its pleasures and

satisfaction.



He chose to stay and be executed onthe ground that there are matters

more important than even life itself. That which is most worth living for

may also be worth dying for.



I would rather die after spoken about my manners than speak in your

manners and live. The difficulty is not to avoid death but

avoid un-righteousness for that runs

faster than death. Be a good cheer about death, and know

your character, no evil can happen to a

good

man. The un-examined life is not worth

living.

««

..Socrates««««.



What is whistle blowing?

Whistle blowing is the disclosure by

organizational members (for mer or

current) of illegal, immoral or illegitimate

practices under the contr ol of their

employers, to persons or organizations

that may be able to aff ect action.

Making infor mation available to public or other external authorities.



Kinds of Whistle blowing

Internal Whistle blowing is made to

someone within the organization.

Personal Whistle blowing is blowing thewhistle on the off ender, here the charge is

not against the organization or system but

against one individual.

The impersonal, External Whistle Blowing.



There are four f actors in pr ocess:

Occurrence of misdeed or illegal activity in orgz

Perception that either the management can

prevent it or that it has been initiated by

management or certain employees.

Presence of an individual or gr oup of people

who want some action against the illegal activity.

Individuals or gr oup expose the pr oblem to theauthorities who can take action.



Perception towards whistleblower

Those did not blow the whistle f eel guilty

of immorality.

They d

oubt the l

oyalty

of the whistleblower to the employer.

The whistleblower is perceived as a traitor,

as someone who has damage the f ir m -

the working f amily to which he/she

belongs.



CRITERIA FOR JUSTIFIABLE

W

HISTLEB

LOW

ING: The f ir m thr ough its pr oduct or policy will do

serious and considerable har m to the public.

Once an employee identif ies a serious threat

he should report it superior and make his

moral concern known. Unless he or she does

so, the act of Whistle blowing is not

justif iable. If superior does nothing eff ective, the

employee should take the matter up the

managerial ladder.



Whistleblower must have accessible

documented evidence that would convince

a reasonable, impartial observer.

The employee must have good reason to

believe that by going public the necessary

changes will be br ought about.

Morally justif iable whistle-blowing are

easier, saf er and more eff icacious.



Certain issues for whistleblowing Violation of any law or regulations, including but not limited to

corruption, bribery, thef t, f raud, coercion and willf ul omission. Pass back of Commission/benef it or conf lict of interest.

Pr ocurement f rauds.

Mismanagement, Gr oss wastage or misappr opriation of company f unds/assets.

Manipulation of Company data/records. Stealing cash/company assets; leaking conf idential or

pr oprietary infor mation.

Unoff icial use of Company¶s material/human assets.

Activities violating Company policies including Code of Ethicsand Conduct.

A substantial and specif ic danger to public health and saf ety.

An abuse of authority.

An act of discrimination or sexual harassment.

The above list is only illustrative and should not be consideredas exhaustive.



Whistleblowing in East &West

Whistleblowers are murdered or victimised.

Whistleblowers Pr otection Act of 1989, U.S.

Public interest disclosure by f ederal employees.

Sarbanes-Oxley Act of 2002, U.S.

Legal pr

otecti

on t

owhistle bl

owers in publiclytraded companies.

Public Interest Disclosure Act of 1998, U.K



Clause 49 of the Listing Agreement betweenlisted companies and the Stock Exchanges hasbeen recently amended which, inter alia,

pr ovides for a non-mandatory requirement for all listed companies to establish a mechanism called 'Whistle Blower Policy' for employees to report to the management instances of

unethical behaviour, actual or suspected, f raudor violation of the Company's code of conductor ethics policy.



WHISTLE BLOWER POLICY

The Whistle Blower policy is for elimination

of malpractices in the system.

T

orep

ort

for:

± Violation of a Law or Regulation by the

Company.

± Financial Malpractices

± A danger to public health or saf ety



PURPOSE

± To report to the management about violation

of the company¶s policy ± To build and strengthen a culture of

transparency and trust in the organization.

± To disclose alleged wr ongf ul conduct to theteam members of the whistle blower policy

APPLICABILITY

± employees & ex-employees of diff erent dept.

MAKING A DISCL

OSURE

± Either thr ough phone or writtencommunication, complete with relatedevidence.



DISCLOSURE INVESTIGATION

Ascertaining the correctness and trueness of the

complaint & recommending necessary correctivemeasures as follows:

i) Closing the complaint if wr ongf ul conduct remains

largely unsubstantiated.

ii) If the complaint found correct on investigation,action against concerned persons suggested.

iii) To overcome system weakness/making it more

stringent recommending installation of other

policies, codes or pr ocedures.

iv) Management takes appr opriate action

immediately.



CONFIDENTIALITY ± Disclosure of wr ongf ul conduct may be submitted on

a conf idential basis or anonymously and will be kept

conf idential.

PROTECTION AGAINST VICTIMIZATION. ± No adverse action shall be taken against an

employee or business associate in ³knowing

retaliation´ who makes any good-f aith disclosure of

suspect or wr ongf ul conduct.



Whistle Blower Policy for Tata Companies

1. Pr ef ace

2. Def initions3. Scope

4. Eligibility

5. Disqualif ications

6. Procedur e7. Investigation

8. Protection

9. Investigators

10. Decision11. Repor ting

12. Retention of documents

13. Amendment



Pr ef aceR eporting Concerns

³Every employee of a Tata Company shall

promptly report to the management any

actual or possible violation of the Code or

an event he becomes aware of that could

affect the business or reputation of his or

any other Tata Company.´



y Scope

Whistle Blowers should not act on their own in conducting any investigative

activities, nor do they have a right to

participate in any investigative activitiesother than as requested by the Ethics

Counsellor or the Audit Committee or the

Investigators.



Disqualif icationsW

histleB

lo

wers, who m

ake threeo

r mo

rePr otected Disclosures, which have beensubsequently found to be mala f ide,f rivolous, baseless, malicious, or reported

otherwise than in good f aith, will bedisqualif ied f r om reporting f urther Pr otected Disclosures under this Policy. Inrespect of such Whistle Blowers, the

Company/Audit Committee would reserveits right to take/recommend appr opriatedisciplinary action.



Protection

The Company will take steps to minimizediff iculties, which the Whistle Blower may

experience as a result of making the Pr otected

Disclosure. Thus, if the Whistle Blower is

required to give evidence in criminal or disciplinary pr oceedings, the Company will

arrange for the Whistle Blower to receive advice

about the pr ocedure, etc.

Any other Employee assisting in the saidinvestigation shall also be pr otected to the same

extent as the Whistle Blower.



DecisionIf an investigation leads the Audit

Committee to conclude that an impr oper or

unethical act has been committed, the

Audit Committee shall direct the

management of the Company to take such

disciplinary or corrective action as the

Audit Committee deems f it



Examples of whistleblowers:

Satyendra Dubey ± NHAI

S.D.Shinde ± MbPT

Arun Bhatia - IAS



S.D. Shinde

³The officer is

very sincere

but extrainquisitive´.

-An entry in annual

conf idential report (ACR)



Notewor thy disclosur es and

instances of victimisation

Exposed pilf erage of imported oil between 1994and 1997.

Reported thef t of chemicals (tetracycline) to thepolice in 1997

Blew the cover on illegal clearance of ship-stores & other materials f r om foreign goingvessels using forged documents.

Discovered and reported a case of f raud in1998, relating to import of machinery worth Rs.6cr ores, involving undeclared & excess cargo.



Caught Shri Sayyed Karim, red-handed, whiletrying to sneak out 150 gold bars valued at about

Rs.70 lacs in 1999.

Submitted conf idential reports about illegalencr oachment in MbPT premises.

In early 2003, he was chargesheeted on f rivolousgr ounds such as for assisting customs & CBI (inviolation of Customs Act, CVC Manual & Major Port Trusts Act) by his corrupt superiors in MbPT) & suspended in November, 2003.

In July, 2004 another f rivolous chargesheet wasissued to him.



In February 2005, Shri S.D.Shinde submitted awell researched report on increase in thef t &smuggling activities in the port area.

5 FIRs were registered as a consequence of thisreport and another subsequent report by animporters¶ association about short landing in 14containers.

As a result conspiracy was hatched against ShriS.D.Shinde by those very cr ooks who wereinvolved in these thef ts, with the connivance of other corrupt MbPT and police off icials.



He was not responsible for guarding the

area where the thef ts occurred since he

was posted as a security incharge of

MbPT hospital till he was arrested.

He was booked as a chief conspirator as a

result of which his anticipatory bail was

denied and he was f alsely arrested &

chargesheeted.



Arun Bhatia

³I n I ndia, youcannot fulfill your mandate by not

confronting thesystem. Honesty means to enforce

honesty in thesystem´.- In interview to virtualpune.com



Transf er is an instrument not only of

harassment but also of silencing pr otest

within the system.

In 26 years of service (excluding the

training period and service in the UN),

Bhatia was removed f r om his post(transf erred) 26 times.



Corruption & mismanagement

detected & addr essed

1972 ± CEO, ZP, Osmanabad

± Political transf ers and victimisation of school

teachers.

± Illegal sanctioning of works not pr osecuting

village, misappr opriating public f unds etc.

± Transf erred within a year.



1982 ± Collector, Dhule

± Filed 42 cases against off icials of various

departments for corruption in the EmploymentGuarantee Scheme.

± Transf erred af ter a year violating therecommendation of the High Powered

Legislature Committee appointed to report onthe corruption.

1984 ± Collector, Mumbai city

± Detected and reported corruption in the

implementation of the Urban Land Ceiling Act. ± Detected illegal construction and lodged

police cases against builders in respect of FSIviolations.



± Departmental enquiry started against Bhatia

for making allegations against senior off icers.

± Pr omotion was denied and Bhatia went to

court, def eated the government, and obtained

his pr omotion in 1991.

1993 Commissioner, FDA,Maharashtra.

± Took action against Glaxo for recycling of

rejected drugs f r om their f actory.

± Was abruptly and prematurely transf erred.



1997-98 Commissioner, Pune Division.

± Dismissal of Talathis & Circle off icers.

± Irregularity in the Irrigation department.

Fake evaluation report.

Issue of work orders without opening of tenders.

Allotment of excess work.



1999 - Commissioner, PMC.

± Dissolution of PMC - Illegal recruitment of

staff by politicians.

± Stopped selective demolition and demolishedillegal buildings of inf luential persons.

± FIR against the Chief Secretary for corruption.

± Transf erred f r om the PMC af ter 7 days, thecitizens went to the High Court, def eated thegovt. and had the transf er cancelled.



RECOMMENDATIONS

Clause 49 of the listing agreement should make

³Whistle blower policy´ mandatory.

Authorities similar to CVC at the State level.

Jurisdiction of authority to include Prime Minister

and the Chief Ministers.

Whistleblower pr otection for IAS & IPS off icers .

A superior who does not act even when anirregularity is br ought to his notice by a

subordinate be held accountable.



Guardian authority should pr otect whistleblowers

f r om for mal & infor mal retaliatory measures.

Scandalised public servant should not have to

exhaust all the innumerable hierarchical levelswithin government or wait indef initely for these

level to respond.

Gagging clause of the employment contract

should be declared void in respect of public

interest disclosure.



H onesty is the first chapter in

the Book of wisdom --

Let it be our endeavor to merit

the character of a just nation

7341890 Whistle Blower Final

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