Tuesday, November 27, 2012

Whistleblowing and Justice




The recent Global Financial Crisis, from which the world is only now recovering, has had a massive negative  impact .Many have seen their savings decimated, those about to retire  or already retired , have suffered immensely. Job losses have been huge The causes of the GFC are debated, but widely attributed to unethical or at least inadequate sub-prime lending practices by financial intermediaries. Yet few whistleblowers came forward to warn the financial community , or the regulatory authorities  of the perverse practices of Lehman Bros,  Goldman Sachs ,etc. who were at the heart of the problems. The CEO of the last mentioned company has publicly argued for a reduction in old age entitlements (here) .

Some writers even attribute the crisis to the growing inequality  between the rich and the poor,  noticeable worldwide but particularly in the US. From 1980 to 2005, more than 80 percent of total increase in Americans' income went to the top 1 percent. Timothy Noah in The United States of Inequality writes

The United States' economy is currently struggling to emerge from a severe recession brought on by the financial crisis of 2008. Was that crisis brought about by income inequality? Some economists are starting to think it may have been. David Moss of Harvard Business School has produced an intriguing chart that shows bank failures tend to coincide with periods of growing income inequality. "I could hardly believe how tight the fit was," he told the New York Times. Princeton's Paul Krugman has similarly been considering whether the Great Divergence helped cause the recession by pushing middle-income Americans into debt. The growth of household debt has followed a pattern strikingly similar to the growth in income inequality (see the final graph). Raghuram G. Rajan, a business school professor at the University of Chicago, recently argued on the New Republic's Web site that "let them eat credit" was "the mantra of the political establishment in the go-go years before the crisis." Christopher Brown, an economist at Arkansas State University, wrote a paper in 2004 affirming that "inequality can exert a significant drag on effective demand."

[http://www.slate.com]  

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Sunday, June 26, 2011

Courage needed to protect whistleblowers

News article 

·         A. J. Brown 
·         From:The Australian 
·         June 24, 2011 12:00AM
·                     Share
IN 2007, the ALP made strong commitments to greater transparency in government, including the reversal of a draconian approach to whistleblowers.
In line with the report "Whistleblowing in the Australian Public Sector", launched by Special Minister of State John Faulkner in September 2008, a House of Representatives inquiry chaired by Mark Dreyfus QC recommended a comprehensive whistleblowing scheme, and new legislation.
The government announced its response to the inquiry in March last year, accepting the key recommendations including new rules for when wrongdoing could be the subject of further disclosure to the media.
However, that represents the last point at which anything is known about the content of the federal government's proposed bill.
In August, the minority Labor government was formed on the support of three independent members and the Greens.

Related Coverage

·         WikiLeaks: the Pentagon connection The Australian,1 Apr 2011
·         Assange blasts US bid for Twitter info The Australian,15 Feb 2011
·         WikiLeaks to get tax dodger data Adelaide Now,16 Jan 2011
·         Probe 'targets' WikiLeaks' tweeters Herald Sun, 8 Jan 2011
·         WikiLeaker not tech terrorist, says lawyerAdelaide Now, 20 Dec 2010
Two of these agreements included commitments to introduce legislation to protect whistleblowers and seek to have such legislation passed by June 30.
Almost four years since the new federal commitments, this self-imposed deadline is about to pass without the government having made any recent detectable progress. No alternative timetable for such a bill has been announced, nor any consultation between the government and key stakeholders on many outstanding issues.
If the timetable continues to slip, there is little prospect of these issues being resolved in time for the bill to be introduced, debated and passed by the present parliament. The past 10 months have seen a smaller breakthrough with the introduction of a federal shield law for journalists, strengthening their ability to protect the identity of confidential sources.
For many legislators, the shield law may appear to be a substantial step towards the protection of whistleblowers. However, it shields journalists from prosecution for contempt. It does nothing, at law, to protect whistleblowers from prosecution for releasing information.
The conflicted thinking of Australian leaders about the nature of public whistleblowing has also been demonstrated by inconsistent reactions to the online publisher WikiLeaks.
In December last year, after WikiLeaks's publication of a large volume of leaked US diplomatic cables, Australia's Prime Minister agreed with US leaders that WikiLeaks founder, Australian citizen Julian Assange, must have broken the law. This proved to be a premature over-reaction. Not only was the law Assange had broken not identified, but the Australian Federal Police could not identify him as having broken any law.
Now it is known that a US grand jury investigation is underway in Virginia, assessing whether charges can be laid not only against alleged whistleblowers, but against WikiLeaks for conspiracy to communicate or transmit national defence information in violation of the US Espionage Act.
However, here the attempt to police the conduct of the new media, and WikiLeaks in particular, has reached almost comic proportions. In August 2010, the Pentagon publicly called on WikiLeaks to do the right thing, and stop encouraging leaks.
However, this demand is close to absurd, because other media outlets continue to actively solicit confidential information, just as they have always done.
The Wall Street Journal's "safehouse" online drop-box tells whistleblowers that secret documents and databases "are the key to modern journalism, but they are almost always hidden behind locked doors, especially when they detail wrongdoing such as fraud, abuse, pollution, insider trading, and other harms; that's why we need your help".
In Australia, the ABC website says: "The ABC News Online Investigative Unit encourages whistleblowers, and others with access to information they believe should be revealed for the public good, to contact us. To leak a story, please fill out the form below and click the 'Send' button."
The standard now imposed on WikiLeaks is not one that has been, or can be, realistically imposed on any media organisation at least, not in any nation claiming to have free media and a commitment to liberal democracy.
The lesson for Australian law reform remains that there is no need to go down this road. Whether or not new rules are needed to regulate how and by whom confidential information is published, new rules are needed to govern when it may be disclosed without liability to the officials who disclose.
Automatic prosecution of leakers, irrespective of the public interest in the disclosure, is no longer a sustainable response as recognised by the Australian government's commitments to public interest disclosure legislation.
Faced with the challenges of the new media age, the responses reinforce the need to maintain a clear, long-term vision about the role of public whistleblowing.
Australian leaders need to hold their nerve and course in putting in place the type of public interest disclosure legislation to which they have committed.
Together these results make for a mixed report card. On one hand, Australian governments have been restating their in-principle commitments to transparency in government, and continuing to innovate in legislative and policy responses to whistleblowing in important respects.
On the other hand, key reforms also hang in the balance.
A.J. Brown is professor of public law at Griffith University. This is an edited extract of his paper Flying Foxes, WikiLeaks and Freedom of Speech to the International Whistleblowing Research Network conference under way in London.

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