SINGAPORE: Recent fraud cases in the public sector and alleged breaches by Singapore-listed companies like China Sky Chemical Fibre have put the spotlight on whistle-blowing.
Experts said whistle-blowing has a role to play in uncovering fraud and it is necessary to ensure that channels are open for whistle-blowing.
The Institute of Certified Public Accountants of Singapore (ICPAS) -- the largest professional body in Singapore -- has called for companies to build a culture of ethics and governance.
Organisations should also put in place systems for its staff and external parties to be more vigilant and report wrongdoings.
Experts said fostering a culture that encourages whistle-blowing may help the authorities uncover issues or discrepancies within an organisation.
ICPAS's president, Mr Ernest Kan, said: "Whistle-blowing is not a new topic, but of late, it has gained much attention judging from the number of stories that have gripped our headlines."
Some industry observers said short-seller Carson Block and his research house, Muddy Waters' recent attacks on Singapore-listed commodities trader Olam may be regarded as a form of whistle-blowing.
But many point out that Carson Block should not be considered a whistle-blower.
Instead, he is an analyst who had raised questions about the company's accounting methods in the firm's research report.
Nanyang Business School's associate professor, Ms Tan Lay Hong, said: "The matter is really very contentious because you look at what Muddy Waters is questioning. It is their way of valuing the natural resources -- which is basically mark to market."
Given the recent rise in frauds in Chinese companies such as Sino-forest, experts said whistle-blowers should actively sound the alarm for any discrepancies they spot in listed companies.
Harry Elias Partnerships' managing partner, Mr Philip Fong, said: "Whistle-blowers also have a responsibility to make sure that what they are reporting is true to their best of their knowledge and in a sense, provide as many facts as possible to substantial their complaint."
In Singapore, there are laws to protect the identities of whistle-blowers who may be a staff member or external parties.
According to lawyers, whistle-blowers who made complaints based on good faith will be insulated from defamation lawsuits.
- CNA/lp
ICPAS encourages companies to open channels for whistle-blowing
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ICPAS encourages companies to open channels for whistle-blowing
