Whistleblowing Policy

Introduction

1. A whistleblowing policy comprises a formalised, secure and confidential procedure for an individual to disclose or raise concerns on actual wrongdoings or suspected misdeeds/improprieties in financial and other matters, either on the part of management or any other staff, in relation to NAC’s affairs.  
   
   
2. NAC is committed to upholding high standards of corporate governance and work practices. As an enhancement to the internal control system, a whistle blowing policy is in place for the reporting of any malpractice, illegal act or omission by staff. 
   
   

Objective

3. The whistleblowing policy enables the Council and its management to be informed of any acts of misdeed at an early stage and to take appropriate actions on the concerns reported, so as to avoid or minimise negative consequences.  It also serves as a strong deterrent for fraud and other unacceptable conduct or practices.   
   
   
4. The policy aims to: 
   a. Provide channels for reporting alleged or suspected fraudulent activities.  
   b. Provide guidelines and a process flow for conducting whistleblowing investigations.   
   c. Assure whistleblowers that they will be protected from reprisals or victimisation for whistleblowing in good faith. 
   
   
5. This policy applies to all NAC employees and external parties (e.g. contractors, consultants, suppliers, partners, NAC grant recipients). 
   
   

Rationale for Implementing Policy

6. All levels of management have the responsibility for establishing and maintaining effective internal controls to prevent, deter and detect fraud. They are expected to stay alert, recognise the risks and exposures inherent in their areas of responsibility, and be aware of the indicators of fraudulent acts. 
   
   
7. All NAC staff have a duty to report concerns which they may have, or where they have been provided with reliable information, about possible misdeeds or improprieties committed by any staff of all levels in NAC.
   
   

Scope of Policy / Reportable Incidents

8. Whistleblowers can report on the following misdeeds or improprieties (not exhaustive):
   a) Unethical and improper practices or alleged wrongful conduct or non-compliance in matters of financial reporting, internal control, code of conduct or other related matters.
   b) Fraud or suspected fraud, thefts and dishonest acts or making fraudulent statements to stakeholders and regulatory authorities. 
   c) Corruption (accepting or giving bribes), theft and misuse of NAC’s properties, assets or resources.
   d) Misappropriation of funds.
   e) Preferential treatment to artists/arts organisations, grants recipients and intermediaries (such as venue operators, galleries etc).
   f) Conflict of interest without disclosure.
   g) Disclosure of confidential information to external parties.
   h) Concealment of information about any malpractice, misconduct or prohibited activities.
   i) Intimidation, discrimination or harassment of staff and other persons during the course of work or in the capacity as an NAC employee.
   j) Destruction, removal or inappropriate use of records and assets of NAC.
   k) Sabotage of NAC’s IT system.
   l) Actions causing injury to person or loss or damage to NAC’s property.
   m) Abuse of power and authority.
   n) Failure to comply with legal obligation related to NAC contracts or agreements (e.g. breach of a contractual or other common law obligation that the entity/ individual has with NAC, statutory duty or requirement, malpractice in relation to NAC’s affairs).
   
   
9. The whistleblowing policy does not apply to staff grievances or complaints relating to job performance and terms and conditions of employment, of which are administered by the People & Culture (P&C) Department. See examples of grievances or individual matter that is not a whistleblowing concern below:
   a) Terms of employment.
   b) Remuneration and performance appraisal.
   c) Allegations of unfair treatment at work.
   d) Bullying, intimidation, discrimination or harassment of staff and other persons during course of work or in the capacity as an NAC employee.
   e) Disagreements among employees; and
   f) Disagreements between employees and management.
   
   

Reporting Structure and Responsibilities

10. All reports must be made formally in writing (letter or email) with full details on history of the event and reasons for concern and an officer may identify himself/ herself when making the report. In the case of whistleblowers who are members of staff, staff are expected to report a wrongdoing if he/she has sufficient grounds to believe that a wrongdoing has been committed, even if he has been instructed by his supervisor not to make a report. Any Staff member who condones wrongdoing through willful suppression or concealment of relevant information may be disciplined
    
    
11. Whistleblowers can choose to raise their concern or make any reports via the following channels:
    

12. A flow chart on the whistleblowing process is shown in Annex A1 to A2 and the reporting form is attached at Annex B

13. The reporting matrix and timelines are indicated in the table below:
    (i) For ad-hoc reporting by line management to senior management
    (Note: The report should also be surfaced to Internal Audit for concurrent reporting to ARC and MCCY where applicable.)
    
    Reporting Matrix Table for (i)
    
    (ii) For ad-hoc reporting by Internal Audit (IA) to Audit and Risk Committee (ARC) and MCCY
    
    Reporting Matrix Table for (ii)
    
    (iii) For ad-hoc reporting to fraud detection platform and MOF
    
    Reporting Matrix Table for (iii)

Confidentiality and Protection for Whistleblower 

14. The identity of the whistleblower will be kept confidential, unless required by the court or other regulatory authorities to disclose the identity. Where the whistleblower’s identity is to be revealed other than the exceptional circumstances listed below, Internal Audit and Management will endeavor to discuss with the whistleblower first. All transmission of the information will be done through email with security classification as “Confidential”. 
    
    There are exceptional circumstances under which information could/would not be treated with strictest confidentiality such as when
    - NAC is under a legal obligation to disclose the information provided
    - Information is already in the public domain
    - Information is given on a strictly confidential basis to legal/ auditing or other professionals
    - Information is given to the Police or any other Authorities
    
    
15. The reporting party may be required to make a statement or provide evidence as part of the investigative process or in reporting the matter to any relevant law enforcement authority.  
    
    
16. Any employee contacted by the media relating to an investigation under this Policy shall refer the media to the CE. Only CE (or his/her delegate) has the authority to discuss the matter with media.  


17. All inquiries from any other source (including without limitation, from a union representative or a third party affected by the alleged fraud) should be directed to the lead Investigating Officer or Inquiry Committee responsible for the specific investigation.  


18. No information concerning the status of the investigation shall be provided without the approval of CE or Chairman of the Inquiry Committee.


19. During the investigation, the appropriate response to any inquiries relating to a report or an investigation is : “I am not at liberty to discuss this matter”, and no reference should be made to “the allegation”, “the crime”, “the fraud”, “the misappropriation”, or any other specific reference.


20. All information pertaining to the investigation shall be provided on a “need-to-know” basis.


21. Investigation results will not be disclosed or discussed with anyone other than those who have a legitimate need to know. This is important to avoid damaging the reputation of persons suspected but subsequently found innocent of any fraud, and to avoid potential civil liability.


22. The number of staff involved in the investigation will be kept to a minimum so as to ensure confidentiality. This will also prevent leakage of information.


23. For whistleblowers who are NAC staff, assurance will be made for their protection under employment even if the report turns out to be unfounded but made in good faith. The Organisation will not tolerate any harassment or victimization of the whistleblower because of a report made in good faith , and/or evidence provided during investigation.


24. The whistleblower is assured protection against unfair treatment, such as intimidiation, and threats of dismissal or disciplinary action taken against them. Staff who has sufficient grounds to believe that he/she is being unfairly treated as a result of having made such a report or given evidence as a witness in respect of the wrongdoing may submit a complaint via the channels listed in paragraph 11 by filling up the reporting form found in Annex B.


25. If a report made in good faith is not subsequently confirmed by the investigation, no action shall be taken against the whistleblower.


26. However, reporting with a malicious intent will not be tolerated. The Organisation takes a serious view of malicious or vexatious reports, and of any person who intentionally or willfully gives false or misleading information against someone else. Therefore, action may be taken against a person who makes such report.

Retention of Records

27. Internal Audit will maintain a log of all reported incidents or concerns, tracking their receipt, investigation and resolution
    
    
28. Internal Audit will also maintain a record of all steps taken in connection with any investigation conducted of a reported incident, including investigations which are subsequently found to be unsubstantiated or cases dropped because of insufficient information.
    

How will NAC Respond

29. Any legitimate concern raised or information provided will be reviewed and investigated if deemed necessary, taking into the consideration the following: 
    - Severity of the issue raised
    - Credibility of the concern or information; and 
    - Likelihood of confirming the concern or information from attributable sources
    
    
30. Depending on the nature of the concern raised or information provided, the investigation may be conducted or referred to the relevant persons or entities:
    - The Audit Committee
    - The External or Internal Auditor
    - Forensic Professionals
    - The Police or Commercial Affairs Department; and/or
    - The Corrupt Practices Investigation Bureau
    
    
31. Investigations and follow-up actions for all cases will be reported to the Audit Committee.