The Financial Reporting Council, FRC, has proposed incentives for whistle-blowers in the private sector, as part of its effort towards ensuring good corporate governance in that sector of the economy.
This is part of the provisions of the 2018 Draft Code of Corporate Governance of the FRC to fight corruption in the private sector, which had been considered critical to the nation’s anti-corruption war.
Speaking at the public hearing on the Draft Code, Executive Secretary/Chief Executive Officer, FRC, Mr. Daniel Asapokhai, said the whistle blowing policy of the Federal Government had brought clear gains in public administration, adding that workers in the private sector should be equally encouraged to report unwholesome practices in the private sector.
Under the new code, staff who report infractions would be rewarded and protected from victimization from the management.
Some of the areas that private sector workers would be expected to report their managements include payment of tax obligations, statutory remittances such as pension deductions and other sundry payments to the three tiers of government.
The draft code also makes it illegal for a Managing Director and Chief Executive Officer of a publicly quoted company to succeed the chairman of the company’s Board of Directors, except only after a period not less than three years of his exiting the post of managing direrctor.
He said: ‘’The Managing Director/;CEO should not go on to be the chairman of the same company. If in very exceptional circumstances, the board decides that a former MD/CEO or an ED should become chairman, a cool off period of three years should be adopted.”
Similarly, it would be unlawful for the same person to hold the position in the executive management of more than one company or for an MD, Executive Director to chair committees in their companies.