BUMN Minister Encourages State-Owned Companies to Use Whistleblowing Systems
Minister of BUMN encourages all state-owned companies to integrate whistleblowing systems.
Minister of BUMN, Erick Thohir, on December 21, 2020, visited the Corruption Eradication Commission (KPK) with the aim of synergizing with the commission in eradicating gaps in corruption that exist in his Institution, according to Tempo (12/22).
Whistleblowing system cooperation
Erick Thohir’s main goal during his visit to the KPK headquarters is the whistleblowing system service. He invited all state-owned companies to sign a whistleblowing system cooperation agreement with the KPK.
On this occasion, Minister Erick said that currently, only two state-owned companies are collaborating with the KPK on a whistleblowing system commitment, namely PT Angkasa Pura II (Persero) and PT Perkebunan Nusantara III (Persero). In fact, according to Minister Erick, the existence of a whistleblowing system in companies is one of the steps taken in order to create transparency to prevent corruption.
The Cooperation Agreement on Handling Complaints in Efforts to Eradicate Corruption by two state-owned companies and the corruption eradication agency serves as a legal umbrella between state-owned companies and the KPK. Its purpose is to integrate the system so that it will be used better.
Steps to prevent corruption
The chairman of the KPK, Firli Bahuri, also welcomed the steps taken by the BUMN minister. According to Firli, everyone must be active and involved in the eradication of corruption through the whistleblowing system. He further stated that the presence of the system is an alarm or wake up call for all parties in a corruption case.
The President Director of PT Angkasa Pura II, Muhammad Awaluddin said that the steps taken by Angkasa Pura II were to prevent corrupt practices in order to strengthen good corporate governance. What this company is doing is expected to be a concrete step towards strengthening the existing whistleblowing system by integrating it with anti-corruption agencies.
Minister Erick hopes and encourages other state-owned companies to follow the steps that have been taken by PT Angkasa Pura II (Persero) and PT Perkebunan Nusantara III (Persero). By presenting a system that is easier to reach, eradicating corruption in various SOE sectors will undoubtedly be easy to do because all can be involved in eradicating corruption.
Benefits from implementing whistleblowing systems
Both state-owned and private companies can benefit from implementing a whistleblowing system. According to Association of Certified Fraud Examiners (ACFE), when a company integrates the system, it will have the opportunity to:
- proactively detect and address misconduct
- identify areas that might need improvement
- reinforce an ethical corporate culture and internal accountability
- comply with laws and regulations
- encourage internal reporting of concerns
- mitigate fines and penalties
- preempt any resulting bad publicity and the associated costs of the public disclosure and any possible legal action that might follow which ultimately resulting damaged reputation.
Any company that takes the decision to implement a whistleblowing system demonstrates that it is committed to being honest, fair, and ethical in all its activities.
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Written by: Charles S
Edited by: Putri P