WHISTLEBLOWING
Learn to act without fear Chris Biggs asks what the case of Rihan v EY tells us about whistleblowing in accountancy. Chris Biggs MD, Theta Financial Reporting
E
Y has bolstered criticism that some firms have acted as enablers for financial misconduct. EY was found liable for covering up evidence of money laundering and forcing out a whistleblower. It was ordered to pay approximately $11 million in damages. The case of Rihan v EY [2020] EWHC 901 was brought by Amjad Rihan, a former EY partner in Dubai, who exposed evidence of money laundering by gold refiner Kaloti Jewellery International. According to the website Inequality.org, Rihan was removed from an audit on the quality and propriety of Kaloti’s business practices when he sought to report the evidence to authorities. This has bought new questions to the accounting and auditing space about the role that whistleblowing has within the sector, and how the industry reflects on this landmark case.
The need for a new culture
Whilst many businesses work in a dynamic “open space” environment, they do not have an “open door” culture where employees are actively encouraged to voice their concerns, something that we have seen in this case. A recent survey called “Silence in the City 2” by charity Protect (see bit.ly/38l0xoT) found that 70% of those who spoke up about workplace wrongdoing were victimised, dismissed or felt forced to resign after whistleblowing. 33% of concerns raised were ignored by the employer. The chief executive of Protect Liz Gardiner commented in the report that since the financial crisis of 2008, the manner in which so many whistleblowers continue to be ignored is particularly disappointing (see her comments in the box “A need for change”).
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ISSUE 112 | AIAWORLDWIDE.COM
