In the United States, monetary whistleblower awards have proven to be an effective tool in fighting corruption and rooting out fraud. This year, Ukraine has started paying out whistleblowers awards as it seeks to increase its anti-corruption efforts during its war with Russia.
Ukraine implemented a whistleblower award law in 2019. Under the law, individuals who report corruption, such as bribes or kickbacks, are eligible to receive up to 10% of the amount of money in the case. Awards are capped at $500,000.
The first two whistleblower award cases were finalized in 2023 but payments were not made until this year.
In one case, businessman Yevhen Shevchenko reported that he “was asked to approach Ukrainian investigators with a $5 million bribe on behalf of a former top official in 2020,” according to Reuters. Shevchenko reported the scheme to anti-corruption officials and engaged in a sting operation. He was awarded the equivalent of around $320,000.
According to Reuters, Shevchenko “believes bounties are a strong ‘motivational tool’ that could compel civic-minded, though needier Ukrainians close to major graft – such as drivers or maids – to report wrongdoing. ‘There is a very large number of people who can help uncover crimes but don’t because they’re afraid, or for some other reasons,’ he said.’”
In the other instance, “a defence ministry official was awarded the equivalent of around $40,500 for reporting a bribe offered in 2021 in exchange for a favourable audit of a ministry contractor,” Reuters reports.
Ukraine’s National Agency on Corruption Prevention (NACP) detailed the first whistleblower award as “a historical event that fundamentally establishes the formation of a whistle-blowing culture in Ukraine and encourages whistle-blowers to report on the facts of corruption that they have managed to record.”
“Disclosure is one of the most effective methods of combating corruption,” NACP stated. “And an effective means of counteracting it is the timely informing of the competent authorities about the facts of the commission of corruption crimes. The practice of civilized countries has proven that exposing corruption is the basis for building safe and prosperous societies.”
“In a transparent democratic world, in particular in the USA, paying a reward to a whistleblower is the norm and encourages citizens to be responsible,” NACP added. “Unlike the USA, our country is just forming a culture of disclosure, and therefore it is critically important to popularize it in Ukraine. After all, to expose means to show awareness, care and integrity towards fellow citizens.”
Further Reading:
For the first time in the history of Ukraine, a corruption whistleblower received a reward
Ukraine steps up wartime anti-graft push with payouts for whistleblowers
