Agenda item

Members considered the Whistleblowing and Anti-Fraud, Bribery and Corruption Policy Update by the Director of Finance including the Whistleblowing Policy, Anti-Fraud, Bribery and Corruption Policy and Anti-Money Laundering Statement.

Key points were discussed as follows:

• The whistleblowing policy already existed but had been reviewed and updated.
• Specific improvements included ensuring there was a clear confidential reporting route/hotline.
• The authority previously had a bribery policy but no clear, articulated overarching anti-fraud or anti-corruption framework.
• Following internal audit work and legal advice, a broader anti-fraud, bribery and corruption policy had been drafted which set out roles of managers, members and officers, escalation procedures, the approach to investigation and practical guidance.
• An anti-money laundering statement had also been drafted, not because it was a statutory local authority requirement but because it was considered good governance to define expectations and warning signs clearly.

It was also explained that the documents collectively formed a consistent policy package, with a flow chart to demonstrate reporting and escalation routes. Members were also advised that the purpose of bringing the report to the Committee at this stage was to enable Members to comment before the finalised policies were embedded and communicated across the organisation through training and publicity, with some details, such as contact information, still requiring finalisation.

Councillor questions and comments were as follows:

• The Chairman queried the status of the documents, noting that one part of the whistleblowing report stated the policy had been implemented, adopted by the Council and had been discussed with trade unions, whilst Officers had also referred to it as still requiring finalisation. – It was clarified that the whistleblowing policy was an existing, live document that had been updated and discussed with trade unions, however, it remained open to further revision and that the anti-fraud, bribery and corruption policy and anti-money laundering statement were still in draft form.
• Some Members observed that, despite whistleblowing being within the Committee’s remit, had been unable previously to locate the policy on the Council’s website. It was suggested that the policy should be better advertised to locate for Council use.
• Councillor D.J. Nicholl explained his involvement in Whistleblowers UK and recent attendance at an event in Parliament during Whistleblower Awareness Month and extended his offer of assistance in reviewing the policy.  – The Section 151 Officer welcomed the offer of assistance.
• Members noted that the policy wording for confidentiality and support indicating the Council would try to protect identity but might need to reveal the individual as part of an investigation with Members expressed the view that the wording might discourage potential whistleblowers. - Officers responded that it was important to keep reporting routes open so that the Council heard concerns. It was also explained that future reports would be reviewed by a group, including the Section 151 Officer, Head of Internal Audit and Monitoring Officer, who would assess anonymous concerns objectively.  The Committee noted that anonymous reports would still be taken seriously, although named concerns often allowed a stronger follow up.  The Chairman also connected the issue to data protection and safeguarding, commenting that there were limited circumstances in which confidentiality might have to be overridden, for example where a vulnerable person was at risk. 
• The Chairman suggested that the terminology used in the policy which stated that the purpose of the policy was to reassure employees that they should be able to raise “genuine” concerns, should be reviewed.  The Chairman expressed the view that this wording might imply that the whistleblower’s concern might be judged.  – It was agreed by Officers to review the wording further. 
• A Member observed that the policy referred to external routes such as the national whistleblowing helpline and possible referral to the external auditor and clarity was requested whether the policy should explain more clearly that whistleblowing could be made directly to the external auditor and how that would work in practice.  - Officers responded that there were different reporting routes depending on the issue.  In practice, external auditors often had a limited remit and would frequently refer matters back to the local authority to be handled internally.  However, there was no objection to making the route to external audit clearer in the policy.  The Head of Internal Audit added that all the routes mentioned were valid but ultimately routes often led back to the organisation and therefore it was especially important that the Council’s internal route inspired confidence.  The Chairman remarked that policies and procedures were only useful if the people who needed them knew where to find them and had effectively been shown how to use them. 
• What appropriate steps should be taken if a Member was approached by a local resident with a whistleblowing allegation?  – In response the Deputy Monitoring Officer advised that they should refer the matter to the Section 151 Officer or Monitoring Officer in the first instance.  The Head of Internal Audit also advised that if Members ever received a whistleblowing complaint, they should not investigate it individually, as doing so could jeopardise a formal investigation.  The Chairman added comment that this advice should be shared with all Members, not just those present on the Committee.

The Committee considered the policy package in detail, however, did not formally sign off the draft policies as final, but instead concluded that:

• The policy framework remained a work in progress.
• The Committee had provided comments and suggestion.
• The Section 151 Officer would be asked to bring the policies back to a future meeting once updated and finalised.

RESOLVED that

1)    The Audit, Standards and Governance Committee considered with appropriate comment the contents of the Whistleblowing Policy, Corporate Anti-Fraud, Bribery and Corruption Policy and Anti-Money Laundering Statement; and

2)    Confirmed that the policy framework remained in working progress; the Committee had provided comments and suggestions and the Section 151 Officer would report the policies back to a future meeting once updated and finalised.