SIA “RECK” internal whistleblowing policy

  1. INTRODUCTION

1.1. General

Internal whistleblowing is a tool of good corporate governance that promotes the sustainability, transparency and reliability of any organization. Internal whistleblowing promotes the trust of employees, investors and cooperation partners. An internal whistleblowing system helps an organization to build an internal culture based on openness and zero tolerance for violations.

The essence of the internal whistleblowing system is that any employee of the organization can inform about any possible violation affecting the interests of society in the activities of SIA “RECK” in order to prevent it in a timely manner, before the reputation of SIA “RECK” is threatened, it incurs losses, or the competent state institutions are involved.

By using the internal whistleblowing system for reporting, the report gets closest to the “root cause of the problem” and the concerns raised can be promptly assessed, as well as a potential violation can be prevented or systemic deficiencies identified.

A whistleblowing policy is generally intended to make it easier for staff members to report violations in good faith without fear of adverse consequences for their actions. It is intended to promote the transparency of the organization and support its system for combating activities that could harm its operations and reputation. In order to protect the integrity and reputation of SIA “RECK”, all SIA “RECK” employees who report cases of suspected fraud, corruption, collusion and coercion, as well as other serious violations of SIA “RECK”’s applicable rules and policies, must be actively supported. Employees must also cooperate in the investigation of such incidents. By creating an environment of trust and maximum protection for its employees, SIA “RECK” wishes to encourage them to cooperate fully. It introduces measures that will ensure that employees who report violations in good faith are afforded the utmost confidentiality and the greatest possible and most effective protection against any retaliation or reprisals, whether real or threatened.

Regulatory basis for whistleblowing: Directive 2018/0106 of the European Parliament and of the Council (COD) and the Whistleblowing Law.

A person must remember that familiarization with the internal whistleblowing system does not exclude their obligations to familiarize themselves with the whistleblowing regulation in regulatory enactments.

1.2. Basic principles

Promoting whistleblowing. SIA “RECK” supports and encourages, rather than discourages, the honest raising of whistleblowing about potential violations in its operations.

Non-disclosure of the identity of the whistleblower. The whistleblower can feel safe – SIA “RECK” does not disclose information about who has raised the alarm about violations. The whistleblower has the right to create an anonymous report, but in such a case it will not be possible to ensure the legal protection provided for in regulatory enactments and this policy.

Honest and responsible reporting. The whistleblower reports potential violations in good faith, without assuming responsibility for the truthfulness of the information provided, but responsibly assessing its truthfulness and reliability.

Zero tolerance for retaliation and protection. The organization does not allow an employee who raises a concern to suffer retaliation or condemnation for doing so.

Accessible procedures. There is an easily accessible and understandable procedure for raising a concern within this organization. It includes an explanation of when to raise a concern internally and when to raise a concern externally.

Evaluation of reports. Whistleblower reports are recorded and evaluated carefully and responsibly. Appropriate action is taken when a violation is detected.

Participation. The internal whistleblowing system is a new tool that will encourage everyone to be involved in the operations and development of their organization.

Feedback. The whistleblower receives confirmation and information about the progress of the report.

Proportionality. The internal whistleblowing system shall be designed in accordance with the size of the organization and the specifics of its operations, including potential risks.

Better corporate governance. An internal whistleblowing system is an organization’s management and internal control tool that helps it prevent violations in a timely manner.

  1. RAISING ALARM

2.1. What is whistleblowing?

According to the Whistleblower Law, a whistleblower is a natural person who provides information about a possible violation that may harm the interests of society, if the person believes this information to be true and it was obtained while performing work duties or establishing legal relationships related to the performance of work duties.

  1. “.. obtained in the course of their work” – this means that the whistleblower provides information that they have obtained at work in connection with the performance of their work duties, in connection with the performance of their intended work, or about their work after it has been completed. The whistleblower reports some action that they observe “on the inside”. The whistleblower accesses information about the violation in the course of their work duties (in most cases they will have professional knowledge/understanding that will allow them to understand that what is happening may cause harm), or due to other circumstances, they have the opportunity to observe suspicious activities while they are in the organization
  2. “.. the information is considered true and the report is substantiated” – this means that the whistleblower responsibly and honestly evaluates the information that he or she will provide in the report and, as far as possible, ensures that the information provided is true and substantiated.

This includes the following essential conditions:

  • Good faith – the whistleblower does not assume responsibility for the truthfulness of the information provided, but must responsibly evaluate the information provided. The whistleblower shall provide information in his/her report in good faith, in good faith (the principle of rights is enshrined in Article 1 of the Latvian Civil Law).
  • The right to freedom of expression granted to a person carries with it duties and responsibilities, and a person who decides to make information public should, to the extent possible, carefully verify that it is true and reliable (a lesson from the judgment of the European Court of Human Rights in the case of “Heinisch vs Germany”).
  • The whistleblower must have reason to believe that the information provided is true.
  • Honesty – without cheating or deceit. This does not mean that the individual is right or that he has any other motive. Only a whistleblower who knows that the information he provides is false or untrue can lose the protection provided by the Whistleblower Act. If the whistleblower’s report knowingly provides false (false) information, then it is not whistleblowing and no guarantees of protection are granted to such a person.

The whistleblower may make an unknowing mistake – there is a possibility that the violation will not be detected as a result of the inspection.

Providing knowingly false (false) information is not whistleblowing and may result in liability as specified in regulatory enactments.

  1. “.. about a possible violation” – this means that a violation has probably occurred, is occurring or may occur. The whistleblower expresses his concerns, suspicions, but he does not bear the burden of obtaining all the evidence. In turn, a “violation” in the sense of the law is a violation of legal norms, a violation of binding ethical or professional norms.
  2. “.. may harm the public interest” – this means that the purpose of whistleblowing is to prevent threats to the public and to inform about a threat to the public interest, namely, an organization’s actions that may endanger a part of the public or some interests that are essential to society.

2.2. Persons who can exercise the right to whistleblowing – whistleblower

First of all, the Internal Whistleblower System is intended for employees of SIA “RECK” – so that those who work at SIA “RECK” on a daily basis have the opportunity to provide information about possible violations that they observe while performing their work.

Secondly, the Internal Whistleblower System is also intended for persons employed by the organization (for example, on the basis of a company contract) or hired by the organization to provide a service or perform work for it, as this person may also observe a violation in the organization’s operations within the scope of their work.

Thirdly, using the internal whistleblowing system, violations observed in the context of work in this organization can be reported by members/shareholders of the organization (in the case of SIA “RECK” these will be only members) and persons who manage or supervise the activities of the organization.

Fourth, volunteers can use an internal whistleblowing system.

Fifth, a potential violation can be reported by individuals who are establishing a legal relationship with the organization (e.g., a candidate in a job interview, a service provider in the pre-contractual process) or have terminated it.

The whistleblower must remember that individual harassment is not the subject of reporting:

  • Deliberately providing false information, disclosing information containing state secrets, and reporting only personal interests are not considered whistleblowing.
  • A report of a violation of personal interests is not whistleblowing (e.g. an employee has a dispute with a supervisor or is dissatisfied with their working conditions and reports it – this will not be whistleblowing)

2.3. What can be reported?

In accordance with the nature of whistleblowing and the Whistleblowing Law, regarding SIA “RECK” and its activities, a whistleblowing may be filed in the following cases:

  • inaction, negligence or abuse of official position by officials;
  • any type of financial or non-financial misconduct (e.g. fraud, corruption, bribery, theft);
  • violence, abuse of power, inadequate representation;
  • non-compliance with regulatory enactments;
  • discrimination based on gender, race, disability;
  • concealment of information about any of the violations;
  • tax evasion;
  • public health threat;
  • construction safety hazards;
  • environmental safety threats;
  • occupational safety hazards;
  • threat to public order;
  • human rights violations;
  • irregularities in the field of public procurement;
  • violation of competition law.

2.4. Anonymous report

The Whistleblower Act does not provide for the submission of anonymous reports and those submitting such reports are not provided with the protection provided for in the law. It is necessary to indicate the details of the whistleblower in the report to ensure one of the basic principles – feedback. It is also necessary to know the identity of the whistleblower to ensure the guarantees of protection provided for in the law (to know which person needs to be protected).

If a person submits an anonymous report, SIA “RECK” will become aware of the possible violations, but the person will not be granted any protection guarantees.

2.5. Whistleblower identity and protection

SIA “RECK” or any other place where the whistleblower has filed a complaint about a violation is prohibited from causing any adverse consequences (repression) to the whistleblower and his/her relatives due to the whistleblower, if the whistleblower has filed a complaint in accordance with Article 4 of the Whistleblower Law.

The Whistleblower Law, in Article 10, provides for the following protection guarantees:

  • Identity protection;
  • Protection against adverse consequences for whistleblowing;
  • State-provided legal aid (state-provided legal aid is provided to a whistleblower at his or her request in accordance with the provisions of the State-Provided Legal Aid Law, based on the documents submitted by the whistleblower, as well as, if necessary, the opinion received from the whistleblower contact point and without assessing the person’s property status and income level);
  • Exemption from payment of legal costs in civil proceedings and state fees in administrative proceedings in court;
  • Temporary protection in civil and administrative proceedings in court;
  • Release from legal liability;
  • Adequate compensation for losses or personal injury, including moral damage;
  • Consultations on your legal protection.

SIA “RECK” may, if necessary, also apply other protective measures that are not required by law.

Upon receipt of a whistleblower report, it is registered separately (indicating the registration number and identification number), the personal data of the submitter is pseudonymized (encrypted). Also, the whistleblower report and the materials attached to it have the status of restricted access information. As a rule, whistleblower reports are stored with the head of the office. If the report is submitted in paper form, they are kept in a separate folder, in a locked room. If the report is submitted electronically, it is located on the head of the office’s computer, in a separate folder, with access only to the head of the office. The personal data of the whistleblower may be transferred only to persons (institutions) who need them for the consideration of the whistleblower report or a violation case initiated on its basis, or for the protection of the whistleblower or his relatives.

  1. SUBMISSION AND CONSIDERATION OF WHISTLEBLOWER REPORTS

3.1. How can I submit a whistleblower report?

A whistleblower can submit a report about a violation using the internal whistleblowing system in the following ways:

  • By completing the whistleblower report form, signing it by hand and handing it over to the person indicated on the form;
  • By filling out the whistleblower report form and sending it to the email address of the person indicated on the form, using a secure electronic signature;
  • Providing information orally to the office manager, which is accordingly recorded in writing.

When filling out the report form, the whistleblower shall provide clear and thoughtful information, including:

  • the identity of the whistleblower;
  • a description of the violation, mentioning specific facts;
  • information about natural or legal persons who have reason to believe that they are involved in the commission of this violation;
  • the manner in which the information was obtained – while performing work duties or establishing legal relationships related to the performance of work duties;
  • whether this violation has already been reported before.

It is important to provide as much detailed information as possible and to indicate the facts and names of the persons. It is also important to attach copies of documents that the person has. Other evidence (e.g. photographs, copies of e-mail correspondence) can also be attached if the person has such evidence and it can help to respond to the violation.

In accordance with Section 4 of the Whistleblower Law, a person is not prohibited from filing a whistleblower report with:

  • At the State Chancellery, using the whistleblower contact point (trauksmescelejs.lv) or through an association or foundation, including a trade union or association of these;
  • by contacting the competent authority.

A person is also not prohibited from raising an alarm by providing information publicly, but in that case the requirements of Section 4, Part 2 of the Alarm Raising Law must be observed.

3.2. Handling of whistleblower reports

The person responsible for receiving and reviewing reports (the whistleblowing contact person of SIA “RECK”) is the head of the office of SIA “RECK”, if necessary in consultation with the board and/or administrative manager of SIA “RECK”. SIA “RECK” provides the head of the office with the same legal protection as whistleblowers. If necessary, the head of the office may also consult with the State Chancellery or competent institutions.

Persons who can review the whistleblower’s report refuse to review the report due to a conflict of interest.

Within seven days, the report’s prima facie compliance with the whistleblowing criteria set out in the law is assessed and a decision is made to recognize the report as a whistleblower’s report.

The submitter of the report is informed within three days of the decision being made.

Within three months, the submitter of the report is informed about how his report has been reviewed on the merits.

The main processes for evaluating the report:

  1. General report review (the submitter is checked and whether all fields of the report form have been filled in);
  2. Investigation of the violation (an investigation is conducted into the violation, its nature, impact on SIA “RECK” and the general interests of society, and the consequences of the violation);
  3. Choosing an action after studying the report (the most appropriate action is chosen in the event of a violation);
  4. Notification of the final result to the report submitter.

The whistleblower’s report is examined carefully and responsibly. The action of SIA “RECK” after studying the report is determined individually.