Understanding Whistleblowing in Oman

The reporting of wrongdoing discovered in a workplace is a complex area which requires a fine balance between a variety of competing interests.  Corruption has a detrimental effect on any economy as it creates an unfavorable business environment.  Whistleblowers play a key role in revealing corruption, incorrect financial reporting and fraud.  Wrongdoing in an organisation is often discovered only if someone from the inside stands up and speaks out.

Whistleblowing, although not defined under Omani law, is generally considered to be “the disclosure of information about a perceived wrongdoing in an organization.”  The concept of anonymous disclosure is not widely accepted in the Middle East.  The reason behind this is the fear of unfounded allegations arising, and more generally, a cultural aversion to the concept of informing on a co-worker. It is therefore essential that any whistleblower policy provide effective protection against retaliation.

Many countries have ratified whistleblowing protection laws through domestic legislation and international conventions.  As a result, many employers have implemented that legislation in the form of employee codes of conduct, whistleblowing policies and anti-fraud measures.  The aim of these policies is to offer a reporting mechanism that is confidential, objective and independent, hence making the whistleblower feel confident about raising concerns.

Currently, specific whistleblowing does not exist in Oman.  Nevertheless, the Capital Market Authority (the “CMA”) has recently launched a whistleblowing window on its website.  The move aims to upgrade the capital market and insurance sectors and protect the participants from unfair and unsound practices.  “Whistle-blowing window is a communication conduit between CMA and the whistle blower as the person reports the information or violation or illegal activities or illegal acts that might cause damage to the capital market and insurance sector participants or the company or the public,” the Authority stated.  The whistleblowing window is a simple and swift channel of communication between CMA and all the entities regulated by CMA in the insurance and capital market sectors to report any unacceptable behavior such as conduct which is unethical, fraudulent, illegal or corrupt or which constitutes harassment, discrimination or bullying.

The window will serve any person who is an employee, shareholder, director, internal auditor or external auditor in addition to a supplier or client who detects or comes across such practices.  The window aims to deliver a swift system for reporting irregularities that might have detrimental impact on the company so the CMA can take timely remedial action.  The move will enhance transparency and flow of information on malpractices to the regulator, which will lessen such practices and irregularities and will enrich confidence of investors to invest in the market, besides creating a wide communication network between the regulator and whistleblowers as it will save time and ensure confidentiality regarding the identity of the whistleblower.

The lack of domestic whistleblowing legislation in Oman has resulted in the Government and private sector taking the lead in enacting internal anti-bribery and whistleblowing policies.  Omani and international companies doing business in Oman that plan on implementing anti-corruption measures will undoubtedly find it difficult to do so without also putting in place a comprehensive whistleblowing policy.