case 01
Summary
The compliance officer at EMI Nonprofit LLC. issued warnings about integrity risks on several occasions throughout the year, but the CEO was not satisfied with the content of those warnings. A few weeks before the officer was due to submit his annual report to the Supervisory Board, he was dismissed.
The lack of a reporting system, the disregard for corruption risks, and misleading reports from the former compliance officer are just a few of the shortcomings identified during the year. All of these were reported to the CEO.
01
What was uncovered
Dr. Istvan Pinter as a compliance officer reported integrity issues to the CEO on several occasions.
02
What wrongdoing occured
Due to the warnings she had received during the year, the CEO prevented the submission of his annual report to the Supervisory Board by the compliance officer.
03
What consequences followed
Dr. Pinter unexpectedly lost his job, and although he is eligible for retirement, his attempts to find new employment have been unsuccessful.
04
What sources it is based on
Attached:
Whistleblowing timeline
THE SUPERVISORY BOARD HAS THE RIGHT TO BE INFORMED
Can a lawful dismissal violate ethical standards?
The compliance officer at EMI Construction Quality Control Innovation Nonprofit LLC, Szentendre identified areas affected by corruption. He made numerous recommendations for their rectification and prepared an annual report for the Supervisory Committee. A couple of weeks before its submission, his employment was terminated on the grounds that he had reached retirement age. His complaint filed with the Integrity Authority was dismissed.
timeline
- JANUARY 2023
Dr. Pinter has been hired as a compliance officer at EMI Construction Quality Control Innovation Nonprofit LLC. under an employment contract in Szentendre.
- MARCH 2023
First risk alert to the CEO.
- MAY 2023
Second risk alert to the CEO.
- AUGUST 2023
Third risk alert to the CEO.
- NOVEMBER 2023
Termination by the employer on November 7.
- NOVEMBER 2023
November 10 was the compliance officer’s last day on the job.
- NOVEMBER-DECEMBER 2023
Deadline: preparing the annual compliance report, presenting it to the CEO, and then submitting it to the company’s Supervisory Board.
- DECEMBER 2023
Dr. Pinter is retiree. His attempts to find a job have been unsuccessful.
THE WHISTLEBLOWER
Dr. Pinter has deep knowledge on anti-corruption issues, expertise of investigation, international and inter cultural co-operation, compliance, anti-money laundering, and project management. During his career he has gathered significant experience in the field of compliance. He has worked for several companies designing internal integrity systems.
He is one of the members of the Hungarian Corporate Compliance Society. In 2018 he has completed a compliance training and he would like to acquire more experience and further his career in this professional direction.
WHO LOST WHAT AND WHO WON WHAT
Dr. Pinter unexpectedly lost his job, and although he is eligible for retirement, his attempts to find new employment have been unsuccessful. EMI LLC. has lost a skilled professional, while it remains unclear whether the Supervisory Board had access to the necessary information to make its decisions. The ultimate victim is the Hungarian State, as EMI is owned by a ministry.
The winners are the employees and managers who violated the company’s integrity and were able to continue their unlawful actions.