A bill recently introduced in the South Carolina Senate would offer greater financial incentives to report official corruption, fraud and waste in state government. A whistleblower could receive up to 25 percent of money recovered if the state elects to prosecute the case. And if the attorney general decides not to prosecute for some reason, the whistleblower could still file a private claim, possibly receiving up to 40 percent of funds recovered.

This bill, which also protects public certain public employees from demotion, termination or intimidation, would strengthen existing South Carolina whistleblower laws and provide a reward for citizens and employees who step up to report fraud and waste.

Some believe that a similar federal bill, the Dodd-Frank Wall Street Reform and Consumer Protection Act that went into effect early in 2011, has caused employees to make unsubstantiated or false claims against their employers because of the financial reward they might receive. Whether this occurs in South Carolina remains to be seen.

The bill in South Carolina covers claims made against public agencies within the state. Federal laws provide incentives to report fraud and waste in federal departments and programs.

Source: WSPA, "SC Bill Would Offer Incentive to Report Fraud, Waste and Corruption", by Robert Kittle, dec. 6, 2011.