Guidelines on the Informant Reward Scheme Policy: CAK Staff Sensitization
This presentation by Stella Kavata and Joshua Ogallo highlights the guidelines on the Informant Reward Scheme Policy for CAK staff, emphasizing the importance of understanding and adherence to the scheme. It covers key aspects such as eligibility criteria, incentives, reporting procedures, and the overall objective of the policy. The presentation aims to equip CAK staff with the necessary knowledge and awareness to effectively implement and benefit from the Informant Reward Scheme.
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Presentation Transcript
Guidelines on the Informant Reward Scheme Policy: CAK Staff Sensitization Presented by Stella Kavata and Joshua Ogallo
1. Background 2. The Scheme 3. Obligations and Responsibilities Regarding Confidential Informants 4. Registering Confidential Informants 5. Monetary Compensation 6. Deactivation of a Confidential Informant "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 2
The informant reward scheme is premised on the principle of disclosure of impropriety. It is aimed at obtaining secret or confidential information that otherwise would not be available to it if it were not for the informant and equally the informant receives compensation for the same. Not many jurisdiction have implemented this scheme but the few that have put it into use include UK, Hungary, Korea, Slovakia and Pakistan "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 3
Ghana was the 1st African Country to introduce an informant reward scheme in the whistleblowing Act 2006. In Kenya we have always had the whistleblowers. Kenya has however had other , other provisions in some legislation such as Bribery Act, 2016 that provided procedures and protection to whistleblowers. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 4
So many state organs due to the gaps in the law, State Organs have taken it upon themselves to develop an Informant Reward Scheme. Some of these State organs include: The Directorate of Criminal Investigations, Capital Market Authority, Kenya Revenue Authority Ethics & Anti-Corruption Commission. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 5
For the Competition Authority of Kenya , one such information would be on cartels. In cartel enforcement, detection and sanctions is paramount for any successful investigation. Detecting cartels is difficult as they are usually carried out in secret and getting inside information remains tricky hence the need for cooperation and assistance of an insider and so comes in the scheme. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 6
An informant reward scheme, is a program that rewards an individual who provides useful and credible information to an organization to enable them detect any violation or illegal activity within their mandate. Competition regimes require adequate information before they can institute any form of investigation. Therefore, detection of cartels requires collecting substantial evidence that will enable a competition agency initiate a viable investigation with a high probability of success. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 7
Anonymity Maintain anonymity of the CI (allocation of pseudonyms). It is only with the approval of the DG that a case officer can disclose the true identity of a confidential informant. This is a continuing obligation even after leaving employment at the Authority unless otherwise required by law or a court order. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 8
Confidentiality Maintain confidentiality of investigation materials and information provided by CI Do not reveal to a CI any information relating to an investigation against such informant Do not confirm or deny the existence of any investigation nor agree to a request from the informant to determine whether they are subject of any investigation. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 9
Commitment on Immunity Avoid making any commitments that would prevent the Authority from taking any action against an individual for any violations under the Act without the prior written approval of the DG. Professionalism Maintain a professional relationship with the confidential informant. Maintain control of the procedure to be used in the investigation Fairness and truthfulness with the confidential informant, and should make no promises or commitments that cannot be fulfilled. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 10
Regulatory Compliance Avoid interfering with or impeding any criminal investigation or arrest of a confidential informant Do not condone any violation of law in order for a confidential informant to obtain information Continued Suitability Review of CI CI files to reviewed monthly alongside Continuing Suitability Report "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 11
1. Initial Suitability Determination Identification of a potential CI Prepare an Initial Suitability Report (ISR) with recommendations to adopt the CI ISR to be reviewed and approved by the Informant Review Committee (chaired by the Director and include a Legal representative, the ME&C and the case supervisor) "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 12
The informants age, nationality, profession or occupation. The extent to which the informant would make use of their affiliations with legitimate organizations in order to provide information or assistance Relevance of the Informants information to a present or potential investigation and the importance of such investigations. The informant s motivation in providing information or assistance. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 13
The informant relationship with the subject or target of an existing or potential investigation, including but not limited to a current or former spousal relationship or other family member and any current or former employment or financial relationship. Account for the risks to both the informant and present or potential investigations by the Authority. The extent to which the informant s information or assistance will be corroborated; their reliability and truthfulness "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 14
The informants a criminal history; whether the informant is a substance or alcohol abuser or has a history of any abuse. The informant relation to any employee of the Authority The record of the informant s prior or current service as a confidential informer with the Authority, any other regulatory body / law enforcement agency including but not limited to any information regarding whether the informant has at any time been terminated for cause. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 15
2. Actual Registration Procedure The following documentation shall be kept in the CI s file: Their true identity; Results of any criminal history check done on the CI; The Initial Suitability Report and Recommendation; Any promises or benefits, and the terms of such promises or benefits, that are given a CI by the Authority; Any other information required to be documented such as copies of the instructions to the confidential informant. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 16
3. Instructions or Terms and Conditions of Engagement Case officer to read out and explain the obligations of the CI to them and ensure that the CI acknowledges and understands the instructions; Ensure that the CI signs or makes a written acknowledgement of the instructions read to them. Document that the instructions were read to the confidential informant. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 17
The monetary compensation shall be computed as a fraction of the Administrative penalties imposed on the undertakings for violations for which the information provided relates. This may be up to 1% of the penalties imposed on the undertakings and shall not in any case exceed 1,000,000 Kenyan shillings. Monetary compensation shall be granted to an informant if the Authority is satisfied that the informant has sufficiently cooperated and the information provided is credible, relevant and useful to the process of information. The payment shall be made upon the successful conclusion of the investigation. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 18
Deactivation refers to the instance when an informant may no longer be required to provide further information or assistance to the Authority in regards to a matter. Grounds for Deactivation of a CI: When an informant is no longer providing information or assistance to the Authority in the matter under investigation, When the matter for which the informant was engaged has been concluded or finalized. When the informant engages in conduct that violates the agreement with the Authority. For any other viable or reasonable reason that the Authority deems fit. "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 19
THE END "A Kenyan economy with globally efficient markets and enhanced consumer welfare for shared Prosperity" 2/16/2025 20
