SA's Whistleblower Laws Are Getting an Overhaul. But is It Going to Work?

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Someone in your client's business knows where the money went. The question is whether they'll ever say so. Two pieces of legislation, one in the US and one right here at home, are trying to change the answer.

The US: A Whistleblower Programme That Actually Works

The IRS Whistleblower Programme has been running since 2007 on a simple premise: insiders hold information that no audit will ever uncover. The Programme pays them fairly, protect them properly, and they will come forward. The results are hard to argue with. Since issuing its first award in 2007, the IRS has paid over $1.3 billion in awards based on the successful collection of $7.5 billion from noncompliant taxpayers. The programme is growing. In Fiscal Year 2024 alone, the IRS paid $123.5 million in awards, based on $474.7 million collected from whistleblower tips, with new award claims up 13% compared to the average of the prior four years.

What Makes the Programme Work

Four things make it work. Financial incentives are meaningful, with awards generally ranging between 15% and 30% of the proceeds collected. The programme deliberately targets high-value cases involving large corporations, high net worth individuals, and complex schemes. Payment speed is improving, with awards issued within 48 days on average in FY 2024, a 28% improvement over the prior year. And critically, the tips consistently outperform traditional enforcement. The IRS has said openly that it cannot close the tax gap through audits alone.

The US House just passed a new IRS Whistleblower Program Improvement Act by 346 votes to 10, which strengthens this further. It speeds up payouts, charges the IRS interest on delayed awards, and protects whistleblower anonymity during appeals. The bill now goes to the Senate.

SA's Protected Disclosures Bill: A meaningful step forward

South Africa has had whistleblower protections on paper since 2000. The Zondo Commission found that those protections failed in practice: unclear procedures, weak protection from retaliation, and almost no support for people who came forward.

The Protected Disclosures Bill, 2026 proposes to replace the old Act entirely. It was gazetted for public comment on 9 April 2026, with the deadline for submissions being 14 May 2026.

The Bill's strongest contribution is Chapter 4, which translates constitutional rights into operational protections. It broadens who is protected, covering not just employees but contractors, consultants, volunteers and trainees. It criminalises retaliation with penalties of up to 15 years. It introduces confidentiality protections backed by criminal sanctions. It creates financial awards for whistleblowers where disclosures lead to successful enforcement outcomes. And it gives disclosers access to witness protection and court-directed legal aid.

Where the Bill still falls short: CIBA's view

CIBA is planning formal comments on the Bill and broadly supports its direction. But our submission identifies several gaps that, if left unaddressed, will leave the legislation effective on paper but not in practice.

The core problem is that almost every protection in the Bill is reactive. Legal aid only kicks in once court proceedings are already underway. Compensation for lost income only arrives after a tribunal has finalised a case. But retaliation happens immediately. A professional who is suspended on the day they make a disclosure cannot wait two years for a court order. They need help now.

CIBA has identified specific areas that need strengthening. The financial award mechanism in section 18 excludes public sector employees entirely. This is a serious flaw, since the most consequential whistleblower disclosures in SA's history have come from people inside the public sector and state-owned entities. The recoveries linked to ABB, McKinsey, SAP, Transnet, and Eskom, which together form part of more than R11 billion in whistleblower-informed recoveries, were largely made possible by public servants who took enormous personal risk. Under the Bill as drafted, none of them would qualify for an award.

CIBA also points to the absence of a ring-fenced fund to support whistleblowers immediately. Legal defence, income replacement during proceedings, psychological support, and personal security all require resources that most professionals do not have. The Bill does not create any mechanism to provide these. CIBA has proposed an Accountants' Protection and NOCLAR Compliance Fund to fill this gap, drawing on a model similar to the US system where penalties recovered from wrongdoers fund the protection of those who exposed them.

Finally, the Bill does not engage with the NOCLAR framework that already requires accountants and auditors to report non-compliance with laws. Professional bodies like CIBA are not listed as authorised channels under the Bill, which means disclosures made through professional regulatory processes may fall outside its protections entirely.

What this means for you

Your clients who employ staff will soon face concrete obligations. Formal whistleblowing procedures, a designated officer, clear timelines, and a published process on their website will all become requirements. Businesses that are unprepared will face legal and reputational exposure.

As a CBAP, your own protections when you encounter financial misconduct are also about to change. The Bill's broader definition of discloser is likely to cover professional advisors in certain circumstances, and the legal landscape for what you are obliged to report is evolving.