Posted: February 17th, 2022
Predictability of rewards
More leniency applicants can come forward if rewards are easily predicted. In case there is no leniency, the penalty must be well known. On the contrary, if one is granted leniency, the reward must also be clear so that it is easy for one to choose which side to take. If the reward is not in any way appealing or doesn’t reflect the expectations of a whistle blower, then such programs may not be as attractive as expected. Adrian, (2019) contends that some degree of predictability is necessary so that potential applicants can calculate the cost against the benefits of seeking leniency. Furthermore, predictability can be enhanced by removing the prosecutorial discretion. If a leniency applicant meets specifically defined conditions, then the leniency will be granted automatically. Such a practice would as well help to increase fairness as per the expectations of leniency applicants.
Miller, (2009) states that penalty reductions under any settlement process can easily undermine the effectiveness of leniency programs. The leniency offer becomes less attractive when the expected settlement discounts are too large. For instance, the European commission sought to limit the undermining effect by placing the settlement discounts at 10%, in contrast to leniency discounts that are up to 100%. Such reduction can easily reduce the gains already made in making leniency programs attractive for whistleblowers.
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