Proposed legislation S0318 & S 0864 (Whistleblower and Public Employee Protection Act) is an attempt to override a 1993 cost saving move by the legislature.
Senator Jake Knotts, estimated that SC has lost $24 million to fraud since 2000 (State 12/7/10). Yearly that is 1/10th of 1% of the stateâs $22 billion expenditures. The $8 million reward for exposing Medicaid fraud pales in comparison to the $125 million in cuts and would only shift money from Washington to Columbia, and not necessarily to Medicaid.
Government employees do not play a large role in whistleblowing. About the Paul Moore scandal, “The case literally dropped in their laps,” said defense attorney Johnny Gasser, who represented Moore chief lieutenant Moses. A man who had cashed some checks for Moses got angry and called the Secret Service. (State 3/10/10) Similarly in two big stories locally, the Columbia parks official was outed by an independent contractor, (State 11/17/11) and Treasurer Jim Eckstrom said, “We were upgrading some internal procedures and discovered it.” regarding the embezzlement by a former clerk in the Lexington County treasurerâs office.(State 1/6/12)
Currently whistleblowers receive up to a $2,000 reward, the legislation would raise that to 10% of any recovered tax dollars. Actual damages are now limited to $15,000, the legislation would remove the cap allowing for unlimited damages. Now fees for attorneys are capped at $10,000 for a trial and $5,000 for an appeal, the legislation would raise attorney fees to a “reasonable” amount. All of these increases come directly from taxpayer funds and the bulk goes straight to the attorneys.
Senator Jake Knotts, estimated that SC has lost $24 million to fraud since 2000 (State 12/7/10). Yearly that is 1/10th of 1% of the stateâs $22 billion expenditures. The $8 million reward for exposing Medicaid fraud pales in comparison to the $125 million in cuts and would only shift money from Washington to Columbia, and not necessarily to Medicaid.
Government employees do not play a large role in whistleblowing. About the Paul Moore scandal, “The case literally dropped in their laps,” said defense attorney Johnny Gasser, who represented Moore chief lieutenant Moses. A man who had cashed some checks for Moses got angry and called the Secret Service. (State 3/10/10) Similarly in two big stories locally, the Columbia parks official was outed by an independent contractor, (State 11/17/11) and Treasurer Jim Eckstrom said, “We were upgrading some internal procedures and discovered it.” regarding the embezzlement by a former clerk in the Lexington County treasurerâs office.(State 1/6/12)
Currently whistleblowers receive up to a $2,000 reward, the legislation would raise that to 10% of any recovered tax dollars. Actual damages are now limited to $15,000, the legislation would remove the cap allowing for unlimited damages. Now fees for attorneys are capped at $10,000 for a trial and $5,000 for an appeal, the legislation would raise attorney fees to a “reasonable” amount. All of these increases come directly from taxpayer funds and the bulk goes straight to the attorneys.




