ASK HR: Do I tell on my dishonest boss or do I keep what I know to myself?

Q. My head of department and I have had a good working relationship until now. When preparing a budget for an event, he exaggerated the figures. The finance manager must have discovered this because my boss sent me a text saying, “If asked about the expenditure by the finance manager, say that you are the one that bought the items but have misplaced the receipts.” It turns out that he had told finance that he had delegated the procurement assignment to me.  A week later, he informed me that he had “sorted out” the issue. I feel betrayed, do I tell the finance manager what I know?

This is an unfortunate situation to be in - you have a boss who has committed fraud and seeks to enlist you in that fraud and use you as a cover up.

Your boss is aware that his actions are illegal and are grounds for dismissal, hence the panic. The text he sent you is evidence of your innocence in the fraud, so keep it.

By saying that he “sorted out” the issue, it might imply that he presented forged receipts, which is a criminal offence, and that he possibly implicated you since he purported that he had assigned you the task. By extension therefore, you will be culpable if the fraud is discovered.

You have to decide whether you want to be an accomplice to fraud or wish to come clean and “whistleblow” to management through the finance manager, who most probably will involve the audit department to investigate the claim. Also, establish from your HR department whether there is a policy that protects whistleblowers. In case there isn’t, then you and the HR manager should report this incident to the finance manager.

By involving HR, you get assurance of your job security and possible transfer to another department should the organisation decide to retain the manager. The investigations must also be conducted without disclosure of your role as the instigator. Only share the text message once you get this assurance.

There is a risk that you should envisage since you are actually exposing your superior to his peer. Be careful about the manner in which you report the issue to HR and the finance manager - it should be more of a concern than an accusation of fraud on the part of your manager. The responsibility to investigate and establish the truth rests on the audit and security department. I appreciate the situation you are in is a difficult one, but upholding integrity most times requires making difficult choices, including unpopular ones.

This is a test on your personal integrity and it can determine your career path within the organisation and beyond.