Louder Whistles

President Reagan has signed into law new legislation that provides generous incentives to enlist citizens in a campaign against corruption by companies doing business with the federal government. Beyond the incentives, which can run into millions of dollars, the legislation protects the job status of the whistle-blowers.

Among those sharing credit for this reform are John R. Phillips, co-director of the Center for Law in the Public Interest, and the congressional sponsors, Rep. Howard L. Berman (D-Panorama City) and Sen. Charles E. Grassley (R-Iowa).

The provisions of the new law are not restricted to defense contractors. Rather, any cheating of the federal government comes under its provisions, including overcharging for medical services under Medicare and adulteration of food in the school-lunch program. But defense contractors are expected to be most affected because of the huge expenditures concentrated in that sector.

Under the amendments to the False Claims Act, the person bringing the charges is authorized to act on behalf of the U.S. government and to keep 15% to 30% of the total recovery won by the federal government. A person with evidence of cheating can either report the case directly to the government or retain an attorney to file the action in federal court. The statute of limitations is extended to 10 years for offenses coming under the law. The filing of frivolous claims is discouraged by permitting the courts to assess legal fees against someone bringing the charges if there is a finding that the intention was frivolous.

Strong congressional support was generated because the program adds no one to the federal payroll and greatly increases the possibility of uncovering fraud by creating the substantial compensation for workers who blow the whistle.