In 1976, Mohamed EI-Iladad earned an undergraduate accounting degree in his native Egypt. Before he began his accounting career, El-Hadad completed his compulsory service in the Egyptian military forces. El-Iladad accepted an entry-level position with a large hotel in Alexandria after being honorably discharged from the military in 1979. TV° years later, Eitladad immigrated to Abu Dhabi, the capital of the United Arab Emirates (UAE), after he learned that there were excellent employment opportunities for accountants in that small Middle Eastern nation, The determined young accountant soon landed a job with the UAE’s Ministry of Education. For 10 years, El-Hadad worked as an auditor with that government agency. Throughout his tenure with the Ministry of Education, EI-Iladad regularly received excellent performance appraisals from his superiors. While on a vacation in the United States in 1992, El-Hadad visited the UAE’s embassy in Washington, D.C. During that visit, he became acquainted with the embassy’s cultural attache and the deputy cultural attaché. The cultural attache was impressed with El-Hadad and Ids employment history and encouraged him to apply for an open auditing position with the embassy. The position involved audit and review of all expenditures and accounting methods of the cultural attache and the educational expenditures for UAE students in the United States, and reconciliation of all bank accounts: 2 the job would require El-Hadad to supervise eight other accountants. El-Hadad’s immediate superior would be the cultural attache. EMladad was excited by the new job opportunity and the possibility of relocating to the United States. When he returned to the UAE, he informed his superiors in the Ministry of Education of his interest in the Washington, D.C., job. They encouraged him to apply for the position and gave him excellent personal references that were forwarded to the cultural attached of the UAE’s Washington, D.C., embassy. Among other complimentary remarks, the recommendations indicated that El-Hadad was an exemplary employee who displayed seriousness and integrity.” In January 1993, El-Hadad accepted the supervisory audit position in Washington, D.C. El-Hadad enjoyed his new job and the relationships he developed with his superiors, his subordinates and the remainder of the embassy staff lies was certain that the increased scope of responsibilities he assumed in the new position would
Address the following after observing The Mohamed Salem El-Hadad case 8.13
Identify and briefly describe the legal protections that “whistleblowers” have in the United States.
Should U.S. companies integrate legal protections for internal whistleblowers into their internal control systems? Defend your answer.
Suppose that during your career you discover a fraud similar to that uncovered by Mohamed El-Hadad. List specific measures that you could take to protect yourself from recriminations by your employer or other parties.
Did El-Hadad face an ethical or moral dilemma when he discovered the fraud being perpetrated by his superior and friend? Before responding, define ethical dilemma and moral dilemma.