Enforced silence in non-disclosure agreements: Resolving the whistleblower’s dilemma on corruption
Authors: Vinodh Jaichand and Dunia P Zongwe
ISSN: 2521-2575
Affiliations: Adjunct Professor, School of Law, Walter Sisulu University, South Africa; Associate Professor, School of Law, University of Namibia; and Adjunct, Associate Professor, School of Law, Walter Sisulu University, South Africa
Source: Journal of Corporate and Commercial Law & Practice, Volume 10 Issue 2, 2024, p. 48 – 78
https://doi.org/10.47348/JCCL/V10/i2a3
Abstract
Where corruption festers through South Africa’s body politic, nondisclosure agreements (NDAs) function as instruments of silence that shield wrongdoing from public scrutiny. This article examines NDAs as a legal device that organs of state weaponise to conceal corruption, anatomising how a contractual stratagem born of commercial necessity became a kleptocratic shield. Against a backdrop of R22 billion in wasteful expenditure flagged by the Auditor-General and whistleblowers who have paid with their lives – Babita Deokaran among them – the problem is that NDAs gag whistleblower human rights defenders where exposure matters most. South Africa should endorse the efficient breach doctrine in NDA cases involving public-sector corruption. By lowering or eliminating the liability, damages, and other costs that whistleblowers would otherwise incur, Parliament and the judiciary would incentivise breaches that uplift society. NDAs become unconstitutional when they subvert effective, transparent, and accountable government. Most scholarship on NDAs derives from business disciplines focused on commercial benefits; this article has the largely untilled angle of public-sector corruption. The authors deploy a mixedmethods strategy integrating comparative legal analysis – drawing from the USA, UK, India, and Namibia – with law and economics methodology rooted in Birmingham’s seminal work on efficient breach, framed as a Creswell and Poth transformative inquiry. The article lays bare the nexus between NDAs, public-sector transparency, and the efficient breach doctrine; dissects the nature, scope, and accountability question surrounding NDAs; and interrogates their legality and constitutionality while proposing remedies – a dedicated chamber within the proposed anti-corruption body and a reverse-onus rule modelled on Singaporean precedent – to dismantle these enforced silences.