In the United States, The federal False Claims Act permits a person with knowledge of fraud against the United States Government as the "qui tam plaintiff', to file a lawsuit on behalf of the Government. When private individuals file an action under t...
In the United States, The federal False Claims Act permits a person with knowledge of fraud against the United States Government as the "qui tam plaintiff', to file a lawsuit on behalf of the Government. When private individuals file an action under the FCA, it is brought in the government's name. If the action is successful, the qui tam plaintiff is rewarded with a percentage of the recovery.
There is a heated controversy about the introduction of People's Action in Korea, which is similar to Qui Tam Action of the United States. Korean People's Action, which is studied by members of the National Assembly, would be broadly applicable to almost any situation where money of central government and central legal persons are involved. Objects and Categories of People's Action are general government expenditures, defense contracting, medicare fraud, education grants, and agriculture support programs etc. The greatest impact of People's Action maybe is in their deterrent effect. The qui tam lawsuits saved the Federal Government about $10 billion from 1986 to 1995 in the United States.
Rules of people's action must be prescribed as a separate law, so that all central government and other central legal persons respect it more positively. By people's action, The Supreme Court would control public policies better than past, but it shouldn't reduce administrative discretion too narrow.
Under this lawsuit system, I think that people must demand an administrative audit against illegal expenditure or illegal property management, before they file a people's action. By the administrative audit, administrative experiences and information can be used and excessive caseload of courts can be reduced.
Asian financial crisis in 1997 gave our society deep impact. We must build more powerful financial control system, so that moral hazard can be prevented.