Westpac Faces Whistleblower Legal Battle Over Rams

A former Westpac executive is taking legal action against the bank, alleging she was bullied after exposing suspected fraud in its Rams mortgage branch. The case brings renewed attention to how whistleblowers are treated and raises concerns about internal risk management.

The dispute focuses on allegations made by Westpac's former head of risk and treasury audit, who says she identified suspicious activity at Rams Fairfield in mid-2022. According to her claims, the bank did not respond properly. She also says senior staff dismissed her concerns and labelled her a “troublemaker.” With mediation efforts failing, the matter is set for a court hearing in November.

Rams was a now-closed home loan franchise previously owned by Westpac. It drew internal attention after the executive reported irregularities such as fake pay slips, altered documents and improper self-referrals in loan applications. Westpac claims it responded in 2022 with increased monitoring and voluntary disclosures to regulators. However, court documents suggest that the bank's internal culture may have hindered whistleblower efforts.

Westpac also argues that it acknowledged the executive's contributions by awarding her a higher bonus in 2023 and says it supports its audit leaders. Still, the legal documents portray an environment where complaints were discouraged. The executive alleges that senior staff tried to soften the impact of unfavorable findings in a key 2023 audit.

At a broader level, the case highlights how major organisations often handle internal alerts, especially those raised by high-ranking employees. It also reveals the difficulties whistleblowers face, even when they follow proper processes. With ASIC already investigating Rams over separate lending issues, this case is likely to prompt more scrutiny of governance, workplace culture and accountability within one of Australia’s largest banks.

Source: The Australian, Westpac, ASIC, The Adviser