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> If a manager says, "There is a bug in this system here"

I think that your metaphor does a disservice to this whistleblower and the allegations that he's making.

Better is to imagine a manager saying, "I have observed bugs being intentionally left in the codebase in order to cut cost. Senior managers are aware of this and have allowed it to continue."

In that scenario, the matter of when to intervene is quite different I think.




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