It allows private citizens who know of fraud against the taxpayers to bring a lawsuit against the perpetrators. In other words, the citizen acts as a partner with the government. As an incentive, the citizen shares in any monetary recovery to the U.S. Treasury. Over the decades, the False Claims Act, and especially the qui tam provisions, proved to be effective, both in catching and deterring fraud. Think about it, Mr. President.
Insiders help make investigations more targeted, more effective and more efficient.
Congress has long recognized the value of insiders. That is why Congress established laws to encourage and protect whistleblowers. We know the value of inside information, and the role it plays in our constitutional system of checks and balances. Then, in 1943, things changed. That is when private industry played a role in amending the False Claims Act.