The Public Accounts Committee has called for a whistleblowers charter to be drawn up.
The recommendation was made as the PAC found that the controversy surrounding the cancellation of penalty points has ultimately damaged the reputation of An Garda Síochána.
It said the office dealing with penalty points should report annually on the number of charges cancelled due to discretion, as well as the numbers of petitions received and rejected.
The report found the fixed notice charge system has systemic weaknesses, resulting in up to 20% of fines not being collected and €6m being lost to the State.
The PAC said garda superintendents are not being held responsible for the high failure rates for serving summonses.
It said that it appears that the desire to protect the gardaí was placed ahead of ensuring that the complaints from Garda Sergeant Maurice McCabe were followed up.
The PAC said the force must improve the way it deals with whistleblowers and put an independent process in place to deal with internal complaints.
It also said the Garda Commissioner should arrange for a review of the confidential recipient system to recommend improvements to make it more effective.
The committee called on gardaí to now draw up a whistleblowers charter in consultation with the Garda Inspectorate and the Department of Justice.
The report also looked at the weaknesses in the overall system.
The PAC said it appears the current system works where 70% of motorists caught pay fines and are given penalty points generating €22m in revenue for the State.
Another 10 % are dealt with by courts resulting in €7.6m, but it found that 20% of cases leaks out of system, costing the State €6m.
The PAC said the majority of these are caused by systemic weaknesses.
It said almost 90,000 fixed charge notices are not paid within 56 days resulting in a court summons.
But it said more than half of summonses are struck out in court because summonses have not been served.
McCabe tells McGuinness system abuse is continuing
PAC Chairman John McGuinness said Sgt McCabe told him the abuse of the fixed charge penalty system is continuing.
The Fianna Fáil TD said Sgt McCabe told him that it is happening across the country and at the same scale as when he gave his evidence to the committee.
Mr McGuinness was speaking at the publication of the report at Leinster House this afternoon.
He said in recent times Sgt McCabe had made further allegations in which excuses and reasons for penalty points being quashed were being presented in such a way as to go under the radar and unnoticed.
Mr McGuinness said he believed that repeat offenders continue to have penalty points dealt with in that way.
He also said it is his belief that Sgt McCabe is still isolated and still looked upon by senior members of the force as someone who perhaps should not have done what he did.
