Are statements made by an employee during an internal investigation confidential?

Not usually. Statements made during an internal investigation by an employee are not privileged or confidential unless there is a joint defense agreement in place for the employee.  However, as part of the internal investigation, the statements of the employee are protected and privileged as it pertains to the corporation.  The corporation has the ultimate choice as to whether to keep the statement confidential or disclose the contents as the company deems appropriate.