Anti-Bribery & Anti-Corruption

INTRODUCTION

AHAM Asset Management Berhad and our subsidiaries (collectively known as “AHAM Capital”) have adopted a zero-tolerance approach towards all forms of bribery and corruption. We are committed towards ensuring the effectiveness and efficiency of our anti-bribery and anti-corruption programme in detecting these activities. We uphold our core values of Integrity, Teamwork, Excellence, and Pioneering in this regard, to which our Anti-bribery and Anti-corruption (“ABC”) Policy sets out to elaborate upon. AHAM Capital’s ABC Policy serves as a guide to all personnel, including the Senior Management and the Board of Directors, on how to minimise corruption risk and avoid potential bribery and corrupt practices when dealing with our clients and business associates that may arise throughout their course of employment in AHAM Capital.

We are guided by the Malaysian Anti-Corruption Commission Act 2009 (“MACC Act”), MACC (Amendment) Act 2018, and the Prime Minister’s Directive in respect of Integrity & Governance, along with any relevant laws, regulations and guidelines with regards to anti-bribery and anti-corruption in Malaysia. Following the amendment of the MACC Act, the Global Infrastructure Anti-Corruption Centre (“GIACC”) of the Prime Minister’s Department issued the Guidelines on Adequate Procedures (“GAP”), in which companies are to be guided by the following 5 Guiding Principles:

With these Guiding Principles in mind, the Board and the Senior Management will continue to ensure the effectiveness of the anti-bribery and anti-corruption programme set out in this Policy by periodically engaging independent assessments and tests of the programme, in particular to its framework, implementation and efficacy.

THE MACC (AMENDMENT) ACT 2018

The MACC (Amendment) Act 2018 introduces Section 17A which establishes the corporate liability of commercial organisations for the corrupt practices of its employees and/or any person(s) associated with it, in order to obtain or retain business or gain or retain a business advantage.

Section 17A(1) – ‘A commercial organisation commits an offence if a person associated with the commercial organisation corruptly gives, agrees to give, promises or offers to any person any gratification whether for the benefit of that person or another person with intent:

(a) to obtain or retain business for the commercial organisation; or
(b) to obtain or retain an advantage in the conduct of business for the commercial organisation’.

Definitions under the MACC Act
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Under Section 17A(2), ‘a commercial organisation who commits an offence under the Act is liable to a fine, not less than ten (10) times the value of the gratification or RM1 million, whichever is the higher or imprisonment of not more than 20 years or both’.
As AHAM Capital is a commercial organisation, Section 17A(3) states that ‘where an offence is committed by a commercial organisation, a person:

(a) who is its director, controller, officer or partner; or
(b) who is concerned in the management of its affairs,

at the time of the commission of the offence, is deemed to have committed that offence unless that person proves that the offence was committed without his consent...and that he exercises due diligence to prevent the commission of the offence.
Section 17A(4) goes on to state that ‘if a commercial organisation is charged…it is a defence for the commercial organisation to prove that they had in place adequate procedures to prevent from undertaking such conduct’.

A. PRIMARY POLICY

In line with AHAM Capital’s zero tolerance approach towards all forms of bribery and corruption, AHAM Capital‘s employees are prohibited from paying facilitation payments, and accepting or receiving any gifts and/or entertainment from any other persons that may create a sense of obligation and/or compromise their professional judgement, or may create the appearance of doing so.

Our employees must also avoid situations in which their personal interests could jeopardise their professional obligations or duties and should not put themselves in a position whereby their said personal interest could potentially interfere with the objectivity in performing duties or exercising judgment on behalf of AHAM Capital. On that note, and subject to exceptions provided in our Gift and Entertainment policy, our employees are also prohibited from accepting or offering gifts and entertainment from or to any clients or business partners.

The zero tolerance anti-bribery and anti-corruption statement applies to both AHAM Capital’s dealings in the private and public sector entities, including their Directors, personnel, agents or any other appointed representatives.

B. (T) OP LEVEL COMMITMENT

The Board of Directors and the Senior Management of AHAM Capital are responsible for establishing a culture of zero-tolerance towards bribery, and to ensure that there is an effective implementation of the anti-bribery and anti-corruption programme to counter any potential or real cases of corruption. The Board and Senior Management of AHAM Capital will strive to make clear and have a united stance about the culture they expect AHAM Capital employees to have, and to enforce consequences of breaching the provisions of AHAM Capital’s ABC programme.

A complete understanding of the culture of zero-tolerance towards the act of bribery and corruption within AHAM Capital with the Board and Senior Management playing its crucial roles are essential to the continuous effectiveness of the programme.

Guided by the Directive issued by the Prime Minister’s Office to ensure an effective anti-bribery and corruption programme, AHAM Capital will practise the highest level of integrity and ethics, comply fully with the applicable laws and regulatory requirements on anti-bribery and corruption; and effectively manage the key corruption risks of AHAM Capital.

C. (R) ISK ASSESSMENT

Risk assessment serves as the foundation for the composition of an adequate anti-bribery and anti-corruption programme. It allows AHAM Capital to have a systematic view of wherein lies the risk of bribery and corruption, and as such, gives a clearer perspective on how to design policies and procedures accordingly. A continuous risk assessment will allow this programme to effectively combat the changing conditions and risks.

AHAM Capital’s Risk Management Unit clearly understands that it has a duty to ensure effective implementation of this programme by identifying potential and/or real internal and external bribery and corruption risks within AHAM Capital, and will continuously conduct risk assessments on the organisation, and record and document these results to establish processes and controls to mitigate the risks. Its findings will be reported to the Board Compliance and Risk Management Committee of AHAM Capital to be deliberated and to seek for guidance on any further actions required (if any).

D. (U) NDERTAKE CONTROL MEASURES

The substance of the anti-bribery and anti-corruption management system is developed by introducing policies, procedures and controls to mitigate the corruption risks within AHAM Capital. These controls correspond to the risk assessment results and are used to minimise risks in areas which are identified as higher risk.

The Integrity and Governance Officer
As approved by AHAM Capital’s Board of Directors, an Integrity and Governance Officer (“IGO”) has been appointed to oversee and monitor the implementation of AHAM Capital’s ABC programme. The appointed IGO will work closely with all other IGO’S within the AHAM Capital Group as part of the Group’s effort to eradicate any bribery and corruption practices within the Group.
Gifts and Entertainment
The act of gift-giving and hospitality is one that is deeply embedded into the Malaysian corporate culture and such actions are not generally viewed as corrupt. This is especially so during the festive periods. It is a generally accepted practice for companies to give small tokens of appreciation to the people they work with, or have business with, as a token of good will.

As a general rule, our employees are prohibited from offering or accepting any gifts and/or entertainment from any other persons that may create a sense of obligation and/or compromise their professional judgement or may create the appearance of doing so. However, there are exceptions to the general rule where gifts and/or entertainment are:

(a) Reasonable in value;
(b) Infrequent in nature;
(c) Transparent in nature;
(d) Not given to influence or obtain unfair advantage; and
(e) Made from gestures that are presented in good faith.

The abovementioned exceptions are however subject to compliance with our internal Gift and Entertainment policy, which covers areas such as the need to make declarations, maximum limits on the amount and approvals obtained from Approving Authorities.
Facilitation Payments
Facilitation payments (colloquially known as “duit kopi” in Malaysia) are essentially ‘under-the-table’ payments made to secure, expedite or facilitate the carrying out of a routine governmental action by a public official, and not to obtain or retain business or any other disproportionate advantage.

AHAM Capital adopts a zero-tolerance approach that does not allow facilitation payments or kickbacks of any kind. Our employees are required to avoid any activity that might lead to any facilitation payments or kickbacks being made or accepted.
Political Donations and Contributions
In Malaysia, there is no limit to political party or political candidate funding, and they are not required to disclose the source of funding. As such, political donations and contributions are deemed high risk in terms of our bribery and corruption risk exposure.

Political donations and contributions include anything given, loaned or advanced, financially or in kind, to support a political party. These can be as simple as allowing potential political candidates to hold talks in the office compound, or as direct as outright donating monetarily to support their campaign.

AHAM Capital takes a stance to disallow any charitable donations or contributions to political parties. Whilst our employees and our business associates acting in their own personal capacity are not restricted to making any personal political donations, these are not endorsed or reimbursed by AHAM Capital back to these employees and/or business associates.
Sponsorships, Donations and Contributions to Charity
We believe charitable donations, contributions and sponsorships may also pose similar risk in terms of bribery and corruption exposure if misused by unethical individuals or entities.

Notwithstanding, as charitable donations and contributions are aids given in support of a cause without any commercial incentives, and sponsorships are money or fees paid to an organisation or group in return for access to commercial potential associated with that organisation or event and usually undertaken for the purpose of achieving commercial objectives, AHAM Capital will continue to make charitable contributions, donations and sponsorships in good faith subject to compliance with AHAM Capital’s internal policies covering areas such as reasonable maximum limits on the amount and approvals obtained from Approving Authorities.
Business Associates and Third Parties
Business associates acting on behalf of AHAM Capital, including our external providers such as our Unit Trust Consultants or advisors also poses risks of bribery and corruption to AHAM Capital. As such, business units who engage or deal with these business associates have the responsibility to ensure that these business associates are in compliance with this Policy.

All contracts and agreements with business associates will include a standard anti-bribery and corruption clause which will enable AHAM Capital to terminate all contract and agreements, in the event that an act of corruption by the business associate has been proven to occur.

Before commencing business with any such business associates, the engaging business unit must conduct proper due diligence on each business associate intending to act on behalf of AHAM Capital, to ensure that such associates are not likely to commit an act of bribery or corruption in the course of their work with AHAM Capital.
Procurement
All procurement of goods and services must be approved by the appropriate persons before a contract is signed with the vendor. Due diligence must be properly conducted before engaging with a vendor. All documentations must be recorded along with the appropriate approvals.

E. (S) YSTEMATIC REVIEW

AHAM Capital will ensure that regular reviews are conducted to assess the efficiency and effectiveness of the anti-bribery and corruption programme. The reviews shall form the basis of any efforts to further improve the existing anti-bribery and corruption controls in place in the organisation.

F. (T) RAINING AND AWARENESS

Communication
The anti-bribery and anti-corruption policy must be appropriately communicated to all its employees and business associates. These communications would encompass key points of the Policy (such as reporting channels, consequences of non-compliance), to whom these points should be communicated to, and how these should be disseminated.

AHAM Capital disseminates information about our commitment to zero-tolerance of bribery and corruption via a few mediums to ensure maximum coverage of communication to our business associates and the public, which includes messages and banners displayed on AHAM Capital’s website, AHAM Capital’s intranet, as well as the client portals such as i-Access, emails, posters and/or letters to all clients, associates and partners in the normal course of doing business, contractual agreements between AHAM Capital and our business associates and letters of offers or employment letters/contracts of staff.
Training
Training is fundamental to obtaining the full commitment of directors, senior management and employees to this programme and to provide employees with the skills needed to deal with situations in which they may encounter corruption. Our employees (including Board members) are required to undergo training on an annual basis, and further training will be provided to those whose level of bribery and corruption risk is higher due to their position within the company.

G. REPORTING

Any person who may have knowledge or information that a violation of this Policy has taken place may refer to the Whistleblowing Committee to make a disclosure on said violation. Further information on how to make such disclosure is found in the Whistleblowing Policy.

WHISTLEBLOWING POLICY

In fulfilling this ambition of achieving a corruption-free business environment, AHAM Capital’s Whistleblowing Policy encourages reporting by the employees, business associates as well as any external parties (including clients) of any improper conduct (includes disciplinary or criminal offences, acts and omissions) of AHAM Capital or its employees in breach of any laws, guidelines and policies for the time being in force.

The Whistleblowing Policy protects both the confidential information and the whistle-blower from disclosure and detrimental action. Reporting of improper conduct requires details and information to assist investigations, and can be reported through the AHAM Capital’s reporting channels as follows:

Email via digital form (available HERE) to the following email address:
Whistleblowing Committee
Email address: [email protected]

OR
In writing via a form (available HERE) and mailed or hand-delivered in a sealed envelope with the words “Strictly Confidential”, stating on the top left-hand corner of the envelope: "To be opened by the Addressee only” to:

Whistleblowing Committee (WBC),
AHAM Asset Management Berhad
3rd Floor, Menara Boustead
69, Jalan Raja Chulan
50200 Kuala Lumpur
Malaysia

OR
Reporting to other relevant avenues external to AHAM Capital, i.e. the Regulators or Law Enforcement Agencies

Term

Definition

Term

gratification

Definition

Gratification refers to:

money, donation, gift, loan, fee, reward, valuable security, property or interest in property being property of any description whether movable or immovable, financial benefit, or any other similar advantage;
any office, dignity, employment, contract of employment or services, and agreement to give employment or render services in any capacity;
any payment, release, discharge or liquidation of any loan, obligation or other liability, whether in whole or in part;
any valuable consideration or any kind, any discount, commission, rebate, bonus, deduction or percentage;
any forbearance to demand any money or money’s worth or valuable thing;
any other service or favour of any description, including protection from any penalty or disability incurred or apprehended or from any action or proceedings of a disciplinary, civil or criminal nature, whether or not already instituted and including the exercise or the forbearance from the exercise of any right or any official power or duty; and
any offer, undertaking or promise, conditional or unconditional, of any gratification within the meaning of any of the preceding paragraphs (a) – (f).