7. MISC’s Procurement Manual (“MPM”) provides the overall procurement principles, scope, functions, procedures and exceptions to be adopted in relation to procurement activities within MISC. Tender Committees are established to ensure tender evaluation exercises are conducted in an effective, transparent and fair manner. 8. Information and Communications Technology (“ICT”) is extensively employed in MISC to automate work processes and to collect key business information. MISC’s information and communication system, which acts as an enabler to improve business processes, work productivity and decision making, are implemented throughout the Group. The Information and Communications Technology Steering Committee (“ITSC”) provides strategic directions and guidance to ICT initiatives. Progress of ICT initiatives is monitored and reported at the ITSC meetings to ensure smooth implementation of ICT initiatives. System reviews are initiated and conducted to ensure that adequate controls are in place in order to conform to the Company’s business objectives, policies and procedures. Quarterly reports are presented to the MAC and BAC and agreed corrective actions are taken to address any non-compliance. 9. The professionalism and competency of employees are enhanced through structured development programs and potential entrants or candidates are subject to a stringent recruitment process. A Performance Management System (“PMS”) is established with performance indicators to measure employees’ performance and performance reviews are conducted twice annually. Action plans to address employees developmental requirements are prepared and implemented in a timely manner. This is to ensure that employees are able to deliver the expected performance so that the Group can meet its plans and targets. 10. The Company observes its own Code of Conduct and Business Ethics (“CoBE”) and the coverage is extended to not only MISC employees and directors within the MISC Group but also to third parties performing works or services for or on behalf of MISC Group of Companies. To support the general policy statements in the CoBE, MISC also observes the principles set out in the AntiCorruption and Bribery Manual which provide further guidelines on dealing with improper solicitation, bribery and other corrupt activities as well as issues that may arise in the course of doing business. The Whistleblowing Policy provides an avenue for all employees of MISC and members of the public to report any improper conduct within MISC. 11. A study on conflict of interest or potential conflict of interest situation for company directors in the Group was conducted during the year under review. Arising from the study, several recommended improvements for managing conflict of interest or potential conflict of interest situation, including the creation of a conflict of interest register, were approved by the Board for implementation. ASSURANCE FUNCTIONS The Group has in place the following assurance functions to review the effectiveness of internal control systems and processes:- 1. The Ship Management Audit (“SMA”) division, which reports to the MAC and the BAC, performs independent scheduled inspections on the Group’s vessels and floating facilities. The objectives of the inspections are to verify, evaluate and review the Group’s operational activities to ensure the vessels’ and floating facilities’ operational integrity and reliability are maintained at all times, consistent with international regulations and internal policies. MISC Group vessels are subjected to stringent audits, vetting and inspections to meet various regulatory and commercial requirements. These include vetting by oil majors, audits by the Malaysian Marine Department and ship classification societies to maintain international safety and security management certification under the relevant codes. In addition, MISC is also subjected to periodic management reviews by its customers’ risk management units. The SMA d i v i s i on submi t s i t s f i nd i ngs and recommendations on corrective actions of each ship and floating facilities inspected to the Fleet Management Services (“FMS”) division and Offshore Business Unit (“OBU”) respectively. The monitoring and followup on the status of the corrective actions are maintained on a monthly basis until closure. On a six-monthly as well as annual basis, findings on each ship inspected are p 129 MISC BERHAD - Annual Report 2014
RkJQdWJsaXNoZXIy NDgzMzc=