My EG Services Berhad Annual Report 2020

MY E.G. SERVICES BERHAD Regisration No. 200001003034 (505639-K) 64 GOVERNANCE IN SUPPLY CHAIN COMPLIANCE MYEG has continued to ensure good business practices are followed and corruption is prevented within its supply chain. "NPOH UIF TUFQT UBLFO UP NBJOUBJO B DPSSVQUJPO GSFF TVQQMZ DIBJO JODMVEFT NBLJOH OFX BOE DVSSFOU UIJSE QBSUZ intermediaries of MYEG such as vendors, suppliers, contractors and agents agree to understand, declare, and acknowledge our ABAC Policy by signing the Code of Business Ethics – Acknowledgment and Declaration form. This is JO BEEJUJPO UP PVS UIJSE QBSUZ JOUFSNFEJBSJFT DPNQMZJOH XJUI PUIFS QPMJDJFT SFMBUFE UP TVQQMJFST IVNBO SJHIUT BOE NPSF 8F IBWF TFOU PVU PVS "#"$ 1PMJDZ EFDMBSBUJPO GPSN UP WFOEPST XJUI PG UIFN SFTQPOEJOH CBDL UP VT UIVT GBS Furthermore, training on the ABAC Policy has also been conducted for all logistic officers who are responsible in delivering road taxes and foreign worker permits to users. MYEG has also given significant priority and business BUUFOUJPO UP JUT CVTJOFTT QBSUOFST UPXBSET FOTVSJOH UIBU TUSJDU DPNQMJBODF UP BOUJ DPSSVQUJPO QSBDUJDFT BOE UIF continued practice of good corporate governance. MYEG has also proactively set safeguards in its dealings with intermediaries to curb corruption by requiring at least 3 quotations to be obtained for all business transactions. We have also established the Vendor Evaluation Committee to prevent and tackle corruption practices in our supply chain. Business contracts under the Group’s authorisation, either new or being renewed, will come attached with an official copy of the ABAC Policy. Business partners are required to recognise the receipt of this document and formally accept their adherence to the policy in conjunction with abiding by the stated contractual terms. Our business partners will need to present their acknowledgement and declaration form not only on their compliance of our Company’s ABAC Policy where they have pledged to not take part in corrupted practices including, but not limited to, elements of bribery, gifts, receiving favours of any kind, misuse of power, theft, fraud, forgery of documents, money laundering, blackmail, using insider information for personal gain, and so forth. It also includes supplier DPNQMJBODF UP PVS QPMJDJFT UIBU BEESFTTFT BOUJ DPSSVQUJPO DIJME MBCPVS GPSDFE MBCPVS PDDVQBUJPOBM TBGFUZ BOE IFBMUI (“ OSH u NJOJNVN XBHF HFOEFS BOE SBDJBM OPO EJTDSJNJOBUJPO FRVBM PQQPSUVOJUJFT FYDFTTJWF XPSLJOH IPVST FOFSHZ use, waste management and notable environmental issues. Periodic audits on value chain partners will be conducted by the Group’s internal audit function to ensure effective compliance with MYEG’s ABAC Policy. Suppliers, vendors, contractors and others who do not adhere to these policies will be blacklisted and restricted from making further transactions with the Group in any form, as they have been previously been made aware of the punitive consequences of engaging in acts of bribery and corruption. Additional remedial actions including contract termination or pursuing appropriate legal action may be taken if deemed necessary. IDENTIFICATION OF HIGH-RISK SUPPLIERS We constantly identify suppliers who are deemed to be strategic suppliers by virtue of the relationship tenure with the DPNQBOZ PS UIF WBMVF PG USBOTBDUJPOT 5IFTF TVQQMJFST TVQQMZ DSJUJDBM JUFNT PS QSPKFDU SFMBUFE JUFNT UIBU EJSFDUMZ JNQBDU PVS PQFSBUJPOT 5IFTF TVQQMJFST QSJNBSJMZ TVQQMZ *5 IBSEXBSF BOE TPGUXBSF LJPTLT UFNQFS FWJEFOU CBHT $07*% related project equipment as well as renovation and maintenance works. "T QBSU PG PVS NJUJHBUJPO TUSBUFHZ XF FNQMPZ B TUSJDU TVQQMJFS PO CPBSEJOH QSPDFTT "MM TVQQMJFST BSF SFRVJSFE UP TJHO BO BOUJ CSJCFSZ QMFEHF 8F IBWF BMTP DPOEVDUFE B QSJDF DPNQBSJTPO FYFSDJTF PO FWFSZ QVSDIBTFT UP FOTVSF TVQQMJFST always remain competitive with their offered rates as well as ensure transparency in all dealings. Furthermore, all purchases are required to undergo multiple levels of approval from the management before they are cleared. SUSTAINABILITY GOVERNANCE (CONT’D)