WEC FRAUD POLICY

Introduction 

This corporate fraud policy is established to facilitate the development of controls, which will aid in the detection and prevention of fraud against Wong Engineering Corporation Berhad (“WEC” or “the Company”). It is the intent of the Company to promote consistent organisational behaviour by providing guidelines and assigning responsibilities for the development of controls and conduct of investigations.

 

Scope of policy 

This policy applies to any fraud, or suspected fraud, involving employees as well as shareholders, consultants, suppliers, contractors, outside agencies doing business with employees of such agencies, and/or any other parties with a business relationship with the Company. Any investigative activity required will be conducted without regard to the suspected wrongdoer’s length of service, position/title, or relationship to the Company.

 

Policy 

Management is responsible for the detection and prevention of fraud, misappropriations, and other inappropriate conduct. Fraud is defined as the intentional, false representation or concealment of a material fact for the purpose of inducing another to act upon it to his or her injury. Each member of the Management team will be familiar with the types of improprieties that might occur within his or her area of responsibility, and be alert for any indication of irregularity. Any fraud that is detected or suspected must be reported immediately to the identified Senior Management personnel/ Managing Director or his designate, who coordinates all investigations with the relevant parties, both internal and external.

 

Actions Constituting Fraud

The terms defalcation, misappropriation, and other fiscal wrongdoings refer to, but are not limited to:

  • Any dishonest or fraudulent act;
  • Forgery or alteration of any document or account belonging to the Company;
  • Forgery or alteration of a cheque, bank draft, or any other financial document;
  • Misappropriation of funds, securities, supplies, or other assets;
  • Impropriety in the handling or reporting of money or financial transactions;
  • Profiteering as a result of insider knowledge of Company activities;
  • Disclosing confidential and proprietary information to outside parties;
  • Disclosing to other persons securities activities engaged in or contemplated by the Company;
  • Accepting or seeking anything of gifts of cash, cash equivalents, stock or other securities from contractors, vendors or persons providing services/materials to the Company;
  • Exception: Gifts of nominal value such as promotional or commemorative items; • Destruction, removal or inappropriate use of records, furniture, fixtures, and equipment; and/or • Any similar or related inappropriate conduct.

 

Other Appropriate Conduct 

Suspected improprieties concerning an employee’s moral, ethical, or behavioural conduct should be resolved by identified Senior Management personnel/ Managing Director or his designate rather than the Department Heads. If there is any question as to whether an action constitutes fraud, contact Senior Management personnel for guidance.

 

Investigation Responsibilities 

The Managing Director or his designate has the primary responsibility for the investigation of all suspected fraudulent acts as defined in the policy. If the investigation substantiates that fraudulent activities have occurred, the Managing Director or his designate will issue reports to appropriate designated personnel and, if appropriate, to the Board of Directors. Decisions to prosecute or refer the examination results to the appropriate law enforcement and/or regulatory agencies for independent investigation will be made in conjunction with legal counsel and Senior Management, as will final decisions on disposition of the case.

 

Confidentiality 

The identified Senior Management personnel/Managing Director or his designate treats all information received confidentially. Any employee who suspects dishonest or fraudulent activity will notify the identified Senior Management personnel/Managing Director or his designate immediately, and should not attempt to personally conduct investigations or interviews/interrogations related to any suspected fraudulent act (see Reporting Procedure section below).

Investigation results will not be disclosed or discussed with anyone other than those who have a legitimate need to know. This is important in order to avoid damaging the reputations of persons suspected but subsequently found innocent of wrongful conduct and to protect the Company from potential civil liability.

The employee will be guided under the Company’s Whistle Blowing Policy accordingly.

 

Authorisation for Investigating Suspected Fraud  

Members of the Investigation Unit will have:

  • Free and unrestricted access to all Company records and premises, whether owned or rented; and
  • The authority to examine, copy, and/or remove all or any portion of the contents of files, desks, cabinets, and other storage facilities on the premises without prior knowledge or consent of any individual who may use or have custody of any such items or facilities when it is within the scope of their investigation.

 

Reporting Procedure 

Great care must be taken in the investigation of suspected improprieties or wrongdoings so as to avoid mistaken accusations or alerting suspected individuals that an investigation is under way. An employee who discovers or suspects fraudulent activity will contact the identified Senior Management personnel/Managing Director or his designate immediately. The employee or other complainant may remain anonymous. All inquiries concerning the activity under investigation from the suspected individual, his or her attorney or representative, or any other inquirer should be directed to the

Investigation Unit. No information concerning the status of an investigation will be given out. The proper response to any inquiries is: “I am not at liberty to discuss this matter.” Under no circumstances should any reference be made to “the allegation,” “the crime,” “the fraud,” “the forgery,” “the misappropriation,” or any other specific reference.

The reporting individual should be informed of the following:

  • Do not contact the suspected individual in an effort to determine facts or demand restitution; and
  • Do not discuss the case, facts, suspicions, or allegations with anyone unless specifically asked to do so by the Managing Director or his designate.

 

Termination 

If an investigation results in a recommendation to terminate an individual, the recommendation will be reviewed for approval by the Managing Director or his designate and, if necessary, by outside counsel, before any such action is taken. The Department Heads do not have the authority to terminate an employee. The decision to terminate an employee is made by the employee’s top management. Should the affected employee believe the Management’s decision to be inappropriate for the facts presented, the facts will be presented to the Board of Directors for a decision.

 

Administration  

The Managing Director or his designate is responsible for the administration, revision, interpretation, and application of this policy. The policy will be reviewed and revised as needed.