1.0 INTRODUCTION
1.1
In line with good corporate governance practices and with the introduction of the Whistleblower Protection Act 2010 (ACT 711), the Board and Management of LYC HEALTHCARE BERHAD [LYC] ("the Company") and group of companies (“the Group”) encourage its employees and associates (“the reporting individual”) to report suspected and/or known misconduct, wrongdoings, corruption and instances of fraud, waste, and/or abuse involving the resources of the Group.
2.0 OBJECTIVES
2.1
The objective of this policy and procedure is to provide and facilitate a mechanism for any Reporting Individual (“RI”) and members of the public to disclose any improper conduct in accordance with the procedures as provided for under this policy and to provide protection for RI and members of the public who report such allegation.
3.0 SCOPE OF THE POLICY
3.1
This policy is designed to facilitate any RI and members of the public to disclose any improper conduct (misconduct or criminal offenses) through internal channel. Such misconduct or criminal offences include the following:
3.1.1
Theft of the Group’s property, including information;
3.1.2
Forgery or alteration of the Group’s records;
3.1.3
Willful destruction or removal of the Group’s records;
3.1.4
Falsification of expenses claims and knowingly generating or paying false claims or invoices;
3.1.5
Unauthorized disclosure of confidential information to outside parties;
3.1.6
Misappropriation or use of the Group’s assets for personal gain;
3.1.7
Undertaking or assisting in illegal activity;
3.1.8
Acceptance of bribes or gifts to favour third parties; and
3.1.9
Unauthorized premium discounting
3.2
The above list is not exhaustive and includes any act or omissions, which if proven, will constitute an act of misconduct or any criminal offence under relevant legislations in force.
4.0 APPLICABILITY OF THE POLICY
4.1
Subject to the requirement of applicable local jurisdiction, this policy applies to all employees of the Group. This policy also applies to members of the public, where relevant.
5.0 POLICY AND PROTECTION
5.1
Anonymity - It is the policy of the Group to allow the RI to either identify themselves or if they prefer, to remain anonymous when reporting suspected and/or known instances of misconduct, wrongdoings, corruption, fraud, waste and/or abuse.
5.2
Assurance against reprisal and / or retaliation
5.2.1
Where the RI has chosen to reveal his/her identity, it is the policy of the Group to provide assurance that the RI would be protected against reprisals and/or retaliation from his/her immediate superior or head of department / division.
5.2.2
In addition, the Group provides assurance that no disciplinary action can be taken against the RI as long as he/she does not provide false information in the report “purposely, knowingly or recklessly” i.e. the report is basically malicious in nature.
5.3.1
The Group shall treat all reports or disclosures as sensitive and will only reveal information on a “need to know” basis or if required by law, court or authority.
5.3.2
The identity and particulars of the RI shall also be kept private and confidential unless the RI chose to reveal his/her identity.
5.3.3
Where the RI has chosen to reveal his/her identity when making such a report, written permission from the RI would be obtained before the information is released.
5.4.1
Subject to section 6.0, all costs in relation to any legal liabilities or proceedings (whether criminal or civil) that may be brought against the RI shall be borne by the Group and the selection of the lawyer defending the legal action shall be made by the Group.
5.5.1
The RI shall also be protected against:
- action causing injury, loss or damage;
- intimidation or harassment;
- interference with the lawful employment or livelihood of the RI, including discrimination, discharge, demotion, suspension, disadvantage, termination or adverse treatment in relation to the RI’s employment, career, profession, trade or business or the taking of disciplinary action; and
- a threat to take any of the actions referred to in paragraphs (a) to (c) above.
5.5.2
Where necessary, any person related or associated with the RI (e.g., immediate family members) shall be accorded with similar protection mentioned in section 5.0.
5.6.1
The RI may request for a relocation of his/her place of employment at the discretion of the Group.
5.6.2
The protection conferred above is:
- not limited or affected in the event that the disclosure does not lead to any disciplinary action or prosecution of the person whom the disclosure of the improper conduct, wrongdoings, corruption, fraud, waste, and/or abuse has been made; and
- however, restricted to the RI reporting the suspected and/or known misconduct, wrongdoings, corruption and instances of fraud, waste and/or abuse involving the Company’s resources through the Company under this policy.
6.0 REVOCATION OF POLICY AND PROTECTION
6.1
The protection stated in section 5.0 above shall be revoked by the Company if:
6.1.1
The RI himself has participated in the improper conduct, wrongdoings, corruption, fraud, waste, and/or abuse;
6.1.2
The RI willfully or maliciously made his disclosure, knowing or believing the information is false or untrue;
6.1.3
The disclosure is frivolous or vexatious; or
6.1.4
The disclosure is made with the intention or motive to avoid dismissal or other disciplinary action.
7.0 REPORTING OF SUSPICIOUS CONDUCT
7.1
Suspicious of fraud or irregularity may arise through a number of means, including the followings:
7.1.1
Internal detection – staff detection, internal audit checks and internal reports or investigations.
7.1.2
External detection – local authority, government agencies, supplier, customers and member of the public.
7.2
Suspicions of fraud to be reported by providing the following information (where applicable):
7.2.1
Details of issue(s);
7.2.2
Suspected amount involved;
7.2.3
Suspected parties involved; and
7.2.4
Supporting documents.
This report should be marked as “PRIVATE AND CONFIDENTIAL” and to be submitted by writing (preferred method) or secured email to either of the following contact persons;
ii.
Chairman of Audit Committee (Independent Non-Executive Director)
Email:
khasan@spm.com.my
Address:
LYC HEALTHCARE BERHAD
2nd Floor, Podium Block Plaza VADS,
No.1 Jalan Tun Mohd Fuad,
Taman Tun Dr. Ismail
60000 Kuala Lumpur, Malaysia.
Contact number: 60 3 7733 9222
Fax Number: 60 3 7733 4886
Email Address:
gfc@lychealth.com
7.3
Reports can be made through telephone calls to the above contact persons. The contact person will decide on the next course of action.
7.4
Where the alleged perpetrator is one of the contact persons, the remaining person can decide on the next course of action.
8.0 FRAUD INVESTIGATION
8.1
Contact persons to jointly decide on the next course of action:
8.1.1
Reject the report due to insufficient / not credible information; or
8.1.2
Accept the report and forward report to internal department, outsource investigator or relevant authorities.
8.2
Where report is rejected due to 8.1.1, contact persons to write to the whistleblower for more credible information or to close the case.
8.3
Where reasonable suspicion that fraud against the Group has taken place, contact persons are entitled to investigate the matter thoroughly using recognized and legitimate investigative technique as follows:
8.3.1
All investigations will be carried out objectively and confidentially and independently of the area in which the fraud has occurred or is suspected.
8.3.2
Third party investigators may be employed by contact persons in order to gather sufficient evidence to hand the case over the proper authorities. Responsibility for the management of third parties rest with contact persons.
8.3.3
Third party investigators employed by contact persons are authorised to enter any of the Company’s premises, be given access to any information requested, and have access to all staff (with reasonable notice).
8.3.4
The right of individuals will be respected at all times.
8.3.5
Where members of staff are involved in a fraud against the Group, whether actual or attempted, they will be subjected to the Group’s disciplinary procedures, which may result in dismissal from the Group.
8.4
Upon completion of investigation:
8.4.1
The Group will seek to prosecute anyone who commits fraud and will seek to recover its assets through legal means.
8.4.2
Lesson learnt will be shared across the Group as soon as possible upon conclusion of the case.
9.0 EXTERNAL REPORTING AND IMPROVEMENT
9.1
The Group may report other breaches discover in the course of investigation to the relevant authorities. The time of such involvement will be at the discretion of the Board of Directors.
9.2
Managing Director’s office will review lesson learned and will propose improvements in policies and procedures to mitigate the occurrence of such fraud or irregularity in the future.
10.0 RESPONSIBILITIES
| RESPONSIBLE TEAM/GROUP |
RESPONSIBILITIES DETAILS |
| Managing Director’s Office |
- Maintenance of this policy.
- Liaison with subsidiary units on fraud and other group functions, as appropriate.
- Assisting subsidiary units with the implementation of this policy, and regular reporting on the effectiveness of the policy.
- Sharing of best practice and provision of fraud and investigation services to the Group on request.
- Regular reporting on the fraud risk within the Group.
- Assist Contact Persons in performing their functions as stated in section 7, 8 and 9.
|
| Subsidiary Units |
- Ensuring compliance with the policy throughout their operations. A person-in-charge should be appointed with the responsibility for its implementation and monitoring.
- Identifying their exposure to fraud risk and introducing preventative controls into new and existing systems and processes.
- Encouraging an open and ethical culture amongst staff.
- Developing pro-active method of detection, such as data mining analysis.
- Reporting all suspected cases of fraud or theft by an employee to the Contact Persons.
|
| the Group’s Employee |
- Reporting of known or suspected fraud, or instance of unethical or illegal behavior within the Group.
|