Introductory Course on

Anti-Bribery & Anti-Corruption

&
IHH Anti-Bribery & Anti-Corruption
Programme:
STUDY MATERIAL

IHH Group Risk Management (Compliance)

© All Rights Reserved.

This material is confidential and property to IHH Healthcare Berhad. No part of this material
should be reproduced or published in any form by any means, nor should the material be
disclosed to third parties without the consent of IHH.
Introduction
What
This course is a core component of the IHH Anti-Bribery & Anti-
Corruption Programme that is a Group Compliance initiative. It
provides a basic introduction to understanding bribery and corruption,
and the IHH Anti-Bribery & Anti-Corruption (ABC) Policy.

The course aims to equip employees with basic knowledge to combat

bribery and corruption, and to foster a culture of anti-bribery and anti-
corruption at IHH in ensuring IHH’s business operates in a legal,
transparent, fair, and productive manner.

Who
It is compulsory for all employees to successfully complete this course.
Employees are to also educate third party representatives on the
contents of this course.

Duration
Please allocate at least 1.5 hours to complete this course (inclusive of
time needed to take a quiz).
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Learning Objectives
Upon undertaking this course, you will have a basic understanding of:

▪ bribery and corruption

▪ common types of corruption
▪ some negative effects of corruption
▪ some common causes of corruption or reasons for its occurrence
▪ who should combat bribery and corruption
▪ the role of employees in combating bribery and corruption
▪ the IHH Group’s Anti-Bribery & Anti-Corruption (ABC) Policy
▪ how to apply the third party risk management checklist and red flags
▪ the impact of non-compliance with the ABC Policy
▪ how to report and escalate incidents of suspected/attempted or
actual bribery and corruption

You will be required to pass a quiz after you have read the study
material in order to successfully complete of this course.
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What is Bribery?

• Bribery is described as the act of conferring a benefit in order to influence an action or

decision.

• Bribery includes offering, promising, giving, accepting or soliciting of an advantage as an

inducement for an action which is illegal, unethical or a breach of trust. Inducements can
take the form of gifts, loans, fees, rewards or other advantages (taxes, services, donations,
favours etc.).

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What is Corruption?

• Corruption refers to abuse or misuse of entrusted power/authority for personal/private

gain.

• Corruption can be classified as grand, petty and political, depending on the amounts of
money lost and the sector where it occurs.

• Grand corruption consists of acts committed at a high level of government that distort
policies or the central functioning of the state, enabling leaders to benefit at the expense of
the public good.

• Entrusted power refers to the authority, duty, or office that has been entrusted to a person
through election, appointment, an employment contract, including conduct by a person in
their formal and professional capacity.

• Abuse or misuse occurs where the norms and obligations associated with the exercise of
power/authority are being violated.

• Personal/Private gain through corrupt practices come in financial and non-financial forms
including sexual favours, power, influence or anything with value including violating their
professional obligations. This gain may apply to officer/employee or benefiting family
member, friend, associate, etc.
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What is Bribery & Corruption?
Commercial Person associated with
Organisation or the organisation
Individual (including third party
representative)

or or

This flow diagram illustrates active

bribery by the organisation/individual Corruptly gives
offering the bribe. Passive bribery Promises or offers
refers to the wrongful acceptance of any gratification
a bribe by the organisation/individual Agrees to give
being bribed.

Impact:
Directors, partners,
management or officer, third For the benefit of
party representative unless that person
proven otherwise,
will be deemed to have With intent to
With intent to
committed that offence shall obtain or retain obtain or retain
be liable (subject to law and business an advantage
regulation on bribery and corruption)
 Types of Corrupt Practices
Petty Corruption Embezzlement, Theft & Fraud
Involves exchange of very small amount of money and Involved exploitation of position/power of employment
granting of small favours (i.e. facilitation payment) including provide false information or breach of fiduciary duty

Grand Corruption Improper Political Contribution

Involved highest level of government, major abuse of power, Donation made with the intentions to favour the interest of the
disobedience of the rule of law, poor governance donor

Active & Passive Corruption Extortion

Act of offering or paying a Acceptance /receipt of bribe Obtaining benefit through coercion Threats of violence
bribe (exposure of sensitive information)

Creating & Exploiting Conflict of Interest Abuse of Function

Conflict between role and private interest Failure to perform an act by a public official (including in
violation of law) and obtain undue advantage

Bribery (non-exhaustive) Favouritism & Nepotism

* Benefit to influence an Entertainment Employment (future
action or decision (cash, benefits such as Family/political/religious Special Interest Abuses of
sexual offer) retirement job) group network discretion

* Includes benefit that pass directly to the person being bribed or indirectly (friend, relative, associate, favourite charity, political party, private business)
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Why We Should Prevent Bribery & Corruption

Operational
Compromise Lack of quality Ensures processes
Lack of workplace
clinical quality & & efficiency in are followed for better
safety & health
patient safety services work outcomes

Financial
Fines by Financial loss, Drop in stock Ensures decisions made
regulators & adverse EBITDA & value (share and conduct are
authorities liquidity damage price) financially sound

Reputational
Loss of Directors and senior Undermines Positive Good
confidence by management liable – staff trust in public industry
stakeholders fines & or imprisonment institution image standing

Market
Decrease in foreign investment Delay in growth and development

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Why Do Bribery & Corruption Occur?
Pretending its not a bribe Complacency Inadequacy
• “It was only a helicopter • “We have always done it” • “We thought our anti-
trip and a five-course bribery systems were
banquet for him and his adequate”
partner…”

Outsourcing bribery Citing Custom Ignorance

• “ We had no clue our • “That is the way things • “If only we’d known that it
agent was paying…” work here – its different…” would be regarded as a
bribe”

Siege Mentality Opportunity Collusion

• “We can only compete • Having access to financial • Having the network and
if…” transaction (cash, entries, party interested
etc)
• Power/authority

To address the above reasons, improvement on

internal controls and enforcement must be
implemented for creating corruption-free environment.
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Who Should Prevent Bribery & Corruption?

Third Party
Directors Employees
Representatives
• Executive • Group Level • Anyone who
• Non-Executive • Divisions performs
• Subsidiaries services for or
on behalf of
• Joint Ventures
IHH Group or
any part of
IHH Group
• Joint Ventures
• Partnerships
• Associates

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What You Can Do To Combat Bribery & Corruption

DO’s DONT’s
Say No and Don’t engage or be
pressured to bribe Solicit and/or receive
bribes/rewards/gifts
Be aware of and act in a lawful
and ethical manner in accordance Make illegal, unofficial or informal
with law and company policies payments.

Comply to ABC policy and related Facilitation Payments (unofficial,

policy and procedure improper and small transfers of
Comply to applicable anti-corruption laws value offered or made to secure or
expedite/fast track necessary
Attend anti-bribery and anti-corruption actions)
training & complete the IHH e-learning Make frivolous or false claims to
exercise achieve other objectives

Submit Employee ABC Declaration Form

Abuse of position/authority/office

Declare Conflict of Interest

All business and transaction made are

accurately recorded and genuine Remain silent if there is any
instance of suspected or
confirmed bribery or corruption
Make timely inquiry or report through the
appropriate channels specified in the ABC Policy
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Third Party Risk Management
Country CEOs, CEOs of Business Units and Heads of Function responsible for engaging a third party for IHH
Group shall be accountable for managing bribery and corruption risks.

Red Flags
Avoid dealing with known or suspected of Transaction or party is in high crime jurisdiction
corrupt practices and/or classified as sanctioned country
Family, business or other special ties with any
Conduct risk-based due diligence
IHH Group employee, government or public
Declare related party transaction and conflict of Request for anonymity or insistence that identity
interest and document the solution to it remains confidential/secret.
Check Corruption Perception Index & corruption Party does not have in place adequate compliance
offenders database programme or code of conduct or refuse to adopt
Document business reason, selection process
Failure to cooperate/refuse on due diligence
accurately
Communicate awareness to Third Party Objection to anti bribery and corruption
Representatives representation and warranties in contract

Incorporate ABC clause in contracts, invitation to Convoluted payment arrangement

tender/quote
Reference checks reveals a poor business
Use good judgement and being vigilant or consult
reputation for unethical/suspicious/unlawful conduct
Legal and Risk Management

▪ The above checklist and red flags are not exhaustive. Please consult your respective Country Legal
Departments and the IHH Group Head of Risk Management/Chief Integrity Officer.
▪ IHH Group may suspend any dealing or contract if a third party is suspected of not complying with the
ABC Policy. Non-compliance with the ABC Policy will result in termination of relations. 12
IHH Group Anti-Bribery & Anti-Corruption (ABC) Policy
▪ The IHH Code of Conduct Policy sets out the standards of integrity and behaviour that is required
of our employees.

▪ Given IHH Group’s global presence and continuous expansion, it is vital for the Group to stay
compliant with anti-corruption laws across its business markets, key growth markets and other
international markets. As a multinational company, any IHH Group entity implicated in corruption
investigation would detrimentally affect the entire Group.

▪ The IHH Group adopts a zero-tolerance policy against all forms of bribery and corruption across
its subsidiaries, related corporations and associates.

▪ The IHH Group Anti-Bribery & Anti-Corruption Policy was published on 1 September 2019. It
overlays and augments all country policies to ensure global coverage of anti-corruption initiatives
and alignment across countries to ensure the IHH Group meets global and industry standards.

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Non-Compliance with IHH ABC Policy
• Every employee shall comply with the ABC Policy (which can be retrieved from
https://www.ihhhealthcare.com/corporate-governance.html) and related policy and procedures as
prescribed from time to time in the course of their employment. This includes completion of the
Employee ABC Declaration.

• All persons who perform services for or on behalf of IHH Group (hereinafter referred to as “Third
Party Representative”) shall comply with the ABC Policy when performing such work or services.

• Adequate, accurate, genuine record keeping and documentation shall act as a defence of
adequate anti-bribery and corruption policy and procedure for IHH Group.

• Non-compliance to the ABC policy, procedures and anti-corruption laws and regulation of
respective jurisdictions by the Senior Management and employee of the IHH Group will lead to
dismissal, civil and legal suit, fines and imprisonment.

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Employee ABC Declaration

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Inquiring, Reporting & Escalation
▪ The IHH Whistle Blowing Policy provides an avenue for employees to raise concerns and offers
protection from reprisals or victimisation in line with the local and/or foreign whistle blowing related laws
and regulations. Similarly, the IHH Whistle Blowing Policy provides protection for the making of any
inquiry or report under the ABC Policy.

▪ At first instance, where possible, employees shall report any instance of suspected or confirmed bribery
or corruption to their immediate superiors or their respective Human Resources Departments.

▪ Where not possible or appropriate for employees to approach their immediate superiors or their
respective Human Resources Departments, employees shall instead report any instance of suspected or
confirmed bribery or corruption to either of the following:

➢ Group Head, Internal Audit, IHH Healthcare Berhad (Singapore Branch) at TripleOne Somerset 111
Somerset Road #15-01 Singapore 238164
➢ [email protected].

▪ Employees shall convey to third party representatives that any instance of suspected or confirmed bribery
or corruption shall be reported to either of the following:

➢ Group Head, Internal Audit, IHH Healthcare Berhad (Singapore Branch) at TripleOne Somerset 111
Somerset Road #15-01 Singapore 238164
➢ [email protected].

▪ When in doubt, seek advice from:

➢ Country Legal Department

➢ Group Head, Risk Management/Group Integrity Officer

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How could Bribery & Corruption Occur?
- Gift, Hospitality &Travel Sponsorship
Scenario
A vendor frequently buys lavish meals for an organisation’s executive who has influence over the equipment
procurement process for the organization and sponsors the executive’s overseas visit to the vendor factory
which might include expensive meals, airline tickets and/or luxury accommodation.

Learning Point
The offer and receipt of gifts, hospitality or sponsorship must be avoided whenever they could affect or be
perceived to affect the outcome of business transactions or dealings or are not reasonable and bona fide.

Vendor
Gifts / Sponsorship of travel expenses

The gift value limit for IHH Group are as follows:

Organisation Limit applicable to all employees except Management: MYR100 – MYR300 (or equivalent)
Limit applicable to Management: MYR1,000 (or equivalent) 17
 How could Bribery & Corruption Occur?
- Third Party Representative/Intermediary
Scenario
A third party representative has been engaged by an organisation to assist in identifying business opportunities
in a new market. In order to obtain confidential city planning information and build relationships with local
government, the third party representative bought an expensive watch for the local government official and set
up a lavish dinner in a local nightclub for the organisation’s executive to socialise with the official.

Learning Point
Dealings with a third party representative must be carried out in compliance with all relevant laws and consistent
with the values and principles of all IHH policies including the Code of Conduct and the Anti-Bribery & Anti-
Corruption Policy.

1. Engaged third party to identify 2. Gifting of expensive watch to the government

business opportunities in a new official and lavish dinner in an inappropriate
market setting.

Local
Government
Official

3. Local Government Official

4. Third party representative
Organisation provided confidential city planning
disclosed confidential city
planning information to third
information to organisation
party representative
How could Bribery & Corruption Occur?
- Facilitation Payment
Scenario
Small value payments (“Facilitation Payments”) are made to expedite processes/outcomes in order to minimise
disruption to business operations such as utility connection, renewal of licenses/permits, re-certification,
provision of security, and travel visa issuance.

Learning Point
Facilitation Payments could be deemed a form of bribery or participation in corrupt practices and must be
avoided regardless of the value. Be clear about what is legally and officially required as payment to avoid
unknowingly making Facilitation Payments.

1.Making Facilitation
Payment

2. Expedited process/outcome

Public/Private
Organisation Service Provider

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How could Bribery & Corruption Occur?
- Charitable Donations
Scenario
Part of the organisation’s charitable donation is channeled/passed on by the recipient to a government official so
that the official helps the organisation to obtain approval of licences/permits.

Learning Point
Donations, sponsorships and charitable contributions made on behalf of IHH must not be used as a disguise for
bribery. They should only be made without expectation of business returns or performance of favours.

1. Charitable donation
by organisation

Permit
Approval

Organisation
2. Part of the donation
channeled/passed on to
3. Permit approved for the organisation’s government official involved
newly-built building despite the building in approving permits
not being ready for occupancy relevant to the organisation 20