INTRODUCTION

 

In line with good Corporate Governance Practices and with the introduction of the Board and Management of

Evergreen Fibreboard Berhad and its group of companies (“the Group”) encourage its employees and associates to

report suspected and / or known misconduct, wrongdoings, corruption and instances of fraud, waste, and /or abuse

of power involving the fellow employees, suppliers, customers or directors of the Group.

 

To blow the whistle on someone in an organization is to alert a third party or the organization itself that a person has

done, or is doing, something wrong. So, literally, “whistle-blowing” means that one makes a noise to alert others

about such misconduct.

 

Therefore, Whistle Blowing is a specific means by which any Employees or Stakeholders can report or disclose

through established channels, concerns about unethical behavior, malpractices, illegal acts or failure to comply

with regulatory requirements that is taking place / has taken place / may take place in the future; of which they

become aware and to provide protection for the individual, who report allegations of such malpractice or misconduct.

 

OBJECTIVE

 

The objective of this policy is to provide and facilitate a mechanism for individual to report concerns about any suspected

and/or known misconduct, wrongdoings, corruption, fraud, waste and/or abuse of power.

 

This Policy is designed for its employees to:

 

• be committed to the Group’s business ethics of Honesty, Integrity and Transparency;
• provide a transparent and confidential process in handling the reported case; and
• uphold the moral duty by protecting the interest of all its stakeholders.

 

 

SCOPE & DEFINITION

 

A. Improper Conduct

 

Is a conduct of an employee when proved, constitutes a disciplinary offence or a criminal offence.

 

B. Fraud

 

Fraud is an act of and employee for making false representations of material facts whether by words or conduct,

by concealing information, or by making misleading statements in order to obtain some benefit or payment that

would otherwise not exist. Fraud includes (but not limited to) any questionable accounting practices or irregularities in

 

 

the Company’s reported financial statements and non-compliance with the Company’s internal financial controls.

(These acts may be committed either for the employee’s own benefit, or for the benefit of some other party.

These acts must have been committed knowingly, willfully and intentionally.

 

C. Waste

 

Waste is spending money or using resources on goods or services in excess of actual need. Waste does not

necessarily produce a benefit for the employee, but is an act of poor management of resources or funds.

 

D. Abuse of Power

 

Abuse of Power consists of practices that cause unnecessary stress, disgrace, embarrassment, humiliation,

dishonor, discredit to another employee or extra costs to the Group.

 

 

PROCEDURE FOR REPORTING IMPROPER CONDUCT, WRONGDOINGS, CORRUPTION, FRAUD,

WASTE AND ABUSE OF POWER

 

1. Any Employee / Customer / Supplier/ who knows of, or suspects, a violation of the Code, are encouraged to whistle

blow by reporting the concerns through this Whistle Blowing Policy.

 

 

2. No individual will be discriminated against or suffer any act of retaliation for reporting in good faith on violations

or suspected violations. The Group encourages any employee who suspects wrongdoing at work, whether by his

Superiors or another employee, to raise his concern through the whistle blowing procedure.

 

3. Concerns raised will be investigated properly and the identity of the person raising the concern will be kept

confidential. Concerns are encouraged to be raised in confidence but may also be raised anonymously.

 

Examples of suspected wrongdoing that can be raised include:

 

• a failure to comply with any legal obligation or any other unlawful act or omission;

 

• fraud is an act of making false representations of material facts whether by words or conduct, by
  

concealing information, or by making misleading statements. Fraud includes (but not limited to) any questionable

accounting practices or irregularities in the Company’s reported financial statements and non-compliance with the

Company’s internal financial controls.

 

• Waste is spending money or using resources on goods or services in excess of actual need due to poor

 management of resources or funds.

 

• Causing damage to the environment by an individual or Group;

 

• an act, instruction or omission which will or likely to, unlawfully endanger the health and safety of

 an individual or unlawfully damage the environment;

 

• any malpractice or falsification of documents or inventory figures;

 

• abuse of power that consists of practices that cause or create

 

- Religious or racial or sexual harassment/ discrimination;

            - Serious non-professional or non-ethical behavior; and

            - Caused danger to the health and safety of any individual.

 

• a breach of human rights;

 

• any other breach of the Code of Conduct or any other applicable Group Policy or

 

• concealment of any of the above.

 

 

4. This procedure can and may be used by contractors, agency staff, temps and trainees, as

well as by all employees and former employees throughout the Group. It is not intended for use where an

employee is unhappy with his or her personal employment position, for example lack of promotion or a

smaller than expected salary increase.

 

5. An individual who is concerned about actual or suspected wrongdoing and who wishes to report the matter

formally for investigation shall raise it with his immediate Superior. The Superior shall immediately refer the

matter to the Legal Advisor of the Group for investigation but must otherwise keep all details confidential.

The procedure to be used if the suspected wrongdoing involves the employee’s line manager, he /she is to

raise the concern either through the HR Manager of the Group or directly to the Legal Advisor of the Group

and / or  if deem necessary, take the following steps for complaint to reach the Audit Committee.

 

6. An employee or any individual, who has any suspicion that there is an impending fraud or that fraud

has taken place, he / she can take the following reporting steps:-

 

•             Step 1

 

Report (Verbally or Written) directly to the Executive Directors or

call these numbers directly if he prefers to be anonymous.

                        H/P : 6012-7108807 (Kuo Jen Chiu)

                        H/P : 6012-7178918 (Mary Lim)

                       

                        or

 

•             Step 2

           

if he/she has done the above but failed to get any response and has evidence

that Executive Directors is involved in the fraud, he /she can call directly to the

Senior Independent Director (Mr Yong Kok Fong) on his mobile at 60-19-7797777 or write to his

email at kokfong@hotmail.com.

 

                        and

 

•              Step 3

           

if still fail to get any response, he/she shall directly the report to the Company

Secretary directly by contacting 60-7-3352536 (Ms Julie Leong) or write to her email at SCH.JB@symphony.com.my

 

“ A copy of form on “Report of Improper Conduct, Wrongdoings, Corruption, Fraud, Waste & Abuse of Power” is

available on the group’s website : www.evergreengroup.com.my .

 

*Individual or Employee may wish to send this form via local postal service if they prefer to remain anonymous.

 

 

 

7. PROCEDURE FOR HANDLING REPORTS OF FRAUD, WASTE AND/OR ABUSE

 

a.         The Legal Advisor in the Group Administration Department will maintain a record of the complaints and

will track their receipt, investigation and resolution.

 

b.         The Legal Advisor will seriously consider each disclosure and pursue it to the extent that the

            information received allows, and based on the evidence that is available.

 

c.         Once employee/reporting individual’s disclosure is received, the Legal Advisor will begin preliminary

investigations to establish whether the disclosure has merit and can be substantiated.

 

d.         Following the internal auditing standard of professional practice, the Legal Advisor will review the

disclosure and determine if there is enough evidence to confirm that disclosure.

 

e.         With this information, the Legal Advisor will do his/her best to draw an unbiased conclusion from facts given

to him by the employee / reporting individual, or any other information gathered during the course investigation.

 

f.          If the case is serious and warrants a committee for investigation, Legal Advisor shall form a Committee for this

purpose. Each member of this committee shall sign an undertaking that they are obliged to discharge their duties in

good faith, honesty and integrity. At the same time, they will not disclose the confidentiality of information and identity

of the employee or the reporting individual.

 

g.         If the case necessitates further action on the part of the Human Resource (HR) department, a copy of a summary

report will be provided to HR.

 

h.         Upon completion of the case, Legal Advisor shall make known to the Head of Internal Audit for their reporting and

presentation to the Group’s Audit Committee on a quarterly basis. This report will maintain confidentiality to protect the

employee / reporting individual’s identity.

 

7. Whistleblowers / Informers are assured by the company that their identity will be kept strictly confidential. All

whistle-blowingreports are treated as confidential and or anonymous and not to reveal the blower’s identity, if so wish.

However, such consultation will not take place in the event the disclosure of identity is required by law. The

whistle-blower will be  given an assurance that his/her identity will be only known to a few top management on a

need to know basis and the outcome of the investigation will be fed back to the whistle-blower. This is to encourage

and give confidence to the whistle-blower that the complaint is investigated.

 

 

8. Reward will be considered on a case to case basis by the company to him/her if the company makes a big savings

due to the complaint (based on a % basis) to encourage whistle blowing.

 

9. When the investigation has been completed, the individual /employee who raised the concern will be informed of

the outcome in a personal meeting.

 

10. Anyone raising a concern in the genuine belief that wrongdoing has occurred or may be about to occur will

not be penalized or suffer any form of victimization even if, after full investigation, it is shown that he was mistaken.

Any form of reprisal against anyone who in good faith has raised a concern is forbidden and will itself be regarded

as a serious offence to be dealt with under the relevant group disciplinary procedures.

 

IMPORTANT NOTE:-

 

False allegations raised maliciously will be treated as misconduct and dealt with in accordance with the

Group’s Disciplinary Procedure.

 

PROTECTION POLICY FOR WHISTLE BLOWERS

 

A. Anonymity

 

It is the policy of the Group to allow the reporting individual / employee 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 of power.

 

B. Assurance against Reprisal & Retaliation

 

Where the employee or reporting individual has chosen to reveal his/her identity, it is the policy of the Group to

provide assurance that he/she will be protected against reprisals or retaliation from his/her immediate superior

or department / division. In addition, the Group provides assurance that no disciplinary action can be taken against

the employee / reporting individual 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.

 

C. Confidentiality

 

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. The identity and particulars of the employee / reporting individual

shall also be kept private and confidential unless the employee / reporting individual chose to reveal his/her identity.

When the employee / reporting individual choose to reveal his/her identity when making such a report, written

permission from the employee / reporting individual  must be obtained before the information is released.

 

D. Immunity

 

All costs in relation to any legal liabilities or proceedings (whether criminal or civil) that may be brought against the

employee / reporting  individual shall be borne by the Group and the selection of the lawyer defending the legal action

shall be made by the Group.

 

E. Protection

 

The employee / reporting Individual shall also be protected against:

 

• action causing injury, loss or damage;

• intimidation or harassment;

• interference with the lawful employment or livelihood of the employee / reporting individual, 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 above.

 

Where necessary, any person related or associated with the employee / reporting individual

(e.g., immediate family members) shall be accorded with similar protection mentioned in this paragraph (E).

 

 

F. Relocation

 

The Employee / Reporting Individual may request for a relocation of his/her place of employment at the discretion of the

group. 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;

 

• however it is restricted to the employee / reporting individual 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.

 

REVOCATION OF POLICY & PROTECTION

 

The protection stated above shall be revoked by the Group if:

 

• the employee / reporting individual him/herself has participated in the improper conduct,

       wrongdoings, corruption, fraud, waste, and/or abuse;

 

•  the employee / reporting individual willfully or maliciously made his disclosure, knowing or

       believing the information is false or untrue;

 

• the disclosure is frivolous or vexatious; or

 

• the disclosure is made with the intention or motive to avoid dismissal or other disciplinary

            action.

 

This policy has been adopted by the Board of Directors on 01 June 2013.

 

 

************************************************END**************************************************************