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Governance

Anti-Bribery & Anti-Corruption

Our Commitment to Zero Tolerance of Bribery

MGB Berhad adopts a zero-tolerance stance toward all forms of bribery, corruption, and money-laundering. Our Anti-Bribery & Corruption (ABC) Policy, Gift, Entertainment & Hospitality Policy, and Donations & Sponsorships Policy apply to directors, employees, and business associates across all jurisdictions where we operate, and align with the Malaysian Anti-Corruption Commission Act (MACCA) and AMLATFA requirements.

Our policies

  1. Explicitly prohibit bribery in any form

  2. Ban facilitation payments

  3. Regulate interactions with public officials

  4. Establish strict approval thresholds and declaration processes for gifts, entertainment, and hospitality

  5. Address corruption comprehensively, including money-laundering, terrorism financing, political contributions, and conflict-of-interest management

Anti Bribery Policy

Gift, Entertainment & Hospitality Policy 

Donations & Sponsorship Policy

Communication & Training

MGB ensures that its ABC Policy and related procedures are effectively communicated to all employees through multiple channels:

  1. Employee Handbook & Induction: All new hires are briefed on the ABC Policy during induction, achieving 100% coverage at onboarding.

  2. Internal Communications: The policy is available on the corporate intranet and shared periodically via email circulars and posters at project sites.

  3. Annual Refresher Training: All employees undergo yearly training to reinforce understanding of bribery risks, prohibited activities (facilitation payments, conflict-of-interest), and available reporting channels.

Bursa (Anti-Corruption)
Bursa C1(a) Percentage of employee who have received training on anti-corruption by employee catagory:

Indicator Measurement Unit 2022 2023 2024
Senior Management Percentage 4.49 2.92 3.75
Middle Management Percentage 10.35 6.69 10.46
Executives Percentage 44.34 32.03 41.53
Non-Executives Percentage 15.43 23.12 6.69

 

In 2024, MGB achieved 62% overall training coverage (Senior Management: 3.75%, Middle Management: 10.46%, Executives: 41.53%, Non-Executives: 6.69%) and is targeting 100% coverage by FY2025 through e-learning modules and completion tracking.

Vendor, Contractor & Agents

MGB applies a structured process to manage corruption risks among suppliers, contractors, and other intermediaries:

  1. Vendor Registration & Due Diligence: All vendors complete a Vendor Registration Form disclosing legal and regulatory history and sign a declaration confirming compliance with MGB’s ABC, Gift & Hospitality, and Donations & Sponsorships Policies.

  2. Risk Assessment: Procurement teams screen for bribery, corruption, and financial crime risks prior to vendor onboarding.

  3. Policy Communication: Vendors acknowledge that they have read and understood MGB’s key integrity policies as part of the registration process.

  4. Governance: The Procurement Policy is Board-approved, reviewed biennially, and made publicly available to ensure transparency.

Procurement Policy

Corruption Risk Assessment

MGB conducts an annual Corruption & Bribery Risk Assessment covering all operations, with risks recorded in a central register reviewed by the Risk & Sustainability Department and reported to the Board Risk Committee.

Key risk codes include:

  1. Fraudulent financial reporting

  2. Fraudulent payments and claims

  3. Manipulated procurement/tendering processes

  4. Excessive gift/hospitality influencing business decisions

  5. Insider trading

  6. Corrupt practices with local authorities/government agencies

  7. Favoritism and bribery in recruitment process

  8. Misuse of donations and sponsorships

High-Risk Area Procedures

 For high-risk areas (e.g., COR-003, COR-004, COR-006), MGB applies additional controls:

  1. Multi-level tender evaluation committees and independent reviews before award

  2. Strict enforcement of No-Gift Policy and quarterly employee declarations

  3. Approval matrix for interactions with public officials, with audit trail maintained

High-risk areas are monitored on regular basis as part our corruption prevention exercise

Governance - Board Oversight of Anti-Bribery Policy

The Board of Directors, through the Board Risk Committee, exercises oversight of the ABC Policy and anti-corruption framework.

  1. The Board reviews and approves the ABC and Procurement Policies every two years or as required.

  2. Semiannually updates on risk assessments, policy breaches, investigations, and mitigation measures are presented to the Board.

  3. The Board ensures that adequate resources, training, and systems are in place to maintain compliance and drive continuous improvement in integrity practices.

Whistleblowing Mechanism

MGB Berhad maintains a formal Whistleblowing Policy, approved by the Board of Directors and aligned with the Whistleblower Protection Act 2010. The policy provides a safe and structured channel for employees, contractors, and external stakeholders to report any Improper Conduct including fraud, corruption, bribery, money laundering, abuse of power, or breaches of law without fear of retaliation

Reporting Channels

Whistleblowers can raise concerns through multiple secure and confidential channels:

  1. Email: [email protected] (accessible only by the Investigating Team)

  2. Postal Submission: To the Whistleblowing Investigating Team at MGB HQ, Sunway PJ@51A, Petaling Jaya

  3. Direct Submission: Hand delivery to designated Investigating Team members (Head of HR, Head of Legal, Chairman of Audit Committee)

 

Each report is acknowledged, assessed within seven (7) days, and escalated to the Investigating Committee for decision and potential investigation. Whistleblowers are updated on the outcome of their report once the investigation is completed

Policy Update - Anonymous Whistleblowers

MGB strengthened its policy to recognise and address anonymous whistleblowing reports. While the Group encourages identified disclosures, credible anonymous tips with specific and verifiable information are now formally investigated. This update enhances of whistleblowing policy by extending coverage to anonymous whistlelowers

Whistleblowing Policy

Protection & Confidentiality

MGB provides protection from detrimental action (e.g., retaliation, demotion, termination) for all whistleblowers who act in good faith. The identity of whistleblowers is kept strictly confidential unless disclosure is legally required