Anti-Bribery and Anti-Corruption Policies and Procedures have been implemented within Kazakhmys Group companies according to the approved Action Plan for 2020.
The following actions were undertaken in 2020:
- Monitoring, on-site training sessions, implementation of in-house policies and procedures across Kazakhmys Group enterprises.
According to the approved Action Plan in field of legal support for Anti-Bribery and Anti-Corruption Policies for 2020, the implementation efficiency monitoring for in-house Anti-Bribery and Anti-Corruption policies and procedures including practical assistance on their implementation was planned at 6 (six) enterprises of Kazakhmys Group:
• Karagandatsvetmet PA, the branch of Kazakhmys Corporation LLC
• Kazakhmys Barlau LLC
• Shaft- Sinking Trust after G.Omarov, the branch of Kazakhmys Corporation LLC
• Zhezkazgan Shaft Sinking Division
• Balkhash Shaft Sinking Division
• Balkhashtsvetment PA, the branch of Kazakhmys Corporation LLC
However, in conformity with the Resolution #X/08-П-1 dated March 19, 2020 of the Board of Directors Chairman, Kazakhmys Holding LLC, due to the situation with COVID- 19 and lockdowns, business trips of the Group employees were forbidden since March 19, 2020, till further notice.
Consequently, the planned efficiency monitoring for in-house Anti-Bribery and Anti-corruption policies and procedures at above -specified enterprises was not conducted.
2. Speak Up Alert Reporting Service.
Operation of the Speak Up Alert Reporting Service is regulated by Resolution # Х/249-ПР of the Board of Directors Chairman, Kazakhmys Holding LLC dated November 20, 2018 (On the Approval and Introduction of Regulations for the Structural Units Interaction while responding to Speak Up alert reports/appeals made by legal entities and individuals), and by the Instruction for order of acceptance, registration and scrutiny of Speak Up alert reports/appeals made by legal entities and individuals.
Legal entities, as well as individuals, can report wrongdoing via free-of-charge hotline, with three options available:
- Phone call 8-800-080-8089;
- Email: firstname.lastname@example.org
- Regular mail to the company’s legal address: 12 Lenin Street, Karaganda, 100012.
Totally 51 Speak Up alert reports/appeals were registered within the reporting period (vs 58 in 2019), where:
49 (vs 55) – analyzed;
2 (vs 2) – pending.
Out of 49 (vs 55) reports/appeals analyzed:
12 (vs 20) – satisfied, including 2 (vs 3) repeated;
25 (vs 28) – dismissed, including 1 (vs 2) repeated;
11 (vs 6) – clarifications provided;
1 (vs 1) – official note issued.
Out of 51 reports:
29 (57%) - related to employment relationships, occupational health and safety;
7 (14%) - related to actions of the Structural Units Executives
5 (10%) - related to procurement (goods, works and services);
2 (4%) - related to compliance with Anti-Bribery and Anti-Corruption policies and procedures regarding Conflict of Interests;
8 (15%) – regarding other issues.
Company employees and third parties are informed about Speak- Up Alert Service by:
• On-site placement of information materials and posters;
• Contact information at www.mykazakhmys.kz
• Data publication in KazakhMys corporate newspaper;
• Access to Anti-Corruption Knowledge Database software via corporate Intranet.
3. Interaction with counterparties and their acceptance of the Group’s Anti-Bribery and Anti-Corruption Policies and Procedures.
Interaction with counterparties within the framework of Anti-Corruption efforts is implemented in compliance with:
- Programme of Preliminary Counterparty Scrutiny/Verification for Compliance with Anti-Bribery and Anti-Corruption Laws (Resolution #X/2P of Kazakhmys Holding Board of Directors Chairman dated May 15, 2018);
- Regulations for Scrutiny of Counterparties, Draft Contracts, Procedures for Registration of Threats Detected, and Threat Acceptance Level (Resolution #KH/95-ПР of the Board of Directors Chairman, Kazakhmys Holding LLC, dated July 8, 2016, amended by Resolution #Х/148-ПР of Kazakhmys Holding LLC dated July 20, 2018;
- Regulations for Reconciliation/Approval of Counterparties Refusing to Follow Kazakhmys Group Anti-Bribery and Anti-Corruption Policies and Regulations (Resolution # Х/260-ПР of Kazakhmys Holding LLC, dated December 11, 2018. (Previously used Resolution # 01-КН/4, dated January 29, 2016 is declared to be no longer in force.)
In 2020 - 12 (vs 47) reports on counterparties’ refusal to follow the Company Anti-Corruption Policy were filed, where 6 (vs 28) counterparties refused to fill in a Questionnaire; 2 (vs 8) counterparties refused including an Anti-Corruption Clause to a Contract text; 4 (vs11) counterparties refused both - filling in a Questionnaire and including an Anti-Corruption Clause to a Contract text.
Following reports analysis, 4 (vs 22) counterparties were included into the Register of Counterparties authorized for the contractual relationship despite the lack of Anti-Corruption regulations.
As for the rest 8 (vs 25) reports – regarding counterparties refused to follow Kazakhmys Group Anti-Corruption Policy – one-time contracting was approved due to production needs of Kazakhmys Group enterprises, in the absence of counterparties offering similar goods, works and services in the indicated segment market and /or region on the basis of Clause 6.5.3 of the Regulations for Reconciliation/Approval of Counterparties, Refusing to Follow Kazakhmys Group Anti-Bribery and Anti-Corruption Policies and Regulations (Resolution # Х/260-пр. Of the Board of Directors Chairman, Kazakhmys Holding LLC, dated December 11, 2018.
Structural Units are informed of the list of reconciled/approved counterparties ranked criteria-wise via e-document mail-out.
4. Increasing the awareness of Kazakhmys Group employees of Anti-Bribery and Anti-Corruption Efforts.
Enhancement of the Group employees’ awareness of implemented policies and procedures is in progress with focus on newly-hired employees.
Within reporting period total 2577 (vs 2812) employees (newly-hired inclusive) were acquainted with Anti-Corruption Code.
Total 576 (vs 673) Additional Agreements to the Employment Contracts were concluded, including those for newly-hired employees. Conclusion of such agreements is mandatory for newly-hired employees, pursuant to position.
5. Conflict of Interests Management.
An in-depth analysis was undertaken within the framework of implementation of the Regulations for Conflict of Interests Management approved by Resolution # Х/240-ПР dated November 9, 2018 (previously used Resolution # 01-КН/6, dated May 4, 2016 is declared to be no longer in force) to verify credibility and completeness of disclosure of conflicts of interests, as well as quality of their settlement by CEOs of those legal entities whose assets are managed by Kazakhmys Holding LLC.
Pursuant to the Regulations, 973 (vs 981) employees of Kazakhmys Group (including newly-hired inclusive) submitted Forms A and B of Disclosure of Potential and Actual Conflicts of Interests Questionnaire. Consequently 47 (vs 28) conflicts of interests were identified and settled.
6. Personnel training.
Kazakhmys Group employees are trained and instructed on the main requirements of local Anti-Bribery and Anti-Corruption regulations.
Anti-corruption Knowledge Database software pursuant to Resolution#351 dated December 23, 2016 is the key source of corruption counteracting information for the Group employees. The software is available at the computer desks of the Group employees, so that every computer user/ account holder of a corporate network is provided with an access.
Required conditions are ensured for personnel mandatory testing to assess their knowledge of Anti-Bribery and Anti-Corruption policies and procedures. Pursuant to Order # 01-КН/16-ПР dated January 23, 2017 “On Amendments and Additions to the Regulation on Probation Term for Newly-Hired Employees at the Structural Units of Kazakhmys Group”, # 01-КН/99-ПР dated July 13, 2016, CEOs and HR managers of legal entities, whose assets are managed by Kazakhmys Holding LLC, shall provide e-testing of newly-hired employees to assess their knowledge of Anti-Bribery and Anti-Corruption Policies and Procedures.
Within reporting period 385 (vs 370) employees, including newly-hired, were tested.
Training sessions on Anti-Bribery and Anti-Corruption Policies and Procedures continue in order to enhance awareness of Kazakhmys Group employees of counteracting corruption. E-training covered 385 (vs 370) employees.
On-site trainings were not held as according to the Resolution # X/08-П-1 of the Board of Directors Chairman, Kazakhmys Holding LLC dated March 19, 2020, due to the situation with COVID- 19 and lockdowns, business trips of the Group employees within the territory of Kazakhstan were forbidden since March 19, 2020, till further notice.
7. Examination of drafts in-house Anti-Bribery and Anti-Corruption policies and procedures.
Kazakhmys Group continues the Anti-Corruption examination of draft documents (contracts, agreements) and in-house policies and procedures pursuant to the requirements of Resolution# 133 by the Board of Directors Chairman, dated April 10, 2015. For the reporting period the anti- corruption review was made for 12 (vs 47) contracts in regard of norms, conflicting Anti- corruption policy and procedures, and for 2 (vs 0) local regulations (act) (on the approval of the Risk Management Concept using the Process Approach and the Risk Management System Methodology; on the approval of Companies List included to the Risk Management System).
This report is a brief summary of Kazakhmys Group efforts for legal support of Anti-Bribery and Anti-Corruption Policies and Procedures.