1.1 Our policy is to conduct all of our business in an honest and ethical manner. Newark Engineering Pte Ltd and its subsidiaries take a zero-tolerance approach to bribery and corruption and is committed to acting professionally, fairly and with integrity in all of our business dealings and relationships wherever we operate and implementing and enforcing effective systems to counter and prevent bribery.
1.2 We will uphold all laws relevant to countering bribery and corruption in all the jurisdictions in which we operate.
1.3 This policy sets out our responsibilities, as well as the responsibilities of our staff members, in observing and upholding our position on bribery and related anti-corruption efforts. It also provides information and guidance on how to recognise and deal with bribery and corruption issues. This policy reflects the general legal position under the laws of Singapore (i.e. the Prevention of Corruption Act (Cap. 241 of Singapore)(“PCA”), Corruption, Drug Trafficking and other Serious Crimes (Confiscation of Benefits) Act (Cap. 65A of Singapore) and the Penal Code (Cap. 224)), and to the extent that the laws and regulations applicable to us in the various countries in which we operate differ from the standards set out here (“Applicable Law”) (i.e. Malaysia), this policy shall be supplemented, amended and varied in the relevant jurisdiction-specific Appendices respectively. In the event of any inconsistencies, the jurisdiction-specific provisions in the relevant Appendix shall prevail in respect of the relevant jurisdiction. References to this “policy” shall include all its Appendices and Schedules.
1.4 Where the Applicable Law in respect of a particular jurisdiction does not impose anti-bribery and anti- corruption standards as stringent as those set out in this policy, the group company operating in such jurisdiction should, as a group-wide effort, strive to comply with the best practices set out in this Policy, notwithstanding that it may not actually be required to do so under Applicable Law. The provisions of this Policy only summarises these additional areas and are not meant to be exhaustive. As such, you are expected to be familiar with the detailed requirements under Applicable Laws.
1.5 In addition, even in areas not covered by the Policy (or any part of the Appendices), you should comply with the Applicable Law in all respects. In particular, please be aware that the requirements under the Applicable Laws may change from time to time.
1.6 This policy may be modified, supplemented and/or amended from time to time.
2.1 This policy applies to all individuals working at Newark Engineering Pte Ltd at all levels and grades, including senior managers, officers, directors, employees (whether permanent, fixed-term or temporary), consultants, contractors, trainees, seconded staff, homeworkers, casual workers and agency staff, volunteers, interns, agents, sponsors, or any other person associated with us, or any of our subsidiaries or their employees, wherever located (collectively, “staff members”). All staff members are reminded to comply and observe the spirit and intention behind the requirements set out in this policy and the relevant applicable laws underlying this policy.
2.2 Staff members are reminded that the PCA could potentially apply to any conduct or act committed within and outside of Singapore. Employees should note that regardless of local customs or practice, Newark Engineering Pte Ltd does not permit any staff member to engage in any conduct that would violate any relevant laws. Please check the relevant Appendix for the additional jurisdiction-specific requirements.
3.1 Generally, the following may give rise to a corruption offence:
3.1.1 where any person, on their own or in conjunction with another, corruptly solicits, receives, or agrees to receive, any gratification for himself or for another person as an inducement to or a reward for or otherwise on account of any person or any public official doing or forbearing to do anything in respect of any matter or transaction whatsoever, actual or proposed;
3.1.2 an agent corruptly accepts, obtains, agrees to accept or obtain a gratification as an inducement to or a reward:
3.1.2.1 for doing or forbearing to do any act in relation to his principal’s affairs or business; or
3.1.2.2 for showing favour or disfavour to any person in relation to his principal’s affairs or business;
3.1.3 any person, on their own or in conjunction with another, corruptly gives, promises or offers to any person for the benefit of that person or another person, any gratification as an inducement to or reward for, or otherwise on account of any person or any public official doing or forbearing to do anything in respect of any matter or transaction whatsoever, actual or proposed;
3.1.4 a person corruptly gives or agrees to give or offers gratification to any agent for:
3.1.4.1 doing or forbearing to do any act in relation to his principal’s affairs or business; or
3.1.4.2 for showing favour or disfavour to any person in relation to his principal’s affairs or business;
3.1.5 any person knowingly gives to any agent, or if an agent knowingly uses with intent to deceive his principal, any receipt, account or other document which contains any statement which is false, erroneous or defective in any material particular, and which is intended to mislead the principal.
3.2 The “gratification” referred to includes any advantage or benefit and can include money, gift, loan, reward, commission, office, employment or contract, release, discharge of obligation, protection from penalty or disability, or forbearance from exercise of any right or power, or any offer, promise or undertaking of the aforementioned. It might include incentive programs, kickbacks, signing bonuses or overpaying government suppliers.
3.3 It need not necessarily be of large value or monetary value. It may include non-cash benefits in kind, e.g. gifts, services, travel, meals, lodging valuable security, property, entertainment. It might also include intangible benefits such as the provision of information or advice or assistance in arranging a business transaction or forbearance from the exercise of any right of any official power or duty. It may also include the provision of anything of value for inadequate consideration. The offer of an opportunity to a person or a friend/relative of a person may also be a bribe (for example, offering a job or work experience to a business partner’s relative). Staff members should always consider the value of anything that may be offered from the perspective of the recipient.
3.4 Newark Engineering Pte Ltd does not endorse “facilitation” or “grease” payments. A facilitation payment, or a payment to a public official to do something that the public official is already required to do (e.g., merely to speed up an administrative process that has been legally paid for). This could still amount to bribery regardless of the amount or whether it is customary in the relevant jurisdiction. This is because the offer is made to gain a business advantage and in the process, an offence would have been committed. Please see further Section 6.
3.5 “Public officials” include not just government or regulatory officials, but also:
• Any person holding a judicial position;
• Any person holding a legislative position (e.g. a member of parliament);
• Officers or employees of a public international organisation (e.g., the World Bank, the International Monetary Fund, the World Trade Organization and the United Nations);
• A political party, party official, or candidate for political office;
• Any persons holding official positions (e.g. immigration officers)
• Any employee of a “public body” e.g. a university, even if the employee is not a public or civil servant; and
• Personnel of any entity owned or controlled by a government, including a sovereign wealth fund or any entity owned by a sovereign wealth fund.
This is not an exhaustive list. If you are in doubt, please check with Newark Engineering Pte Ltd Management.
4.1 As a Newark Engineering Pte Ltd staff member, you must not engage in bribery of any type and must comply with all aspects of this policy.
4.2 Payments to Public Officials
In connection with Newark Engineering Pte Ltd’s business, you:
4.2.1 must not directly, or indirectly through another person or entity, give, offer or promise any advantage (such as the payment of money, gift, service, hospitality or entertainment) to a public official or to a family member of a public official knowing or intending that in exchange for such advantage, the public official will use his influence or office to assist Newark Engineering Pte Ltd in obtaining or retaining business, directing business to another person or entity or obtaining any other business advantage; and
4.2.2 should take extra care when interacting with public officials and their family members to avoid even an appearance of impropriety.
4.3 Payments to Private Parties
In connection with the business of Newark Engineering Pte Ltd, you must not directly or indirectly through another person or entity, give, offer or promise any advantage (such as the payment of money, gift, service, hospitality or entertainment) to any private party knowing that acceptance of the advantage would amount to an improper performance of a function or activity such as a breach of trust, impartiality or good faith, or with the intent to induce or reward such improper performance.
4.4 Receiving Improper Payments
In connection with the business of Newark Engineering Pte Ltd, you must not directly, or indirectly through another person or entity, request, agree to receive or accept any advantage (such as the payment of money, gift, service, hospitality or entertainment) where the request, agreement or receipt of the advantage amounts to improper performance of a function or activity, such as a breach of trust, impartiality or good faith, or with intent to induce or reward such improper performance.
The practice of giving business gifts may be normal and acceptable, provided that the gift or hospitality is reasonable, justifiable and given without corrupt intent.
5.1 This policy does not prohibit normal and appropriate hospitality, (given and received) to or from third parties, provided that there is no corrupt element. However, if you are considering giving or receiving a gift or hospitality, please note the Gifts and Hospitality Policy as set out in Schedule 2.
5.2 If there is any ambiguity or if you have any questions relating to whether a gift or hospitality is permitted, please check with Newark Engineering Pte Ltd Management. Factors that will guide the determination of whether a corrupt element is present, include:
5.2.1 the parties’ intention in entering the transaction. Generally, where a gratification is received with the belief that it is given as a quid pro quo for conferring a dishonest gain or advantage on the giver in relation to the principal’s affairs, a corrupt element is present;
5.2.2 whether the transaction was surrounded by surreptitiousness or furtiveness;
5.2.3 the size of the gratification;
5.2.4 the parties’ relationship;
5.2.5 in a principal-agent situation, whether any employee code of conduct or ethics was broken, or if the employment agreement was breached.
5.3 As a rough guide, the giving or receipt of gifts is not prohibited, if the following requirements are met:
5.3.1 there is no question that the gift would influence a third party / recipient to obtain or retain business or a business advantage, or to reward the provision or retention of business or a business advantage, or in explicit or implicit exchange for favours or benefits;
5.3.2 it is in good faith, occasional and reasonable;
5.3.3 it complies with local law, this policy and the Gifts and Hospitality Policy as set out in Schedule 2, and the details of the gifts given and/or received have been recorded in the gift register maintained on an ongoing basis by Newark Engineering Pte Ltd Management;
5.3.4 it does not include cash or a cash equivalent (such as gift certificates or vouchers);
5.3.5 it is appropriate in the circumstances (e.g., it is customary for mooncakes to be given during the Mid-Autumn Festival);
5.3.6 taking into account the reason for the gift, it is of an appropriate type and value and given at an appropriate time;
5.3.7 it is given openly, and not secretly; and
5.3.8 it should not be offered to, or accepted from, public officials.
5.4 In particular, the following guidelines should be observed in relation to corporate hospitality:
5.4.1 it is reasonable and proportionate, and not extravagant or lavish in the context of the business occasion;
5.4.2 the frequency of the hospitality with the same guest, person or company is not excessive;
5.4.3 the hospitality is not extended to family members (e.g. spouses / relatives) of the recipient;
5.4.4 the person providing the corporate hospitality also attends;
5.4.5 there is a genuine underlying business purpose, such as the development of general business relationships, the promotion of Newark Engineering Pte Ltd and its business and there will be an opportunity to discuss business matters; and
5.4.6 the corporate hospitality is not, or could not be perceived as, a bribe, payoff or kickback (i.e. given in order to obtain or retain business or to secure an improper advantage or to induce particular behaviour or otherwise influence a decision).
For the avoidance of doubt, the Gifts and Hospitality Policy as set out in Schedule 2 must also be observed in relation to such corporate hospitality. If there is intention to provide hospitality to a spouse/ relative of a business contact, approval must be obtained from Newark Engineering Pte Ltd Management.
5.5 It is not acceptable for you (or someone on your behalf) to:
5.5.1 give, promise to give or offer a payment, gift or hospitality with the expectation or hope that a business advantage will be received, or to reward a business advantage already given (e.g. inviting public officials (of any jurisdiction) business partners or potential business partners to attend unduly lavish events or attending such events at the invitation of business partners, especially without any legitimate underlying business purpose);
5.5.2 give, promise to give or offer a payment, gift or hospitality to a public official, agent or representative to “facilitate” or expedite a routine procedure;
5.5.3 accept payment from a third party that you know or suspect is offered with the expectation that it will obtain a business advantage for them;
5.5.4 accept a gift or hospitality from a third party if you know or suspect that it is offered or provided with an expectation that a business advantage will be provided by us in return;
5.5.5 threaten or retaliate against another staff member who has refused to commit a bribery offence or who has raised concerns under this policy; or
5.5.6 engage in any activity that might lead to a breach of this policy.
6.1 A facilitation payment (or “grease payment”) is a modest payment made directly or indirectly to a public official to prompt the public official to perform or expedite a routine, non-discretionary act that the public official is otherwise required to perform as part of his or her ordinary duties. Examples of facilitation payments include: payments to obtain permits, licenses or visas, to obtain police protection or to load and unload cargo. Such practices are uncommon in Singapore and you are not permitted to make or accept any facilitation payments.
6.2 If you are asked to make a payment on our behalf, you should always be mindful of what the payment is for and whether the amount requested is proportionate to the goods or services provided. You should always ask for a receipt which details the reason for the payment and report such payments. If you have any suspicions, concerns or queries regarding a payment, you should raise these with your Head of Department.
6.3 If you think there are legitimate business reasons why facilitation payments need to be made in a specific jurisdiction, please refer to the relevant jurisdiction-specific Appendix and/or raise these with Head of Department. For the avoidance of doubt, facilitation payments are not permitted for Singapore purposes.
7.1 It is our policy that Newark Engineering Pte Ltd and our staff members must reject any direct or indirect request by any third party for a bribe (including a facilitation payment), even if by rejecting such a request, Newark Engineering Pte Ltd is consequently threatened with adverse actions.
7.2 We do, however, recognise that, in some cases, an individual’s own welfare and safety could be at risk if he/she does not respond to such requests. If you find yourself in this situation, you should never put yourself in danger but should promptly inform your Head of Department.
7.3 As with other violations of this policy, the offering or making of any facilitation payment and/or the failure to fulfil any reporting obligations under this policy will be a disciplinary matter subject to Newark Engineering Pte Ltd’s disciplinary process. There may be criminal penalties under the applicable laws as well.
NO DONATION ON BEHALF OF NEWARK ENGINEERING PTE LTD MUST BE OFFERED OR MADE WITHOUT PRIOR APPROVAL OF THE BOARD OF DIRECTORS OF NEWARK ENGINEERING PTE LTD.
8.1 Political Contributions
8.1.1 We do not make contributions to political parties in the name of Newark Engineering Pte Ltd.
8.1.2 Contributions to political parties or candidates by staff members, acting solely in their personal capacities, may not involve the use of any funds of Newark Engineering Pte Ltd and must be made in accordance with all applicable laws and regulations.
8.2 Charitable Donations
8.2.1 Contributions to charities by staff members, acting solely in their personal capacities, are allowed, but must be made in accordance with all applicable laws and regulations.
8.2.2 We only make charitable donations (including educational grants and programs) that are legal and ethical under local laws and practices.
8.2.3 Subject to the Board of Directors of Newark Engineering Pte Ltd having provided prior approval, staff members may make charitable contributions or sponsorships on behalf of, or in the name of Newark Engineering Pte Ltd only for bona fide charitable, educational, non-profitable or cultural purposes or where the activities are aligned with Newark Engineering Pte Ltd ‘s business objectives, values and ethical principles.
8.2.4 Charitable contributions or sponsorships should be given with the expectation that no tangible benefit is received or expected by us or our staff members and in accordance with all applicable laws and regulations, and Newark Engineering Pte Ltd’s policies and procedures. Charitable contributions should never be used as a substitute for political contributions.
8.2.5 Before a donation is made to an organization, institution or charity, appropriate due diligence should be performed and documented on the following questions:
• Whether the recipient has any connections to the government or any government- related entities.
• Whether a public or other official is in a position to influence the purchase of Newark Engineering Pte Ltd’s services/goods following the donation.
• Whether anyone employed by the recipient is such an official.
• Whether the recipient has a connection, direct or indirect, with such an official.
• Whether there is any negative information regarding the recipient available in the public domain.
8.3 All requests for charitable contributions and sponsorship must first be sent to Newark Engineering Pte Ltd Management for approval. Newark Engineering Pte Ltd Management will escalate such requests to the Board of Directors together with a recommendation on whether to approve such request.
Whilst we do not engage directly in party politics, we do recognise the importance of engagement in policy debate on subjects of legitimate concern that relate either to our business operations, staff members, clients and the communities in which Newark Engineering Pte Ltd operates. Any staff member who lobbies on behalf of Newark Engineering Pte Ltd must comply with all requirements of laws and regulations. The appointment of any third party lobbyist must first be approved by Newark Engineering Pte Ltd Management.
10.1 The prohibition against offering, providing, authorising, requesting or receiving bribes includes bribes which are given or received by any individual or company acting on behalf of Newark Engineering Pte Ltd. A typical example is a sales agent, intermediary or introducer, but this can also include, for example, advisers, consultants, joint venture or other business partners and contractors.
10.2 Companies can be prosecuted for the actions of its Associated Persons and it is therefore not possible to avoid liability by permitting an Associated Person to pay or receive a bribe.
10.3 Associated Persons are expected to act with integrity at all times and must also refrain from paying or receiving bribes on behalf of or to Newark Engineering Pte Ltd or as part of their normal business operations. Newark Engineering Pte Ltd (and its staff members) must support and encourage all business partners to develop and implement anti-corruption policies consistent with this policy.
10.4 Newark Engineering Pte Ltd will only appoint and engage with Associated Persons who demonstrate business integrity at all times and who practice ethical conduct which meet the standards expected by Newark Engineering Pte Ltd and all applicable laws and regulations.
11.1 A conflict of interest occurs when an employee’s personal interest clashes with their professional interests, creating conflicting loyalties. For example, a conflict of interests exists when an employee uses their position within a company for personal, financial or other benefit for themselves or their family members or related parties, apart from normal rewards of employment and compensation.
11.2 You must avoid situation where your personal interest could conflict with, or even appear to conflict with, the interests of Newark Engineering Pte Ltd. You have a continuing duty to disclose an actual or potential conflict of interest to Newark Engineering Pte Ltd.
12.1 You must ensure that you read, understand and comply with this policy.
12.2 The prevention, detection and reporting of bribery and other forms of corruption are the responsibility of all those working for us or under our control. All staff members are required to avoid any activity that might lead to, or suggest, a breach of this policy.
12.3 Any transaction, no matter how seemingly insignificant, that might give rise to a violation of this policy and/or any applicable anti-corruption laws must be reported promptly to Newark Engineering Pte Ltd Management. This includes, for example, if a third party offers you something to gain a business advantage, or indicates to you that a gift or payment is required to secure their business.
12.4 Further “red flags” that may indicate bribery or corruption are set out in Schedule 1 to this policy.
12.5 Any staff member who breaches this policy will face disciplinary action, which could result in dismissal for gross misconduct. Newark Engineering Pte Ltd reserves the right to terminate its contractual relationship with the employment of any staff member or end the contractual relationship with any third party if they breach this policy.
12.6 You should inform your Head of Department immediately if you become aware of any “red flags” or circumstances that might indicate a potential violation of this policy.
12.7 It is Newark Engineering Pte Ltd’s policy that staff members will suffer no retribution for communicating concerns in good faith about potential improper acts.
12.8 Do note that these “red flags” may also trigger your obligations to report suspicious transactions under local laws. Under Singapore laws, where a person knows or has reasonable grounds to suspect that any property represents proceeds of any act which may constitute drug trafficking or any other criminal conduct (including but not limited corruption, money laundering or terrorism financing etc), and such information or matter on which the knowledge or suspicion has come to his attention in the course of his trade, profession, business or employment, he shall disclose the knowledge or suspicion of the information or matter to a suspicious transactions reporting officer. Such matters are reported in Singapore by filing a suspicious transactions report (“STR”) to the Suspicious Transactions Reporting Office, Commercial Affairs Department, Singapore Police Force, in accordance with the prescribed format.
12.9 Generally, a suspicious transaction may be one which serves no economic purpose, is inconsistent with the known, legitimate activities or with the normal business of the client, or third party. The red flags set out in the Schedule 1 are indicia of suspicious activities that may warrant the filing of an STR. If you become aware of such circumstances, you shall report this to Newark Engineering Pte Ltd Management. It is imperative that you do not alert the person concerned to the suspicion or the fact that you have reported the suspicion/ that an STR has been filed.
13.1 Newark Engineering Pte Ltd must keep financial records and have appropriate internal controls in place which will evidence the business reason for making payments to third parties. Such books, records and accounts are made and kept which, in reasonable detail, accurately and fairly reflect any transactions involving expenditures and the reasons or justifications for such expenditures, and all contracts, invoices and receipts relating to the purchase of goods and services. Misleading or false entries that conceal the source or nature of expenditures or receipts are prohibited.
13.2 You must declare all hospitality or gifts accepted or offered in accordance with the Newark Engineering Pte Ltd Group’s “Gifts and Entertainment Policy”.
13.3 You must ensure all expenses claims relating to hospitality, gifts or expenses incurred to third parties are submitted in accordance with Newark Engineering Pte Ltd ‘s expenses policy and specifically record the reason for the expenditure.
13.4 All accounts, invoices, memoranda and other documents and records relating to dealings with third parties should be prepared and maintained with strict accuracy and completeness. No accounts must be kept “off-book” to facilitate or conceal improper payments.
13.5 Newark Engineering Pte Ltd (and its staff members) will seek to maintain a system of internal accounting controls to provide reasonable assurances that:
13.5.1 all transactions are executed in accordance with management’s general or specific authorisation;
13.5.2 all transactions are recorded as necessary and where appropriate to permit preparation of financial statements in conformity with generally accepted accounting principles or any other criteria applicable to such statements and to maintain accountability of assets;
13.5.3 access to assets is permitted only in accordance with management’s general or specific authorisation; and
13.5.4 the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.
You are encouraged to raise concerns about any issue or suspicion of a violation at the earliest possible stage. Any uncertainties as to whether a particular act constitutes bribery or corruption, or any other queries, should be raised with your Head of Department.
If you are offered a bribe by a third party, are asked to make one, suspect that this may happen in the future, or believe that you are a victim of another form of unlawful activity, it is important that you inform your Head of Department as soon as possible.
16.1 Staff members who refuse to accept or offer a bribe, or those who raise concerns or report another’s wrongdoing, are sometimes worried about possible repercussions. Newark Engineering Pte Ltd aims to encourage openness and will support anyone who raises genuine concerns in good faith under this policy, even if they turn out to be mistaken.
16.2 Newark Engineering Pte Ltd is committed to ensuring no one suffers any detrimental treatment as a result of refusing to take part in bribery or corruption, or because of reporting in good faith their suspicion that an actual or potential bribery or other corruption offence has taken place, or may take place in the future. Detrimental treatment includes dismissal, disciplinary action, threats or other unfavourable treatment connected with raising a concern.
16.3 If you believe that you have suffered any such treatment, you should inform your Head of Department immediately.
17.1 Staff members shall receive or have access to a copy of this policy as part of their induction process.
17.2 All existing staff members will receive periodic training on how to implement and adhere to this policy.
17.3 Newark Engineering Pte Ltd’s zero-tolerance approach to bribery and corruption should be communicated to all third parties at the outset of our business relationship with such third parties, and as appropriate thereafter.
18.1 Newark Engineering Pte Ltd Management has overall responsibility for ensuring this policy complies with applicable legal and ethical obligations, and that all those under their control comply with it.
18.2 The management of Newark Engineering Pte Ltd has day-to-day responsibility for implementing this policy and for monitoring its use and effectiveness, and dealing with any queries on its interpretation.
19.1 Newark Engineering Pte Ltd Management, in consultation with the Board of Directors, will monitor the effectiveness and review the implementation of this policy, regularly considering its suitability, adequacy and effectiveness. Any improvements identified as necessary will be made as soon as possible. Internal control systems and procedures may be subject to periodic audits to provide assurance that they are effective in countering bribery and corruption.
19.2 Staff members are responsible for the success of this policy and should ensure they use it to disclose any suspected danger or wrongdoing.
19.3 This policy does not form part of any staff member’s employment contract, and may be amended at any time.
Staff members who suspect that violations of law or this policy may be occurring or are about to occur or become aware of suspicious, risky or evidently corrupt conduct by any person are expected to immediately report their suspicions to their Head of Department.
21.1 The violations of applicable anti-corruption laws may result in individuals or Newark Engineering Pte Ltd receiving civil and/or criminal fines and punishment. Individuals may also be subject to imprisonment for bribery and corruption offences. In Singapore, under the PCA, a person convicted of corruption is guilty of a criminal offence and liable on conviction to a fine not exceeding SGD 100,000 or a jail term of not exceeding 5 years or both. For certain offences, e.g. for bribing a Member of Parliament or in relation to a contract with the Singapore government or any department of a public body, the maximum penalty is increased to up to 7 years of imprisonment.
21.2 Newark Engineering Pte Ltd considers a breach of this policy as a serious offence. Any violation will result in disciplinary action, up to and including dismissal of an individual in appropriate circumstances. The business relationship with third parties and/or Associated Persons who violate this policy may also be terminated.
21.3 Staff members must therefore ensure that they are familiar with the content of this policy and adhere to it at all times. If you have any questions as to the requirements or scope of this policy, please consult your Head of Department.
☐ The transaction or the third party is in a country known for widespread corruption, as measured by the Transparency International Corruption Perceptions Index or other similar indices.
☐ The third party has a history of improper payment practices, such as prior or ongoing formal or informal investigations by law enforcement authorities or prior convictions.
☐ The third party has been subject to criminal enforcement actions or civil actions for acts suggesting illegal, improper or unethical conduct.
☐ The third party has a poor business reputation.
☐ Allegations that the third party has made or has a propensity to make prohibited payments or facilitation payments to officials.
☐ Allegations related to integrity, such as a reputation for illegal, improper, or unethical conduct.
☐ The third party does not have in place an adequate compliance program or code of conduct or refuses to adopt one.
☐ Other companies have terminated the third party for improper conduct.
☐ Information provided about the third party or its services of principals is not verifiable by data, only anecdotally.
☐ The third party has a family relationship with a foreign official or government agency.
☐ The third party has a business relationship or association with a foreign official or government agency.
☐ The third party previously worked in the government at a high level, or in an agency relevant to the work he/she will be performing.
☐ The third party is a company with an owner, major shareholder or executive manager who is an official.
☐ There is rumour that the third party has an undisclosed beneficial owner.
☐ A public official requests, urges, insists, or demands that a particular party, company, or individual be selected or engaged, particularly if the official has discretionary authority over the business at issue.
☐ Requests by public officials to use a specific foreign agent particularly if this agent is a family member or relative, lacks experience or capacity to perform the contract, or requires an engagement that is not at market rates or on arm’s length terms.
☐ The third party makes large or frequent political contributions.
☐ The third party conducts private meetings with government officials.
☐ The third party provides lavish gifts or hospitality to government officials.
☐ The third party insists on dealing with government officials without the participation of the company.
☐ The third party is in a different line of business than that for which it has been engaged.
☐ The third party lacks experience or a “track record” with the product, service, field, or industry.
☐ The third party does not have offices or a staff, or lacks adequate facilities or staff, to perform the work.
☐ The third party has an unorthodox corporate structure.
☐ The address of the third party’s business is a mail drop location, virtual office, or small private office that could not hold a business the size that is claimed.
☐ The third party is not expected to perform substantial work.
☐ The third party has not been in business for very long or was only recently incorporated.
☐ The third party has poor financial statements or credit.
☐ The third party’s plan for performing the work is vague and/or suggests a reliance on contacts or relationships.
☐ The third party requests an unusual advance payment.
☐ The fee, commission, or volume discount provided to the third party is unusually high compared to the market rate.
☐ The compensation arrangement is based on a success fee or bonus.
☐ The third party offers to submit or submits inflated, inaccurate, or suspicious invoices.
☐ The third party requests an invoice to reflect a higher amount than the actual price of goods provided.
☐ The third party’s invoice vaguely describes the services provided.
☐ The third party requests cash, cash equivalent, or bearer instrument payments.
☐ The third party requests payment in a jurisdiction outside its home country that has no relationship to the transaction or the entities involved in the transaction – especially if the country is an offshore financial centre.
☐ The third party requests that payment be made to another third party or intermediary.
☐ The third party proposes the use of shell companies.
☐ Off-the-book accounts created to receive revenues and facilitate transactions.
☐ The third party requests that payments be made to two or more accounts.
☐ The third party shares compensation with others whose identities are not disclosed.
☐ The third party requests an after-award services contract that it does not have the capacity to perform.
☐ The third party requests that a donation be made to a charity.
☐ The third party refuses to properly document expenses.
☐ The third party pressures the company to make the payments urgently or ahead of schedule.
☐ The third party requests a large up-front payment.
☐ Demands for commissions, bonuses, or upfront payments in excess of the going rate.
☐ Requests to backdate or alter invoices
☐ The third party requests payment arrangements that raise local law issues, such as payment in another country’s currency.
☐ Extravagant entertainment of public officials, political candidates, political party officials or their families.
☐ The third party refuses to agree to comply with the Singapore PCA, the Corruption, Drug Trafficking and Serious Offences Act (“CDTA”), equivalent applicable anti-corruption legislation (e.g. Foreign Corrupt Practices Act (“FCPA”), UK Bribery Act (“UKBA”)), anti-money laundering laws, or other similar laws and regulations.
☐ The third party refuses to warrant past compliance with the PCA, CDTA, FCPA, UKBA, equivalent applicable anti-corruption legislation, anti-money laundering laws, or other similar laws and regulations.
☐ The third party refuses to execute a written contract, or requests to perform services without a written contract where one is sought.
☐ Requests by a foreign agent to increase his or her commission during active negotiations with a government customer.
☐ The third party insists that its identity remain confidential or that the relationship remain secret.
☐ The third party refuses to divulge the identity of its beneficial owners, directors, officers, or other principals.
☐ The third party refuses to answer due diligence questions.
☐ The third party refuses to allow audit clauses in contracts.
☐ A suggestion by the third party that anti-corruption compliance policies need not be followed.
☐ A suggestion by the third party that otherwise illegal conduct is acceptable because it is the norm or customs in a particular country.
☐ Suspicious statements by the third party such as needing payments to “take care of things” or “finalize the deal.”
☐ The representation is illegal under local law.
☐ The alleged performance of the third party is suspiciously higher than competitors or companies in related industries.
☐ A third party guarantees or promises unusually high rates of return on the promotional services provided.
☐ The third party requests approval of a significantly excessive budget or unusual expenditures.
To reduce the likelihood of a breach of anti-bribery laws, the following is adopted in relation to gifts and hospitality:
Employees are required to notify the Head of Department of all gifts received. All gifts received above the value of US$200 will require the approval of the Head of Department prior to acceptance.
NOTIFICATION REQUIREMENTS:
Prior to giving any gift, an employee is required email Newark Engineering Pte Ltd Management to seek approval.
APPROVAL REQUIREMENTS:
Upon receipt of any gift above the value of US$200, an employee is required to:
(a) complete the gifts and entertainment preclearance form; and
(b) complete the gift log and send the completed gift log to the Head of Legal & Compliance.
Employees will be advised via email if the gift may be accepted or whether the gift should be returned or disposed in some other way. If it is decided that the gift may be accepted, the employee should send a brief letter/e-mail of acknowledgement to the donor.
This policy does not apply to gifts of a personal nature (i.e. gifts from family or friends unconnected to the employee’s duties and responsibilities at Newark Engineering Pte Ltd. However, if in any doubt, the gift should be reported.
Employees are required to notify the Head of Department before engaging in any gift giving and/or other promotional activities. Gifts to be given of a value greater than US$200 must be pre-approved by the Head of Department.
All gifts to an employee of a government organization or any department of a public body must be pre-approved by the Head of Department. This includes:
Any officer, employee or agent of a foreign or domestic government, agency, instrumentality;
Any public international organization (e.g., United Nations);
Any member of a domestic foreign political party or official or person acting on behalf of a foreign political party. This also includes an employee of an entity that is 100% owned by a government and may also include employees of an entity where a government holds a controlling interest.
At all times, employees must be cognizant that any gift giving is not construed as bribery or corruption.
NOTIFICATION REQUIREMENTS:
PRE-APPROVAL REQUIREMENTS:
Prior to giving any gift above the value of US$200, an employee is required to email Newark Engineering Pte Ltd Management for approval.
Employees will be advised via email if the gift giving is approved or not. If approved, generally a gift from Newark Engineering Pte Ltd to business associates should bear the Newark’s logo or name.
This policy does not apply to gifts of a personal nature (i.e. gifts to family or friends unconnected to the employee’s duties and responsibilities at Newark Engineering Pte Ltd. However, if in any doubt, the gift should be reported.
The following shall apply in respect of operations in Malaysia and the main policy shall be varied, amended and supplemented to as set out below. In the event of any inconsistencies, the following shall prevail for Malaysian purposes. Capitalised terms in worded in this Appendix shall have the meanings set out in the main policy.
The Malaysian Anti-Corruption Commission Act 2009 (“MACCA”) is the primary legislation in Malaysia in relation to anti-corruption.
The MACCA has extra-territorial effect, whereby its provisions extend to the commission of offences outside Malaysia by Malaysian citizens and permanent residents.
3.1 Generally, the following may give rise to a corruption offence under the MACCA:
(a) where any person corruptly solicits or receives or agrees to receive any gratification for himself or for any other person for doing or forbearing to do anything;
(b) where any person corruptly gives, promises or offers to any person any gratification for the benefit of himself or for any other person for doing or forbearing to do anything;
(c) where any person, acting as an agent, corruptly accepts or obtains, or agrees to accept or attempts to obtain, any gratification for doing or forbearing to do, or for having done or forborne to do, any act in relation to his principal’s affairs or business;
(d) where any person, corruptly gives or agrees to give or offers any gratification to any agent as inducement or reward for doing or forbearing to, or for having done or forborne to do, any act in relation to his principal’s affairs;
(e) where any person offers to an officer of any public body, any gratification as inducement or a reward for doing or forbearing to do anything;
(f) where any person gives, promises or offers or agrees to give or offer, to any foreign public official, whether for the benefit of that foreign public official or of another person, any gratification as an inducement or reward for doing or forbearing to do anything; and
(g) where any person gives to an agent, or being an agent, he uses with intent to deceive his principal, any receipt, account or other document in respect of which the principal is interested, and which he has reason to believe contains any statement which is false or erroneous or defective in any material particular, and is intended to mislead the principal.
3.2 Corrupt Intent
A person would be deemed to have corrupt intent if he does an act knowing that the act done is wrong and doing so with evil feelings and evil intentions. If the circumstances show that a person’s actions or omissions were moved by an evil intention or a guilty mind, he would be deemed to have corrupt intent.
Under the MACCA, there is a presumption of corrupt intent, where it is proven that any gratification has been received, agreed to be received, accepted, agreed to be accepted, obtained, attempted to be obtained, solicited, given, agreed to be given, promised, offered by the person in question.
3.3 Gratification
Under the MACCA, “gratification” is defined widely to include, among others, money, donation, gift, loan, fee, reward, financial benefit, valuable security, property, any office, employment, discharge of any loan, obligation or other liability, valuable consideration of any kind, discount, commission, rebate, any forbearance to demand any money or money’s worth or valuable thing, and protection from any penalty from any action or proceedings of a disciplinary, civil or criminal in nature.
3.4 Officer of a Public Body
Under the MACCA, “Officer of a Public Body” is defined as any person who is a member, officer, employee or servant of a public body, and includes the following:
(a) member of the administration;
(b) member of Parliament or State Legislative Assembly;
(c) judge of the High Court, Court of Appeal or Federal Court;
(d) any person receiving any remuneration from public funds; and
(e) where the public body is a corporation sole, includes the person who is incorporated as such.
Under the MACCA, “public body” includes the following:
(a) the Government of Malaysia;
(b) the Government of a state in Malaysia;
(c) any local authority and any other statutory authority; and
(d) any department, service or undertaking of the Government of Malaysia, the Government of a state in Malaysia, or a local authority.
3.5 Foreign Public Official
Under the MACCA, Foreign Public Official includes the following:
(a) any person who holds a legislative, executive, administrative or judicial office of a foreign country;
(b) any person who exercises a public function for a foreign country; and
(c) any person who is authorized by a public international organisation to act on behalf of that organisation.
The Government of Malaysia has issued the Service Circular No. 3 of 1998 (“Circular”), which sets out guidance on the receiving of gifts by public officers. Generally, public officers can receive gifts up to RM500 or not exceeding 1/4 of his salary (whichever is lower) if the gifts are not in connection with their official duties, such as the celebration of a birthday party, children’s birthday party, engagement, marriages, occasion relating to his/her culture or religion, perishable items such as fruits, confectionary, soft drinks, flowers. If the gifts received which are not in connection with their official duties but are in excess of RM500 or 1/4 his salary (whichever is lower), the officer is required to report such gifts to his Head of Department.
Facilitation payment, which is a payment made directly or indirectly to a public official to prompt the public official to perform or expedite a routine, non-discretionary act that the public official is otherwise required to perform as part of his ordinary duties is an offence and it is prohibited under the MACCA.
6.1 Although not expressly provided, the offences provided under the MACCA appear wide enough to render a body corporate liable for offences under the MACCA.
6.2 Notwithstanding the above, the Malaysian Anti-Corruption Commission (Amendment) Act 2018 (“Amending Act”) contains a provision that criminalises commercial organisations if an “associated person” corruptly gives, agrees to give, promises or offers any gratification with intent to obtain or retain business or an advantage in the conduct of the business for the commercial organisation (“Corporate Liability Provision”). The Amending Act came into force on 1 October 2018 and the Corporate Liability Provision came into effect on 1 June 2020.
6.3 An “associated person” is defined widely to include a director, partner, employee or a person who performs services for or on behalf of the commercial organisation.
6.4 That said, it is a defence to the Corporate Liability Provision for the commercial organization to prove that the commercial organization had in place adequate procedures to prevent persons associated with the commercial organization from undertaking such conduct. The Prime Minister’s Guidelines on Adequate Procedures set out five principles (“TRUST Principles”), which serve as a reference point as to what adequate procedures may be implemented:
(a) Top Level Commitment: Generally, top-level management (i.e., a director, controller, officer, partner or person who is concerned with the management of Newark Engineering Pte Ltd’s affairs) should have primary responsibility for ensuring that Newark Engineering Pte Ltd acts with integrity and ethics, complies with the relevant anti-corruption legislation and manages key corruption risks. This may include establishing, maintaining and reviewing its anti- corruption compliance programmes and designating an anti-corruption function or person within the organisation.
(b) Risk Assessment: Newark Engineering Pte Ltd’s anti-corruption efforts should be commensurate with its corruption risk assessment. It is recommended that a comprehensive risk assessment is undertaken every 3 years.
(c) Undertake Control Measures: to address any corruption risks. Newark Engineering Pte Ltd should establish appropriate controls and contingency measures which are reasonable and proportionate to its nature and size. These should include adequate due diligence on relevant parties and personnel prior to entering into any formalised relationships; establishing and encouraging the use of a reporting channel; and establishing policies and procedures to address key anti-bribery and anti-corruption matters.
(d) Systematic Review, Monitoring and Enforcement: top-level management should regularly review and assess their anti-corruption programmes, and ensure that they are enforced. These reviews should form the basis of any improvements in its anti-compliance programmes.
(e) Training and Communication: Newark Engineering Pte Ltd should develop and disseminate training and communications relevant to its anti-corruption management system, addressing areas of training; reporting channel; and consequences of non-compliance. Newark Engineering Pte Ltd’s anti-corruption policy should be clearly communicated and made publicly available.
The TRUST Principles are not prescriptive and should be applied practically, in proportion to the scale, nature, industry, risk and complexity of Newark Engineering Pte Ltd.
7.1 Under the MACCA, any person to whom any gratification is given, promised, or offered in contravention of the MACCA shall report such gift, promise or offer together with the name, if known, of the person who gave, promised or offered such gratification to him to the nearest officer of the Malaysian Anti-Corruption Commission or police officer.
7.2 Under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001, Newark Engineering Pte Ltd, as a reporting institution, is required to report to Bank Negara Malaysia:
(a) any transaction exceeding such amount as Bank Negara Malaysia may specify from time to time;
(b) any transaction which gives any officer or employee of Newark Engineering Pte Ltd any reason to suspect that the transaction involves proceeds of an unlawful activity or instrumentalities of an offence; and
(c) any transaction or property where any officer or employee of the of Newark Engineering Pte Ltd has reason to suspect that the transaction or property involved is related to any terrorist act, terrorist, terrorist entity or person who finances terrorism.
8.1. A person convicted of the corresponding offence under the MACCA:
(a) in respect of the offences under 3.1(a) ‒ (f), is guilty of a criminal offence and is liable for imprisonment for a term of up to 20 years and to a fine not less than 5 times the sum or value of the gratification which is the subject matter of the offence, where such gratification is capable of being valued or is of pecuniary nature, or RM10,000, whichever is the higher; and
(b) in respect of the offence under 3.1(g), is guilty of a criminal offence and is liable for imprisonment for a term of up to 20 years and to a fine not less than 5 times the sum or value of the false or erroneous or defective material particular, where such false or erroneous or defective material particular is capable of being valued, or of a pecuniary nature, or RM10,000, whichever is the higher.
8.2. In respect of an offence under the Corporate Liability Provision:
(a) on conviction, a commercial organisation is guilty of a criminal offence and is liable for imprisonment for a term of up to 20 years and/or to a fine of not less than 10 times the sum or value of the gratification which is the subject matter of the offence, where such gratification is capable of being valued or is of pecuniary nature, or RM1,000,000, whichever is the higher; and
(b) the commercial organisation’s director, controller, officer, partner, or person who is concerned in the management of its affairs is deemed to have committed that offence unless that person proves that the offence was committed without his consent or connivance and that he exercised due diligence to prevent the commission of the offence as he ought to have exercised, having regard to the nature of his function in that capacity and to the circumstances.
The following shall apply in respect of operations in Indonesia and the main policy shall be varied, amended and supplemented to as set out below. In the event of any inconsistencies, the following shall prevail for Indonesian purposes. Capitalised terms used in this Appendix shall have the meanings set out in the main policy.
Indonesian Law Number 31 of 1999 concerning the Eradication of Criminal Acts of Corruption (as amended by Law Number 20 of 2001) (the “Anti-Corruption Law”) is the primary legislation in Indonesia in relation to anti-corruption.
The Anti-Corruption Law has extra-territorial effect, whereby its provisions extend to the conduct of offences carried out outside Indonesia by those who are subject to the Anti-Corruption Law (as further described below).
3.1. Generally, the offences and the corresponding criminal punishment under the Anti-Corruption Law are as follows:
3.1.1. Gaining personal benefit (or benefiting someone else or a company) in a way that causes financial loss to the state or harms the national economy.
Punishment:
• life imprisonment or a minimum of 4 years and a maximum of 20 years imprisonment; and/or
• a fine of at least IDR 200,000,000 and a maximum of IDR 1,000,000,000.
3.1.2. Misuse of any person’s position, authority, or resources at work to benefit such person or someone else, especially if it harms state finances or the economy.
Punishment:
• life imprisonment or a minimum of 1 year and a maximum of 20 years imprisonment; and/or
• a fine of at least IDR 50,000,000 and a maximum of IDR 1,000,000,000.
3.1.3. Offering or promising anything of value to a government official or civil servant in order to influence them to do (or not do) something in their official role—especially if it goes against their duties.
Punishment:
• minimum of 1 year and a maximum of 5 years imprisonment; and/or
• a fine of at least IDR 50,000,000 (fifty million rupiahs) and a maximum of IDR 250,000,000.
3.1.4. Giving something to a government official or civil servant for, or because of, doing something that goes against their official responsibilities.
Punishment: Same as section 3.1.3 above.
3.1.5. Offering or promising something to a judge with the intent to sway their decision in a legal case.
Punishment:
• minimum of 3 years and a maximum of 15 years imprisonment; and
• a fine of at least IDR 150,000,000 and a maximum of IDR 750,000,000.
3.1.6. Offering or promising something to a legal representative (such as a lawyer) to try to influence their advice, opinion, or actions in a legal proceeding.
Punishment: Same as section 3.1.6 above.
3.1.7. Giving gifts or making promises to a civil servant just because of their position or authority—even if you only think their role could help you.
Punishment:
• maximum prison sentence of 3 years; and/or
• a fine of up to IDR 150,000,000.
3.1.8. Attempting, assisting, or conspiring to commit offences as outlined in sections 3.1.1 to 3.1.6 above.
Punishment: The punishment for the corresponding offences as outlined in sections 3.1.1 to 3.1.6 above shall apply.
3.2. Other than the punishments outline above, the following may also be imposed as additional punishments:
3.2.1. confiscation of tangible or intangible movable goods or immovable goods used for or obtained through a crime of corruption;
3.2.2. payment of compensation in a maximum amount equal to the assets obtained from the criminal act of corruption;
3.2.3. suspension of all or part of the relevant company for a maximum period of 1 year;
3.2.4. revocation of all or part of certain rights which have been or which may be granted by the government to convicts.
3.3. The term “Civil servants” includes:
3.3.1. Civil servants as defined by the legislation on civil service, such as employees in the ministry office, teacher in state school and judge.
3.3.2. Civil servants as referred to in the Indonesian Criminal Code, such as police officers and members of the Indonesian National Armed Forces.
3.3.3. Individuals who receive salary from the state or regional finance, employee in a state-owned enterprise.
3.3.4. Individuals who receive salary from corporations that receive assistance from state or regional finance, such as teacher in a private school which receives education fund of the state or employee in private hospital which receives state fund in relation to healthy security program.
3.3.5. Individuals who receive salary from other corporations that use state or public funds.
Thus, the scope of the term “Civil Servants” in the context of the Anti-Corruption Law is quite broad, and includes various parties who receive salaries or funding from the State Budget (APBN), Regional Budget (APBD), or from State-Owned or Regional-Owned Enterprises (BUMN/BUMD).
3.4. Further, the term “State official” is also defined broadly to include ministers, governors, judges and other officers who hold strategic functions related to state administration in accordance with the applicable laws.
Enforcement Trend
3.5. According to media reports and other publicly accessible sources, enforcement efforts have primarily concentrated on areas involving financial losses to the state. These include government procurement processes, illicit payments made to officials to influence decisions, tax evasion schemes, and improper payments to judges.
3.6. In the past decade or so, Indonesia’s Corruption Eradication Commission (“KPK”) has intensified its efforts to combat corruption, leading to the prosecution of several high-ranking public officials and senior judges. For instance, in 2021, former Minister of Maritime Affairs and Fisheries was convicted for accepting bribes related to the export of lobster larvae, resulting in a five-year prison sentence. Similarly, in 2022, a Supreme Court judge was arrested for allegedly accepting bribes to influence court rulings.
4.1. The Anti-Corruption Law defines gratification in a broad manner to cover the act of giving money, object, discount, commission, loan without interest, ticket for trip, lodging facility, tourism package, free health treatment and other facilities. Every gratification given to a public official is potentially a bribe, but to be an actionable crime it must be given with some connection to the public official’s position and involve a quid pro quo by the recipient to do or not to do something in contravention of their obligations or duties.
4.2. Please refer to paragraphs 5 and 8 below regarding reporting obligation in relation to gratification.
5.1. As mentioned above, public officials may accept gratification (including birthday and wedding gifts) as long as the public officials report the gratification to the KPK and obtain permission to keep the gratification.
5.2. Further, the items listed below do not need to be reported to the KPK pursuant to the Regulation of KPK Number 2 of 2019 concerning gratification reports:
5.2.1. gifts within the family, including grandparents, parents/in-laws, spouse, children/children-in-law, adopted children/legal guardians, grandchildren, in-laws, uncles/aunts, siblings/siblings-in-law, cousins, and nephews/nieces, if there is no conflict of interest;
5.2.2. profit or interest from personal fund placements, investments, or share ownership that are similarly applicable to the general public;
5.2.3. benefits from cooperatives, employee organizations, or similar organizations based on membership that are similarly applicable to the other members;
5.2.4. devices or supplies provided to participants in official events such as seminars, workshops, conferences, training, or similar activities that are similarly provided to the other participants;
5.2.5. gifts not in the form of money or other exchangeable instruments, intended as promotional or socialization tools featuring a logo or social message, provided that there is no conflict of interest that are similarly provided to the other intended recipients;
5.2.6. awards, appreciation, or recognition from championships, competitions, or contests participated in at one’s own expense and unrelated to official duties;
5.2.7. rewards, either monetary or in-kind, related to improving work performance granted by the government in accordance with applicable laws and regulations;
5.2.8. direct prizes/lotteries, discounts/rebates, vouchers, reward points, or souvenirs that are generally applicable and not related to official duties;
5.2.9. compensation or honorarium from professional activities outside official duties that are not related to one’s job responsibilities, as long as there is no conflict of interest and no violation of relevant regulations or the code of ethics for employees/officials concerned;
5.2.10. compensation received in connection with official activities, such as honorarium, transportation, accommodation, and expenses stipulated in the applicable cost standards within the institution receiving the gratuity, as long as there is no double funding, no conflict of interest, and no violation of the institution’s regulations;
5.2.11. flower arrangements as a gesture of congratulations for events such as engagements, weddings, births, funerals, aqiqah, baptisms, circumcisions, tooth-cutting ceremonies, or other customary/religious ceremonies, farewells, retirements, and job promotions;
5.2.12. gifts related to engagements, weddings, births, aqiqah, baptisms, circumcisions, tooth-cutting ceremonies, or other customary/religious ceremonies, with a maximum value of IDR 1,000,000 (one million rupiah) per giver;
5.2.13. gifts related to disasters or misfortunes experienced by the recipient of the gratuity, their spouse, children, parents, in-laws, and/or children-in-law, as long as there is no conflict of interest and the gift is reasonable and appropriate;
5.2.14. gifts among colleagues for farewells, retirements, job transfers, or birthdays, not in the form of money or other exchangeable instruments, with a maximum value of IDR 300,000 per person per gift, and a total not exceeding IDR 1,000,000 in one year from the same giver, as long as there is no conflict of interest;
5.2.15. gifts among colleagues, not in the form of money or other exchangeable instruments and unrelated to official duties, with a maximum value of IDR 200,000 per person per gift, and a total not exceeding IDR 1,000,000 in one year from the same giver;
5.2.16. general food or meal offerings; and
5.2.17. souvenirs or plaques given to institutions in the context of official and state relations, both domestically and internationally, as long as they are not given to individual civil servants or state officials.
5.3. The exceptions above shall not apply in case the applicable rule in the institution where the recipient works stipulates otherwise.
The Anti-Corruption Law does not provide exception for facilitation payments and it may be treated as gratification if the elements of gratification are established.
7.1. The Anti-Corruption Law explicitly provides that a corporation may be liable if it commits any offences pursuant to the Anti-Corruption Law.
7.2. In case of corporate liability, the criminal sanctions under the Anti-Corruption Law may be imposed against the corporation and/or its management. The term “management” is defined broadly under the Anti-Corruption Law to cover corporate organs under the articles of association (such as its board of directors and board of commissioners), and also includes those who factually has the authority and is involved in the decision making in relation to the criminal offence.
7.3. In cases of corporate sentencing, the primary penalty that can be imposed is only fines, with the provision that the maximum available fines may be increased by one-third of the prescribed amount (as described above).
7.4. The Anti-corruption Law does not set out any provisions as to whether having adequate compliance procedures can be relied upon as a defense.
8.1. The Anti-Corruption Law permits the recipient of gratification to avoid any form of prosecution in connection with receiving gratification if they report the gratification to the KPK.
8.2. The reporting must be done within 30 business days since the receipt of the gratification.
8.3. The KPK will then decide if the public official may keep the gratification or if the gratification must be surrendered to the state within 30 business days since the reporting.
9.1. The Anti-Corruption Law does not specifically regulate bribery in the private sector. The provision that best captures the act of bribery between private entities is article 492 of Law Number 1 of 2023 concerning the Indonesian Criminal Code (“ICC 2023”), which stipulates:
“Any person who, with the intent of unlawfully benefiting themselves or another person, by using a false name or false position, deceit, or a series of lies, induces another person to hand over an item, provide a loan, make an acknowledgment of debt, or cancel a receivable, shall be punished for fraud with a maximum imprisonment of 4 (four) years or a maximum fine of category V.”
9.2. The offence under article 492 of the ICC 2023 above requires the existence of a causal link between the deception and the action taken by the victim, i.e., the deceptive conduct must induce the victim to perform one of acts specified above.
9.3. The offence stipulated under article 492 of the ICC 2023 is punishable with a maximum of 4 years imprisonment or fines of IDR 500,000,000.
9.4. How the private to private bribery clause is enforced remains to be seen given the lack of case laws invoking Article 492 of the ICC 2023. Currently, private sector bribery are still subject to traditional doctrines of embezzlement, theft, agency, and with other civil liability offences.