Compliance risk and compliance culture management in “Samruk-Energy” JSC

Hot line
Email address: sk.hotline@deloitte.kz
Telephone: 8 800 080 19 94​​​​

Compliance is one of the principles of “Samruk-Energy” JSC business. Abiding by the rules allows us to remain a team of professionals united by common goals, a culture of behavior and traditions, and helps to maintain mutual understanding at an appropriate level both in the Company itself and with business partners and customers.

The primary target of compliance direction is to carry out activities on identifying, evaluating, preventing, and monitoring compliance risks arising in the course of business of “Samruk-Energy” JSC group, creating zero tolerance for corruption and bribery, building an anti-corruption culture and preventing compliance risks.

The Company created its approach based on the following principles:

• Active involvement and support from management in the development of compliance system. The Company’s Board of Directors regularly reviews reports on implementation of compliance program.
• The company regularly carries out activities aimed at identifying of corruption risks and after updates them.
• The company develops and implements anti-corruption procedures that meet the level and nature of identified risks, improves and updates internal policies and procedures.
• The company implements and maintains employees training program on the principles and standards of compliance with anti-corruption legislation.
• The company controls over effectiveness of the implemented procedures to prevent corruption.
• To mitigate the risk of the Company's involvement in corruption activities, the Company has developed due diligence procedures both in relation to counterparties and in relation to individuals. One of the key tools of the Company's compliance program is the due diligence of third parties, partners, contractors that establish relations with the Company. In order to eliminate corruption risks and risks of loss of business reputation, the Service implemented the practice of third parties due diligence. To extend the application of the Code of Conduct provisions to business partners, suppliers and other third parties who work with the Company, the provisions of "Anti-corruption clauses" are included in standard business contracts.

The Company's compliance program is fully supported by the Board of Directors and the Management Board and is an integral part of the Company's culture.

In 2021, for the purpose of implementing anti-corruption activities, the positions of compliance officers were introduced in the organizational structures of “Samruk-Energy” JSC subsidiaries and affiliates.

According to the 2021 results, compliance officers conducted more than 50 training activities across “Samruk-Energy” JSC group, which included explanations about changes in anti-corruption legislation, tax declaration, hotline operation.

To build an anti-corruption culture and zero tolerance for any form of bribery and corruption, trainings explaining the requirements, adopted compliance policies and anti-corruption laws were held for employees of “Samruk-Energy” JSC group.

In 2021, the following activities were performed as part of anti-corruption activities:

1. on April 15, 2021, a Memorandum of Cooperation was signed between Samruk-Energy JSC, the Chamber of Legal Advisers “Kazakhstan Bar Association” (KazBar) and PF “Legal Policy Research Center” (LPRC);
2. the Action Plan for the implementation of requirements of the Republic of Kazakhstan Law “On Combating Corruption" dated November 18, 2015 No. 410-V RKL at “Samruk-Energy” JSC and SA was developed and approved by the BoD resolution No. 11/20 dated 06.1.2020.
3. corruption risks of the entire “Samruk-Energy” JSC group were studied.

All employees of “Samruk-Energy” JSC group learned about requirements of the Code of Business Conduct, the Anti-Fraud and Anti-Corruption Policy, and employees were tested.

Anti-corruption policies and methods training

As part of compliance program, all employees and stakeholders are provided with communication tools like Hotline (Speak up) so that they can report their concerns regarding actual and suspected violations of legislation, regulatory requirements and internal ethics documents and compliance. Individuals reporting violations are given the opportunity to send a message on a confidential and anonymous basis, as well as guarantees that they will be prevented from harassment and their rights and interests will be protected. To comply with the best international practices and protect the interests of informants, the hotline is administered by an independent company “Deloitte”, all complaints and requests received through the hotline are registered and transferred to the Compliance Service, which ensures professional and confidential consideration. In order to process the message in the most efficient way, there is a function of leaving a contact information, but a person can also leave an anonymous message. Regarding anonymous complaints, responses are given to an independent company for further forwarding them to a person who submitted a сomplaint/inquiry.

In 2021, the Compliance Service of the Company considered 70 appeals and complaints received by the Company and the hotline. Compliance checks and investigations were carried out, as well as scheduled checks on request of the Audit Committee were conducted during consideration of appeals and complaints. As a result of the audit, violations of the requirements of legislation and internal documents in the processes were revealed across “Samruk-Energy” JSC group, recommendations on elimination and reducing risks were provided, disciplinary actions against heads and responsible persons were taken.

At year-end 2021, 1 corruption offense in actions of chief engineer of “AZhC” JSC PDZ was reported across the Company’s group. According to the court verdict of November 2, 2021, the employee was found guilty. In order to prevent similar situations, as well as the formation of an anti-corruption culture and zero tolerance for any form of bribery and corruption, training events were held for employees of the group of companies of “Samruk-Energy” JSC to clarify the requirements, adopted compliance policies and anti-corruption legislation. Cases of termination of contracts with business partners in connection with violations related to corruption were not recorded.

No cases of discrimination were recorded in 2021.