Anti-Fraud and Corruption Policy

  1. POLICY STATEMENT          
    • Yayasan BASAbali Wiki (hereinafter referred to as BBW) is committed to the highest standards of ethical conduct and integrity in all BBW’s activities. BBW recognizes that any fraud or corruption will damage BBW’s image
    • All employees of BBW, and all individuals acting for BBW, are expected to conduct themselves professionally and within the law.
    • In particular, BBW takes a zero-tolerance approach to fraud and corruption (zero tolerance is a policy of giving the most severe punishment possible to every person who commits a crime or breaks a rule).
    • BBW does not condone the offering, provision or receiving of any unwarranted reward that is, or could be perceived to be, an inducement for acting improperly in relation to BBW’s
    • BBW introduced an Anti-Fraud and Corruption Policy (AFCP) for the purposes of managing the risk of fraud and corruption occurring in relation to BBW’s
    • This policy statement is a key element of BBW’s commitment against fraud and corruption, and any breach of this policy will be treated as a serious breach of BBW’s discipline and/or contractual obligations.
    • BBW will cooperate with law enforcement investigations and reserves the right to refer any breach of this policy to the appropriate
    • All employees of BBW, and all individuals acting for and on behalf of BBW, are expected to report any concerns of fraud and corruption and to cooperate with investigations.
    • All reports will be treated in strict confidentiality
  1. INTRODUCTION             
  • BBW is committed to the highest standards of ethical conduct and integrity in all BBW’s activities. All employees of BBW, and all individuals acting for BBW, are expected to conduct themselves professionally and within the law. This Anti-Fraud and Corruption Policy (“AFCP”) is to ensure ethical and lawful conduct.
  • This AFCP document describes BBW’s policy stance and is a reflection of the commitment of the Board of Trustees and Management of BBW in protecting both BBW and those acting for BBW from contravening the law. BBW, in particular, is subject to the Law of the Republic of Indonesia Number 20 year 2001 on the amendment of Law Number 31 year 1999 concerning the Eradication of the Criminal Act of Corruption
  1. SCOPE
  • This policy applies to all persons working for BBW or on behalf of BBW in any capacity, including employees at all levels, directors, officers, volunteers, interns and agents, whether located in Indonesia or abroad.
  • In this policy, third party representatives mean any individual or organization that BBW comes into contact with, including clients, respondents, government and public bodies, including their representatives and officials, politicians, and political parties.
  • This policy extends to report makes by external parties relating to all persons working for BBW or on behalf of BBW regarding record of fraud or corruption in other institution or activities.
  • This policy is being referred to in employee’s contract of employment and it may be amended at any time
  • Aspects of the anti-fraud and corruption described below may form part of BBW’s contractual arrangements with third parties.
  1. PURPOSE
  • This policy aims to ensure that BBW and all individuals acting for BBW have a system and procedure to prevent any fraud and corruption activities.
  • The purposes of this AFCP document are to:
  • demonstrate the commitment of the Board of Trustees and Management to the prevention of fraud and corruption;
  • describe the anti-fraud and corruption policy at BBW;
  • set out personal responsibilities in observing and upholding BBW’s position on fraud and corruption; and
  • provide information and guidance on how to recognize and deal with fraud and corruption issues
  1. DEFINITION
    • Fraud can be defined as “dishonestly obtaining a benefit or causing a loss by deception or other means”, which include:
      • obtaining property, a financial advantage or any other benefit by deception
      • Causing a loss or avoiding or creating a liability by deception
      • Providing false or misleading information or failing to provide information where there is an obligation to do so
      • making, using or possessing forged or falsified documents;
      • bribery, corruption or abuse of position; unlawful use of computers, vehicles, telephones and other property or services;
      • divulging confidential information to outside sources; and
      • any offences of a like nature to those listed

above.

  • For the purposes of this policy, bribery is defined as “the offering, provision or receiving of any unwarranted reward that is, or could be perceived to be, an inducement for acting improperly in relation to BBW’s operation”.
  • Corruption is the abuse of entrusted power for private gain. Corruption can be large or small scale, political in nature, and is usually perpetrated for financial gain.
  • BBW prohibits its employees or associated persons from making or accepting any “facilitation” payment. Facilitation payment is defined as “a payment made to a government official to facilitate approval of some type of business transaction or activity”. Facilitation payments, or offers of such payments, constitute a criminal offence under the Indonesia Bribery Act and misconduct under the Staff Regulation.
  1. WHAT IS PROHIBITED BY THIS POLICY?
  • BBW prohibits employees and associated persons from offering, promising, giving, soliciting or accepting any bribe. The bribe may be in the form of cash, a gift or other inducement. Bribes can be offered to, or solicited from, a private individual, a public or government official, official of a state- controlled industry or political party or a private person or institution.
  • For the purposes of this policy, it is irrelevant whether the bribe is made or received directly or through a third party.
  • Acts of bribery are designed to influence the recipients to act in a specific way. The act to be performed by the recipients may not necessarily be illegal, but could still be considered a bribe for the purposes of this

policy.

  • In summary, all employees of BBW, and all

individuals acting for BBW, must not

  • give, promise to give, or offer a payment, gift or hospitality with the expectation that an advantage will be received, or to reward an advantage already given;
  • give or accept a gift or hospitality during any commercial negotiations or tender process;
  • accept a payment, gift or hospitality from a third party that is offered with the expectation that it will provide an advantage for them or anyone else in return;
  • accept hospitality from a third party that is unduly lavish or extravagant;
  • offer or accept a gift to or from government officials or representatives, or politicians or political partiesr;
  • threaten or retaliate against another individual who has refused to pay a bribe or who has raised concerns of bribery or corruption; or
  • engage in any other activity that might lead to a breach of this policy.
  1. WHAT IS NOT PROHIBITED BY THIS POLICY?
  • Bribes paid under duress will not be a breach of this policy. Bribes paid under duress are payments made when the payee is in fear for his or her safety, or the safety of another person.
  • All demands for bribes (including bribes paid under duress) must be reported at the earliest opportunity after the event to the Deputy Director for Administration and Finance
  1. THE          ANTI-FRAUD      AND       CORRUPTION

POLICY AT BBW

8.1 The AFCP comprises several key elements that complement one another:

  • A commitment from the board of Trustees and management BBW
  • The assessment of fraud and corruption risks across the activites
  • Procedures that are designed to proportionately manage the risk of fraud and corruption occurring
    • Regular reviews of the AFCP Elements of AFCP are elaborated below:

8.2 Anti-Fraud and corruption risk assessments and procedures

  • The assessment of fraud and corruption risks is incorporated into standard risk assessment processes across BBW
  • This assessment process will consider how fraud and corruption might occur in relation to BBW’s operations and how BBW’s relationships and internal structures may contribute to the risk

 

 

  • Therefore, segregation of duties is an important factor to consider in terms of internal procedure, as well as financial controls
  • The assessment will inform which part of the policy will need to be amended as required
  1. GIFTS AND HOSPITALITIY

9.1 Small gifts or hospitality with a maximum IDR1.000.000,- to show BBW’s professional relationships are acceptable practice. BBW recognises that gift-giving and -receiving is a cultural norm in Indonesia. However, inappropriate gifts, entertainment and hospitality can constitute bribery. Even if not received or given as a bribe, gifts and hospitality can give the impression of bribery, if the value

or circumstance is not appropriate

  • Care must be taken in this regard especially when engaging with individuals who represent a government or government agency, or during contract/tender negotiations.
  • Cash or cash equivalents will never be given to third party as a gift, irrespective of the value (such as gift certificates or vouchers). This is not to be confused with per diem payments as part of a travel allowance covering meals expenses, transportation, and accommodation costs or payments for professional services provisions.
  • Should staff receive payment from third party in relation to professional services (e.g. honorarium, consultant fee), they must report and transfer the money to BBW account.
  • This policy allows reasonable and appropriate gifts or hospitality to be given to or received from third parties, for the purposes of
  • token of appreciation for respondent and resource person
  • establishing or         maintaining         good relationships;
  • improving or maintaining BBW’s image or reputation; or
    • Promotional gifts of low value, such as stationery provided to or received from existing clients, suppliers, and partners will be acceptable.
    • Reimbursing a third party’s expenses, or accepting an offer to reimburse BBW’s expenses (for example, the costs of attending a meeting) will not be accounted as bribery. However, a payment in excess of reasonable expenses (such as the cost of an extended hotel stay) is not acceptable.

 

  • If hospitality is provided, BBW’s representative must be present at the event.
  • BBW recognises that individuals often

do not have the opportunity to seek permission before accepting spontaneous gifts and hospitality. Therefore, this policy allows for the acceptance provision of unplanned gifts and hospitality at a maximum value of IDR 1,000,000.-. Beyond this maximum value, the gift must not be accepted or returned.

  • In summary, the giving and accepting of gifts may be allowed with one of the following situations:
    • the value is not in excess of IDR 1,000,000 per occassion;
    • it is not made with the intention of influencing a third party;
    • it is not an explicit or implicit exchange for favours or benefits;
    • it is given in the name of BBW’s representative;
    • it does not include cash or a cash equivalent;
    • it is appropriate in the circumstances, taking account of the reason for the gift, its timing and value;
    • it is given openly, not secretly; or
    • it complies with any applicable Indonesian and local law.
  • All instances of gifts and hospitality provided or received (more than IDR 1,000,000) that cannot be rejected or returned must be reported by email to Deputy Director of Administration and Finance who maintains a Gifts and Hospitality Register as part of the AFCP. The information required are:
    • date/time/place of the event;
    • circumstances including purpose of the expenditure;
    • nature (including      value)     of      the expenditure; and
    • the person(s) who were present

 

  1. 1 CONFLICT OF INTEREST
  • Conflict of interest may arise where an individual’s personal interest, family interests or loyalties conflict with those of BBW. All employees and associated persons as indicated in Section 3.1 have the obligation to act in the best interests of
  • Those indicated in Section 3.1 must not derive any financial or other benefit (other than remuneration from BBW) from transactions entered into by BBW with any third
  • Neither employee nor anyone representing BBW may have personal interest in any third party engaged, or expecting to be engaged, with
  • If an employee or associated person has such interest, they must declare it immediately and obtain approval from the Director based on technical consideration from the relevant Deputy
  • In addition to declaring potential and actual conflict of interest, employees and associated persons must also inform the Director should a change occur in the status of the conflict of interests, for example when the conflict ceases to
  • As part of the AFCP, a Register of Conflicts of Interest is maintained by the Deputy Director of Administration and Finance. The Conflicts of Interest Register will record all relevant details including:
    • the nature and extent of the (potential) conflict of interest;
    • a summary of the discussion; and
    • any actions taken to manage the conflict of interest

 

 

  • If an employee is not sure what to declare, or whether/when their declaration needs to be updated, the employee must seek guidance from the Deputy Director of

Administration and Finance

 

  1. FINANCIAL CONTROLS

11.1 BBW has strict financial controls in place which are subject to regular independent audit.

  1. COMMUNICATION
  • Communication of the AFCP is central to the effectiveness of the policy. Regular communication of the zero-tolerance approach to bribery reinforces the policy and reduces
  • All persons working for BBW or on behalf of BBW in any capacity will receive information and AFCP awareness in relation to this policy, through the provision of a copy of this policy to them at the beginning of the engagement with
  • This policy will be made public through BBW
  1. SEEKING GUIDANCE AND RAISING CONCERNS
  • Advice and guidance in relation to this policy can be obtained from the Deputy Director of Administration and Finance
  • All employees of BBW, and all individuals acting for BBW, are expected to report any concerns of fraud and to cooperate with any investigation of such concerns. All employees do not need to be certain of the occurrence of fraud, only to raise their concerns. It follows that all employees are not expected to investigate their suspicions.
  • The reporting of concerns is undertaken by contacting the Deputy Director of Administration and
  • Concerns relating to the Deputy Director of Administration and Finance should be reported to the
  • Concerns relating to the Director should be reported through email to the Chairman of the Board of Trustee and/or CC to one or more members of the
  • Individuals who refuse to accept or pay a

 

bribe, or who raise concerns or report

another’s wrongdoing, are sometimes worried about possible repercussions. BBW encourage openness and will protect anyone who raises genuine concerns under this policy, even if they turn out to be mistaken

13.7 Everyone is responsible for preventing and reporting fraud and corruption as part of their responsibility. Therefore, employees are required to report raising concerns within five (5) working days after detection.

  1. RESPONDING TO CONCERNS RAISED
  • The Deputy Director of Administration and Finance will be responsible for ensuring that all concerns raised under this policy are investigated and followed up in accordance with other relevant policies. All cases and each investigation process should be reported to the board of Directors. Those raising concerns will be regularly informed of the progress of the investigation, unless the report is raised anonymously or the person raising the concern does not wish to be kept informed.
  • The matter will be dealt with confidentiality, to the limit of the law/legal requirements to disclose information relating to a matter
  • Although concerns may be raised anonymously, BBW would like to stress the importance of those raising concerns to fully cooperate with any investigation process. It is quite usual for further information to be sought from those raising concerns as an investigation progresses. Concerns raised anonymously can be more difficult to
  • As a matter of routine, the following minimum information will be retained securely by the Deputy Director of

Administration and Finance:

 

 

 

  • Date and time of receipt of the concern
  • The identity of the person raising the concern (if known)
  • A summary of the concern, its background, and other relevant information
  • Whether the concern was raised elsewhere and if so where, to whom, and when
  • Any advice or feedback given to the person raising the concern
  • Details of any investigation undertaken and its result

14.5                  BBW is committed to ensuring no one suffers any detrimental treatment as a result of refusing to take part in bribery or corruption, or for reporting their suspicions.

Detrimental treatment includes dismissal, disciplinary action, threats or other unfavorable treatment connected with raising a concern. If one has suffered such treatment, he or she should inform the Director, immediately.

  1. CONSEQUENCES FOR BREACHING THIS

POLICY

  • Any employee who breaches this policy will face disciplinary action, which could result in dismissal due to its zero- tolerance stance
  • BBW may terminate the relationship with other individuals and organisations working on BBW’s behalf if they breach this
  • BBW will cooperate with law enforcement investigations and reserves the right to refer any breach of this policy to the appropriate
  1. POLICY REVIEW
  • The AFCP will be reviewed every three years
  • The review will consider the adequacy of

 

 

the AFCP in terms of its design and

operational effectiveness. This is a separate process to the bribery risk assessments described at Section 9.

16.3 The results of the AFCP review will be reported to the Director and the Management.

  1. RECORD KEEPING
  • BBW must keep financial records prepared with strict accuracy and completeness and have appropriate internal controls in place, which will evidence all payments to third
  • All gifts and hospitality given or received more than the threshold described in Section 10 must be reported (Gift and Hospitality Register).
  • All expenses claims relating to hospitality, gifts or payments to third parties must be in accordance with BBW’s expenses policy.
  • All potential, anticipated, and actual conflict of interest as described in Section 11 must be reported (Conflict of Interest Register).
  • All suspicions must be recorded in a Fraud and Corruption Report.
  • BBW should be able to demonstrate and evidence all supporting documents related to AFCP to a third party (for example reviews of the policy, fraud and corruption risk assessment, etc), if required,