Approved
By Order of the Director of “Akhmedsafin Institute of Hydrogeology and Geoecology” LLP
No. 04-03/25-OD dated September 27, 2022
Anti-Corruption Policy of “Akhmedsafin Institute of Hydrogeology and Geoecology” LLP
1. PURPOSE OF THE DOCUMENT
1.1. This Anti-Corruption Policy (hereinafter – the “Policy”) is the basic document of “Akhmedsafin Institute of Hydrogeology and Geoecology” LLP (hereinafter – the “Company”), defining the key principles and requirements aimed at preventing corruption and ensuring compliance with applicable anti-corruption legislation by the Company, its employees, and other persons who may act on behalf of the Company.
2. OBJECTIVES OF THE POLICY
The Policy reflects the commitment of the Company and its management to high ethical standards of conducting open and honest business, in order to improve the corporate culture, follow best corporate governance practices, and maintain the Company’s business reputation at an appropriate level.
The Company sets the following objectives for itself:
- To minimize the risk of Company employees, regardless of position, being involved in corrupt activity.
- To develop among employees and other persons a uniform understanding of the Company’s policy of zero tolerance towards corruption in any form or manifestation.
- To summarize and clarify the key requirements of the anti-corruption legislation of the Republic of Kazakhstan that may apply to the Company and its employees.
- To establish the obligation of Company employees to know and comply with the principles and requirements of this Policy, the key provisions of applicable anti-corruption legislation, and adequate anti-corruption prevention procedures.
To summarize and clarify the key requirements of the anti-corruption legislation of the Republic of Kazakhstan that may apply to the Company.
3. SCOPE OF APPLICATION AND DUTIES
All Company employees must be guided by this Policy and strictly comply with its principles and requirements.
The Director of the Company is responsible for organizing all measures aimed at implementing the principles and requirements of this Policy, conducting an internal analysis of corruption risks, including appointing persons responsible for developing anti-corruption procedures, their implementation, and monitoring.
The principles and requirements of this Policy apply to the Company’s counterparties and representatives, and employees, as well as other persons, in cases where the relevant obligations are established in contracts with them, in their internal documents, or directly arise from law.
4. APPLICABLE ANTI-CORRUPTION LEGISLATION
In Kazakhstan, “corrupt actions” generally include giving or receiving bribes, mediation in giving or receiving bribes, abuse of official position or authority, commercial bribery, facilitation payments, and the unlawful use by an official of their position to obtain a benefit in the form of money, valuables, other property, services, or any rights for themselves or others, or the unlawful provision of a benefit or rights to such person by others.
In light of the above, all Company employees are strictly prohibited from directly or indirectly, personally or through third parties, participating in corrupt actions, offering, giving, promising, requesting, or accepting bribes, or making payments to facilitate administrative, bureaucratic, or other formalities in any form, including in the form of money, valuables, services, or other benefits, to or from any persons or organizations, including commercial organizations, government and self-government bodies, government officials, private companies, and their representatives.
The Company and its employees must comply with the anti-corruption laws of the Republic of Kazakhstan, as well as the principles and requirements of the Policy, in any country in the world.
5. KEY PRINCIPLES
Due Diligence of Counterparties
The Company makes reasonable efforts to minimize the risk of business relationships with counterparties who may be involved in corrupt activity, by assessing counterparties’ tolerance of bribery, including verifying whether they have their own anti-corruption procedures or policies, their readiness to comply with the requirements of this Policy and to include anti-corruption clauses in contracts, as well as to provide mutual assistance for ethical business conduct and the prevention of corruption.
In accordance with public procurement legislation, the Company purchases goods, works, and services through public procurement, including participating as a potential supplier. Draft public procurement contracts are drawn up in accordance with the standard contracts for public procurement of goods, works, and services approved by the authorized body. Public procurement is based on the principles of preventing corrupt manifestations.
Information and Training
The Company makes this Policy freely available on informational materials at the Company’s office, openly declares its rejection of corruption, welcomes and encourages compliance with the principles and requirements of this Policy by all counterparties, its employees, and other persons, and promotes a higher level of anti-corruption culture through information and training.
6. GIFTS AND REPRESENTATION EXPENSES
Gifts and representation expenses, including business hospitality expenses, that employees may provide to other persons and organizations on behalf of the Company, or that employees may receive from other persons and organizations in connection with their work at the Company, must meet all five of the following criteria:
- be directly related to the Company’s lawful business purposes, for example, the presentation or completion of business projects, holding conferences, successful contract performance, or generally recognized holidays such as Nauryz and New Year, International Women’s Day, memorable dates, and anniversaries;
- be reasonably justified, proportionate, and not luxury items;
- not constitute a hidden reward for a service, action, inaction, connivance, patronage, granting of rights, a particular decision on a transaction, agreement, license, permit, etc., or an attempt to influence the recipient for any other unlawful or unethical purpose;
- not create a reputational risk for the Company, employees, or other persons if information about the gift or representation expense is disclosed;
- not contradict the principles and requirements of this Policy, other internal documents of the Company, or applicable law.
Gifts in the form of promotional items (low-value items) bearing the Company’s symbols, provided at exhibitions, open presentations, forums, and other representative and marketing events in which the Company officially participates, are permitted and are treated as promotional materials.
Gifts on behalf of the Company, its employees, and representatives to third parties in the form of cash or non-cash funds, in any currency, are not permitted.
7. PARTICIPATION IN CHARITABLE ACTIVITIES AND SPONSORSHIP
The Company does not finance charitable and sponsorship projects for the purpose of obtaining commercial advantages in the Company’s specific projects.
8. PARTICIPATION IN POLITICAL ACTIVITIES
The Company does not finance political parties, organizations, and movements for the purpose of obtaining commercial advantages in the Company’s specific projects.
9. INTERACTION WITH GOVERNMENT OFFICIALS
The Company refrains from paying any expenses on behalf of, or for the benefit of, government officials and their close relatives for the purpose of obtaining commercial advantages in the Company’s specific projects, including expenses for transportation, accommodation, meals, entertainment, etc., or their receipt of any other benefit at the Company’s expense.
10. INTERACTION WITH EMPLOYEES
The Company requires its employees to comply with this Policy, informing them of the key principles, requirements, and sanctions for violations.
As part of building an appropriate level of anti-corruption culture within the Company, periodic informational seminars are held for employees in person and/or remotely, as well as introductory training on the provisions of this Policy and related documents for all new Company employees.
Compliance by Company employees with the principles and requirements of this Policy is taken into account when forming the personnel reserve for promotion to higher positions, as well as when imposing disciplinary sanctions.
11. PAYMENTS THROUGH INTERMEDIARIES OR TO THE BENEFIT OF THIRD PARTIES
The Company and its employees are prohibited from engaging or using intermediaries, partners, agents, joint ventures, or other persons to carry out any actions that contradict the principles and requirements of this Policy or applicable anti-corruption legislation.
The Company ensures the existence of due-diligence procedures for intermediaries, partners, agents, joint ventures, and other persons to prevent and/or detect the violations described above, in order to minimize and prevent the risks of the Company’s involvement in corrupt activity.
12. MAINTENANCE OF ACCOUNTING BOOKS AND RECORDS
All financial transactions must be accurately, correctly, and adequately detailed in the Company’s accounting records, documented, and available for inspection.
The Company has appointed employees who bear personal responsibility for preparing and submitting complete and reliable accounting statements within the time limits established by applicable law.
Distortion or falsification of the Company’s accounting records is strictly prohibited and is regarded as fraud.
13. NON-RETALIATION AND NON-SANCTIONING
The Company declares that no employee will be subject to sanctions (including dismissal, demotion, or deprivation of a bonus) for reporting a suspected act of corruption, or for refusing to give or accept a bribe, engage in commercial bribery, or act as an intermediary in bribery, including where such refusal results in lost profit for the Company or a failure to obtain commercial or competitive advantages.
14. AMENDMENTS
If provisions of this Policy or related Company business processes are found to be insufficiently effective, or if the requirements of applicable legislation of the Republic of Kazakhstan change, the Director of the Company shall organize the development and implementation of an action plan to update this Policy and/or the relevant business processes.
15. LIABILITY FOR FAILURE TO COMPLY (IMPROPER COMPLIANCE) WITH THIS POLICY
Employees of all structural units of the Company, regardless of position, bear personal responsibility for compliance with the principles and requirements of this Policy, as well as for the actions (or omissions) of persons subordinate to them that violate these principles and requirements.
Since the Company may be subject to sanctions for the involvement of its employees, counterparties, and other persons in corrupt activity, internal investigations will be initiated, within the limits permitted by applicable law, for every reasonably justified suspicion or established fact of corruption.
Persons found guilty of violating the requirements of this Policy may be held disciplinarily, administratively, civilly, or criminally liable at the initiative of the Company, law enforcement authorities, or other persons, in the manner and on the grounds provided for by the legislation of the Republic of Kazakhstan, regulatory acts, and employment contracts.