PKNS Holdings Sdn Bhd appointed Transparency International Malaysia (TI-M) in November 2011 to lead the development and implementation of a new Corporate Integrity System tasked with the mission of enhancing the company’s transparency, accountability, and integrity.
The project represented a significant challenge thanks to the large-scale size of the corporation, and the bribery risks present in the construction industry. The programme was also an early
The programme was initially developed by Dr Mark Lovatt in his capacity as TI-M’s then-Business Integrity Programme Manager. The programme was designed in three phases, with the first representing the development of the foundational CIS project.The initial CIS project. according to directions from PKNS management, focused on Procurement and Tender operations, as well as the company’s Governance infrastructure.
Dr Lovatt and the TI-M team conducted reviews of PKNS’s Governance structure, as well as the tendering process in order to produce a set of recommendations for improving the system’s anti-corruption mechanisms. The project included the development of guidelines on Board composition and member qualifications from an integrity perspective, risk management processes and the design of various materials including:
- Conflict of Interest and Asset declaration forms
- Documentation processes
- Whistleblowing and reporting procedures
- Communication and training plan
Trident staff later assisted PKNS in the implementation of the CIS, and later efforts to roll out their new policies among their various divisions and subsidiaries to ensure company-wide compliance. They implemented various policies among their subsidiaries and business associated including
PKNS has reported that in the subsequent years, they saved an estimated RM415 million thanks to the improvements made to their tendering and procurement procedures.