BOD MEETING INFORMATION PAPER DRAFT

- There is a requirement to establish Integrity & Governance Unit (IGU) in PRSB in

accordance to a directive from SEDCO dated 24th January 2019 following the circular
“Arahan YAB Perdana Menteri Siri 1 No. 1 Tahun 2018” dated 05th October 2018.

- The purpose for the establishment of IGU is to ensure the practice of excellent work
culture among employees, with strong morals and ethics. This initiative will curb
offences of corruption, abuse of power and malpractice.

- The IGU is tasked to carry out four core functions, which are: 1) Complaints
Management, 2) Detection & Verification, 3) Integrity Enhancement & 4) Governance.

- The step to enhance and strengthen governance and integrity management in

Government-Linked Companies (GLC), particularly in ensuring that officers and
employees uphold integrity and accountability in corporate governance, must be given
serious attention in order to prioritise, empower and protect the interest of stakeholders.

- This step also reflects the Government’s seriousness in empowering the level of integrity
in GLC, which shall never be compromised in issues involving corruption, abuse of power
and malpractice.

- There are six (6) implementers involved and responsible in ensuring a more effective
and structured integrity management as well as ensuring each role will be carried out to
achieve the objective. The implementers are:

1. Bahagian Pengurusan Integriti Agensi (BPIA), SPRM;

2. Chief Integrity & Governance Officer (CIGO);
3. Integrity & Governance Officer (IGO);
4. Head of Organisation;
5. Independent Committee, and
6. Board of Directors.

- The BPIA will supervise, monitor and coordinate the implementation administration of
the IGU’s functions. Currently, the BPIA is conducting PRSB risk rating together with the
other companies under SEDCO to set a suitable structure for the IGU. Risk ratings are
classified into high, medium or low and re-rating of an organisation’s risk is conducted
every three years or as necessary.

- BOD plays a vital role in shaping the climate and tone of the organisation, whether to
place integrity in its rightful place or otherwise, to ensure that the direction of the
organisation aligns with the IGU’s vision and initiatives.
- The roles of BOD are:

1. to ensure a separate IGU structure that is directly answerable to the BOD so that
issues of pressure, isolation, rejection an unreasonable action do not arise on the
organisation’s part;
2. to ensure the IGU carries out its core functions;
3. to monitor the IGU’s performance through reporting; and
4. to issue commands to IGU in an effort to keep it relevant as an entity responsible for
preserving integrity in the organisation.

- IGU must prepare reports using specific template provided by the BPIA and must be
submitted to the BOD and BPIA every six months.