Compliance

Comprehensive programme helps to ensure compliance
Compliance describes all measures taken to ensure the correct conduct of companies, their management and staff with respect to statutory and the Company’s own obligations and prohibitions.  Airfoil Services Sdn Bhd is adopting the Lufthansa Group Compliance Programme which is intended to prevent staff and the Company from coming into conflict with the law and at the same time to help them to apply statutory regulations correctly.

Airfoil Services Sdn Bhd Compliance Programme is made up of the following elements:  Integrity and Competition Compliance.   An ombudsman system gives staff the opportunity to report any suspicion of criminal activity or breaches of the compliance regulations. The central Compliance Office, which reports to the Board member responsible for Human Resources and Legal, the various central and local compliance committees in the Lufthansa Group and the Compliance Officers in Group companies, among others, ensure that the Lufthansa Compliance Programme is enforced throughout all companies in the Lufthansa Group including Airfoil Services Sdn Bhd. The Audit Committee of the Supervisory Board is notified semi-annually of incidents and progress concerning compliance in a Compliance Report.

Integrity and Competition Compliance
Airfoil Services Sdn Bhd Compliance Programme currently consists of the components Integrity and Competition Compliance.  While Integrity Compliance refers to economic criminal law, the Competition Compliance Guideline ensures the observance of antitrust and competition laws and regulations.

The Integrity Compliance Guideline establishes general principles for anti-corruption measures and provides a framework for employees of Airfoil Services Sdn Bhd regarding the acceptance and granting of benefits, invitations and gifts. The checklist offers employees assistance in deciding whether the acceptance or granting of a benefit, invitation or gift is considered permissible by penal laws.

An invitation to events is a special form of a benefit and therefore is regulated in a separate Event Management Guideline. The Event Management Guideline provides a framework for employees of Airfoil Services Sdn Bhd for invitations of third parties to events, either organized by Airfoil Services Sdn Bhd or to external events. The Event Management Guideline is complemented by a checklist that must be filled in and archived by employees of Airfoil Services Sdn Bhd prior to addressing any invitation to an event to a third party.

The Compliance Guidelines – Payments set rules and requirements which have to be followed when initiating any payment. The Competition Compliance Guideline familiarizes employees of Airfoil Services Sdn Bhd with antitrust and competition laws and regulations.

Integrity Compliance Guideline Airfoil Services Sdn Bhd

Guideline regarding Invitations, Gifts and other Benefits and Sponsorship Contracts
When accepting and granting invitations, gifts, donations and other benefits (hereinafter referred to as “benefits”), as well as concluding sponsorship agreements, special caution must be exercised.

Benefits should be limited in value and occur in a form so as not to be construed as a ’pay-off’, ’kickback’ or ’bribery’. Even low-value benefits, e. g. in connection with expectation of a return service, may be considered impermissible or even illegal.

Even the appearance of impropriety should be avoided. It is helpful to ask yourself the following question: Would public disclosure of the facts embarrass or tarnish the image or reputation of the involved persons and / or the company?

When accepting or granting benefits please take into account the respective national fiscal regulations concerning the receipt of non-cash benefits. Even if a gift is in line with the respective applicable fiscal laws, it may still violate the principles laid down in these guideline and therefore be impermissible.

Benefits which will be granted or accepted in accordance with local customs or traditions, should also be considered socially acceptable and adequate.

Business practices and customs may vary from country to country and should therefore be taken into consideration before any decision is made with regard to an exception. Please also keep in mind, that even in such cases, no binding dependence arises and the domestic and foreign statutory regulations must be complied with.

For your own protection please make sure that the highest degree of transparency is ensured. Confidential benefits, as well as multiple benefits over a short time frame may be illegal. Corruption often begins with lesser benefits whose frequency and value increases over time and leads to binding dependence. If you find yourself in a questionable situation the process should be documented and your superior notified immediately.

Department-specific special rules should be complied with (e. g. general purchasing guideline).

When dealing with government authorities or agencies, please also pay strict attention to their special rules or guidelines. It is therefore recommended that you explicitly ask the government authority or agency about the existence of any such rules or guidelines.

The following should be taken into consideration when granting donations: Donations should not be tied to any countervailing obligations. Donations in excess of USD 5,000 require the approval of the Deutsche Lufthansa Executive Board.

The conclusion of sponsorship contracts is permissible if they serve the purpose of advertising of public relations. There should be no imbalance with regard to the financial expenditure involved and the service that is expected in return. The sponsorship concept should be documented. Any existing department-specific regulations concerning sponsorship should be complied with.

Violations of these rules may result in labor, criminal and/or civil consequences for you.

The corresponding detailed help and information with regard to the assessment of planned gifts can be found on the following page: investor-relations.lufthansagroup.com/hzgvz

If you have any questions on how to deal with benefits or sponsorship contracts, please contact your superior first. Furthermore you may contact the Compliance Office or the Compliance Appointees of the respective legal departments as follows:

Contacts

Please consult our Compliance Manager, Ms Yap Mei Fong or Dr. Milana Plischuk (Lufthansa Group) should you require any guidance

Ms Yap Mei Fong

Compliance Manager (HR Manager)
Airfoil Services Sdn Bhd
Phone: +603-6145-3600 Ext.: 651
Fax: +603-6141-6813
Email: meifong.yap(at)airfoil.com.my

Sven Noffke

Compliance Counsel Lufthansa Group
Syndikus und Rechtsanwalt / Legal Counsel
Deutsche Lufthansa AG
Group Compliance Office HAM CJ/C
Weg beim Jäger 193

22335 Hamburg, Germany

Phone: +49-40-5070-41515

Fax: +49-40-5070-4909

Email: sven.noffke(at)dlh.de


You will find further information on HAM CJ/C website
as well as http://www.lufthansa-technik.com/compliance 

Ombudsman system

With a view toward ensuring the reporting of information about potential violations of laws or regulations applicable to the conduct of our business (corruption/bribery, fraud, competition and antitrust laws and other comparable irregularities), Airfoil Services Sdn Bhd and Lufthansa has set up an ombudsman system. This is an additional preventive measure to ensure legal and ethical business conduct and to help protect Airfoil Services Sdn Bhd and its staff.

The ombudsman function is performed by an external lawyer who is not Airfoil Services Sdn Bhd and/or Lufthansa employee. The concerned party can submit information to the ombudsman by phone, in writing (email, letter, fax), or in person. The aim is a personal meeting or a personal telephone conversation between the ombudsman and the concerned party. If a concerned party prefers not to disclose his/her identity to Airfoil Services Sdn Bhd, the ombudsman will report the facts brought to his attention to Airfoil Services Sdn Bhd and/or Lufthansa while keeping the concerned party's name and identity confidential.

Confidentiality is ensured trough the lawyer’s professional obligation of secrecy and his right to refuse to give evidence. In fact, Airfoil Services Sdn Bhd and/or Lufthansa and the ombudsman have expressly agreed to waive the disclosure of the concerned party's identity and the surrender of any records and other information obtained, unless the concerned party explicitly agrees to disclosure or disclosure is required by law.

Dr. Rainer Buchert

Rechtsanwaltgesellschaft mbH

Kettenhofenweg 1

60325 Frankfurt a.M.

Phone: +49-69-71033330 

Phone: +49-6105-921355

Fax: +49 69 71034444

E-Mail: dr-buchert(at)dr-buchert.de

Web: www.dr-buchert.de