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Brunei: Energy industry players send message of zero tolerance
AN Energy Industry Business Integrity Pact was signed by leaders from 10 major oil and gas operators in Brunei Darussalam, in a move to demonstrate their commitment to upholding integrity in business.
The pact was signed on May 8, and by agreeing to the pact, the industry is conveying its zero tolerance message that any company lacking integrity and transparency will not have the opportunity to do business with any of the oil and gas operators in Brunei.
The companies that signed the pact include: Brunei Shell Petroleum Co Sdn Bhd (BSP), Brunei LNG Sdn Bhd, Brunei Shell Marketing Sdn Bhd, Brunei Gas Carriers Sdn Bhd, Hengyi Industries Sdn Bhd, Shell Deepwater Borneo, Brunei National Petroleum Co Sdn Bhd (PetroleumBRUNEI), Brunei Methanol Company Sdn Bhd, Petronas Carigali Brunei Ltd and Total E&P Borneo BV.
The pact was signed in an event that was also attended and supported by Pehin Datu Singamanteri Colonel (Rtd) Dato Seri Setia (Dr) Awang Haji Mohammad Yasmin bin Haji Umar, the Minister of Energy and Industry at the Prime Minister’s Office, as well as Dato Paduka Haji Mohd Juanda bin Haji Abdul Rashid, the Permanent Secretary (Law and Welfare) at the Prime Minister’s Office, Director of Anti-Corruption Bureau (ACB) and Solicitor General at the Attorney General’s Chambers (AGC).
The Energy Industry Business Integrity Pact consists of 10 essential principles that the companies shall incorporate to ensure appropriate internal controls are in place to assess, prevent, detect and monitor integrity and compliance risks in the course of their operations.
The companies pledged and committed to the following 10 summarised principles: Prohibition of bribery and facilitation payments in business activities; code of conduct in place and principles disseminated to staff and contractors; consistent consequence management for violations of the code and principles; visible training programmes and communication in place; disclosure and avoidance of conflicts of interest; avoidance of gifts and hospitality which can lead to perceived influence or conflicts; governance and internal controls/policies in place; raising concerns, whistle-blowing mechanisms and speaking up free of retaliation; investigations conducted impartially, fairly and in timely fashion; full collaboration with the ACB; and refraining from doing business with those who demonstrate poor integrity and ethical practices.
The members of the Brunei Energy Industry Business Integrity Working Group, consisting of employees from the oil and gas operators who jointly authored the Integrity Pact principles and tasked with the management and oversight of the companies’ compliance efforts, will work to ensure the companies abide by the agreed principles. Accordingly, the companies will partner with the Energy and Industry Department at the Prime Minister’s Office (EIDPMO) and the ACB to maintain alignment and foster continued collaboration and dialogue in the area of business integrity.
The group aims to share best practices and learnings from incidents to strengthen corporate controls and mitigate applicable compliance risks. As Brunei’s main country revenue comes from the energy industry, the group aims to collectively ensure that transparency, fairness and integrity remain at the forefront of the industry’s business dealings.
Daniel Marcelo Elustondo, Ethics and Compliance Manager from BSP and Chairman of the Brunei Energy Industry Integrity Working Group highlighted that “the pact is the first of its kind not just in this industry, but in this country”.
He said that the 10 principles reflect key corporate actions, expected behaviours and internal controls that are necessary to establish a strong and stable compliance culture.
“Our products, our goods and our services are vital to the economic wellbeing and sustainability of this country. As such, we must always operate in a way that is safe and reliable, ensuring that we bring no harm to people or the environment. We must also develop and support local businesses, entrepreneurs and Bruneian staff to help build their competencies and to strengthen the local skills in technical and non-technical fields. These are the leaders of the future.
“So to achieve all of these mentioned priorities, to fulfil these great responsibilities, it is imperative that we act with honesty, fairness and transparency in all of our business dealings. The decisions we make as companies must never compromise our integrity or core values, and that is why our 10 companies are here today to sign the pact.”
The goal, he said, is to build a strong and collective compliance culture in this industry. “So our message will be clear: those that wish to do business with any of our companies must demonstrate this same commitment to business integrity, as we expect with safety.”
The Minister of Energy and Industry at the Prime Minister’s Office in a speech at the event highlighted that the pact signing marks the shared commitment of the energy industry towards integrity. “The Brunei Energy Industry Integrity Pact is indeed the first of its kind here in Brunei Darussalam and we certainly hope it will further strengthen our efforts towards zero corruption in the energy industry.”
He affirmed that the government is in full support of all initiatives that will curb corruption across the nation. “As the regulator of the industry in general, including the energy sector, the EIDPMO has been emphasising the critical importance of business integrity for several years since 2010.
“The oil and gas industry will remain as the backbone and driver of economic growth and diversification in Brunei Darussalam for years to come and it needs the highest of standards and integrity to perform. Our every individual action reflects not only on ourselves, but also on the industry and on the good name and reputation of our beloved country Brunei Darussalam. We can only do so if each and every one of us does our part. At these times, we cannot afford to have our precious resources wasted or our reputation tarnished.
“As we move forward, my key message to you is simple: let this pact be the start of bigger and bolder steps towards tackling corruption. This should not be the end of the line – where we sign a document and then neglect to take action. This Integrity Pact is only as meaningful as the governance and the people who enforce it.”
He said that he was encouraged by actions that have been taken by relevant stakeholders against corruption in the oil and gas sector including energy companies working in partnership with the ACB, which has resulted in the prosecution of those who have been involved in corruption.
“I urge you all to move quickly with establishing the right frameworks and systems to ensure that this pact is fulfilled in reality. The reputation of the oil and gas industry, and indeed, Brunei Darussalam, rests with us. It is our duty and responsibility to reach the highest level of integrity. In fact, let us target for zero corruption.”
The minister thanked all of the participating companies for the Brunei Energy Industry Integrity Pact, and added, “In time, I hope that this pact would also include all other energy companies and even in other sectors in Brunei Darussalam. I sincerely hope this Brunei Energy Industry Pact is taken seriously by all of us and also gives us the motivation to do better.”
Source: http://borneobulletin.com.bn/energy-industry-players-send-message-zero-tolerance/