1. POLICY OBJECTIVES:
The "Fraud Prevention Policy" has been framed to provide a system for detection and prevention of fraud, reporting of any fraud that is detected or suspected and fair dealing of matters pertaining to fraud. The policy will ensure and provide for the following:
- To ensure that management is aware of its responsibilities for detection and prevention of fraud and for establishing procedures for preventing fraud and/or detecting fraud when it occurs.
- To provide a clear guidance to employees and others dealing with KBJNL forbidding them from involvement in any fraudulent activity and the action to be taken by them where they suspect any fraudulent activity.
- To conduct investigations into fraudulent activities.
- To provide assurances that any and all suspected fraudulent activity will be fully investigated.
2. SCOPE OF POLICY:
The policy applies to any fraud, or suspected fraud involving employees of KBJNL (all full time, part time or employees appointed on adhoc/temporary/contract basis) as- well as representatives of vendors, suppliers, contractors, consultants, service providers or any outside agency (ies) doing any type of business with KBJNL.
3. DEFINITION OF FRAUD:
"Fraud" is a willful act intentionally committed by an individual(s) by deception, suppression, cheating or any other fraudulent or any other illegal means, thereby, causing wrongful gain(s) to self or any other individual(s) and wrongful loss to other(s). Many a times such acts are undertaken with a view to deceive/mislead others leading them to do or prohibiting them from doing a bonafide act or take bonafide decision which is not based on material facts."
4. ACTIONS CONSTITUTING FRAUD:
While fraudulent activity could have a very wide range of coverage, the following are some of the act(s) which constitute fraud.
- Forgery or alteration of any document or account belonging to the Company
- Forgery or alteration of cheque, bank draft or any other financial instrument etc.
- Misappropriation of funds, securities, supplies or others assets by fraudulent means etc.
- Falsifying records such as pay-rolls, removing the documents from files and /or replacing it by a fraudulent note etc.
- Willful suppression of facts/deception in matters of appointment, placements, submission of reports, tender committee recommendations etc. as a result of which a wrongful gain(s) is made to one and wrongful loss(s) is caused to the others.
- Utilizing Company funds for personal purposes.
- Authorizing or receiving payments for goods not supplied or services not rendered. Recording wrongful quantities/measurement of work done, recording of false measurements, wrong classification of items with intent to favour the supplier/contractors/vendors.
- Destruction, disposition, removal of records or any other assets of the Company with an ulterior motive to manipulate and misrepresent the facts so as to create suspicion/suppression/cheating as a result of which objective assessment/decision would not be arrived at.
- Releasing of security and other deposits EMD without having fulfilled conditions precedent to release of such deposits/guarantees as per contractual obligations, without approval of authority.
- Misappropriation of amounts collected on behalf of the Company from farmers/vendors/public, etc.
- Any other act that falls under the gamut of fraudulent activity.
5. REPORTING OF FRAUD:
- Any employee(full time, part time or employees appointed on adhoc/temporary/contract basis), vendors, suppliers, contractors, consultants, service providers or any other agency(ies) doing any type of business with the Company, as soon as he / she comes to know of any fraud or suspected fraud or any other fraudulent activity must report such incident(s) to the immediate controlling officer. The controlling officer shall ensure that input received is immediately communicated to the Managing Director.
The reporting of the fraud normally should be in writing. In case the reporter is not willing to furnish a written statement of fraud but is in a position to give sequential and specific transaction of fraud/suspected fraud, then the officer receiving the information/Nodal Officer should record such details in writing as narrated by the reporter and also maintain the details about the identity of the official/ employee / other person reporting such incident. Reports can be made in confidence and the person to whom the fraud or suspected fraud has been reported must maintain the confidentiality with respect to the reporter and such matter should under no circumstances be discussed with any unauthorized person.
- All reports of fraud or suspected fraud shall be handled with utmost speed and shall be co-ordinated by Senior Officer(s) to be nominated by the Managing Director.
- Officer receiving input about any suspected fraud/nodal officer(s) shall ensure that all relevant records documents and other evidence is being immediately taken into custody and being protected from being tampered with, destroyed or removed by suspected perpetrators of fraud or by any other official under his influence.
6. INVESTIGATION PROCEDURE:
- The "Controlling Officer" shall, refer the details of the Fraud/suspected fraud to the Managing Director of KBJNL for further appropriate investigation and needful action.
- The Managing Director may get the services of an external agency, in house committees or the Vigilance Department in Water Resources Department in speedily investigating the matter.
- After completion of the investigation, due & appropriate action, which could include administrative action, disciplinary action, civil or criminal action or closure of the matter if it is proved that fraud is not committed etc. depending upon the outcome of the investigation shall be
- In appropriate cases the matter shall be brought to the notice of the Government as soon as the receipt of the inputs.
7. RESPONSIBILITY FOR FRAUD PREVENTION:
8. ADMINISTRATION AND REVIEW OF THE POLICY:
The Managing Director shall be responsible for the administration, interpretation, application and revision of this policy. The policy will be reviewed and revised as and when needed.