Corruption and Related Offenses Risk Prevention Plan
I. CONTEXT
Within any democratic society, it is now widely accepted that corruption is one of the greatest obstacles to economic and social development, being a global phenomenon that spans all sectors of activity, and thus also affects Portugal. In fact, according to the Transparency International index, Portugal reached its lowest score ever in 2020, with only 61 points, placing it below the European average, which stands at 66 points.
Given this premise, it is necessary to combat corruption based on effectiveness and transparency, but this effort should not be limited to the public sector, also extending to the private sector.
It is important to bear in mind that corruption risks exist not only in the relationships between the private and public sectors, but also between different entities within the private sector, always resulting in a harmful impact on the free competition in markets that are sought to be achieved, and consequently, a weakened economy.
To fight this scourge, an integrated anti-corruption framework has been implemented, which includes the National Anti-Corruption Strategy 2020-2024, approved by the Council of Ministers Resolution No. 37/2021 of April 6, accompanied by a legislative reinforcement, with highlights such as Law No. 30/2021 of May 21, which amends the Public Procurement Code. It imposes on the competent contracting authority, in cases where the contract value is subject to prior review by the Court of Auditors, the obligation to request the contractor to submit an anti-corruption and related offenses prevention plan. Also noteworthy are Decree-Law No. 109-E/2021 of December 9, which creates the National Anti-Corruption Mechanism (MENAC) and approves the General Regime for Corruption Prevention (RGPC), Law No. 93/2021 of December 20, which establishes a regime for the protection of whistleblowers, and Law No. 94/2021 of December 21, which, by amending the Penal Code, enshrines the exclusion of criminal liability or special penalty mitigation for entities that demonstrate the adoption and implementation of a compliance program.
In light of this framework, AMG Services, S.A. positions itself as an entity that intends to be at the forefront of the fight against corruption, and as stated in its Code of Conduct and Ethics, “condemns all acts in which compensation or benefits are offered or accepted that influence the behavior of others in order to obtain advantages for themselves or for the company.”
To fulfill this intention, AMG Services, S.A. aims, through the approval of this anti-corruption and related offenses risk prevention plan, to identify the risks of corruption or related offenses, the respective mitigation measures, and the individuals responsible for their development and monitoring.
For the purposes of this plan, corruption and related offenses are understood to include crimes of corruption, undue receipt and offering of advantage, embezzlement, participation in business transactions, extortion, abuse of power, prevarication, influence peddling, money laundering, or fraud in obtaining or diverting grants, subsidies, or credits, as defined in the Penal Code, Law No. 34/87 of July 16, Law No. 20/2008 of April 21, and Decree-Law No. 28/84 of January 20.
II. AMG SERVICES, S.A.
Part of the AMG Group and operating in the national market since January 2016, AMG Services, S.A. provides support services such as specialized industrial cleaning, healthcare, gardening, supply of consumables, building maintenance, facility management, and first-level maintenance.
Seeking the most innovative and suitable methods and practices, focused on continuous improvement and ensuring the excellence of the services provided, AMG Services, S.A. is already certified by ISO 9001, ISO 14001, ISO 45001, and the V-SAFE Protocol.
The clients of AMG Services, S.A. primarily operate in the following sectors: Large Distribution and Retail; Tourism, Culture, and Sports; Health; Education; Restaurants; Services; Industry, and Logistics.
Thus, AMG Services, S.A. presents itself as an excellent partner in its field of activity, standing out in the national market as one of the most prestigious players in the sector.
The operations of AMG Services, S.A. are guided by the following values, which support the integrity culture upon which its activities are developed and the relationships with both internal and external stakeholders are established. These values also serve as a reference in decision-making and conduct processes:
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Ambition – to be among the best market players and grow sustainably;
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Excellence – focused on continuous improvement of its operations, through knowledge development and responsiveness to client expectations;
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Creativity – valuing innovative ideas and solutions that generate value for clients;
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Sustainability – guiding professional activities toward responsible economic and social development, promoting environmental sustainability;
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Ethics – conducting its activities based on rigorous ethical principles, respecting the rules and values of AMG Services, S.A., as well as the prevailing social norms.
The principles followed by AMG Services, S.A. are as follows:
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Legal and Regulatory Compliance – strict adherence to all legal and regulatory norms related to its activities, condemning, sanctioning, and ensuring the sanctioning of all actions that violate them;
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Anti-Corruption – adopting the highest standards of integrity and transparency, in line with the 10th principle of the United Nations Global Compact, which urges companies to fight corruption in all its forms, and the strict implementation of the 16th Sustainable Development Goal of the 2030 Agenda for Sustainable Development, which aims to significantly reduce corruption and bribery in all their forms;
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Respect for Human Rights – providing a safe working environment and respecting the rights of all employees, eradicating all forms of discrimination, as well as those of suppliers and clients;
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Sustainable Development – contributing to environmental preservation, human development, social cohesion, and quality of life.
All employees of AMG Services, S.A. are subject to the Code of Conduct and Ethics and, as such, are strictly committed to following the ethical guidelines set forth, complying with all legal and regulatory requirements, particularly regarding corruption prevention, conflict of interest prevention, compliance with market competition rules, social inclusion, non-discrimination policies, and prevention of harassment in human resources.
The supervisory responsibilities are legally and statutorily assigned to the Sole Auditor and Certified Accountant, ensuring their independence.
This organizational structure results in an effective segregation of responsibilities and functions within each department, ensuring a structure capable of ensuring effective control across the entire company. The functional structure of AMG Services, S.A. includes the following areas:
III. RISK MANAGEMENT SYSTEM AND INTERNAL CONTROL
1. Principles
1.1 Supervision and Control Culture
The person responsible for the Legal Department, together with the heads of the other functional areas, is responsible for defining the strategy and developing policies, and is tasked with setting the risk levels that AMG Services, S.A. is willing to assume. At the same time, they are responsible for ensuring that the company’s functional areas are equipped and able to identify, measure, monitor, and control risks.
The heads of the other functional areas are responsible for implementing decisions and reporting occurrences according to the established internal control system.
Management and the heads of functional areas are responsible for promoting the highest standards of integrity and rigor in management, spreading the culture of excellence and transparency at AMG Services, S.A., and ensuring that all employees are involved and understand the importance of the control system.
1.2 Risk Recognition and Evaluation
The internal control system identifies and evaluates, in a process of continuous improvement and periodic review at all levels of AMG Services, S.A., the risks that may prevent the company from achieving its previously set objectives and implements the respective mitigation measures.
1.3 Control and Segregation of Duties
All levels of the different functional areas have permanent control activities with compliance checks, monitoring of non-compliant situations, approval systems, verification, and reconciliation.
All areas with potential conflicts of interest are identified, and there is a segregation of duties that ensures no involvement in the decision-making process when a conflict of interest occurs, minimizing risks and ensuring their monitoring.
The internal control system ensures that all types of data are continuously available, intact, and reliable.
1.4 Information Flow
The internal control system relies on a secure and reliable communication flow that ensures that all information circulates throughout all functional areas and reaches its intended recipients. Procedures that assign responsibilities to each individual are widely disseminated.
1.5 Monitoring and Correction
The control system is continuously monitored for the effectiveness of the controls implemented and their overall coverage across different functional areas and internal audits. The reporting of all non-conformities is guaranteed in a timely manner based on a disseminated procedure.
1.6 Anti-Corruption and Related Offenses Risk Prevention Plan
The preparation, monitoring of execution, updating, and submission for approval to the Board of Directors of the Anti-Corruption and Related Offenses Risk Prevention Plan of AMG Services, S.A. is the responsibility of the Legal Department. For this purpose, the Legal Department should actively collect contributions from various areas and promote necessary interactions with the relevant responsible parties.
Furthermore, the various areas of AMG Services, S.A.’s functional structure are required to report to the Legal Department all activities and processes that may present concrete risks of corruption and related offenses.
Additionally, the Legal Department is also responsible for preparing interim reports and an annual evaluation of the execution of the Anti-Corruption and Related Offenses Risk Prevention Plan.
2. Risk Management
The risk management approach implemented is based on a comprehensive and integrated approach that allows AMG Services, S.A. to identify activities and quantify, prioritize, and respond to the risks they pose, thus making it possible to determine the acceptable risk level, distinguishing those to be avoided from those to be accepted.
This entire risk management process follows the phases that integrate the following flow:
Still regarding the treatment of specific risks, AMG Services, SA
adopts the model commonly referred to as the 4Ts model, taking the
measures that are appropriate to:
Tolerate risk, accepting the risk and its consequences;
Treat the risk, implementing mitigation measures both from
probability of its occurrence, or of its negative impact;
Transfer the risk to third parties, if legally possible; and
Terminate or eliminate the risk by avoiding it.
IV. RISK IDENTIFICATION
AMG's Corruption and Related Offenses Risk Prevention Plan
Services, SA is based on a risk identification oriented towards
main processes that support their activity and that were considered as
more pressing as to the possibility of being subject to acts of
corruption and related offences:
1. Public tenders
2. Private competitions
3. Selection and hiring of suppliers
4. Expense authorization
5. Selection and hiring of employees
6. Management of the employment relationship
For each of these identified processes, Annex I contains the following:
identification of risk events that may lead to the practice of acts of
fraud, corruption and related offences.
In turn, these risk events were classified on a scale as very
high, high, medium, low and very low, depending on the impact and degree
probability in the event that there are no mitigation measures.
The following matrix and quantification result from the combination of the variables described
risk, where (1) will represent the lowest severity risk level (NR) and (3)
the most severe level of risk:
Finally, the measures adopted to prevent the occurrence of the
risk events and mitigate their impact, as well as those responsible.
