Announcement of MCOT Public Company Limited On Anti-Corruption Policy No. 178/2014

MCOT Public Company Limited (MCOT Plc.) is committed to conducting its business with integrity, transparency, morality and accountability. The Company also adheres to the principles of good corporate governance and takes responsibility to wards society and its stakeholders. Realizing that bribery and corruption are real dangers that can damage the country’s social and economic development, MCOT has joined in “Thailand’s Private Sector Collective Action Coalition against Corruption”, to demonstrate our intention and commitment to eradicate all forms of corruption. Moreover, MCOT has established standards of ethical business conduct and announced the Company’s anti-corruption policy to be used as practical guidelines for conducting its business. The Company shall constantly review all its operational procedures to ensure compliance with applicable laws and changing business environment as well as to maintain good reputation of the Company. All directors, executives, employees and casual workers or those involved in the Company’s operations are required to strictly comply with this policy.

The meeting of MCOT Board of Directors No. 28/2014 on December 23, 2014 has resolved to approve the announcement as follows:

  1. This Announcement is called “Announcement of MCOT Public Company Limited on Anti-Corruption Policy”
  2. This Announcement is effective December 24, 2014
  3. In this Announcement, relevant terms are defined as follows:

    “Policy” means the policy on anti-corruption.

    “Corruption” means any form of bribery including an offer, promise, commitment, request, or acceptance of inappropriate money, assets or other benefits that are in appropriate for government officials, government organizations, private organizations, or any relevant persons in charge either directly or indirectly, in order that they perform or refrain from performing their duties so as to acquire or preserve a business, or introduce a business to any particular organization, or to acquire or preserve inappropriate business benefits. However, the exemption can only apply in cases where the permission of law, order, notification, regulation, local tradition, or trade custom is granted.

    “MCOT Personnel” means directors, executives, employees and casual workers of MCOT.

  4. MCOT set this policy to reflect our commitment to upholding transparency and accountability and to raise awareness of the negative effects of corruption that can damage the Company’s performance and reputation as well as stakeholder and public trust in the Company.
  5. MCOT established the zero-tolerance anti-corruption policy against all forms of corruption, which applies to any action taken by MCOT personnel and those involved in the Company’s operations. To enable effectiveness of the policy, the following guidelines have been set.
    1. Set out strict measures for preventing corruption from all its business transactions which include any action taken by the Company’s personnel and business partners. The measures set out by MCOT are as follows:
      • check and balance system is included as part of the Company’s daily operations;
      • set out precise rules and regulations on procurement and expenditure
    2. Refrain from conducting business transactions with any individual or company found guilty of committing corruption.
    3. Encourage MCOT personnel to fulfill their duties with the highest standards and consciousness of anti-corruption.
  6. MCOT has adopted anti-corruption-related measures that covers the following areas:
    1. Internal corruption risk assessment that includes strict and constant follow up and verification of the risk management results
    2. Strict and constant assessment of internal control effectiveness
    3. Maintaining file records of all transactions for review
    4. Continuous training programs arrangement for MCOT personnel
    5. Otherpreventive actions apart from No. 2-4
  7. MCOT shall allow any effective third party audit conducted by the Office of the Auditor General of Thailand and/or other appropriate audit organization, as prescribed by law.
  8. MCOT’s Director-General/President and relevant management are responsible for supervising compliance with the policy, while the Audit Committee is responsible for supervising and monitoring the implementation of the anti-corruption system and measures to ensure their adequacy and appropriateness.
  9. MCOT expects every employee to comply with the Company’s policy, the details of which are as follows:
    1. Strictly comply with the Company’s policies, rules, regulations, announcements and orders with regard to discipline and ethics and to be committed to maintaining the highest standards of ethical conduct.
    2. Refrain from participating in, promoting or supporting corruption.
    3. Refrain from participating in any situation that may give rise to any unlawful conflict of either self-interest or others’ interest
    4. Perform duties with care and strictly comply with internal control and risk management measures adopted to prevent corruption.
    5. Optimize resource and asset utilization and avoid any use of resources and assets for any purpose that is contrary to the policy
    6. Prevent, monitor and immediately report any suspected corruption or corruption attempts, in accordance with the Company’s rules and practices.
    In the case that an MCOT employee performs or neglects to perform his/her duty as specified in this announcement, or partly supports any action that is contrary to the rules set forth in this announcement, MCOT shall proceed with legal action against such employee.
  10. MCOT has established a whistle blowing channel that enables the stakeholders to report suspicious issues and specified punishment procedures for any employee who is involved in corruption-related issues. The Company shall proceed with an investigation into the issue and such employee shall be subject to punishment if proven guilty, in accordance with relevant regulations.
  11. In the case of corruption committed by an MCOT employee and any person that is considered a criminal charge against the Company, the Company shall file complaints and charges against such employee and person, or assign an authorized unit to proceed accordingly.

    In the case of corruption committed by an MCOT employee and any person causingdamage to either the Company’s assets or reputation, the Company shall have the rights to claim compensation for any damage or loss from such employee and person.
  12. MCOT shall provide support to any individual and organization committed to eliminating corruption in order to create a sustainably corruption-free society and environment.

Given on December 30, 2014

(Mr.Tevin Vongvanich) Chairman of MCOT Public Company Limited