Fraud
I. Purpose
Alamo Group recognizes the necessity and importance of having a fraud policy to facilitate controls which will aid in the detection and prevention of fraud against Alamo Group. It is the intent of Alamo Group to promote consistent organizational behavior by providing guidelines and assignment of responsibility for the development of controls and conduct of investigations. This policy applies to any fraud or suspected fraud involving employees as well as directors, sales representatives, consultants, vendors, contractors, purchasers of Alamo Group products, and/or any other parties with a business relationship with Alamo Group. Any investigative activity required will be conducted without regard to the suspected wrongdoer’s length of service, position/title, or relationship to the Company as well as without regard to race, age or any other equal employment category.
II. Definition and Examples:
A) Fraud is defined as the intentional, false representation or concealment of a material fact for the purpose of inducing another to act upon it to his or her injury.
B) Action consitituting fraud, defalcation, misappropriation, and other fiscal wrongdoings include, but are not limited to:
1) any dishonest or fraudulent Act;
2) forgery or alteration fo any document or account beloingto the Company;
3) forgery or alteration of a check, bank draft, or any other financial document;
4) misappropriation or theft of funds (including expense accounts), securities, supplies, or other assets;
5) false statements in documents such as bids, financial statements and quarterly or annual reports the company is required to make;
6) impropriety in the handling or reporting of money or financial transactions;
7) profiteering as a result of insider knowledge of Company activities;
8) disclosing confidential and proprietary information to outside parties including securities activities engaged in or contemplated by the company
9) accepting or seeking from or providing anything of material value to contractors, vendors or persons providing services/materials to the Company with the intention of influencing a decision (such as bribes or kickbacks). Generally, gifts, or services given or received with a value of less than $100 are acceptable (and not to exceed a total of $100 per 12 month period). Ask the potential recipient if it is acceptable for him or her to receive the gift you propose to give prior to doing so. Local customs in foreign countries may allow for gifts of greater value but they may never be given with the intent to influence a decision. Contact the Legal Department or a member of the Compliance Committee for approval in advance if you propose to give a gift(s) that exceed the above amounts.
10) Destruction, removal or inappropriate use of records, furniture, fixtures, inventory and equipment
III. Guidelines
A) We are all responsible for the detection and prevention of fraud, misappropriations and other inappropriate conduct and should be familiar with the types of improprieties that might occur within our areas of responsibility and alert for any indication of irregularity. Any fraud that is detected or suspected must be reported immediately to a member of your management team, a member of the Compliance Committee or through My Safe Workplace. The Compliance Committee coordinates all investigations with the Legal Department and other appropriate departments and may use external sources if deemed appropriate.
B) If there is any question as to whether an action constitutes fraud, contact a member of the Compliance Committee for guidance. Individuals reporting possible fraudulent activities may not contact the suspected individual in an effort to determine facts or demand restitution and may not discuss the case, facts, suspicions or allegations with anyone not authorized to conduct the investigation.
C) The Director of Internal Audit has the primary responsibility for the investigation of all suspected fraudulent acts and will consult with the Chairman of the Audit Committee, the appropriate departmental management personnel and the Human Resources Department. If the investigation substantiates that fraudulent activities have or may have occurred, the Director of Internal Audit will report to appropriate management personnel and to the Audit Committee of the Board of Directors.
D. Decisions to prosecute or refer the investigation results to the appropriate law enforcement and/or regulatory agencies for independent investigation will be made by the general counsel in conjunction with senior management.
E) Any employee who suspects dishonest or fraudulent activity should notify a member of his/her management team or the Compliance Committee immediately, and should not attempt to personally conduct investigations or interviews/interrogations related to any suspected fraudulent act.
F) All inquiries concerning the activity under investigation from the suspected individual, his or her attorney or representative, or any other inquirer should be directed to a member of the Compliance Committee. No information concerning the status of an investigation may be given out by the reporting party or any other person covered by this policy and not involved in the investigation unless authorized to do so by a member of the Compliance Committee.
G) The results of investigations will not be disclosed or discussed with anyone other than those persons associated with the organization who have a legitimate need to know in order to perform their duties and responsibilities. This does not preclude the disclosure of the results in accordance with legal requirements.
H) Alamo Group is committed to preventing and detecting violations of law and internal policies and procedures and taking appropriate corrective actions as necessary. Reports of fraudulent activity may be made without fear of reprisal as Alamo Group has a policy which prohibits retaliation against an employee for good faith reports of violations of laws or corporate policy.
IV. Violations:
Violations of this Policy will be subject to Alamo Group's discipline policy up to and including termination as well as civil and or criminal penalties.
Last updated 03 March 2009
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