NIS Conducts Investigation into Possible Breach of Corporate Procurement Procedures

November 14, 2013

NIS has initiated a corporate inspection for a possible breach of procurement procedures and the Company’s anti-corruption policy. Anti-corruption experts of the Ministry of the Interior of the Republic of Serbia have subsequently joined this process.

Due to the suspicion of a possible malfeasance in office and breach of the corporate anti-corruption procedures regarding the collaboration with external contractors in performing current workover operations, two employees of NIS were detained by the police on November 13th. At the present moment, upon the initiative of the Company, the Ministry of the Interior is conducting a detailed investigation. In case the detainees are proven guilty, they will receive appropriate punishment. NIS would like to thank the Ministry of the Interior for its support in the situation that has arisen, as well as for the constructive cooperation in the past five years. The Company has in place a system of monitoring and prevention of both internal cases of malfeasance and those on the part of subcontractor companies. NIS adheres in its operations to strict principles defined by the corporate code of ethics, and which entail honesty and responsibility towards business partners, including buyers, contractors, and suppliers. The success of corporate commercial operations relies on market competition in full compliance with the law. Kirill Kravchenko, the Chief Executive Officer of the Company, said in a statement: “For many years, our business activities have been founded on mutual trust and an impeccable reputation, which imply, among other factors, honesty and responsibility in our relations with partner companies. We do not tolerate breaches of the principles of free competition and transparency of corporate procedures. The situation that has arisen is a complex one for our Company, but we must be rather brave and persistent in the fight against breaching the principles of our corporate ethics. This is precisely why the Company’s priority today is discovering the exact circumstances surrounding what has happened. If evidence of a criminal offence in the workplace is found, we will be ready to take harsh measures.“ Milorad Veljović, Director General of Police of the Republic of Serbia, said in a statement: “The practice of the fight against corruption which is in place in NIS is the best current example of all on the Serbian market. We welcome the efforts the company has been investing in the prevention of official misconduct, and we are ready to provide full support in this respect.“ A special SOS helpline is open at the present moment in the Company for the employees who believe they have information relevant to the ongoing investigation.