ECONOMI C PERFORMANCE 05 Sect ion 30 Ranhi ll Ut i l i t i es Berhad INDIRECT ECONOMIC VALUES CREATED Direct financial values aside, Ranhill’s business operations also generated a wide range of indirect economic values. These include distribution of dividends to shareholders, payment of taxes to the government (which enables social and infrastructure development), repayments to financiers and contributions to a wide range of charitable and social causes. Ranhill GROUP INDICATOR FY2020 (RM’Million) FY2021 (RM’Million) FY2022 (RM’Million) Payments to Employees (Salary and emoluments) 241.9 289.8 358.3 Payments to Suppliers and Partners (Operating expenses) 1,397.1 1,471.2 1,733.3 Government (Income tax) 40.4 26.6 60.8 Returns to Shareholders (Dividends) 29.8 12.7 32.2 Repayment to Financiers 160.5 163.4 152.5 Further information on community services and infrastructure supported are provided in the Contribution Towards Social Wellbeing and Capacity Building section on page 51. SUPPORTING LOCAL PROCUREMENT With regard to procurement, Ranhill’s management approach is based on a preference for local procurement as much as possible unless such goods or services cannot be procured locally or cannot be procured locally at a competitive value proposition. Local is defined as the domestic area in which Ranhill and its subsidiary companies are operating. The benefits of local procurement include shorter supply chains, which translates to faster service response and replenishment of inventory, reduced environmental impacts due to reduced fuel consumed across the supply chain to ship goods or provide services and the development of local businesses and creation of local job opportunities for local talents. Local vendor development and technology and knowledge transfer are also some of the benefits generated from local procurement. Depending on the value of procurement contracts, procurement comes under the purview of the tender and quotation committee which could see Board or CEO participation. All tenders come attached with the Group’s ABAC policy as a reminder to all bidders of Ranhill’s strict zero tolerance policy with regard to corrupt practices and that suppliers must be corruption-free as a prerequisite to participate in the tender. They are to remain as such throughout the engagement process and contract period with the Group. Failure to adhere to the aforementioned presents ground for disqualification from the tender process, termination of the contract awarded and being reported to the regulatory authorities for further action. Ranhill SAJ’s management approach to local procurement follows specific requirements. These include vendors, suppliers and contractors being registered with the Registrar of companies and also with the relevant regulatory authorities or industry bodies. These include (where relevant), CIDB, Ministry of Finance (“MoF”) and SPAN. Ranhill SAJ’s procurement policy is consistent with requirements of SPAN, Water Services Industry Act (WSIA), Product Specification and the company’s SIRIM certified ISO9001: 2015 operation manual. Matters of procurement are managed by Ranhill SAJ’s Contract and Procurement Department. ECONOMI C PERFORMANCE Preparation of the Tender Document(s) Invitation to participate to all qualified suppliers, vendors and contractors who are ROC registered Closing of Tender Process Preparation of Tender Evaluation Report Awardining of contract award and formal appointment of goods / service provider
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