PROCUREMENT POLICIES  

 

Gothong Southern Group of Companies greatly values its high-level relationship with Suppliers and other external business partners. Aside from providing quality goods and services in a cost-effective and timely manner, they also need to meet the following expectations in doing business:

 

ANTI-BRIBERY

Suppliers should respect the boundaries integral to a healthy business relationship in order to avoid undue confusion and improper influence. For this reason, NO BRIBE in whatever manner, form, or worth shall be offered or given by Suppliers to influence any purchasing decision, or serve as reward/payment to guarantee selection or obtain business from Gothong Southern.

 

CONFLICTS OF INTEREST

Our employees adhere to the corporate value of Integrity; they are expected to work solely in the best interest of Gothong Southern and reject any opportunity to personally benefit from procurement transactions.

Suppliers are expected to support our effort to maintain utmost integrity in all business dealings by consistently acting in line with this policy.

 

RESPONSIBILITY FOR REGULATORY COMPLIANCE

Suppliers are required to conduct their business in a lawful and ethical manner throughout the duration of their business relationship with Gothong Southern. They should:

• Abide by applicable laws, regulations, and industry standards related to business, trade, and labor practices.
• Provide a safe, secure, and healthy working environment for their workforce, including but not limited to:
  • Aligning with Gothong Southern’s Environment, Health, Safety and Security (EHSS) Policies and Programs;
  • Complying with applicable laws and regulations related to EHSS;
  • Proactively initiating continuous improvements in their EHSS practices;

 

• Have a valid business registration or license to operate and comply with the requirements therein before doing business with Gothong Southern.
• Immediately notify Gothong Southernof any allegations of wrongdoing or violation that may negatively affect or cause adverse risk to Gothong Southern’s reputation.

 

SOURCING AND ACCREDITATION OF SUPPLIERS

The procurement group shall continuously source Suppliers to ensure competitive conditions are maintained in all spend categories.

 

Pre-qualification and accreditation of Suppliers are undertaken to determine their capability and readiness to support Gothong Southern’s businesses before getting admitted to the supplier pool. The following are the requirements which should be met, at a minimum:

• Legal Compliance
• Supply Stability or Service Capability
• Technical Expertise and Innovation Capabilities
• Delivery Conditions
• Financial Stability
• Payment Conditions
• Concurrence to Gothong Southern’s Procurement General Terms and Conditions

 

COMPETITIVE BIDDING AND SUPPLIER SELECTION   

All purchases shall undergo a competitive bidding process to ensure that Gothong Southern obtains goods and services at best value:

• Suppliers who are invited to bid are required to faithfully disclose their fair pricing and fitness to comply with our requirements through a formal proposal.
• Under no circumstance shall an invitation to bid guarantee selection or award of any purchase.
• All proposals are evaluated against a set of criteria based on the current requirement and shall be the basis for Supplier selection. This includes, but not limited to:
  • Price or Total Cost of Ownership
  • Capability to meet specifications or scope of work
  • Availability of goods or resources to commence work
  • Delivery/Work completion lead time
  • Incoterms
  • Payment terms
  • Warranty

 

• Authority to select a winning Supplier rest with Gothong Southern alone, particularly the designated approvers.
• Suppliers are also encouraged to make value-engineering recommendations subject to the review and approval of the end-users.
• Established procedures related to this policy shall be followed by Employees and Suppliers at all times.
• Arrangements with or among Employees and Suppliers that may limit or distort competition is absolutely prohibited.

 

ORDER RECEIVING AND PAYMENT

All purchases of goods and services to Gothong Southern shall be governed by its Procurement General Terms and Conditions (GTC):

• Generally, a Supplier should not provide any goods and/or services without an approved Purchase Order.
• In the event of emergency situations that will risk the safety and performance of our operations, goods and/or services may be supplied upon documented instruction from the procurement group or the respective project team leader who are bonafide employees of Gothong Southern. Communication could be in the form of email, fax, or a copy of the approved Work Order or Requisition Form.
• An approved Purchase Order shall be issued by the procurement group within 48 working hours (or 2 working days) after request is made known to the Supplier to make the transaction binding.
• Generally, only original copies of invoices with approved Purchase Ordersshall be eligible for payment, unless a separate contract or management approval allows for exceptions.
• All charge entries in the invoice must match the approved Purchase Order. Any discrepancy shall be subject to escalation and deferment of payment until settled.
• Electronic Bank Transfer is the preferred mode of payment and all related bank charges shall be to the account of the Supplier. Other modes of payment are subject to approval by Gothong Southern.
• Official Receipts are required for paid invoices; non-submission within the agreed timeline may result to deferment of future payments.

 

SUPPLIER PERFORMANCE   

Performance measurement shall be regularly undertaken, particularly for strategic Suppliers, to:

• Determine level of compliance to requirements.
• Determine if capabilities are matched with Gothong Southern’s current and future needs, and
• Identify innovation opportunities to ensure Gothong Southern maintains its competitiveness.

 

Performance levels are continuously monitored and communicated to share good practices and remedy identified issues or opportunities for improvement.

 

COMMUNICATION and REPORTING CONCERNS

Suppliers are encouraged to report issues, concerns, and grievances related to their business dealings with Gothong Southern without fear of reprisal. We treat all information as confidential and with a sense of urgency to resolve in a fair and timely manner. We expect Suppliers to act in good faith in the exercise of this duty.

 

Please contact the following:

• Jennifer V. Bojos – VP/Chief Finance Officer – jvbojos@gothong.com
• Oliver E. Fat – Quality Management Manager – oefat@gothong.com
• Rone M. Vergara – Internal Audit Head – rmvergara@gothong.com
• Joseph R. Gallos – Planning and Procurement Head – jrgallos@gothong.com

 

Results of investigation shall be communicated by the procurement group or Office of the Chief Finance Officer.

 

PRIVACY OF INFORMATION   

Suppliers are expected to protect all information generated by business activities with Gothong Southern:

• Under no circumstance shall Suppliers collect, access, or acquire information without the expressed consent of Gothong Southern management.
• Any confidential information shall not be shared or disclosed directly or indirectly to any 3rd party entity at all times except in accordance with contract obligations with Gothong Southern. Information sharing must only be limited to relevant people, within Gothong Southern and the Supplier’s organization, who have legitimate business need to know.
• Suppliers shall make sure to secure all information, including its safe disposal, to prevent unauthorized access by any party or individual unless such information is publicly available through no fault of the

 

Gothong Southern commits to promote mutual trust and confidence with Suppliers by consistently implementing these privacy guidelines across its organization.