CEO Morning Brief

KLK Ends Contract With Nepalese Worker Recruitment Agency Amid Allegations of Unethical Practices

edgeinvest
Publish date: Thu, 20 Jun 2024, 10:25 AM
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TheEdge CEO Morning Brief
Kuala Lumpur Kepong Bhd said on Wednesday said it has terminated any contractual relationship with its agent for workers from Nepal, Agensi Pekerjaaan UKHWAH Sdn Bhd and by extension Nepal-based recruitment agency SOS Manpower Service on allegations of unethical recruitment practices for its rubber glove subsidiary, KL-Kepong Rubber Products.

KUALA LUMPUR (June 18): Kuala Lumpur Kepong Bhd (KL:KLK) said on Wednesday that its rubber glove subsidiary is no longer in any contractual relationship with its agent for workers from Nepal, Agensi Pekerjaaan UKHWAH Sdn Bhd, with immediate effect.

By extension, any affilation with Nepal-based recruitment agency SOS Manpower Service (SOS) also ceases, the plantation group said in a statement.

KLK said the statement served as a final update on the recent independent third-party assessment conducted on allegations of unethical recruitment practices against SOS and its sub-agents in Nepal.

Last month, KLK said it was investigating the allegations of unethical recruitment practices made against the sub-agents of SOS, its appointed agent to recruit Nepalese workers for its rubber glove subsidiary, KL-Kepong Rubber Products.

The allegations, according to KLK, were made by Sajha Sabal Media, a news portal in Nepal.

KLK said the independent third-party assessment made recommendations to improve due diligence, standard operating procedures and grievance management.

The group and KL-Kepong Rubber Products are fully committed to implementing the recommendations, said KLK.

“The group remains committed to comply with international standards and labour laws governing worker recruitment, both locally and in source countries, and will continue to enforce a strict no recruitment fee policy to safeguard the welfare of our guest workers.

“We take all whistleblowing reports seriously and thank all relevant parties who have come forth with information to assist in the investigation. We appreciate the patience, understanding and support of all our stakeholders as we continue to uphold an ethical recruitment process,” it added.

KLK’s share price closed up eight sen or 0.4% at RM20.30 on Wednesday, bringing the group a market capitalisation of RM22.31 billion.

Source: TheEdge - 20 Jun 2024

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