202 SECTION 07 AL-`AQAR HEALTHCARE REIT SPECIAL ASSESSMENT MADE DURING THE YEAR Consistent with COSO, the Manager evaluates fraud exposure across selected business functions, including property management, leasing, procurement, asset enhancement, finance, and governance processes. Corruption Risk Assessment on Key Business Processes As part of the REIT’s ongoing compliance and integrity enhancement efforts, a targeted Corruption Risk Assessment (CRA) was conducted on several high-risk business processes within the Manager. This assessment was led by the JLG Group Risk & Governance team and is aligned with the MACC Act Section 17A, Adequate Procedures (T.R.U.S.T.), and the Group’s Anti-Bribery & Corruption (ABAC) Policy. The CRA focused on identifying potential corruption, bribery, fraud, and abuse of authority risks embedded within core operational and financial processes. The assessment also evaluated whether existing controls were adequate, effective, and consistently implemented across functions. The business processes assessed include: Key Corruption Risks Identified Across Selected Processes 1. Credit Card Management • Personal use of corporate cards disguised as business expenses • Falsification of receipts or inflated claims • Approving non-compliant transactions without proper review 2. Employee Expense Claims Process • Submission of falsified or duplicate claims • Manipulation of approvals for travel, entertainment, or operational claims • Abuse of reimbursement policies 3. Leasing Management & Tenant Selection Processes • Preferential treatment during tenant evaluation or renewal negotiations • Improper inducements from prospective tenants • Manipulation of tenant scoring or assessment criteria 4. Recruitment & Payroll Management Process • Nepotism, cronyism, or appointments based on personal interest • Bribes to secure employment or promotion • Ghost employees or unauthorised salary adjustments 5. Vendor Selection, Procurement & Tender Process • Kickbacks from vendors during selection or contract negotiation • Manipulation of procurement or tender documents to favour specific vendors • Collusion between staff and suppliers 6. Property Sourcing, Acquisition, Evaluation & Approval • Undue influence or bribery to favour certain sellers or intermediaries • Manipulation of valuation reports or technical assessments • Conflicts of interest in acquisition due diligence The assessment started on 17 December 2025 and completed on 12 January 2025. The final report was tabled to the BARC in February 2026. STATEMENT ON RISK MANAGEMENT & INTERNAL CONTROL
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