Complaint Channel: Criminal Liability of Legal Entities

Vecchiola S.A. has a well-earned reputation for constant and strict observance of all laws, codes and regulations that govern the function of our industry. We maintain the highest standards and norms and as a result of the Company’s moral and professional commitment we, along with our Affiliates, have designed and implemented our own system of crime prevention entitled our “Crime Prevention Model” in reference to Law 20.393.

Our model operates through various control mechanisms related to the processes and/or activities linked to our business that could potentially result in the commission of infractions as indicated in Law 20.393, i.e., asset laundering, financial terrorism, bribery, fraud, extortion, etc., with the objective of preventing these infractions before they take place.

Observance of our Crime Prevention Model at Vecchiola S.A. is mandatory for all partners, employees, and third parties connected to our Company, such as:

• All workers at Vecchiola S.A. and Affiliates.
• Clients, suppliers, service providers, contractors and sub-contractors.
• Investors, directors, and principal executives.
• As well as Company administrators and supervisors.

REQUIREMENTS REGARDING LAW 20.393: LIABILITY OF LEGAL PERSONS FOR CRIMINAL OFFENCES

Essentially, Law 20.393 defines the existence of certain types of crimes that, in case they are committed by an individual and are attributed directly to the benefit of some company, the sanction or punishment will be administered not only to the individual who commits the crime, but to the legal entity in charge. These crimes are as follows:

• Asset laundering
• Terrorist Financing
• Bribery of public, national and/or foreign employees
• Handling of stolen goods
• Bribery between individuals
• Unfair administration
• Misappropriation
• Incompatible negotiation
• Water pollution
• Illegal fishing of seabed resources
• Violation of the gun control law
• Cybercrime

Any of the above crimes that are committed to the benefit of any Company by its owners, controllers, principal executives, representatives and/or administrators, will be punished with respect to this Law, always and whenever the crime is committed as a consequence of a breach in the management and supervision of the Company.

In this case, the legal entity will be punished by the law when the crimes have been committed by natural persons that are under the direct supervision of any of the subjects mentioned above.

The responsibilities and duties of management and supervision are considered fulfilled when, previous to the commission of the crime, the legal entity has adopted and implemented a Crime Prevention System that conforms to the stipulations as stated in Law 20.393.

¿What are the sanctions that the company is liable to receive?

• Loss or cancelation of legal entity status.
• Temporary or permanent prohibition of capacity to hold events and/or contract with State organizations.
• Temporary or permanent loss of fiscal benefits or total prohibition in reception of same benefits for a determined period of time.
• A fine for fiscal benefits.

*These can be levied from 200 to 20.000 UTM

¿How can one become exempt from penal liability?

The Company can achieve exemption status by fulfilling any of the following requirements:

• Designate a responsible individual to take charge of Crime Prevention.
• Provide the above designated individual with the necessary means and resources to carry out the function effectively.
• Establish a System of Crime Prevention.
• Supervise and Certify the established Crime Prevention System.

¿What to do in case of discovering a crime that is established in Law 20.393?

Any individual who considers an activity or behavior to be suspicious or irregular or in possible violation of MPD and/or Law 20.393, should immediately report, either personally or anonymously, the situation through the 3 established channels that Vecchiola S.A. has implemented, and which are available on this web site.

Sincerely,
Crime Prevention Manager
Vecchiola S.A.

Channels for Complaints