annual report - Tenaga Nasional Berhad

Statement Of Corporate GovernanceTo equip and prepare Tenaga Nasional Berhad (TNB or the Company)with the resilience to meet the current challenging environment, therapid changes and demanding global economy, volatility of materialand operational costs, it is pertinent that internal control processes andstructures must be continuously reviewed and enhanced to enable theBoard and the Management to undertake its duty and responsibilitiesin ensuring that value to its stakeholders and shareholders are met.The following are highlights of the initiatives on good corporategovernance undertaken for the year under review.[ Tenaga Nasional Berhad ] [ Annual Report 2008 ]126A review of of the roles and functionsin the President/CEO’s office to ensuregreater focus on strategic issues andto streamline our business activitieswas approved by the Board inDecember 2007. Three new Divisionsnamely Corporate Affairs, Planning andProcurement were established followingthe review. The revised organisationstructure is indicated on page 118 ofthe Annual Report.Earlier in the Financial Year, the Boardhad also endorsed the establishmentof the Fuel Procurement ExecutiveCommittee to ensure timely decisionmakingin the procurement of fuel,particularly coal, to ensure security offuel supply to the power stations andhence preventing interruption to theday-to-day operations of the powergenerating system.The composition of the Board is furtherstrengthen with the appointment ofTan Sri Dato’ Seri Siti Norma Yaakobwho brought with her distinguishedcredentials as a former member ofthe Malaysian judiciary. She is knownas a person of high esteem and anacclaimed professional in her own right.Her knowledge and experience wouldserve the Board well in assessing andevaluating legal perspectives beforedecisions are made.The Board has set clear indication ofmatters that could be delegated fordecision as well as those reservedspecifically for the Board’s approval underthe Limits of Authority (LOA). The LOAis continuously reviewed and have beenadopted by the subsidiaries. It containsboth the monetary and non-monetarylimits of authority for recommending andapproving the Company’s operational andmanagement decision making activitiesprior to execution. The LOA is thefundamental and integral component ofthe Company’s Group Financial Control