MSPO CERTICATION SUMMARY REPORT - tuv … · Reviewer for RSPO P&C and SCC schemes 1 year as Wildlife (Biodiversity) and Ecotourism Consultant (EMS &HCV) 3 years as Wildlife Guide

MSPO CERTICATION SUMMARY

REPORT

MPOB SPOC KENINGAU

SURVEILLANCE AUDIT (ASA 01)

Date: 26/01/2018

TUV NORD (Malaysia) Sdn Bhd No. 20, Jalan Tiara 3

Taman Perindustrian UEP Subang Jaya 47600, Selangor,

Malaysia Phone:+603 8023 2124 Fax: +603 8023 4140

MSPO Certification Summary Report

Company Name: MPOB SPOC Keningau

Certifying Unit: SPOC Keningau

Client Number: 92-004

Audit Type: Surveillance audit (ASA 01)

MSPO-F04a / Rev 3 2 of 34

Table of Contents

1. INTRODUCTION ............................................................................................ 4

1.1. Objective 4

1.2. Scope 4

1.3. Appointment & Qualification of Team Members 4

2. METHODOLOGY ............................................................................................ 8 Table 2-1: List Of Independent Smallholders 9

3. ORGANISATION INFORMATION ................................................................ 11

4. CERTIFICATION ASSESSMENT ................................................................. 21

4.1. Surveillance audit Error! Bookmark not defined.

4.2. Status of Non-Conformities Previously Identified 24

5. CONCLUSION .............................................................................................. 28

6. RECOMMENDATION ................................................................................... 29

7. REFERENCES ............................................................................................. 30

Table 7-1: Documents provided by SPOC Keningau 30 Table 7-2: Background Investigation And Assessment Documents 31

Table 7-3: List of Interviewed Persons, Observers and Smallholders 32







ABBREVIATIONS

GAP Good Agricultural Practice

MPOB Malaysia Palm Oil Board

MS Malaysian Standard

MSPO Malaysia Sustainable Palm Oil

MNC Major Non Conformance

OBS Observations

P&C Principles & Criteria

PPP Plant Protection Product

SOP Standard Operating Procedure

SPOC Sustainable Palm Oil Cluster







1. INTRODUCTION

SPOC Keningau has commissioned TÜV NORD Malaysia Sdn Bhd to conduct an initial certification audit for its 217 independent smallholders according to MS 2530-2:2013 Part 2, General Principles for Independent Smallholders.

1.1. Objective

The objective of this surveillance audit is to assess the MPOB Cawangan SPOC Keningau as group manager managing the independent smallholders by an independent certification body. The aim of this surveillance audit is assessed on the compliance of the standard by MPOB Cawangan SPOC Keningau.

1.2. Scope

The certification is based on the documentation developed by MPOB Cawangan SPOC of Keningau in managing the independent smallholders’ scheme.

The supporting documents were provided to the audit team as well as information received by means of interviews and background investigation.

The documents and information were reviewed against the requirements and criteria mentioned below. TÜV NORD has employed a risk-based approach in the verification, focusing on the identification of significant risks and reliability of the monitoring and reporting.

The assessment is carried out on the basis of the MS 2530-2:2013: Part 2: General principles for independent smallholders.

In addition, the following reference was used as part of the assessment; the compliance of the requirements out of the guidelines applied was checked.

1. Kod Amalan Baik (GAP) Perkebun Kecil, Malaysia Palm Oil Board

2. Guidelines for Development of a Standard Operating Procedure for Oil Palm Cultivation on Peat.

3. Malaysian Sustainable Palm Oil Part 2: General Principles for Independent Smallholders Audit Guidance.

1.3. Appointment & Qualification of Audit Team Members

A certification team consisting of one team leader was appointed. The onsite team members contributed to the review of documents, the assessment of the project activity and to the preparation of this report under the leadership of the team leader.

Qualification of the Lead Auditor: Mohamad Norhisham Bin Mohd Salleh

Requirement Qualifications

Post-secondary education, college or university diploma / degree in one of the following

i) Agriculture;

ii) Science & Technology (e.g. Environmental

Sciences, Life Sciences, Geological

Sciences, Natural Sciences,);

iii) Engineering, Process Technology;

iv) Energy Management, Quality Management;

v) Social Sciences and/or Anthropology;

vi) Business Management; or

vii) Other relevant related fields

Graduate in Applied Science (Major In Agrobiology).







Requirement Qualifications

At least five (5) years of work experience in the oil palm sector or related field in consultancy / auditing of similar industry or equivalent related to and as necessary for the certification process. (e.g., sustainability, palm oil management; agriculture, ecology; social science)

5 years working experience in palm oil estates.

Attended the MS 2530 series of standards training

Successfully completed MS2530 series training, RSPO P & C LA, RSPO SCC and ISCC-EU training

Conducted at least three (3) MSPO or equivalent sustainability certification audits as Lead Auditor-in-training with a minimum of fifteen (15) man-days under the supervision of a qualified Lead Auditor for MSPO or equivalent sustainability certification schemes within the last two (2) years.

Under training as lead auditor for MSPO scheme.

A good knowledge in handling and evaluating sources of information and data. Able to communicate in Bahasa Malaysia or any other local language.

Able to communicate in Bahasa Malaysia and English.

Field working experience in the palm oil sector, or demonstrable equivalent


Good Agricultural Practices (GAP), and Integrated Pest Management (IPM), pesticide and fertilizer use


Health and safety auditing on the farm and in processing facilities, for example OHSAS 18001 or Occupational, Health & Safety Assurance System

Auditor for RSPO and MSPO scheme.

Worker welfare issues and social auditing experience, for example with SA8000 or related social or ethical accountability codes

Successfully completed SA 8000 Basic training and auditor for RSPO and MSPO schemes.

Environmental and ecological auditing, for example experience with organic agriculture, ISO 14001 or Environmental Management Systems (EMS) or High Conservation Value (HCV)

Successfully completed ISO 14001 LA course and auditor for RSPO and MSPO scheme.

Good Milling Practices for example palm oil milling working experience or demonstrate equivalent.

Auditor for RSPO SCC and ISCC in refinery and mill.

Qualification of Team Members

Requirement Assessor Qualification Compliance

Post-secondary education, college or university diploma / degree in one of the following

Terence Ang Diploma and Advance Diploma in Tourism Management

Yes








i) Agriculture;

ii) Science & Technology (e.g.

Environmental Sciences, Life

Sciences, Geological Sciences,

Natural Sciences,);

iii) Engineering, Process

Technology;

iv) Energy Management, Quality

Management;

v) Social Sciences and/or

Anthropology;

vi) Business Management; or

vii) Other relevant related fields

At least five (5) years of work experience in the oil palm sector or related field in consultancy / auditing of similar industry or equivalent related to and as necessary for the certification process. (e.g., sustainability, palm oil management; agriculture, ecology; social science)

Terence Ang More than 8 years in sustainable related field

Yes

Attended the MS 2530 series of standards training

Terence Ang Successfully completed MSPO, RSPO P & C LA, RSPO SCC, RSPO Next and ISCC-EU training.

Yes

Conducted a minimum six (6) on-site audits for a total of at least 20 man-days of audit experience as an auditor-in-training under the direction and guidance of a qualified Lead Auditor for MSPO or equivalent sustainability certification schemes.

Terence Ang Has conducted 3 MSPO and equivalent sustainability certification (RSPO ) as lead auditor in training

Yes

A good knowledge in handling and evaluating sources of information and data. Able to communicate in Bahasa Malaysia or any other local language.

Terence Ang Able to communicate in Bahasa Malaysia, English, and Chinese languages

Yes

Field working experience in the palm oil sector, or demonstrable equivalent

Terence Ang 1 year as Certifier and Reviewer for RSPO P&C and SCC schemes

1 year as Wildlife (Biodiversity) and Ecotourism Consultant (EMS &HCV)

3 years as Wildlife Guide (Licensed issued by Ministry of Tourism, Malaysia)

Yes








6 months as Field Technician for University of Montana on HC

Good Agricultural Practices (GAP), and Integrated Pest Management (IPM), pesticide and fertilizer use

Terence Ang 1 year auditor for RSPO and MSPO schemes

Health and safety auditing on the farm and in processing facilities, for example OHSAS 18001 or Occupational, Health & Safety Assurance System

Terence Ang 1 year auditor for RSPO and MSPO schemes

Worker welfare issues and social auditing experience, for example with SA8000 or related social or ethical accountability codes

Terence Ang Successfully complete SA8000 Basic Training and 1 year auditor for RSPO and MSPO scheme

Yes

Environmental and ecological auditing, for example experience with organic agriculture, ISO 14001 or Environmental Management Systems (EMS) or High Conservation Value (HCV)

Terence Ang 1 year auditor for RSPO and MSPO scheme

Yes

Good Milling Practices for example palm oil milling working experience or demonstrate equivalent.

Terence Ang Trainee auditor for RSPO and ISCC in refinery and mill

Yes







2. METHODOLOGY

The audit approach consists of the following steps:

Contract review;

Appointment of team members and reviewer / certifier;

Contact client for relevant documentation according to the applicable MSPO standards;

Audit planning;

Background investigation, desk review of submitted documents;

On-site assessment, inspections, interviews with operational personnel, stakeholders and its contractors; review of documentation;

On-site reporting

Resolution of non-conformance (NC) (if any)

Draft audit reporting

Technical review

Final audit reporting

Peer review

Address Peer Review Comments (if any)

Certifying, final approval and issuance of certificate.

Surveillance Audit:

Surveillance audit was conducted on 09/11/2017 to 10/11/2017 covers the following activities but not limited to below:

Onsite visit, observations and inspections of farms management and activities;

Interview smallholders;

Reviewed revised and updated documentation established and implemented;

FFB production records;

Training records;

Land titles and land application approvals;

Work plans established;

Stakeholders consultation meeting;

Review and closed out of observations raised during stage 1 audit;

Assessment reporting;

For list of all reviewed documents refer to Chapter 7, Table 7-1

For list of personnel participated in the audits refer attendance sheet and Table 7-3.

On-site Assessment

The audit of the farms was conducted according to the MS 2530-2:2013 Part 2 for Independent Smallholders.







The methodology for collection of objective evidence included physical site inspections, observation of tasks and processes, interviews of stakeholders, smallholders, SPCO officers, review of documentation and data.

MSPO guidance documents were used to guide the collection of information. Any comments from by external stakeholders were considered in the assessment.

For this certification audit, the selected independent smallholders were based on the formula S = risk factor √n where S = sample size and n = number of group members which is in accordance to MSPO certification procedure.

The group of smallholders consists of 217 members,43 old members and 174 new members.

Since there are old and new members, the sample are separated for preserving conservativeness. Based on the formula, the sample size for old members, S = 7 and for new members, S = 14 therefore total and round up to the next integral of 21 smallholders. Thus, a total of 21 smallholders were selected for the onsite assessment and inspection listed in Table 2-1 below:

Table 2-1: List Of Independent Smallholders

Name of independent smallholders Specific Address / site

Domian Masidin Kg Sinulihan Baru, P/S No 489, 89007 Keningau.

Patiman Seiyi Kg Sinulihan Baru, P/S No 489, 89007 Keningau.

Maslih Ibrahim Kg Sinulihan Baru, P/S No 444,89007 Keningau

Imran Rimin Kg Sinulihan Baru, P/S No 489,89007 Keningau

Rimin Yamin Kg Sinulihan Baru, P/S No 489,89007 Keningau

Sorimih Binti Mohd L. Salimin Kg Sinulihan Baru, P/S No 489, 89007 Keningau.

Jipanis Lampakas Kg. Dumbun Sook P/S 1361 89008 Keningau

Justine Akin Kg Simbuan Sook P/S 1361, 89008 Keningau

Hilary Joseph Kg. Simbuan P/S 1560 89008 Keningau

Lokusui Bin Dongkirot @ Bongirot Kg Simbuan Sook P/S 1361, 89008 Keningau

Clarence Welfred Kg Simbuan Sook P/S 1361, 89008, Keningau

Judona Tanggulon Kg.Tulid Sook, 89000 Keningau

Guntili@ Peter Bin Lampakas Kg Simbuan Sook P/S 1361, 89008, Keningau

Paul Akin Kg Simbuan Sook P/S 1361, 89008 Keningau

Baloon Agoon Kg. Malampoi, 89957 Nabawan







Name of independent smallholders Specific Address / site

Biging Edow Kg. Baru Jumpa, P/S 236,89909 Tenom

Ruah Bin Antut Kg. Murni C, 89957 Nabawan

Irwin Pailit Kg. Pantai, 89657 Tambunan

Raymond Anggang Kg. Bundu Apin-Apin,P/S 189 89657 Tambunan

Yahyang Bilong Kg. Lotong, P/S 44 89650 Tambunan

Welson Saingun Kg Mokotog, Tulid 89000 Keningau

Non-conformance:

On the basis of the desk review, evidences presented during the audits as well as from the onsite visits non-conformance (NC) Major and Minor as well as Observations (OBS) may be raised during the audit.

Major non-conformance shall be addressed and responded with 60 days from date of audit. Minor NCs and OBS will be reviewed and verified during the next audit.







3. ORGANISATION INFORMATION

MPOB Cawangan SPOC Keningau, is a branch of MPOB located at Keningau, Sabah to provide technical support as well as develop the independent smallholders’ scheme around the Keningau district.

The SPOC is managed by a MPOB SPOC Keningau group manager, Mr. Rochsaen Interlas, supported by team officers to manage the cluster providing technical support, estate management skills and training.

The location of the SPOC office is located at Tingkat 1, Lot 13, Banawa Shop House, Jalan Bank Bumiputra, 89008, Keningau, Sabah.

The locations for the smallholders are in Keningau, Tambunan and Tenom as shown in the below maps.

Figure 1a: Smallholder location in Keningau region.







Figure 1b: Smallholder location in Keningau region

Figure 1c: Smallholder location in Keningau region







Figure 1d: Smallholder location in Keningau region

Figure 1e: Smallholder location in Keningau region







Figure 1f: Smallholder location in Keningau region

Figure 1g: Smallholder location in Keningau region







Figure 1h: Smallholder location in Keningau region

Figure 1i: Smallholder location in Keningau region







Figure 1j: Smallholder location in Keningau region

Figure 1k: Smallholder location in Keningau region







Figure 1l: Smallholder location in Keningau region.

Figure 2a: Smallholders location in Tambunan region.







Figure 2b: Smallholders location in Tambunan region

Figure 2c: Smallholders location in Tambunan region







Figure 2d: Smallholders location in Tambunan region

Figure 3a: Smallholders location in Tenom Region.







Figure 3b: Smallholders location in Tenom Region







4. CERTIFICATION ASSESSMENT

4.1. Surveillance audit (ASA 01)

The objective of the surveillance audit is to assess the activities of MPOB Cawangan SPOC Keningau is in compliance with MS 2530-2: 2013 Part 2: General principles for independent smallholders’ requirements.

There are 21 smallholders joined the audit process during this surveillance audit. During the audit conducted, the total number of smallholders under SPOC Keningau has decrease from 217 to 181. It was due to total of 36 smallholders withdraws from joining SPOC Keningau.

The surveillance audit was conducted on 09/11/2017 to 10/11/2017 that include inspection of the smallholders farms, farms boundary, interviews, conduct stakeholders’ consultation and review of the observations raised in the last audit.

The audit team has applied the Malaysian Sustainable Palm Oil Part 2: General Principles for Independent Smallholders Audit Guidance to assess the established documents against the Principles and Criteria of the standard.

The details assessment of the Principles & Criteria, refer to P & C audit report attached to this summary report.

During the onsite the following were verified.

1. Compliance to legal requirements on the land title, land use rights and customary rights

2. Training and competence

3. Environmental management

4. Waste management and disposal

5. Best practice – farm management including fertilizer application, chemical spraying and harvesting.

During the surveillance audit, there was 1 major non-conformity and 1 observation raised. The audit team has reviewed and closed out the observations raised previously during the certification audit by means of inspection of smallholders’ farms, conduct interviews, review and verify documents that are established, corrected and implemented appropriately by the SPOC team. The corrective measures implemented could be verified as appropriate and the observations were closed out.

There were 4 observations raised in previous audit that have been verified during onsite observations, inspection conducted, interview of personnel and further reviewed of revised and updated procedures and documents established. It can be concluded the P & C requirements are met.

The number of audit findings raised in this audit been addressed in Section 4.3 of this audit report. For details of the assessment, refer to the P & C audit report attached to this summary report.

A stakeholder consultation was conducted on 09/11/2017 to gather information from the local communities in accordance to §7, 3.2 of the Certification Procedure requirements. The topics of discussion are as below:

a. Introduction of SPOC Kinabatangan objectives of MSPO standard certification for smallholders.

b. Development of smallholder’s farms in Kinabatangan area;

c. Wildlife management area and impact to the smallholders;

d. Environmental issues on the impact of river contamination;

e. Type of wildlife around Kinabatangan area;

f. Support from processing palm oil mills at Kinabatangan area/







There are no issues raised during the stakeholders’ consultation that need to be addressed by the SPOC management office. It can be concluded the relevant Principles and Criteria clauses of the applied standard are in compliance.

The List of Stakeholders who attended the meeting refer to table 6.3.

For details of the assessment, refer to the audit report attached to this summary report.

Item Subject discussed Audit team findings Company response and proposed action to be taken

1 Any information from Group Manager / Company [thereafter known as GM] in regards to the MSPO audit?

It was confirmed that they have been told as regards to MSPO certification. However, it was noted they will prefer a clearer briefing in future for batter involvement. Stakeholder have confirmed their willingness to assist SPOC in this certification and will like better briefing on involvement, so they can assist.

volunteer also express that they wish to assist further where will need more in-depth briefing.

Future briefing will be conducted to guide them on how they can involve better.

2 Social context It was noted that there was no social issue. It was also confirmed from local involvement that the introduction of palm oil plantation do not bring any social issues that will adversely impact the society.

Positive comment

3 Understanding of “NCR Land”?

Land issue was well understood by all attendees. It was also confirmed at the time of audit there was no land conflict arise. However it was brought to the attention that many of the NCR lands are not under the status of Permohonan tanah (PT) to obtain land title.

Positive comment

4 Economy / Livelihood

Is there any impact on livelihood after the introduction of MSPO?

It was confirmed that the present of MPOB and SPOC TUNAS officers have bring advantages including training to the local people. Interview will mill confirmed that all crop have been in good quality. Rejected fruits are very low. This was further confirmed by Pertubuhan Peladang

Positive comment

5 Does MSPO will largely benefits the local community?

It was confirmed that they understand the benefit of the MSPO certification The local people have also raised concerns on their benefit in term of premium prices and what added value once they

Positive comment







get from the certification. This however have to be address by MPOCC which was also explaining to the smallholders other benefits they gain when they join SPOC, such as good agricultural practises, and new knowledges and exposure to latest information in regards to oil palm management.

6 HCV and environmental understanding

All attendees confirmed they understand the environmental issue. They also confirmed there was no environmental issue have occurred in the surrounding area so far.

Jabatan Hidupan Liar have also confirmed they have not received any complaint on illegal hunting or poaching in the area. The department however confirmed the present of wildlife including some globally significant species

Positive comment

7 Awareness towards species, habitats, and high conservation values?

People are aware on the habitat in the surrounding area. During the consultation they also understand the need to protect this environmental and HCV area. They have acknowledged that MSPO certification will further assist in protection of the environmental.

Positive comment

8 Support to smallholders TUNAS officer from MPOB has been continuously providing support to the smallholder. MPOB as a government body have also include the Latihan Khidmat Nasihat and training to all smallholders neglecting member or non-member to the certification.

Positive comment

9 FFB quality It was confirmed that FFB quality was at the best. Both mills personnel who attended have mention that the quality from the smallholder were good and they were very satisfied. They have acknowledged that the present of TUNAS officer and training provided by MPOB jointly with the mills have further benefit and achieving good quality of fruits.

Positive comment

10 Are there any plantation or mill management

It was confirmed by various stakeholders that the smallholder

Positive comment







practices that affect you?

practices did not adversely impacted the local people and also violate any legal,

11 Do you consider any management is in conflict with the MSPO/RSPO principles and criteria?

During the stakeholder consultation, none of the attendees mention of conflict with the CH. They have confirmed the good relationship and the openness of this CH member in meeting the MSPO objective.

Positive comment

4.2. Status of Non-Conformities Previously Identified

The stage 1 audit findings of this system have been reviewed, in particular to assure appropriate correction and corrective action HAS implemented to address identified audit findings. Details of the follow up action taken on stage 1 audit findings were recorded in the Stage 1 audit report.

The last audit results of this system have been reviewed, in particular to assure appropriate correction and corrective action HAS implemented to address any nonconformity identified.

The last audit results of this system have been reviewed, in particular to assure appropriate correction and corrective action HAS NOT been implemented effectively. Non-conformity will be re-raised.

X Not applicable. No non-conformity raised in previous audit.

Note 1: If a minor non-conformity raised in last audit, is not closed out, then this finding will be re-raised to a Major non-conformity.

Note 2: All minor NCs raise in last audit are required to capture in this report together with the closing of the non-compliance.

4.3 Detail of Audit Findings Identified During This Audit

This section gives an overview of the non-conformities raised during this audit.

AUDIT OUTCOME

MAJOR Non-Conformities 1

MINOR Non-Conformities 0

Observations 1

Non Conformity Number < 01 >

Indicator: 4.1.2.2 Group management shall establish a system to improve practices in line with new information and techniques; and for disseminating this information throughout the group members.

Location SPOC Keningau

Description of Finding / Objective Evidence:








Point 1

Group manager has sent letter of Memohon Pengesahan Tanah Status PT dan Geran untuk Program Pensijilan MSPO Pekebun Kecil Sawit 2017, dated 07/10/2017 to Pegawai Daerah Keningau, to confirm PT status of eight PT grants. Due to the person in-charge is away for holiday, the list is yet to be verified. This was done near to the audit date. Nevertheless, this was not captured in internal review as part of the document which required to be updated of which could have been presented to the auditor if conducted earlier.

Point 2

Site visit to smallholders waste dumping site indicate no proper segregation was done. Empty fertilizer bags, schedule waste and organic waste are mixed up. Internal audit did not capture the segregation of waste on site as part of audit check.

Classification Major Minor Observation

Deadline for

implementation 09/01/2018

Root Cause Analysis (by company):

GM facing a long time to get the verification letter respond from the Jabatan Tanah dan Ukur Keningau to confirm the status of PT grand due to the officer is away for holiday and outstation.

The effectiveness of training which has been conducted earlier were not truly understand by the smallholder on the proper segregation of waste

Correction (by company):

Point 1

GM has received the verification letter from Jabatan Tanah dan Ukur daerah Keningau dated 19/01/2018 for the eight highlighted smallholders. However, only 1 out of 8 smallholder listed was declared as PT grand which is located at Tambunan district and the verification letter also we had received from the Jabatan Tanah Ukur daerah Tamunan dated 24/01/2018 as attached.

GM will provide the verification from Jabatan Tanah dan Ukur much earlier before the audit date.

Point 2

GM will conduct a training based on proper segregation of waste among the smallholders and internal audit which is conducted on 16/01/2018 also highlight the matter as part of internal audit checklist.

Corrective / Preventive Action (by company)

Point 1

In order to give accurate and clear information during the external audit all the verification that should be taken from Jabatan Tanah dan Ukur will be provided earlier before the audit date.

Point 2

A well prepared training based on proper segregation of waste among the smallholders will be conducted which will emphasize the aspects about this matters.

Review of Correction & Corrective / Preventive Action








An internal audit was conducted on 16/01/2018. There are 4 major non-conformities and 3 observations raised during the audit. Findings raised in the internal audit will be addressed by SPOC Keningau before 15/04/2018.

SPOC Keningau has provide evidence in e form of verification letter from Jabatan Tanah dan Ukur Daerah Keningau, dated 19/01/2018 for 7 out of 8 smallholders listed as PT grants status. Whereby letter by Jabatan Tanah dan Ukur Daerah Tambun dated 24/01/2018 has verify the ownership of the land by the remaining smallholder.

Sighted Training has been conducted for Improvement-Segregation of Schedule wastes.

Base on the evidence provided, it was sufficient to close the non-conformity raised. Further verification on implementation of correction and corrective action will be review during next surveillance audit

Closed: Yes No Site verification : Yes No

Name of Lead Auditor / Auditor:

Mohamad Norhisham Bin Mohd Salleh

Date of Closure:

26/01/2017

Review of Implementation for Major NC (where applicable)

Closed: Yes No


Date of Closure:

Observation < 01 >

Indicator: 4.6.3.1 Independent smallholders are encouraged to communicate with and have consultations with dealers, millers, local communities and other affected or interested parties.

Location SPOC Keningau

Description of Finding / Objective Evidence:

A communication has been conducted as from agreement to purchase FFB. This discussion and agreement have been made on 26/05/2014.

“Borang Tawaran Sebut Harge Membeli BTS Daripada KPSM Daerah Keningau Sabah Berhad” have been sighted and evaluated

Pengurus koperasi representing MPOB have been attending meeting on monthly basis in discussion of the pricing.

However, the meeting has not been documented as evidence. This however was counter verified in stakeholder consultation and no issue arise. A documented meeting of minute as prove of discussion should be made available.

This was raised as observation as the meeting can be confirmed with stakeholder consultation and mill involved where the copy of meeting of minute should be keep in the office for reference and information for members.

Review of Correction & Corrective / Preventive Action

Review on action taken by SPOC Keningau will be conducted in next surveillance audit.

Closed: Yes No Site verification: Yes No







Observation < 01 >


Terence Ang

Date Review Action Plan:

26/12/2017







5. CONCLUSION

Malaysia Palm Oil Board, Cawangan Keningau has commissioned TÜV NORD Malaysia Sdn Bhd to carry out the surveillance audit for the Sustainable Palm Oil Cluster (SPOC) consisting of 181 independent smallholders according to MS 2530-2:2013 Part 2, General Principles for Independent Smallholders.

One Major NC raised in this surveillance audit was closed out successfully. Furthermore, observations raised in this audit will be verified in the next surveillance audit.

From the review of the standard operating procedures, relevant forms, work flow charts established and implemented; the subsequent background investigation and interviews conducted during this surveillance audit have provided TUV NORD Malaysia with sufficient evidence on the fulfilment of the applied standard Principles & Criteria.

In conclusion the certified organisation has been established, implement and continue to improve in managing the independent smallholders are in line with the Principles & Criteria of the applied standard MS 2530-2:2013 Part 2.

As a result of this audit, the audit team confirms that:

Total certified number of independent smallholders: 181

Total certified acreage of smallholders: 796.04 Ha

Certified FFBs output January to December 2017: 7965.08 mt

Forecast certified FFBs output January to December 2018: 9967.49 mt







6. RECOMMENDATION

The audit team conducted a process-based audit focussing on significant aspects / risks and objectives required by the standard(s). The audit methods used were interviews, observations, sampling of activities and review of documentation and records.

Any audit is based on sampling within an organization’s management system and therefore is not a guarantee of 100 % conformity with requirements.

The structure of the audit was in accordance with the audit plan included to this summary report as an annex.

The audit team concludes that the organisation has established and maintained its management system in line with the requirements of the standard(s) and demonstrated the ability of the system to achieve requirements for production and management within the scope and the organisation’s policy and objectives.

Therefore, the audit team recommends that, based on the results of this audit and the system’s demonstrated state of development and maturity that this management system certification be

Recommended for Certification / Recertification

X Recommended for Continuity of Certification

Suspended of Certification

Subang Jaya, 26/01/2018 Subang Jaya, 26/01/2018

Mohamad Norhisham Bin Mohd Salleh

TUV NORD Malaysia Sdn Bhd

Audit Team Leader

Cheong, Chun Yuen (Robert)

TUV NORD (M) Sdn Bhd

Technical Reviewer







7. REFERENCES

Table 7-1: Documents provided by SPOC Keningau

Client Reference Document

MSPO Policy for smallholders

Pengembangan Maklumat File which contain Warta Sawit

Programe Pembajaan Dan Kawalan Rumpai Tahun 2017

Buku Rekod Ladang ( BRL) for the year 2017

Jadual Dan Kawalan Rumpai Bagi Tahun 2017

Senarai keperluan Undang -Undang tahun 2017

Letter from Land Office (Bil.Kami: PPHT (TBN) 1601/33/Vol.) dated 06/10/2017

Aduan dan Rungutan SOP 01/AR/2016

Safety Data Sheet for NPK, Muriate of Potash

Form ‘Syarat Mengupah Pekerja di Kebun Sawit’ SMP-01/MSPO-SPOC/2017

Training Programme for year 2017

Training Plan for year 2018

Senarai Sisa Racun dan Domestik

SOP “Pengurusan Bahan Buangan Terjadual” SOP-04/BT/2016 dated 01/04/2016

Training document Kursus Sehari Bersama Pekebun Kecil dated 15/07/2017

Panduan Penyediaan Kawasan Bagi Tanam Baru Sawit

Anggaran Perbelanjaan Program Latihan Dan Ceramah Bagi tahun 2018”







Client Reference Document

Borang Tawaran Sebut Harge Membeli BTS Daripada KPSM Daerah Keningau Sabah Berhad

Table 7-2: Background Investigation And Assessment Documents

Reference Document

Akta Perlindungan hidupan liar 1972 (Akta 76) Jadual Satu Binatang- Binatang Liar yang Diperlindungi Sepenuhnya. Akta Perlindungan hidupan liar 1972(Akta 76) Jadual Dua Binatang- Binatang Liar yang Diperlindungi. Akta Perlindungan hidupan liar 1972(Akta 76) Jadual Lima Serangga-Serangga yang Diperlindungi

Akta Pemuliharaan Hidupan Liar 2010 dated 20-04-2012

Akta Perlindungan hidupan liar Jadual Tiga Burung Liar yang Diperlindungi Sepenuhnya Akta Perlindungan hidupan liar Jadual Empat Burung Liar yang Diperlindungi

Drainage & Irrigation Ordinance,1956

Environmental Quality Act 1974 and Amended 2012

Environmental Quality (Clean Air) Regulations1978

Environmental Quality Act & Regulation –Act 12

Environmental Quality (Scheduled Wastes) Regulations 2005

Forest Enactment 1968

IUCN Red list- Categories and criteria (version 3.1)

Kod Amalan Baik (GAP) Perkebun Kecil, Malaysia Palm Oil Board

Land Ordinance 1972 (Cap.68

Malaysian Palm Oil Board Act 1997-Act 582

MSPO Certification Scheme Doc. No: MPOB/MSPO/CS/01 dated 2013-11-19







Reference Document

MSPO 2530-2:2013: Part 2: General principles independent smallholder

MSPO Certification Procedures & Guidelines

OSHA (Classification, labelling and Safety data Sheet of Hazardous Chemicals) Regulations 2013

Occupational Safety and Health Act 1994 Act 154

Pesticides Act 1974

Poisons Act & Regulations - Act 366

Wildlife Conservation Enactment 1997

Table 7-3: List of Interviewed Persons, Observers and Smallholders

No. Name Organization / Function

1 Gan Liong Hoe Desa Kim Loong Palm Oil sdn. Bhd.

2 Thien Shue Chun Desa Kim Loong Palm Oil sdn. Bhd.

3 David Niosing Jabatan Perhutanan Keningau

4 Welter Udong PPK Keningau

5 Jsoeph JHL Keningau

6 Yahya Bin Harris PPK Keningau

7 Severmus Abel Department of Agriculture, Keningau, Sabah

8 Emma K.L Sook Oil Mill Sdn. Bhd.

9 Martha O. Rufinus Sool Oil Mill Sdn. Bhd.







No. Name Organization / Function

10 Suziline Bt Siplit Sook Oil Mill Sdn. Bhd.

11 Nyuk Lan Lee Sook Oil Mill Sdn. Bhd.







Distribution / Confidentiality / Rights of ownership / Limitations / Responsibilities / Audit Objectives

This report is sent to the certification body or bodies, the members of the audit team and the audit representative of the organisation. All documents (such as this report) regarding the certification procedure are treated confidentially by the audit team and the certification body. This audit report remains the property of the certification body.

An audit is a procedure based on the principle of random sampling and cannot cover each detail of the management system. Therefore nonconformities of weaknesses may still exist which were not expressly mentioned by the auditors in the final meeting or in the audit report.

The responsibility for continuous effective operation of the management system always rests solely with the audited and certified organisation. Salvo clause: The audit report will be left to the organisation at the end of the audit - subject to approval by the certification body. The independent release process may cause modifications or additions. In these cases a modified revision will be sent to the audited organisation.

The objective (goal) of the audit is to establish compliance of the management system of the aforementioned organization with the requirements of the aforementioned standard in order to achieve or maintain certification through an independent and accredited certification body. Identification of possibilities to improve the management system can also be a component of the audit and is considered simply to be an enhancement; it does not constitute consultancy or advice with regard to the management system.

Annex / Enclosures

Annex / corresponding audit documentation

P&C Audit Report / Checklist(s)

Audit Plan

Additional annexes, number

Malaysia Sustainable Palm Oil – MS 2530:2 2013 Part 2 for Independent Smallholders Audit P & C Report

Company Name: MPOB SPOC Keningau Client No: 92-004

Certifying Unit: SPOC Keningau Audit Type: ASA 01

MSPO-F05a / Rev 2 Page 1 of 28

Item Description

1 Company Name MPOB SPOC Keningau

2. Certifying Unit SPOC Keningau

3. Address Tingkat 1, Lot 13, Banawa Shop House, Jalan Bank Bumiputra, 89 008 Keningau, Sabah, Malaysia.

4. Contact Tel: 03-87694212 Fax: Website:

5 Location of plantation / estate

Keningau, Sabah, Malaysia

6 Geo Coordinates of plantation / estate

Refer to smallholders list

7 Contact Person Name: Mr. Rochsaen Interlas Tel: +6087-331 615 Mobile:+6017-8604 757 Email: [email protected]

8 Date of Audit 09/11/2017 – 10/11/2017

9. Audit Team Members

Team Leader / LA Mohamad Norhisham Bin Mohd Salleh

Auditor Member Terence Ang

Expert / Trainee / Observer

nil

mailto:[email protected]





Clause Principle & Criteria

Verification Guidance Guidelines Findings & Comments Conformity

Yes / No

4.1 Principle 1 Management Commitment & responsibility

4.1.1 Criterion 1 Malaysian Sustainable Palm Oil (MSPO) Policy

4.1.1.1 There shall be a policy binding smallholders to MSPO

(MAJOR)

- Statement of commitment to MSPO signed by group manager

- This applies only to independent smallholders under group manager

MSPO policy was sighted.

Policy covers:

- Komitmen dan tanggung jawad pihak pengurusanSPOC Kinabatangan

- Keterbukaan dalam memberikan maklumat kepada pihak berkepentingan

- Dokumentasi bagi tujuan kebolehjejakan

- Pematuhan undang-undang tempatan, kebangsaan dan antara bangsa yang telah disahkan

- Sumbangan kepada pembangunan manpan komuniti setempat

- Penyelesaian aduan dan ruguntan secara telus dan adil

- Permatuhan keadaan pekerjaan, aspek keselamatan dan perkhidmatan ekosistem

- Keperluan pemuliharaan spesis yang jarang ditemui, terancam, hampir pupus dan habitat yang mempunyai nilai biodiversiti tinggi

- Perlaksanaan pembakaran sifar dan amalan pertanian baik

- Permatuhan syarat-syarat bagi pembangunan

Yes







Yes / No

baru sawit.

Policy is made available in notice board.

Reviewed individual file show all members have obtained and signed acceptance of the policy. The signed policy is proof of acceptance.

Site visit to smallholders indicates they understand and aware of MSPO since the news was informed by Pegawai Tunas during the Latihan Khidmat Nasihat.(LKN)

4.1.2 Criterion 2 Continual Improvement

4.1.2.1 Indicator 1 The action plan for continual improvement shall be based on the consideration for the main social and environmental impact and opportunities of the independent smallholder’s group, such as SPOC. Independent smallholders shall be aware of the need to understand the importance of continuous improvement.

(MAJOR)

- Identified social and environmental impact

- Selection of the impact that requires continuous improvement that bring benefits to the smallholders

- Awareness programme for the need for continual improvement

- Interview and record assessment

- JKKK or JKKP meeting

- Dissemination of information to members about future activities

- Group manager to develop action plan

“Pengembangan Maklumat” file has been made reviewed. File contains Warta Sawit on topics of

1. Technology

2. Processing

3. Seedling

4. Control of disease (Ganoderma)

A copt of the information is provided to the smallholder. During the interview, it was mention that the information is provided and any new practices will be explained to them.

This was further confirmed with government agencies where they have been invited to provide seminar/talk on such topic.

Training on MSPO was conducted on 14/08/2017. Training report has been reviewed. Total 113 attendees attended this training. Warta Sawit as part of the continuous improvement have been disseminate during the training.

Yes







Yes / No

4.1.2.2 Indicator 2 Group management shall establish a system to improve practices in line with new information and techniques; and for disseminating this information throughout the group members.

(MAJOR)

- Identification of new technologies

- Dissemination of information regarding new technologies :

Discussion

Site visit

Plot demo

Flowchart, etc.

- Group interaction on the awareness and availability of the new technology or information

- Acceptance and implementation among members

- Monitoring success or improvement with new technologies

- Internal audit to be conducted by group manager as applicable

- Result of internal audit indicate the performance of the smallholders in the group

Information have been provided during training and a copy is provided. MPOB HQ in KL will keep track on such changes and will provide the information to all branches who served as group manager

Example:

Soalan 1:

Kami perkebun kecil sawit persendirian, hanya ada dokumen tanah seperti PT sahaja. Adakah kami boleh mengikuti Program Pensijilan MSPO ini

Jawapan: Semua perkebun kecil sawit tidak dikecualikan untuk mengikuti program MSPO ini samada hanya mempunyai PT sahaja pekebun kecil itu layak mengikuti

Internal Audit for the year 2017 have been conducted on 28/09/2017. i. Total of 5 NCs (4 Major 1 Minor) and one OFI have been raised.

Example

4.1.2.1 Tiada Programe tahunan membeja dan meracun.

Status closed.

Review of documented information including “Programe Pembajaan Dan Kawalan Rumpai Tahun 2017”, and “Jadual Dan Kawalan Rumpai Bagi Tahun 2017” have been reviewed.

Smallholder does aware on changes and new information and technology. This was sighted during on site, Buku Rekod Ladang(BRL) which contain Warta Sawit, magazine published by MPOB on quarterly basis which contain information on new technology.

Maj NC 1







Yes / No

Example:

Sighted on the smallholder BRL for smallholder name:

Baloon Agoon, Ruah Antut, Rimin, Yamin, Patiman Seyi

Non-conformity :

Point 1

Group manager has sent letter of Memohon Pengesahan Tanah Status PT dan Geran untuk Program Pensijilan MSPO Pekebun Kecil Sawit 2017, dated 07/10/2017 to Pegawai Daerah Keningau, to confirm PT status of eight PT grand. Due to the personal in charge is away for holiday, the list is yet to be verified. This was done near to the audit date. Nevertheless this was not captured in internal review as part of the document which required to be updated of which could have been presented if conduct earlier.

Point 2

Site visit to smallholders’ waste dumping site indicate no proper segregation was done. Empty fertilizer bags, schedule waste and organic waste are mix up. The waste is documented in the senarai sisa dan domestic. Internal audit should capture the segregation of waste on site as part of audit check to ensure compliance.

4.2 Principle 2 Transparency

4.2.1 Criterion 1 Traceability

4.2.1.1 Indicator 1 The group management shall commit itself to implement and maintain

- Tracking system that can trace FFB to the source (smallholder’s block, plot)

- Source of planting materials

Smallholder has established record for FFB in their BRL booklet. Counter verify with the individual weighbridge ticket confirm the amount in mt was valid. The

Yes







Yes / No

the requirements for traceability.

(MAJOR)

- Applies to group manager for independent smallholders

weighbridge ticket itself contain name of smallholder and MPOB license number which can be track back to individual smallholder:

Example:

Pandewan Oil Mill Sdn Bhd

FFB Delivery for the Month Of September 2017

FFB Supplier : Ruah Bin Antut

MPOB no : 280639701000

Total price: RM 4,480.83

4.2.1.2 Indicator 2 To keep records of sales and delivery or transportation of fresh fruit bunches.

(MAJOR)

- Verification of records and documents Weighbridge tickets are kept by smallholders, summary of FFB in mt can be found in BRL kept by them.

Example:

Statement of FFB received for September 2017

Koperasi Penanam Sawit Mampan Daerah Keningau Bhd

Name: Maslih Bin Ibrahim

Particular FFB (mt) Price (RM/mt )

Value (RM)

FFB received

10.18 525.00 5,344.50

Final Payment 5,344.50

Statement of FFB received for September 2017

Koperasi Penanam Sawit Mampan Daerah Keningau Bhd

Name: Clarence Bin Welfred







Yes / No

Particular FFB (mt) Price (RM/mt )

Value (RM)

FFB received

3.21 525.00 1,685.25

Final Payment 1,685.25

Link back to weighbridge ticket number: 00005038 dated 13/09/2017 weight 1.52 mt, ticket number: 00005359 dated 28/09/2017 weight 1.69 mt.

4.3 Principle 3 Compliance to legal requirements

4.3.1 Criterion 1 Regulatory requirements

4.3.1.1 Indicator 1 Independent smallholders shall show awareness of compliance with all applicable local, state, national and ratified international laws and regulations.

(MAJOR)

- Interview to test awareness :

Licensing requirements

Labour Law

Environmental Act

Immigration

Child Labour – not applicable on family farms

“Senarai Keperluan Undang-Undang” have been verified.

Example:

1. Akta 127: Akta Kualiti Alam Sekitar

2. Akta 149: Akta Racun Mahkluk Perosak 1974

3. Akta 226: Akta Pekerjaan 1955

4. Land Ordinance Sabah (Cap.68)

There is no evidence of violation in legal law. This was also confirmed by stakeholder interview during the consultation and site visit.

Example of compliance

Name: Patrick Ungkung Bin Bayoh (K/P: 440112125131)

License No: 508246 – 601000

Yes







Yes / No

Address: Kg Kirokot Tambunan, 89650 Tambunan, Sabah

Aktiviti Berlesen Keluaran Kelapa Sawit

Menjual dan Mengalih FFB (Buah Kelapa Sawit)

Validity: 18/06/13 – 31/05/18

Site visit, interview and consultation have confirmed no evidence of violation to any legal compliance.

Interview with smallholders, indicates that they are aware on legal compliance and law. All smallholders have valid MPOB license for selling FFB. It can be trace back using MPOB license number.

Example:

Smallholder name MPOB license number

Hectarage

Biging Edow 474040601000 6.07 Ha

Justin Bin Akin 492969001000 2.84 Ha

Paul Bin Akin 521592001000 2.00 Ha

Judona Tanggulon 477879901000 4.23 Ha

Hilary Jospeh 418279901000 2.03 Ha

4.3.2 Criterion 2 Land use rights

4.3.2.1 Indicator 1 Independent smallholders shall demonstrate rights to their landholdings and there is no evidence of

- Verification of land ownership Land titles have been verified in individual smallholder file. Land title is either PT or Geran. Therefore, the land use right is documented.

Letter from land office date 06/10/17 (Bil.Kami: PPHT

Yes







Yes / No

major land disputes.

(MAJOR)

(TBN) 1601/33/Vol.) Confirmed the land with PT status. The letter specifies “Pejabat ini tidak ada halangan ke atas program pensijilan MSPO Pekebun Kecil Sawit 2017”. The letter states the attached specified land has been reviewed.

During the stakeholder consultation, it was confirmed that there is no issue arising from land conflict. Interview will mill operator confirmed that the cooperation was well taken and there was no land conflict.

Example of Geran Tanah:

Name: Freddy Bin Kondu

Geran Tanah: NT: 143064153 (4.82 ekar)

Maps are made available in the individual file.

4.3.3 Criterion 3 Customary rights

4.3.3.1 Indicator 1 Independent smallholders shall demonstrate customary rights to their landholdings

(MAJOR)

Note. Where recognized customary or legally owned land has been taken over and where there is documentary proof of a transfer of rights (eg. Sale) and of payment or provision of agreed compensation.

- Verification of land ownership or user rights

Letter from land office Tamunan datde 06/10/17 (Bil.Kami: PPHT (TBN) 1601/33/Vol.) Confirmed the land title is PT status. The letter specifies “Pejabat ini tidak ada halangan ke atas program pensijilan MSPO Pekebun Kecil Sawit 2017”. The letter specifies the attached land title has been reviewed.

For example

Name: Akut Bin Agu

PT application conducted on 04-09-2015.

No rujukan: PT99150017.

Resit no: 1520120900049

Serial no: 121 0791360

Status: Pending for PT

Yes







Yes / No

Marking or boundary stone for verification of boundary was observed. Example:

Boundary stone in between Justine Akin and Paul Akin land, coordinate : 5.25922 116.41919

Boundary stone in between Welson Saigun and neighbouring smallholder. Coordinate : : 5.28818 116.44896

4.3.3.2 Indicator 2 Maps of an appropriate scale showing extent of recognized customary rights land, if any, should made available.

(MINOR)

- Group manager to provide evidence to show that the land does not overlap with neighbours. This can be done through participatory mapping, where applicable.

Maps for Geran title have been provided. All the customary right land of members is currently on PT status has been sent to Jabatan Tanah for reviewed and confirmation.

Example Tambunan Land office confirmation has been reviewed.

Yes

4.4 Principle 4 Social responsibility, health, safety and employment conditions

4.4.1 Criterion 1 Complaints and grievances

4.4.1.1 Indicator 1 Independent smallholders shall be able to respond to complaints that are raised by their neighbours or other stakeholders.

(MAJOR)

- Group manager to collect or keep records of all complaints or request from stakeholders

- Smallholders to screen the requests and to respond to those within their ability

- The group manager to respond to those requests which cannot be handled by the smallholders

Complain procedure “Aduan Dan Rungutan” SOP-01/AR/2016 have been reviewed. Flow chart for handling complaints has been included in the procedure. A total of 14 days is required to complete a complaint handling process.

SPOC Manager is the appointed person to handle the complaint if there is any.

Communication with stakeholder has been conducted. See stakeholder consultation

Yes







Yes / No

4.4.1.2 Indicator 2 The local system should be able to resolve disputes.

(MINOR)

- Group manager to implement a system to collect complaints / suggestions / disputes

- Availability of a system to channel complaints to designated person (e.g JKKK, Tuai Rumah)

- The designated person to assign appropriate parties to handle the disputes

- The designated person to ensure that dispute is resolved within reasonable time

Internal procedure has specified the procedure to handle the complaint and also the time frame required.

Example:

Date of complaint: 26/10/2017

Complainant: Joking Bin Majalim

Issue: Bantuan Anak Benih Sawit

Receiver: Amran Bin Jinin

Resolve method

Action: “Pihak Saya telah mengharapkan penghantaran biji sawit tersebut dalam tempoh 15 hari daripada pembekal Yun Fole Sdn Bhd”

Name: Amran Bin Jinin

Date: 26/10/17

Confirmation of issue resolve

Date: 06/11/17

Note: Bibit Sawit tersebut sudah dihantar dan diterima oleh pemohon

The grievance has been resolved within the specified time frame.

Yes

4.4.2 Criterion 2 Employees safety and health

4.4.2.1 Indicator 1 Independent smallholders need not have a formal health and safety plan but shall ensure that all work practices are safe

- Group manager to promote awareness on the safe work practices

- Group manager to provide PPE & training in the premises

- Interview :

MSDS has been obtained from the chemical company for both fertilizers and chemicals. The group manager has developed the details and kept in the risalah data keselamatan.

Example

Yes







Yes / No

(MAJOR) Accident

Safety equipment or PPE

Training on safety and health

- Observation of operation at site

NPK Fertilizer

Dated : 09/2014

The MSDS states the composition/information on ingredient and precautions for accidents and first aid.

Product identifier: Muriate of Potash (MOP), all grade

Date: 08/12/14

Training materials for the smallholders have been reviewed. Training include:

1. Chemical handling usages and storing.

2. Dangerous act to be avoided

3. PPE – usages of PPE and type of PPE required

4. Handling emergency

Interviews and site visit to smallholder’s stores indicated that they were equipped with PPE such as goggles, face mask, safety apron, and gumboots. They do understand the usage of PPE and aware on their safety and health.

4.4.3 Criterion 3 Employment Conditions

4.4.3.1 Indicator 1 For independent smallholders with temporary workers, work conditions shall be in accordance with a mutual verbal agreement made transparently and freely.

(MINOR)

- The temporary workers verbally agree to the terms prior to the execution of the work

- Evidence through interview

Stakeholder’s consultation confirmed there are no hiring temporary workers except for estate managed as a company. During the stakeholders’ consultation the smallholders informed their managed their own land without hiring temporary workers.

In addition, SPOC established form SMP-01/MSPO-SPOC/2017specified the following to be considered during the hiring.

“Syarat Mengupah Pekerja Di Kebun Sawit”. The form have specify

Yes







Yes / No

1. Mempunyai permit kerja asing

2. Tidak sama sekali membenarkan / mengupah kanak-kanak di bawah umur 15 tahun untuk bekerja.

3. Tidak sama sekali membenarkan / mengupah orang muda di bawah umur 15-18 tahun untuk membuat kerja berat dan merbahaya di kawasan kebun sawit.

4. Tidak mengamalkan sikap driskriminasi terhadap agama, kaum, jantina, warna kulit, kewarganegaraan dan politik.

5. Pembayaran upah adalah mengikut jenis kerja yang dilakukan serperti yang telah disyorkan oleh pengurus SPOC

6. Kadar bayaran mestilah dipersetujui oleh pekebun kecil dan pekerja

7. Setiap bayaran yang dilakukan hendaklah direkodkan di dalam buku rekod lading (BRL) dan ditandatangani oleh pekerja

In the document section “Terma Penggajian Pekerja” specifies the work and charges that will be paid to the worker.

At the time of audit, it was noted that all the smallholders managed their own land in all aspect of the planting process. There are no workers hired. Any additional manpower required was assisted by member of family.

Most of the smallholder work on their own or assisted by family members for farm works such as harvesting, spraying or manuring.







Yes / No

4.4.3.2 Indicator 2 Independent smallholders shall provide equal opportunity and treatment regardless of race, colour, sex, religion, political affiliation, nationality, social origin or other distinguishing characteristics and shall not engage in or support discriminatory practices in line with national aspiration

(MINOR)

- Absence of complaints on discrimination

- Interview workers

During the stakeholders’ consultation, it could confirm no discrimination is found. Although difference of ethnics, it was noted that the practices are fair. The mill confirmed that there is no bias in term of SPOC and selling of FFB.

SPOC GM stress on the importance of the good practice of no discrimination. SPOC has established a form SMP-01/MSPO-SPOC/2017.

“Syarat Mengupah Pekerja Di Kebun Sawit”. Specified in the form.

Yes

4.4.3.3 Indicator 3 Independent smallholders shall ensure that worker’s pay and conditions meet legal standards as per mutual agreements.

(MAJOR)

- Applicable for monthly wages only - Absence of complaints on worker’s

pay and conditions - Evidence of mutual agreement - To assess agreement or legal

standards with actual condition - Interviews :

Workers (regular & non-regular)

Contractor

Job specification

Payment

Satisfaction

Most of the smallholders working on their own or assisted by their family member for farm works such as harvesting, spraying or manuring. If any, casual workers were used for harvesting.

Example of rates :

Judona Tangguon, Harvesting rate RM50.00 per mt FFB.

Jipanis Lampakas, harvesting rate RM50.00 per mt FFB

Yes

4.4.3.4 Indicator 4 In cases where on-site living quarters are provided, these quarters

- Acceptable living conditions for workers, when provided

- Site visits

Most of smallholders involve family member on farm operation. Casual workers were seldom sed.,The casual workers do not stay in the farm area

Yes







Yes / No

shall be habitable and have basic amenities, where available and practical.

(MAJOR)

- Interviews - Observation

4.4.3.5 Indicator 5 Children and young persons are not to be employed or exploited. The minimum age and conditions of employment shall comply with local, state or national laws. Work by children and young persons is acceptable on family farms, under adult supervision, and when it does not interfere with their education. They are not to be exposed to hazardous working conditions. (MAJOR)

- Labour Law - Child and Young Person

(Employment) Act 1966 - Interviews - Observation

Type of work that children are not allowed to do (handling of agrochemical, fertilizer, sharp tools, harvesting, handling heavy object, machinery)

Labor requirement is covered under Akta 350 which was sighted in the list of Acts. During interview with the smallholders it is confirmed that there is no child labour.

There is no child employed in the field during the site visit.

Hiring document (Syarat Mengupah Pekerja Di Kebun Sawit) specifies “Tidak sama sekali membenarkan / mengupah kanak-kanak di bawah umur 15 tahun untuk bekerja.”

The stakeholders’ consultation hasconfirmed no such issues have been noted by them.

Yes

4.4.4 Criterion 4 Training and competency







Yes / No

4.4.4.1 Indicator 1 Independent smallholders are encouraged to seek knowledge to increase their competency in oil palm management.

(MINOR)

- Training to be provided for smallholders by the group manager:

GAP

Safety

Financial management

- Interviews - Expenditure on visits or reading

materials.

Training programs have been planned on yearly basic. Training for the year 2017 have been reviewed. Example

2017

Kursus Sehari Sawit Bersama Pekebun Kecil

15/07/2017

Program Taklimat MSPO 14/08/2017, 20/10/2017

Latihan MSPO Pegawai TUNAS 26/07/2017

The training materials were reviewed. Training includes:

1. Health and safety in plantation

2. Regulation and legal requirement

3. Good agriculture practice.

Training plan for year 2018 have been planned and reviewed.

Programe Sehari Bersama Ahli Kelab 30 tan MPOB

March

Kursus Sehari Sawit, Seminar Pembangunan Perkebun Kecil

February

Lawatan Sambil Belajar Perkebun Kecil

July

Program Pensijilan Latihan GAP/KPSM/MSPO

April & May

Training includes social. Impak Sosial and Persekitaran is included in the presentation as part of their training.

Yes







Yes / No

Interview on smallholder indicates they aware on the GAP such as:

-Retaining of the soft grass, by using grass cutting machine rather that spraying.

Example: Paul Akin, Justine Akin, Clerence Welfred.

-Integrated farming with chicken and/or goats

Example: Rimin Yamin.

4.5 Principle 5 Environment, natural resources, biodiversity and ecosystem services

4.5.1 Criterion 1 Environmental management plan

4.5.1.1 Indicator 1 Independent smallholders are expected to be aware of the environmental impact but are not expected to undertake any formal impact assessment unless there is a legal requirement.

(MINOR)

- Training to be provided by the group manager

- Interviews :

Understanding of sensitive areas (rivers, steep slope, forest, wetlands, mangrove area, swamp area) in and around smallholder plot

Understanding of the agricultural impact to the sensitivity requirements

- Site visits

Environmental training is provided in the “Kursus Sehari Sawit, Seminar Pembangunan Perkebun Kecil”.

Training provided covered the impact of the chemical usage.

The presentation includes method of up-keeping and handling of chemical.

Reviewed “Senarai Impak Social, Persekitaran & Pelan Tindakan”

Example

Aktivity:

Yes







Yes / No

- Observation Meracun

Impak Persekitaran:

Pelepusan Bahan Buangan Terjadual (tong racun kosong)

Pelan Tindakan:

Pembasuhan 3X, ditebuk lubang dan disimpan di tempat khas.

Site visit indicates smallholders are aware the need to reduce pollution. There are afforded by several smallholders by using grass cutter instead of spraying chemical in their field.

4.5.2 Criterion 2 Efficiency of energy use and renewable energy

4.5.2.1 Indicator 1 The use of renewal energy should be applied where possible.

(MINOR)

- Efficiency of use of energy (diesel or electricity per tonne FFB) depending on scale of operation

- Observation on any renewal energy use (buffalo, solar, hydropower, biodiesel)

Smallholders are small plots of land. Usage of energy like diesel is already at the minimum. There is no mean to change the practise at the current moment.

There is no renewable energy used since smallholders manually collected their FFB using wheel barrow

Yes

4.5.3 Criterion 3 Waste management and disposal

-

4.5.3.1 Indicator 1 All waste products and sources of pollution shall be identified.

(MAJOR)

- All field and domestic waste are identified by the group manager

Wastes are identified and specify in “Senarai Sisa Racun Dan Domestik”

Example – Senarai sis yang terhasil dari input pertanian

Racun Perosak







Yes / No

Sisa yang dihasilkan

i. Tong racun kosong

ii. Sisa racun dari bilasan air

iii. Kain yang tercemar dengan sisa racun

iv. Tanah yang digunakan untuk menyerap sisa racun yang tertumpah ke tanah

v. Racun perosak yang tertumpah ke tanah

vi. Asap terhasil jika dibakar

Kesan

i. Menjadi tempat membiak bagi nyamuk

ii. Mencemarkan sumber air semula jadi

iii. Mencemarkan kualiti udara

Example: Senarai sisa yang terhasil bukan dari input pertanian

Sisa/Bahan buangan dari kawasan persumahan

Sisa yang dihasilkan:

1. Plastik sampah yang tidak boleh terurai

2. Tin-tin makanan yang terpakai yang tidak digunakan semula

3. Serpihan kaca yang tidak digunakan

4. Lebihan minyak masakan yang tidak digunakan

5. Bekas makanan yang tidak boleh dikitar semula







Yes / No

Kesan:

1. Mencemarkan sumber air

2. Mendatangkan kecederaan

3. Menjadi tempat pembiakan bagi haiwan yang membawa penyakit, eg nyamuk, tikus dan lipas.

Group Manager has established Kaji Selidik Penggunaan Racun & Baja Pekebun Kecil Sawit Sook for used chemicals and fertilizers. During site visit, smallholders are aware they need to dispose anmd there are individual records for disposal items which was kept by group manager.

4.5.3.2 Indicator 2 Independent smallholders shall ensure that waste from the smallholdings is disposed of appropriately. Smallholders shall adopt local and national legislation to dispose of hazardous chemicals and their containers.

(MAJOR)

- Disposal method for all waste identified in 4.5.3.1 is specified by the group manager

- All pesticide containers are treated according to the Pesticide Board recommendation of the triple rinsing and punctured

- Assurance that collected containers are not used to store food items or water for consumption.

SOP “Pengurusan Bahan Buangan Terjadual” SOP-04/BT/2016 dated 01/04/16 has been reviewed.

The procedure specifies scheduled wastes and requires proper disposal to be in accordance with the country regulation.

Lampiran 1 in the procedure specifies the schedule wastes.

For example

SW1 : Buangan logam dan buangan berasaskan logam

SW101 Buangan yang mengadungi arsenic atau sebatiannya

SW2: Buangan yang mengandungi terutamanya juzuk tidak organic yang mungkin mengandungi logam dan bahan organic

SW202- buangan mangkin

Yes







Yes / No

The procedures have specifies the disposal method. In point 8 storing method, In point 7 and labeling in point 5.

Training materials in relation to waste management was reviewed. The training topics are as follows and not exhaustive.

- Sisabaki Racun Makhluk Perosak Berlegihan

- Racun yang mengandungi pewaris aktif.

Racun tikus

Fluoroatamide (pewaris aktif)

Never been registered (status)

Site visits to smallholders indicate that the empty containers were not used other that for premixing the chemical itself.

Used empty containers were mark with an ‘x’ and stored at one place. Wastes from organic products or food were disposed in a pit.

4.5.4 Criterion 4 Natural water resources

4.5.4.1 Indicator 1 Independent smallholders can demonstrate that they understand the need to maintain the quality and availability of surface and ground water and steps are being taken for its implementation.

(MINOR)

Group manager should provide training on the following (where applicable)

- No intrusion to riparian reserve

- Maintain vegetation at riparian reserve

- Frond stacking

- Cover crops

- No blanket spraying

- Built and maintain terraces according to specification

Training provided to smallholders’ on “Kursus sehari Bersama Perkebun Kecil”

Topic covered “Pengurusan Alam Sekitar, Pemuliharaan Tanah dan Air” include the important of water quality, ground water and requirments to maintain the water quality.

Slide title “Amalan Pemuliharaan Air” has specifically specify

1. Menyediakan zon manpan

2. Pengunaan racun yang minima

Yes







Yes / No

- Silt pit 3. Pengunaan baja yang optima

4. Membina lubang kelodok

5. Menanam kekacang penutup bumi

6. Sungkupan

7. Membina teres/platform.

There were no permanent rivers within or bordering to the smallholders’ plot. Proper frond staking has been observed on smallholder’s area.

Soft grass was maintained and only circles spraying to ease the collection to loose fruits.

4.5.4.2 Indicator 2 Water harvesting practices should be implemented.

(MINOR)

- Implementation of any forms of water harvesting

Water harvesting technique has been verbally taught to smallholders during the Lawatan Khidmat Nasihat. Pit to capture rain water was taught as well. During the training water will be captured for used during dry season and reduce ground water usage.

Smallholders has rain harvesting system installed using roof gutter to collect.. It is then use for chemical spraying or drinking water as feedstock for chicken and goats.

Example: Justine Akin, Rimin Yamin, Patiman Seiyi, Imran Rimin, Maslih Ibrahim.

Yes

4.5.5 Criterion 5 Status of rare, threatened, or endangered species and high biodiversity value area

4.5.5.1 Indicator 1 Independent smallholders should show a basic understanding of any

- Interview to test understanding on any species / habitats of concern, in compliance with Wildlife Department

A wildlife list has been identified by the group manager. The list is established with participation of smallholders and stakeholders. Total of 33 species have been

Yes







Yes / No

species or habitats of concern, together with their conservation needs. Information on protected species and their habitat with high biodiversity value may be obtained from relevant government agencies, such as the Forestry Department, Forest Research Institute of Malaysia and the Wildlife Department.

(MINOR)

Malaysia and Forestry Department - Interview to test understanding on the

conservation needs of the rare, threatened, and endangered species (RTE) elements identified in above

identified.

Jabatan Hidupan Liar has been consulted in order to obtain a better understating. The list was confirmed by Jabatan Hidupan Liar during the stakeholders’ consultation.

Example

Bornean Gibbon

Leopard Cat

Clouded Leopard.

Jabatan Hidupan Liar has been involved in training the smallholders as regard to the protection of wildlife and RTE. This was confirmed during the stakeholders’ consultation. In the meeting with JHL, it was confirmed that they have not received any report of poaching or trapping of wildlife in the area.

Field interview with smallholder indicates that is no rare, threatens or endangered species. Only in some isolated occasion they have seen wild chickens or wild boars.

4.5.6 Criterion 6 Zero burning practices

4.5.6.1 Indicator 1 Independent smallholders shall not practice open burning during land preparation for oil palm cultivation or replanting, unless with the permission of relevant state authorities.

(MAJOR)

- Group manager should ensure that independent smallholders follow the GAP guidance on zero burning technique for replanting

- Observation on any evidence of open burning

Work instruction for land preparation was reviewed. “Panduan Penyediaan Kawasan Bagi Tanam Baru Sawit”

It was noted that the methodology did not mention the use of fire as a method to prepare land. The procedure has specified planting on slope and chipping. Zero Burning is mention in MSPO policies which have been given to all members and sign as acceptance.

Stakeholders’ consultation and interviewed with smallholders confirmed that there is no burning use in

Yes







Yes / No

the area for land preparation.

Site visit to smallholders’ farm indicate no open burning was observed. Smallholders interviewed do understand open burning was not allowed either in replanting process or within the farm area.

4.6 Principle 6 Best Practices

4.6.1 Criterion 1 Site management

4.6.1.1 Indicator 1 All independent smallholders oil palm farms shall implement best practices such as the MPOB Codes of Practice, Malaysian Standards, ISO Standards and and the Kod Amalan Baik (GAP) Pekebun Kecil.

(MINOR)

- Verification of certification - Status of certification - Physical observation of implemented

best practices that are practical for independent smallholders.

Field observation found out several best practices implemented by smallholders:

Retaining the soft grass cover by using circle spraying.

Reducing the use of chemical by slashing grasses.

Using cut fronds as food for the feedstock Fronds are sliced up to small pieces and used as foods for goats.

Frond stacking as part of recycling of organic waste

Integrated farming with other cash crops, such as tapioca, chilly,

Yes

4.6.1.2 Indicator 2 A visual identification or reference system shall be established for each field or block of oil palm planting.

(MAJOR)

- Identification or reference system established for each field or block of oil palm planting.

Block identification was available in form of a board with information as below:

-Name of smallholders

-Year planting

-Area statement

-Lot number

-MPOB license number

The signage was available at all smallholders’ farm observed.

Marking or present of boundary stone for verification of

Yes







Yes / No

boundary area observed. Example:

Boundary stone in between Justine Akin and Paul Akin, coordinate: 5.25922

0N 116.41919

0E

Boundary stone in between Welson Saigun and neighbouring smallholder. Coordinate: 5.28818

0N

116.448960E.

4.6.2 Criterion 2 Economic and financial viability plan

4.6.2.1 Indicator 1 Group manager shall establish a documented business or management plan to demonstrate attention to economic and financial viability.

(MAJOR)

- Documented business or management plan established, where applicable for field activities only

Plan for the year 2018 have been proposed. Reviewed “Anggaran Perbelanjaan Program Latihan Dan Ceramah Bagi tahun 2018”.

Example: Single program (100 participant)

Kursus sehari sawit

Sewa (Dewan dan Kerusi) 300

Makan dan Minum (RM12 per person) 1200

Nota Ceramah 300

Honorarium 100

Banner/Backdrop 100

Kontigensi 100

Total RM2,100

Example Yearly plan

Programe sehari bersama ahli kelab 910

Yes







Yes / No

Kursus Sehari Sawit - Tambunan 2,100

Kursus Sehari Sawit - Tenom 2,100

Kursus Sehari Sawit - Keningau 2,100

Lawatan Sambil Belajar 500

Program road show (Twice) 2,205

Program Pensijilan GAP/KPSM/MSPO 4,410

Total RM14,665

Main funding of the SPOC are currently supported by MPOB as part of government initiative to ensure compliance and certified smallholders to MSPO.

4.6.3 Criterion 3 Transparent and fair price dealing

4.6.3.1 Indicator 1 Independent smallholders are encouraged to communicate with and have consultations with dealers, millers, local communities and other affected or interested parties.

(MINOR)

- Group manager should liaise with dealers, millers, local communities and other affected or interested parties and convey related information to members and/or

- Independent smallholders should liaise with dealers, millers, local communities and other affected or interested parties

A communication has been conducted as an agreement to purchase FFB. This discussion and agreement was on 26/05/2014.

“Borang Tawaran Sebut Harge Membeli BTS Daripada KPSM Daerah Keningau Sabah Berhad” have been sighted and evaluated

During the stakeholders’ consultation, there was no issue as regards to the pricing and purchasing of the FFBs. The mill has confirmed that the purchase was done well and at times under the supervision of MPOB.

Pengurus koperasi representing MPOB has been attending meeting on monthly basis in discussion of the pricing.

Yes







Yes / No

There were Koperasi Penanam Sawit Mampan Daerah keningau Sdn. Bhd. Smallholders nearby the koperasi ramp where most of smallholders are their member.

OBS: The meeting has not been documented as evidence. This however was counter verified in stakeholder consultation and no issue arises. A documented meeting of minute as prove of discussion should be made available.

4.7 Principle 7 Development of new planting

4.7.1 Criterion 1 Oil palm shall not be planted on land with high biodiversity value

4.7.1.1 Indicator 1 Independent smallholders shall not plant oil palm on land with high biodiversity value as identified by local, state and national legislation.

(MAJOR)

- Group manager or relevant government agency should assist independent smallholders on Identification of High Biodiversity Value (HBV) area

- No development on HBV area

There was no development of new planting observed in field or based on group planting statement. Most of the land are either replanting or previously were planted with other crops such as rubber and padi bukit.

Yes

4.7.2 Criterion 2 Soil Survey

4.7.2.1 Indicator 1 Independent smallholders should obtain information on soil types, topography and their suitability for oil palm plantings from the relevant government agency. New planting plans should be prepared

- Group manager to provide soil and topography maps for cluster (where applicable)

There was no development of new planting observed in field or based on group planting statement. Thus, no requirement for group to have the topographic map for this purpose.

Yes







Yes / No

in consultation with extension service officers

(MINOR)

4.7.3 Criterion 3 Planting on steep terrain, marginal and fragile soils

4.7.3.1 Indicator 1 Extensive planting on steep terrain, marginal and fragile soils, shall be avoided unless permitted by local legislation. Independent smallholders who establish new plantings on steep terrain, marginal and fragile soils, should adopt appropriate and viable conservation measures.

(MAJOR)

- Soil and suitability map for oil palm - Appropriate and viable conservation

measures - No development on unsuitable area

for oil palm

Group manager can provide these but is not practical for independent smallholders

There was no development of new planting observed in the field or based on group planting statement.

Yes