1
PUBLIC SUMMARY THIRD SURVEILLANCE ASSESSMENT
AUDIT DATE : 15TH
– 16TH
JULY 2013
PPB OIL PALMS BERHAD RIBUBONUS CERTIFICATION UNIT
Sandakan District, Sabah, Malaysia
Prepared by:
SIRIM QAS INTERNATIONAL SDN. BHD. Building 4, SIRIM Complex
No. 1, Persiaran Dato’ Menteri, Section 2 40700 Shah Alam, Selangor Darul Ehsan
MALAYSIA Tel: 603 5544 6448 Fax: 603 5544 6763
Website: www.sirim-qas.com.my
TABLE OF CONTENT
1.0 SCOPE OF THE CERTIFICATION ASSESSMENT 1.1 Introduction 1.2 Location of Mill and Estate 1.3 Production Volume of All Certified Products 1.4 Certification Details 1.5 Description of The Supply Base 1.6 Planting Profiles 1.7 Organizational Information/Contact Person(s) 2.0 ASSESSMENT PROCESS 2.1 Certification Body 2.2 Assessment Team 2.3 Assessment Methodology 2.4 Date of Next Surveillance Visit 3.0 ASSESSMENT FINDINGS 3.1 Summary of Findings 3.2 Identified Non-Conformities
3.3 Status of Non-Conformities Previously Identified 3.4 Noteworthy Positive Observation 4.0 ASSESSMENT RECOMMENDATION 5.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL
RESPONSIBILITY AND FORMAL SIGN-OFF OF ASSESSMENT FINDINGS
Tables: Table 1 Location of Mill and Estate
Table 2 Total and Composition of Workers in the CU
Table 3 Actual Production of CPO and PK (MT) by Ribubonus CU in 2012
Table 4 Actual ( Jan – Jun 2013) and Estimated (Jul – Dec 2013) of CPO and PK by Ribubonus CU
Table 5 FFB Contribution by Ribubonus Estate and Other Sources to RPOM in 2012 and 2013
Table 6 Planted Area in Ribubonus Estate by Age and Planting Cycle
Attachments: Attachment 1 Location Map for Ribubonus Certification Unit
Attachment 2 RSPO Surveillance Assessment Programme
Attachment 3 Detail of NCRs and Corrective Actions Taken
Attachment 4 Verification of Previous Audit Findings
1.0 SCOPE OF THE CERTIFICATION ASSESSMENT 1.1 Introduction The certification unit (CU) being assessed in this surveillance was the Ribubonus CU which is a subsidiary of the Sabahmas Plantations Sdn Bhd. (SPSB), a wholly owned company of PPB Oil Palms Berhad (PPB Oil Palms). The Ribubonus CU comprises the Ribubonus Palm Oil Mill (RPOM) and Ribubonus Estate. The Stage 2 audit on the Ribubonus CU against the requirements of the RSPO MY-NI: 2008 was conducted by SIRIM QAS International Sdn. Bhd. (SIRIM QAS International) on 1 October 2009 and the CU was certified on 7 September 2010. RPOM commenced operations in February 2008 with a processing capacity of 30 metric tonnes (MT) of fresh fruit bunches (FFB) per hour. During the conduct of this surveillance, the mill was operating with only one shift. As Ribubonus Estate was fully developed, Principle 7 of the RSPO Principles and Criteria (P&C) was therefore not applicable. 1.2 Location of Mill and Estate
RPOM and the Ribubonus Estate are located in Sandakan District, Sabah, Malaysia. The Ribubonus Estate can be accessed by using the Sandakan – Telupid Road and the estate is about 157 km from the town of Sandakan. Ribubonus CU is bordered by agricultural land on the north-west separating it from the Ulu Tungud Forest Reserve. The Bukit Kuamas Forest Reserve borders the eastern portion of the estate with Kg. Wonod and Twin Acre Plantation located at the southern side. The Labuk River passes through the western boundary of this CU. The map of the Ribubonus CU (mill and estate) is shown in Attachment 1 while their coordinates are detailed in Table 1 below.
Table 1 Location of Mill and Estate
Operating Unit Latitude Longitude
RPOM 5° 41' 19.977" N 117° 05' 34.150" E
Ribubonus Estate 5° 41' 32.763" N 117° 05' 49.962" E
(Note: The coordinates are for the offices of the palm oil mill and estates) 1.3 Production Volume for All Certified Products The actual and estimated tonnage (MT) of crude palm oil (CPO) and palm kernel (PK) produced by the RPOM is shown in Tables 3 and 4 respectively.
Table 3 Actual Production of CPO and PK (MT) by Ribubonus CU in 2012
FFB Received 122,049.98
FFB Processed 122,092.95
Total CPO Production 28,343.928
Total PK Production 5,381.471
Certified CPO to be Claimed – Mass Balance 16,169.13
Certified PK to be Claimed – Mass Balance 0.00
Non-Certified CPO 10,387.94
Non-Certified PK -
Table 4
Actual (Jan – Jun 2013) and Estimated (Jul – Dec 2013) Tonnage (MT)of CPO and PK Produced by RPOM
Actual (Jan-June 2013)
Estimate (Jul-Dec
2013)
Total (Jan-Dec
2013)
FFB Received 56,106.18 64,532.75 120,638.930
FFB Processed 56,046.77 64,592.16 120,638.930
Total CPO Production 12,724.30 14,864.32 27,588.617
Total PK Production 2,398.03 2,796.01 5,194.042
Certified CPO to be Claimed – Mass Balance 8,636.79 8,744.92 17,381.710
Certified PK to be Claimed – Mass Balance 1,316.13 1,620.17 2,936.300
Non-Certified CPO 5,822.61 5,998.74 11,821.350
Non-Certified PK 1,146.54 1,152.73 2,299.270
1.4 Certification Details The name of the certified Unit and its RSPO identification are as follows: Parent company: PPB Oil Palms Berhad, Certificate number: RSPO 009 The date of certification : 7 September 2010 1.5 Description of The Supply Base The Ribubonus Estate had been supplying FFBs to RPOM. Apart from the Ribubonus Estate, there were independent smallholders and small growers which had been sending their FFBs to RPOM. The average annual FFB contribution from the estate and outside sources to RPOM is summarised in Table 5.
Table 5 FFB Contribution by Ribubonus Estate and Other Sources to
RPOM in 2012 and 2013
FFB Supplier
FFB Production (Actual Jan-Dec 2012)
FFB Production (Actual Jan - June 2013)
FFB Production (Estimated July – Dec
2013)
MT % MT % MT %
Ribubonus Estate
73,589.94 60% 35,117.85 63% 37,849.63 59%
Outside Suppliers
48,460.04 40% 20,988.33
37% 26,683.12 41%
Total 122,049.98 100% 56,106.18 100% 64,532.75 100%
1.6 Planting Profiles Table 6 details the year of establishment of the Ribubonus Estate, area planted with oil palm and the percentage of planted area in the estate by age and planting cycle.
Table 6 Planted Area in Ribubonus Estate by Age and Planting Cycle
Year of Planting
Planting Cycle 1
st / 2
nd Generation
Planted Area (ha) Percentage of Planted Area
2000 First 219.03 8
2001 First 1,533.54 56
2002 First 944.84 35
2007 First 17.85 0.50
2009 First 14.54 0.50
Total 2,729.80 100
1.7 Organizational Information/Contact Person The details of the contact persons are as shown below: Address: PPB Oil Palms Berhad Sabah Operations Lot 1A, KM 15, Jalan Labuk Locked Bag 34 90009 Sandakan Sabah Malaysia Contact person: (in Sandakan) Mr. Tee Seng Heng General Manager Phone : +6089 671546 / +6089 670208 Fax : +6089 670260 e-mail : [email protected]
2.0 ASSESSMENT PROCESS 2.1 Certification Body SIRIM QAS International is the oldest and leading certification, inspection and testing body in Malaysia. SIRIM QAS International provides a comprehensive range of certification, inspection and testing services which are carried out in accordance with internationally recognised standards. Attestation of this fact is the accreditation of the various certification and testing services by leading national and international accreditation and recognition bodies such as the Department of Standards Malaysia (STANDARDS MALAYSIA), the United Kingdom Accreditation Services (UKAS), the International Automotive Task Force (IATF), and the Secretariat of the United Nations Framework Convention for Climate Change (UNFCC). SIRIM QAS International is a partner of IQNet, a network currently comprising of 36 leading certification bodies in Europe, North and South America, East Asia and Australia. SIRIM QAS International has vast experience in conducting assessment related to RSPO assessment. We have certified more than a hundred palm oil mills and several estates to ISO 14001 & OHSAS 18001. We have also conducted pre assessment against RSPO Principle and Criteria. SIRIM QAS International was approved as a RSPO certification body on 21
st March 2008.
2.2 Assessment Team The assessment team consisted of four assessors. The details of the assessors and their qualification are detailed below:
Assessment Team
Role/Area of RSPO Requirement
Qualifications and Experiences
Dr. S.K. Yap Assessment team leader/ estate environmental issues and HCV habitats
Completed RSPO Lead Assessor Course - 2008
Successfully completed EARA approved lead Assessor course for ISO 14001: 2001
Ph. D. (Forest Biology) University of Aberdeen (Scotland) and University of Malaya Fellowship in Tropical Rain Forest Project.
B.Sc. Hons. Second Class Upper (Botany), University of Malaya
Memberships in Professional Organizations:
Member of the IUFRO Working Party on Seed Problems. Nominated as one of the candidates for the Co-Chairman of Working Party in 1986.
Project Leader for Project 8 of the Reproductive Biology of Tropical Trees of the ASEAN-Australian Tree Improvement Programme. 1986. Given the role to develop research activities on reproductive biology within ASEAN countries with sponsorship from Australia.
Elected member of the Committee on Forest Tree and Shrub Seeds of the International Seed Testing Association. 1989 to 1992.
Vice Chairman of the Working Group on Seed Origin and Genetic Resources of the ASEAN Canada Forest Tree Seed Centre. 1990 to 1995. Responsible in coordinating research activities on genetic resources within the ASEAN countries.
Project leader on Impact of Acid Precipitation on Forest working in conjunction with researchers from China, Indonesia, Japan and Thailand.
Mohamed Hidhir Bin
Lead Assessor / Milling
Bc. Eng (Hons)Chemical Engineering, Universiti
Zainal Abidin Operation,
Occupational Health and Safety
Kebangsaan Malaysia (2006)
AESP and AGT for Confined Space, NIOSH (2009)
Lead Assessor Course for QMS, EMS and OHSMS, IRCA/RABQSA (2012)
Attended RSPO Training
Working experience in palm oil mill
Dr. Rusli Mohd Assessor / Social issues and related legal issues
PhD Forestry-Policy.
M. Phil. Forestry-Policy.
B.Sc. Forestry.
Attended RSPO Training
Mr. Selvasingam a/l T Kandiah
Assessor / Good Agricultural Practices (GAP) and related legal issues
Attended training on RSPO Principle &
Criteria and RSPO certification requirements
B. Sc. (Hons) Agriculture – University of Agricultural Sciences, Hebbal, Banglore, India (1969-1973)
Assistant Estate Manager, Kumpulan Guthrie Berhad (1974-1979)
Senior Assistant Estate Manager, Guthrie Berhad (1979-1994)
Estate Manager, Guthrie Berhad (1995-2002 – retired)
Managing and supervise the following activities
Nursery for rubber and cocoa
Supervise Plantings activities for : Cocoa Replant, Rubber Replant, Oil Palm Replant, Oil Palm Replant, Oil Palm New Clearing
Supervise Upkeep Immature & Areas : Cocoa Replant, Rubber Replant, Oil Palm Replant, Oil Palm Replant, Oil Palm New Clearing
Collection : Cocoa Harvesting, Tapping, FFB Harvesting, Cocoa (i.e. Splitting Cocoa Pods & Fermenting and Drying Beans), Oil Palm – In field collection (i.e. Buffalo, Jamsa, Mini Tractor, Crane Loading, Bin Loading (Jamsa))
Vehicle Maintenance & Workshop : Mini Tractors, Jamsa, Lorries – Tippers and Flat Body, Prime Movers, Jeeps
Estates Developments : Collection of Data for Monitoring Estates’ Performance, Organizing Seminars, Meetings, Forecasting Workers Housing Requirement for Company, Forecasting FFB Yield & Oil Extraction Ratio for Company, Assist in Budget Formatting and Budget Preparation, Assisting Computerization of Budget Preparation, Formulation of Best Practices
Mr Hazani Othman
Assessor / RSPO Supply Chain Certification Standard
ISO14001 Environmental Management System.
Successfully completed EARA ISO 14001 Environmental Management System approved Lead Assessor course.
Successfully completed IRCA ISO 9001 approved Lead Assessor course.
Successfully completed RSPO P&C Lead Assessor course.
Attended RSPO P&C certification requirement training.
General Manager, Department of Technical,
Forest Plantation Development Sdn. Bhd. 2009-2011.
Head, Department of QA/QC, Hoto Stainless Steel Industries Sdn. Bhd. 2006-2009.
Bachelor of Forestry, Universiti Pertanian Malaysia.
Diploma in Forestry, Universiti Pertanian Malaysia.
Mr. Ismail Ibrahim
Assessor/Supply Chain
Diploma in Forestry (1978) MARA Institute of Technology (UiTM).
Bachelor Business Administration (Management) (1985), Eastern Michigan University.
Executive Programme in Management (1990), (Marketing Management and Physical Distribution), Netherlands International Institute for Management.
Conduct audits for chain of custody certification under the Malaysian Timber Certification Scheme.
Conduct audit for RSPO supply chain certification.
Review audit reports for certification of forest management and RSPO sustainable production of palm oil.
Successfully completed ISO 14001 EMS RABQSA/IRCA approved Lead Assessor – 2010
Successfully completed ISO 9001 QMS RABQSA/IRCA approved Lead Assessor – 2012
Successfully completed RSPO Supply Chain Lead Assessor course (2012).
2.3 Assessment Methodology The main objectives of this surveillance were to: (i) verify the Ribubonus CU’s continued compliance against the RSPO MYNI:2010 and the RPOM
against the requirements of the RSPO Supply Chain Certification Standard, November 2011; (ii) verify the effectiveness of implementation of corrective actions to address the minor NCRs raised
during the previous surveillance; and (iii) make appropriate recommendations based on the findings of this surveillance on the continued
certification of the Ribubonus CU for sustainable production of palm oil products and the RPOM for supply chain.
The surveillance assessment was guided by the sampling formula of 0.8 √y. Nonetheless, the estate was visited in this assessment and was being assessed against all the elements of the standard. The mill was also assessed in this assessment. The assessment team carried out field and office assessments for conformance against the RSPO-MYNI: 2010. There were site visits to HCV habitats, labour lines, storage areas and other workplaces. Common systems were identified and specific evidences were recorded for the estate. Interviews, particularly those with employees, local communities and suppliers were conducted formally as well as informally, without the presence of the CU’s management personnel. In addition, records as well as other related documentation were also being reviewed. The assessment programme is as in Attachment 2. 2.4 Date of Next Surveillance Visit The next surveillance assessment will be conducted within nine to twelve months from this audit.
3.0 ASSESSMENT FINDINGS 3.1 Summary of Findings The findings of this surveillance assessment were presented during the on-site closing meeting. There were four (4) major nonconformity reports (NCRs) being raised on the Ribubonus CU’s compliance against the requirements of the RSPO MYNI: 2010. The details of these NCRs and the corrective actions taken are as in Attachment 3. The detailed findings of the assessment on the CU’s compliance with the requirements of the RPSO MYNI: 2010 are as follows: PRINCIPLE 1: COMMITMENT TO TRANSPARENCY
Criterion 1.1
Oil palm growers and millers provide adequate information to other stakeholder on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. Criterion 1.2
Management documents are publicly available, except where this is prevented by commercial confidentially or where disclosure of information would result in negative environmental or social outcomes. This concerns management documents relating to environmental, social and legal issues that are relevant to compliance with RSPO Criteria. Documents that must be publicly available include, but are not necessarily limited
to:- 1.2.1 Land titles / user rights (C 2.2) 1.2.2 Safety and health plan (C4.7) 1.2.3 Plans and impact assessments relating to environmental and social impacts (C 5.1, 6.1, 7.1, 7.3) 1.2.4 Pollution prevention plans (C 5.6) 1.2.5 Details of complaints and grievances (C 6.3) 1.2.6 Negotiation procedures (C 6.4) 1.2.7 Continuous improvement plan (C 8.1)
Findings: As noted in the previous surveillance, the estates had continued to maintain management documents relating to environmental, social and legal issues that were relevant to compliance with RSPO Criteria as specified in the Criterion. Records on requests for information or for these documents were still being maintained. Letters were sent to stakeholders on 11 June 2013 informing them that documents specified in the Criterion were available for inspection in the offices of the estates. The record books on requests for information had shown that Ribubonus CU had not received any request for such information from external stakeholders.
PRINCIPLE 2: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
Criterion 2.1
There is compliance with all applicable local, national and ratified international laws and regulations
Findings: A legal register, RSPO Register of Legal and Other Applicable Requirement with all applicable laws was presented. There was an established system for tracking changes in laws. The Sustainability Manager had been working with the legal department, relevant agencies and mass media to track any changes in the law. The list was updated with amendments added and approved on 3 June 2013 by the Sustainability Manager. The revised document included the new legislation National Wages Consultative Council Act - Minimum Wages Order 2012 and The Electricity Supply Act 1990. All the relevant permits and licenses were made available in each of the estate. These documents were found to be valid and to be in compliance with the conditions and by-laws. All permits and licenses were displayed prominently in the office of the estate. During this surveillance, it was found that all certificate of fitness (CF) of steam boilers, unfired pressure vessel (UPV) were in place and still valid. The mill had continued to monitor smoke and dust particulates emission from the boiler and effluent discharges from the effluent treatment plant which were found to be still within the regulation limits. The following non-compliances related to legal requirements were observed and therefore a major NCR RB 1/2013 was issued: (a) RPOM has not complied with the Jadual Pematuhan Kilang (No. Lesen: 001854) with reference to
requirement of competent person responsible for effluent treatment system in the mill; (b) Ribubonus Estate had not obtained the approval of the DoE as required under Regulation 7 of
Environmental Quality (Scheduled Wastes) Regulation 2005 to transport clinical wastes; (c) There was no competent person-in-charge of the electrical installation to replace the grade A1
chargeman who had resigned in March 2013; (d) Ribubonus Estate had not obtained the approval of the DoE as required under Regulation 36 of
Environmental Quality (Clean Air) Regulation 1978 pertaining to installation of 3 units of generator sets; and
(e) RPOM and Ribubonus Estate had no competent person as required under Regulation 23(1), Person in charge of Electric Supply Act 1990 – Section V (Competent Control) to be in charge of the internal combustion engine (ICE).
A Register of Legal and Other Applicable Requirement for PPB Oil Palms Berhad dated 3 February 2009 was updated on 6 June 2013 with addition of 5 new legal documentations. International conventions which had been rectified by Malaysia were included in the list. The CU had continued to implement the mechanism for ensuring compliance to the applicable legal and other requirements by the Sustainability Manager, East Malaysia. The monitoring was conducted against the register of the applicable legal and other requirements and the results were presented.
Criterion 2.2 The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights.
Findings: Ribubonus Estate had a 99 year lease on the land from the Sabah State government and the condition of the lease was for ‘Agriculture Purpose’. The estate was still found to be in compliance with that lease condition. During the site inspection conducted in the estate, it was observed that there were still distinct red coloured wooden boundary markers. The positions of these markers were labeled and marked on the boundary stone maps and the position of each marker recorded.
As reported in the previous surveillance audit report, there was a claim to a land in Ribubonus Estate by the local villagers from Kampung Telupid Batu 4 and Kampung Gading. Although the villagers had registered a broad unspecified interest they were still in the process of establishing their claim through the gathering of evidence. There had been no further progress in the land dispute involving the CU and Kg. Telupid. The villagers had yet to present their case to the government authority for further action as proposed by the management of the CU.
Criterion 2.3
Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.
Findings: Through the stakeholders consultations and the established procedure for identifying legal and customary rights and for identifying people entitled to compensation (Process for Identification of Legal and Customary Rights and Identifying People Entitled for Compensation), the Ribubonus Estate had clarified its legal rights over the disputed land with the Persatuan Rakyat of Kampung Telupid and established the fact that the CU had not been involved in any illegal occupation of NCR land. There had been no new dispute being reported during the intervening period since the last surveillance audit. PRINCIPLE 3: COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY
Criterion 3.1
There is an implemented management plan that aims to achieve long-term economic and financial viability.
Findings: A management Plan including a crop forecast and infra-structure development (agricultural machinery, roads, houses etc.) covering the period of 2011 to 2014 was made available. The CAPEX document for 2012/2013 had shown that most of the budgeted expenses were for mill continual improvement on modification and machine upgrades as well as on safety and environment such as the construction of composting plant on concrete yard which would improve on leachates management and holding ponds for de-sludging. Accommodation and facilities upgrades for staff quarters and executive bungalow had also been included in the budget. A Five Year FFB Yield Projection from 2012 to 2016 was presented. The projected Yield per Hectare (YPH) for the estate were 31.42, 30.36, 30, 29.58 and 28.59 MT/ha for years 2013, 2014, 2015, 2016 and 2017 respectively. In addition, cash flow projections were made available from the years 2009 to 2024. It covered records of plantable and cumulative planted areas, FFB yields and Ex-estate cost. These records had shown that there would be no replanting up to the year 2024. PRINCIPLE 4: USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS
Criterion 4.1
Operating procedures are appropriately documented and consistently implemented and monitored.
Findings: Ribubonus Estate had continued to use its Agriculture Manual and Standard Operation Procedure [Manual and SSOP] as the documented operating procedure. Records on fertilizer application, pest and diseases control as well as weeding regimes had continued to be done in accordance to these SSOPs. There was a new SSOP on the use of motorbikes within the estate ground. As in the estates, the mill had continued to implement its own Mill Operation Manual and SSOP that
covered aspects related to oil palm processing, boiler operation, effluent treatment plant, products analysis method, workshop activity and chemical and waste handling procedures. There had been no change on the procedures since the last audit. Records of mill operation were still being maintained and station log-sheets for sterilizer, press, engine room and kernel plant, smoke emission from boiler (extracted from CEMS system), effluent treatment plant discharge records and waste disposal records were examined. The KPI system which was introduced in 2011 had continued to be used for monitoring purposes. The records made available on KPI for harvesting covered categories: good, unripe, rotten and old bunches, long stalk and loose fruit collection. In the estate, monthly progress for 2013 (until June) and annual reports for 2008, 2009, 2010, 2011 and 2012on monitoring of all activities were made available during the surveillance. Reports of visits by the Group Plantation Adviser and the Head of the R and D dated 1 April 2013 and 1 September 2012 respectively were also made available. These monitoring reports were kept and maintained in the estate offices for at least a year. Schedule and Completion Sheets for operations like weeding, fertilizer and EFB application as well as on road maintenance were still being used to monitor work progress. In the mill, monthly and quarterly records on monitoring effluent, black smoke and scheduled waste had continued to be submitted to the DoE. For the estate, the monitoring records as specified by the Environmental Protection Department such as “Laporan Pemantauan dan Pematuhan Syarat-syarat Alam Sekitar” and records on scheduled wastes were still being maintained. All these records were retained for not less than 12 months. In addition to these reports, PPB Oil Palms had continued to submit the MPOB (EL) MF4 and MPOB PX4-MF on monthly basis as part of the formal performance reports. These monitoring reports were kept and maintained in the offices for at least a year.
Criterion 4.2
Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield. MY-NIWG recommends that the indicators in criterion 4.2 and 4.3 are linked
Findings: Soil fertility had continued to be maintained by regular application of inorganic fertilizers and empty fruit bunches (EFBs) mulching, proper frond stacking (biomass), POME application, and by maintaining soft weeds within interlines. An EFB Application Programme was presented to the audit team. Foliar sampling had continued to be carried out yearly and the results had formed a basis for fertiliser recommendation. Fertilizers recommendation for the period of 2013 had been prepared based on the foliar sampling done in 2012. The latest sampling was carried in March 2013, the results of which would form the basis for the fertiliser recommendation in 2014. Until June 2013, the estate had applied as recommended NPK (898 MT), Dolomite (218 MT), Kieserite (149 MT) and 653 MT of NK3. Soil sampling as per ISCC requirement was also done every 6 years and the latest Soil Carbon samplings done on 6 June 2011. Ribubonus Estate had a programme to apply as organic fertilizer a total of 38,465 MT of EFBs for the years 2012 and 2013. In 2012 and 2013 (until June), 12,972 MT and 9,439 MT respectively of EFBs had been applied. The monthly records of the EFB usage (block by block) were made available along with maps of application for 2012 and 2013. The EFBs were applied at a rate of 80 tonnes per hectare and laid out as a single layer to allow better decomposition and loss of nutrient. POME after being treated, had continued to be discharged for land irrigation. Monitoring of POME application was still being recorded in “Laporan Pembuangan Sisa Kilang”.
Criterion 4.3
Practices minimise and control erosion and degradation of soils.
Findings: It was observed that terraces had been constructed in all sloping areas with regular bunds to retain water and as erosion control measure. Generally, the terrains of the estate were gentle and undulating with only 0.02% above 25%. The application of EFBs as fertilizer had further assisted in reducing erosion. Fronds staking and the planting of Mucuna bracteata and Vertiva grass had also continued to reduce erosion along steep slopes. Rain water had continued to be drained into the terraces on the lower slopes. Generally, it was observed that the estate had continued to be well protected from soil erosion with natural vegetation. A map to indicate the planting of Mucuna bracteata was also presented. On terraced areas, stacked fronds and stop bunds had helped to further reduce the incidences of erosion. It was also observed that the fern Neprolepis biserrata cover along slopes had helped to reduce exposed areas. There was no bare ground in the estate. As specified in the EIA approval by the Sabah Environmental Protection Department, steep slopes above 25º had continued to be excluded from planting. These slopes had been demarcated with a proper sign being erected. It was observed that harvesting roads in the estate were still of satisfactory condition and that water runoff was found to be adequate. Silt pits were seen during the inspection. The estate had a good supply of stones from its own quarry as such it had been able to maintain a well paved road. The roads were well cambered. In low lying areas, drains were still being cleaned and maintained using excavators. The road maintenance programme had continued. The estate even had ready packed stones in fertilizer bags placed at strategic points in the fields to be used for road maintenance. There was no peat soil or fragile soil in Ribubonus Estate.
Criterion 4.4
Practices maintain the quality and availability of surface and ground water.
Findings: The Riparian Zone Management Guidelines for protection of riparian belts along the major rivers had continued to be used. It was observed that the boundaries of these riparian belts were still being clearly demarcated with red paint around the palm stems and with blue signboards. Natural vegetation had continued to colonize these riparian buffer belts as no weeding or fertilizer application had been allowed. It was observed that there was no construction of bunds/weirs/dams across the main rivers or waterways in the estates and that all stream and drainage were without any obstruction. Water sampling had continued to be conducted 3 times a year at specified sampling points along the main rivers in the estate. Monitoring reports for the periods of November 2011 to February 2012, March to June 2012, July to October 2012, November 2012 to February 2013 and March to June 2013 indicated that the water quality was of Class II B. Water quality at the final discharge point from the mill had continued to be monitored monthly. The results of monitoring had indicated that the mill’s discharge had continued to comply with the prescribed parameters and limits. Water for the estate and mill was still being sourced from Sungai Labuk and treated in the two treatment plants. Procedures on minimizing water usage were still being implemented in all the offices, mills and estates. Rain water harvesting was still being done in line sites and estate complexes.
A Water Management Plan to conserve water for estate and workers quarters was made available. The Plan had continued to be implemented in all the offices, mill, the clinic, Humana School and workers quarters. The objective of the plan was for efficient use of water. Awareness program and monitoring of water usage had also continued to be implemented. Training was conducted for all the workers on the water management. To improve the harvesting of rain water, every house had been equipped with its own rain water collection tank. It was reported that the amount of treated water used had been reduced in the labour line as bigger water storage tanks were installed. Ribubonus CU had continued to monitor the amount of water being used by the mills and the estates. The water used was segregated for domestic and mill process consumptions. It was observed that the records of the mill’s daily and monthly water use (litres of water per ton of FFB) were being kept A Summary Process Water and Domestic Water Consumption Year 2011, Year 2012 and Year 2013 and Ribubonus Estate Water Management Plan were reviewed.
Criterion 4.5
Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.
Findings: Ribubonus Estate had continued to implement the Integrated Pest Management (IPM) in the estates. One of the techniques used was establishing beneficial plants along road sides and vacant areas. The estate had been aggressively planting beneficial plants and the records showed that the last planting was done in July 2013. In the field Cassia cobnensis, Turnera subulata and Antigonon leptopus were often sighted. Nettle caterpillar and bag worm attacks had been monitored monthly as specified in Chapter 8 of the Agriculture Manual. In 2013, there were no serious attacks of these pests as shown by the monthly monitoring. No rat baiting was done in the year as no serious damages had been detected. The monitoring on the extent of pest was conducted by monthly census. Data on the incidences of bagworm and nettle caterpillar attacks were made available during the surveillance. Ribubonus Estate had continued to record areas being sprayed with pesticides in the field cost books, programme sheets and bin cards. As the pest threshold levels had been low in 2012, no pesticides had been used. The uses of pesticides had continued to be monitored in the chemical register, which was reviewed during this surveillance audit. The CU had continued to maintain the Register of Chemicals Hazardous to Health and Chemical List (Senarai Rekod Bahan Kimia) to record all chemicals it had used such as herbicides, insecticides, fertilizers, oil, lubricants and chemical for water treatment.
Criterion 4.6
Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.
Findings: All chemicals usage was still based on the ‘need to do basis’ to enhance field operations. There were still written justifications in the SOPs on the use of agrochemicals. The Agricultural Manual had included a chemical register which indicates the purpose of usage (intended target), hazards signage, trade and generic names. Pesticides being used were those officially registered under the Pesticides Act 1974 (Act 149). The CU had continued to implement the PPB’s Oil Palm’s Occupational Safety and Health Policy, plan and programme across all levels of the organization. Hazard identification, risk assessment and risk control (HIRARC) records, as well as CHRA records were verified during this surveillance. The recommendations of the CHRA had continuously been implemented through the yearly medical surveillance programme for the sprayers by an Occupational Health Doctor and
monthly assessment of pregnancy by estate’s medical assistance. The storage of chemical herbicides was still in accordance to the related legal requirements. Chemical stores in all the estates were still with locked doors. Records of the purchase, storage and use of agrochemicals had continued to be properly documented in the Stock Statement Return. All stores were still being locked and a specific person-in-charge assigned to attend to it. The appropriate PPE for handling these chemicals were still made available at the point of use. Used chemical containers had continued to be triple-rinsed before being disposed. Fertilizer bags were also being recycled following triple-rinsing. Wastewater from triple rinsing was collected and re-used for field spray application. Specific rinsing facility was observed at the chemical store The disposal or destruction of empty chemical containers was found to be in accordance with legal requirements. This process was also stated in the Evaluation of Environmental Aspects and Impacts of the CU. The Material Safety Data Sheet (MSDS) instructions written in Malay had continued to be displayed at the store as well as on the back of the tank used to transport pre-mixed chemicals to the field. After spraying a warning sign was put up on site to inform people on chemical application. Ribubonus CU had continued to implement the schedule for medical surveillance of its workers. Monthly medical surveillance was still being conducted by the Estate Medical Assistant on the sprayers who were exposed to the potential dangers of chemicals. Records on the check up from January to December 2012 were presented during the surveillance. The medical reports had shown that all sprayers were healthy and suffered no detrimental effects as a result of their job. In addition to the above, all the sprayers had continued to undergo an annual medical surveillance carried out by a registered Occupational Health Doctor. Monthly consultations had continued to be conducted in the estate clinics for pregnant and lactating women. All pregnant and breast-feeding women were still not being allowed to work as pesticides sprayers. There was no evidence to show that ‘Paraquat’ had been used in any of the estates. In addition, there was no aerial spraying being conducted in the estate. The mill had not received any request to conduct tests on chemical residues in CPO.
Criterion 4.7
An occupational health and safety plan is documented, effectively communicated and implemented
Findings: Ribubonus CU had continued to adopt the PPB Group’s Occupational Health Safety policy. There were 8 subsidiary policies all were still being displayed in the mill and estate offices and at strategic locations in RPOM. These policies, OSH plan and programmes had been communicated and implemented at all levels of the CU. The OSH programmes had included activities on the safety and health committee, trainings, workplace inspections and quarterly safety health committee meetings. Interviews with employees showed that they were aware of the OSH policy, objectives and programmes and generally understood their requirements. The OSH plan had been improved and continued to address among others issues related to hazard identification risk assessment and risk control (HIRARC), medical surveillance programme. Safety committee meeting and workplace inspection on quarterly programme, OSH training among staff and also the 3
rd party inspection and monitoring programme as required under USECHH 2000 regulation.
PPB Oil Palms (Sabah Operations) had established OSH objectives and targets for 2013. The first was on the Lost Time Injury Rate (LTIR) for occupational accident cases involving lost days. For every 200,000 working hours the LTIR was targeted to be below 5. Reduction of total accidents by 30% for the estates and mills on three years average (2010-2012) and zero occupational fatalities were targeted. Objectives and targets were monitored on monthly, half yearly and yearly basis based on the accident statistics submitted by the estates and mills.
OSH performance had continuously been monitored and accident cases managed in accordance to NADOOPOD Regulations 2004. Accident records were kept and reviewed. An accident scoreboard was made available at mill and estate and updated regularly to show the current OSH performance status. Accident investigation was still being done by the OSH committee and its reports were in the format standardized for all the palm oil mills within the group. The CU had continued to submit reports to DOSH in JKKP 6 and JKKP 8 in a timely manner. During the 2012 surveillance, OFI RB 1/2012 was raised as OSH yearly plan for estate and mill could be improved by including the legal compliance program such as periodic monitoring activities to comply with USECHH regulation 2000, annual mill inspection for Steam Boiler and UPV, Health and Safety Committee Regulation 1970 and other applicable legal requirements. Discussion on accident statistics was also not clearly presented in the minutes of safety committee meeting. With the mitigation actions implemented this OFI was closed out. Hazard identification, risk assessment and risk control (HIRARC) register was verified during this surveillance. HIRARC for RPOM had been revised and updated on June 2013 after the occurrence of an accident at the workplace. Rating and hierarchy of control had been revised as a preventive measure and precaution to the workers at workplace. The HIRARC register for estate operations had also been reviewed in July 2013 to cover all of its activities. The latest revision had included maintenance operation on the ferry and boat. However, the coverage of the risk assessment being done on the following had been rather inadequate: (a) Discharge of steam and condensate from the boiler and power house into the open drain; (b) Uncovered drain near the mill compound (monsoon and sludge drain, steam condensate); and (c) Confined space hazards while doing maintenance inside the ferry hull. As an OFI RB 1/2012 was raised during the previous surveillance on the same issues, thus this OFI was therefore upgraded to a major NCR RB 2/2013.
Reassessment of the CHRA for RPOM within the 5 years validity period was done by a competent Hygiene Technician 1. All work units of the mill operation had been risk assessed in terms of exposure to hazardous chemicals, fumes and other inhalable dust. The results were tabled in Form F as a recommendation by the assessor for additional control measure for the individual work unit. Other monitoring activities as required by USECHH 2000 regulation had been carried out. Chemical exposure monitoring was conducted on September 2012 covering the 2 hazardous chemicals used in the laboratory i.e. n-Hexane and Iso-Propyl Alcohol and 1 inhalable dust at kernel plant. The result was found to be below permissible exposure limit (PEL).
Medical surveillance as recommended by CHRA assessor had been carried out in July 2013 which involved total of 21 workers from different work units. A registered Occupational Health Doctor (OHD), DOSH had examined all the workers that were exposed to hazardous chemical on their routine jobs. All workers were found fit to work without any occupational disease that required medical removal protection. The issuance of PTW (permit to work) for all the hazard areas such as confined space and working at height and other contractor’s job in in the premise was sighted during the audit. As part of administrative control, warning signage for confined space and high decibel area and SSOP was still being widely displayed at workplace. Workers interviewed had demonstrated they understood the reasons and the importance of wearing PPE. Those who worked with chemicals had been trained on the use of PPE, material safety data sheet (MSDS) attached to products with emphasis on precautions to be observed at all times, and safe work practices based on chemical handling procedures. During this surveillance audit, all employees at mill and estates had continued to adhere to the requirements of donning PPE in their workplace. First aid boxes were still being placed at several strategic locations at the mills and were also provided to each of the field supervisors. Trained First Aiders were present in the field and mill. Emergency procedures existed and instructions during emergency were understood by those workers interviewed. Emergency response plan had been tested for both mill and estate. Emergency fire evacuation drill was conducted on 3 May 2013 in RPOM. The objective of the drill had been achieved and
the total evacuation time was within the evacuation time objective. The CU had continued to inspect and test the readiness of fire hydrant and fire alarm systems. Electric and diesel standby pumps were being tested during this assessment and were found in the good working condition. For the fire fighter preparedness, RPOM had adequate number of fire extinguishers and fire hydrant points at strategic locations in the mill. Fire extinguishers had been serviced and inspected on March 2013. Hose reel and nozzle were inspected and tested on monthly basis by mill fire fighting team as well as during quarterly workplace inspection exercise. Accidents had continued to be recorded by the Safety Officer and displayed as LTA on the notice board of each office. Records were kept in the Occupational Accident Record and reported in accordance to DOSH requirement in the form JKKP6 Pemberitahunan Mengenai Kemalangan/ Kejadian Berbahaya within 7 days. It was observed that RPOM had continued to provide group insurance for all foreign workers as required under the Workmen Compensation Act 1992. Malaysian employees were still being protected under SOCSO.
Criteria 4.8
All staff, workers, smallholders and contractors are appropriately trained.
Findings: The scheduled trainings had been conducted as planned. The relevant personnel training records were observed to have been updated accordingly. However, a major NCR RB 3/2013 was raised as there was no comprehensive training being conducted on the following: (a) Emergency and first aid; (b) MSDS interpretation; (c) USECHH 2000; (d) Roles and responsibilities of the Safety and Health Committee; (e) Accident investigation for the Safety and Health Committee; and (f) Road safety. During the field interviews with the workers at the various work sites, it was found that they were knowledgeable on the safety usage of PPE, the danger of chemicals they handled, the need to follow SSOP and the emergency action to be taken when responding to emergency situations. For the Ribubonus Estate, the annual training plan had yet to be improved in order to ensure the coverage of the training plan drawn up for staff and workers also included the functions of the Safety and Health Committee as well as awareness on road safety. These issues had been brought up by DOSH during its inspection conducted on 26 June 2013 which had resulted in the issuance of Notice of Improvement (NOI), 3A079769 dated 26 June 2013. Other training recommended under CHRA had not been included in the annual training calendar. Owing to these irregularities observed, a major NCR RB 3/2013 was therefore raised. PRINCIPLE 5: ENVIRONMENTAL RESPONSIBILITY AND CONSERVATION OF NATURAL RESOURCES AND BIODIVERSITY
Criterion 5.1
Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.
Findings: Ribubonus CU had continued to review and up-date the environmental aspects and impacts risk assessment for activities relating to the estates and mill operations. The document Significant Environmental Aspects and Impacts and Mitigation Methods for Ribubonus Estate had been up-dated. The other document Identification of Environmental Aspect and Impact and Evaluation of Significance was also made available and presented to the assessment team.
The estate had identified relevant environmental impacts, including positive ones as well as plans for improvement. Among the relevant environmental aspect in the estate were water and diesel usage, generation of scheduled wastes, clinical wastes, wastewater (triple-rinsing). A 3Rs program for recycling of used tin can, aluminium can, paper, glass bottles, and plastic bottles was being practised. During the previous surveillance audit, the positive impacts of recycling domestic wastes and the practice of segregating organic and non-organic wastes at the line sites had not been included in the list of impacts resulting in an OFI TS 5/2012 being raised. During this audit, the positive impact of recycling domestic wastes and the practices for segregating organic and non-organic wastes at line sites had been included in the list of impacts. Thus, OFI TS 5/2012 was therefore closed out. Monitoring programmes for the mill had been conducted as per the regulatory requirement in EQA 1974 specific for EQ Crude Palm Oil (Prescribed Premise) Regulation 1977 where DOE had granted the Jadual Pematuhan for the detail requirement and restriction. Environmental improvement plan to prevent and mitigate negative and promote positive environmental impacts as documented in the “Pollution Prevention Plan” had continued to be implemented such as on the re-used of EFB for mulching and POME for land irrigation and reducing diesel usage by 3% at the mill. In addition a Waste & Pollutants identification, Prevention, Mitigation and Improvement Plan had continued to be implemented. Among the plans were improving the quality of effluent discharged from the mills, reduction of fuel consumption and increasing the 3Rs initiatives in domestic waste management. Mitigation of the negative impacts of domestic wastes had been initiated with a recycling plan at the line sites. Different bins for organic and inorganic wastes were provided for the occupants.
Criterion 5.2
The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any, that exists in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.
Findings: The HCV Monitoring and Management Action Plan 2011-2015 was presented to the assessment team together with the Action Plan for HCV Report. As detailed in the HCV Management and Monitoring Action Plan 2011-2015, a systematic monthly monitoring programme had continued and the personnel involved in recognizing signs of animal activities had been trained. Consultation with an NGO on the identification of ERTs and HCV sites had been conducted in March 2013 and a study had been scheduled in October 2013. Camera traps had also been set up by the Sustainability Department to document potential fauna in the conservation sites. The attributes for conservation in the 3 HCV sites could be reviewed following this study. During the previous surveillance it was noted that the Management and Monitoring Plans for HCV could be improved with consultation with relevant experts and OFI TS 6/2012 was raised. As the estate management had consulted with external experts and had established a programme for camera trapping this OFI was therefore closed out. Poaching had continued to be disallowed within the plantation with warning signage being placed at the entrances of the estate. Posters on protected animals were still being displayed at the guard posts.
Criterion 5.3
Waste is reduced, recycled, re-used and disposed off in an environmentally and socially responsible manner.
Findings: The “Pollution Prevention Plan” had continued to be implemented. Wastes being generated had been disposed off either according to the prescribed regulations in environmentally responsible manner or recycled. Those wastes being disposed in accordance to the prescribed regulations were effluent discharge, scheduled wastes, and particulate emission. Other wastes were still being managed by
reduction either in accordance to 3Rs program (e.g. EFB, fibre, shell paper, fertilizer bag, glass bottles, plastic bottles, tin can, aluminum can, metal scraps) or environmentally friendly landfills for bio-degradable domestics waste. It was observed that recycling bins had still been placed in all offices and line sites. In addition, in all the landfill sites recycling bins were also made available for the sorted domestic wastes brought in from the estates. The biodegradeable wastes were still being segregated into recyclables and non-recyclables. EFBs and decanter cakes had continued to be sent to the estates for soil refinement application. Shells and fibres were still used as boiler fuel and the surplus portions were sold to interested buyers. Boiler ash were recycled back and used for road maintenance. General waste as well as scrap iron were collected from the line site and mill and disposed at centralized dumping site. Scheduled wastes had continued to be managed in the estates and mill as per DOE scheduled waste specifications. Proper storage facilities were constructed for these scheduled wastes. Each container was properly labeled. Collection area and bins were still being provided for scheduled wastes and solid wastes at mill and estate respectively. Ponds and sumps were also constructed for liquid wastes. The e-waste had been labeled appropriately and the 7
th Schedule had been appropriately generated. The
SW 110 scheduled waste had been labeled appropriately. The mechanism to identify competent contractors with valid licenses and list of waste to be transported had been documented. RPOM had continued to comply with the final discharge limit as stipulated in the DoE’s written approval. Flow meters were still being used for monitoring raw POME being discharged and treated POME flowing out from the treatment plant. RPOM had continued to monitor on a monthly basis the water quality at the discharge point into the Sg Labuk and at the upstream and downstream of this river. From the verification of records, it was found that wastes that had previously been stored for more than 180 days were disposed off by a valid licensed contractor, Petrojadi Sdn, Bhd. and relevant documents had been properly filled up and retained. Thus, the major NCR TS 1/2012 issued during the previous surveillance audit had been closed out.
Criterion 5.4
Efficiency of energy use and use of renewable energy is maximized.
Findings: It was observed that the oil palm fiber and shells from the processing of FFBs in RPOM were still being used as boiler fuel to generate steam for the mill, as well as electricity for the mill complex and line sites. The CU had continued to maintain and record the usage of this renewable energy. Monthly monitoring of fossil fuel usage per tonne of CPO was still being done at RPOM. The Ribubonus CU had also continued to monitor the consumption of diesel (direct fossil fuel) per tonne of CPO in RPOM. RPOM had also established an objective to increase the efficiency of its diesel usage.
Criterion 5.5
Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN Guidance or other regional best practice.
Findings: It was observed that there was still no open burning in the estate during this surveillance audit as this had not been allowed under the law and not permitted under any circumstances as clearly stated in the Manual and SOP. During replanting phase all the old palms would be felled, chipped and shredded and mulch. There was no replanting carried out in 2011, 2012 and 2013. In addition, the burning of domestic wastes was still not being allowed. All the domestic wastes were still being collected and disposed off in a landfill.
Criterion 5.6
Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.
Findings: Prevention plan on pollution that was controlled by legal requirements such as effluent, black smoke and scheduled wastes had continued to be implemented and monitored. The monitoring on the implementation was done through various periodical reports/check sheets. However, there was no documented plan to mitigate all polluting activities in 2013. A major NCR RB 4/2013 was therefore raised. Bio-degradable and non-biodegradable wastes had continued to be segregated. Mill bio-degradable wastes such as EFB, decanter cakes, fibres and shells were still being applied back in the field. A 3R programme was still being encouraged for non-biodegradable wastes or buried in landfills. In 2013, RPOM had constructed a concrete yard composting plant which would enable reduction of pollution from effluent. There was also a plan for RPOM to install a tertiary effluent treatment plan. There was no peat soil in the estates. PRINCIPLE 6: RESPONSIBLE CONSIDERATION OF EMPLOYEES AND OF INDIVIDUALS AND COMMUNITIES BY GROWERS AND MILLERS
Criterion 6.1
Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.
Findings: The report on a social impact assessment on Ribubonus CU entitled Primary Report of SIA (Design Phase) for Ribubonus Oil Palm Plantations and Ribubonus Palm Oil Mill of PPB Oil Palm Berhad (Sabah) was still being used for managing social issues. As reported in previous surveillance audit, this report was prepared with the participation of the relevant stakeholders. The CU had continued to conduct discussions with the affected parties and these were verified during the field-visits and meetings with local communities and other stakeholders. This was reflected in the reviewed Mitigation Plan – Ribubonus Estate 2012 and Community Development Plan - Ribubonus Estate 2012 which had incorporated new measures and activities identified in this year’s stakeholder meeting and the complaint register as part of the continuous improvement in handling social issues and impacts.
Criterion 6.2
There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.
Findings: The Standard Operating Procedure for Consultation and Communication [Document No. RSPO 6.2(2)] reported in the last audit was still used by the CU in handling internal and external communications. The CU had continued to use internal communication techniques such as morning assemblies, notice boards and posters, suggestion boxes and complaint forms. External communication had been effected mainly through mail correspondence. Examination of some correspondence letters with the DOSH and local communities revealed that the CU had continued to adhere to the requirements of its communication and consultation procedures. As spelled out in the communications procedure, the estate/mill manager was still the person responsible on handling communication matters. However, the job could be delegated to his subordinate through a letter of appointment. In the case of the RPOM, this responsibility had been delegated to the assistant to the Chief Clerk. The updated list of stakeholders comprising government agencies, contractors/suppliers (including FFB
suppliers for mills), neighbouring estates, schools, panel doctors and local communities, was made available in the estate and mill. Record of communication with internal and external stakeholders were kept in various files in the estate/mill. Files on external communication were kept according to the agencies or parties communicated. For examples, individual files for Department of Safety and Health and Department of Environment were presented.
Criterion 6.3
There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.
Findings: The CU had continued to use the Dispute and Resolution Procedure (Document RSPO 2.2) for resolving complaints and grievances. Grievances or complaints from the employees could be conveyed through the “Borang Aduan”. The complaint form or ‘Borang Aduan’ was still being used in the estate to lodge a grievance or complaint. The form had been split into two to differentiate between “complaints” and “request for services. The CU had continued to provide opportunities to all affected parties to lodge the grievances and complaints. In the case of the employees in the estate, there were still worker representatives in the relevant committee, in particular, the Social/Worker Welfare Committee, Women and Children Welfare Committee and Safety and Health Committee to hear on grievance or complaint. For land matters, procedures for resolving dispute are as prescribed in the State of Sabah Land Ordinance. The complaint book that was reviewed had indicated that there were a number of requests for services in the RPOM in 2013 which had been resolved satisfactorily by the mill as evidenced by the acknowledgements of workers who had lodged the complaints.
Criterion 6.4
Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.
Findings: A procedure for calculating and distributing fair compensation (monetary or otherwise) had been established and implemented. In cases involving the loss of customary land rights, the estate would use the procedure entitled “Process for Identification of Legal and Customary Rights and Identifying People Entitled for Compensation” which had been adopted in November 2008. Essentially, the procedure had described how to check on the legal status of the lands in question and laid out the criteria in deciding who should be compensated and the amount of compensation. The process and outcome of any compensation would be made publicly available. Since the last surveillance audit, there had not been any compensation claim made against the estate.
Criterion 6.5
Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.
Findings Pay and conditions for employees were still made in accordance to the legal (Sabah Labour Ordinance) and industry standards as specified in the contract agreements with the workers. Plantation workers were still given flexibility with regards to the mode of wage determination as they could choose the piece rate or the daily-wage system. The basic pay of any daily-waged worker had now been fixed so that they would obtain the basic minimum monthly payment set by the government. Piece-rated workers, for examples, harvesters and maintenance workers were paid based on their productivity. Workers interviewed had expressed their satisfaction with the terms of their contracts signed with the CU.
Ribubonus CU had continued to give equal treatment to both foreign and local workers in terms of pay and conditions of work. Both local and foreign workers were on the same salary scheme. The pay and conditions were clearly documented in their job contract (Kontrak Pekerjaan). The workers who were interviewed had indicated that the terms of their contracts, payments and conditions of employment had been clearly explained to them at the time of signing the contract. It was observed that the workers and staffs had continued to be provided with company’s houses at the line site with free water and electricity. A surau, clinic, 2 new crèches one in the east and another in the north and a sundry shop were still available in the CU. Ribubonus CU had continued to provide pre-school and primary school for the children of its foreign workers with the Humana schools and free transportation to near-by government schools for children of local workers and staff. The workers had also continued to have free access to basic health services provided through company-run clinics. More serious cases were transferred to government hospitals in nearby towns using estate vehicles. A visit to the eastern zone line site had revealed that the old houses were still quite comfortable to live in. As a matter of fact, the occupants of one wooden house commented that it was cooling to live the wooden houses. The compounds of the housing complex were kept clean without clogged drains and chicken sheds were located some distance away in the plantation.
Criterion 6.6
The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.
Findings: The estate’s and mill’s workers were not members of any union. The workers could channel their views or concerns to the management via the Social and Welfare Committee whose membership comprises the representatives from the workers and management. The Committee had continued to meet on a regular basis during the year to discuss issues of interest to the workers and the estates/mill. The CU had continued to respect the rights of workers to join trade unions or other forms of association as had been spelt out in one of the conditions in the work contract. A published statement on freedom of workers to join legal union, entitled Himbauan, was still publicized as notices in ‘Bahasa Malaysia’ in the estate and mill. However, foreign workers were still not allowed to hold any positions in any association.
Criterion 6.7
Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working conditions.
Findings: The CU had continued to adhere to its Policy on Child Labour prohibiting the employment of persons under the age of 18, in accordance with the definition of the ILO Convention on child labour. From a review made on the master lists of employees, it was found that there was no worker below the age of 18 years being recruited since the last surveillance audit.
Criterion 6.8
Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.
Findings: The CU had continued to implement the equal opportunity policy in the estate and mill. This policy was still being posted on notice boards for the understanding of the public and workers.
There was no evidence of discrimination found during the audit. The terms of employment, work assignments, housing policy, medical and child care facilities were found to be not discriminatory. Interviews with workers also revealed that the CU had not discriminated its staffs and workers. Foreign workers received similar pay, stay in the same housing complex and enjoyed similar medical benefits as their local counterparts. Examination on the profile of the work force had indicated that opportunities for employment were still open to both foreign and local workers. The composition of the management and general staff had continued to reflect the ethnic diversity of the Sabah population. There was still no restriction on the employment of women who were represented in the CU’s labour force. Generally it was observed that there had no apparent dissatisfaction on the pay scheme and work benefits for both foreign and local workers. This was confirmed by workers and staff who were interviewed during this audit.
Criterion 6.9 A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.
Findings: The Ribubonus CU had continued to implement its sexual harassment policy which had been publicly displayed on notice boards at the office and public places. The Women and Children Welfare Committee or the Jawatankuasa Wanita dan Kanak-Kanak had continued to resolve issues related to sexual harassment on women and children. The same mechanism on resolving sexual harassment, violence against women and protection of their reproductive rights were still being used. A form for registering complaints on sexual harassment had continued to be made available to the employees. The grievance procedure had already been tested in the CU. An interview with the complainant had revealed that the procedure had been adhered closely by the management.
Criterion 6.10
Growers and mills deal fairly and transparently with smallholders and other local businesses.
Findings: Interviews were held with two FFB suppliers and one contractor who had been supplying FFBs and other services respectively to the RPOM. The FFB suppliers had been selling their fruits to the RPOM for about 10 years. The contractor was once an employee of the CU. The suppliers of FFB were not in the position to provide detailed information on contracts and pricing as they were not the business owners. Nonetheless, they had little to complain on their past dealings with the mill. The contractor, on the other hand had clearly understood on the pricing for his services as being spelt out in the contract. However, he had commented that the price he received did not commensurate with the increasing costs of doing business. So far, there had not been any complaints made by any contractor pertaining to any part of any contract. Complaints regarding prices and other FFB related dealings between mill and suppliers were registered with the Mill Manager and reviewed by an internal mechanism. The RPOM had continued to display the past prices of FFBs. The FFB suppliers and contractor interviewed had informed that payment was normally made between three to four weeks after the delivery of services and this was very acceptable to them and the CU’s practice had been above the industry’s standard.
Criterion 6.11
Growers and millers contribute to local sustainable development wherever appropriate.
Findings: The Ribubonus CU had continued to contribute to local development in several ways. Foremost, due to its close proximity, the mill had been the focal point for the local communities to sell their FFB with favourable prices. In addition, the 15 km estate road had continued to be used by the villagers from the interior kampongs (Kg. Babak and Kg. Ansuan) access to the surrounding areas particularly the nearest towm. The estate’s clinic had continued to extend its medical services to the surrounding villagers. The Ribubonus CU had made an important contribution to the local communities by providing its free ferry service. From January to September 2012, 13,136 peoples had used the ferry service of which 559 were from the Kg. Baba and Kg. Ansuan. There were about 105 vehicles regularly using the ferry service to Sandakan or Telupid towns. In the past, the CU had also made meaningful financial contributions towards various events and activities organized by the kampongs and schools, including cultural events and wedding ceremonies. PRINCIPLE 7: RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS
Criterion 7.1 A comprehensive and participatory independent social and environmental impact assessment is undertaken prior to establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning, management and operations.
Ribubonus CU has no plan for new planting therefore Principle 7 was not applicable. PRINCIPLE 8: COMMITMENT TO CONTINOUS IMPROVEMENT IN KEY AREAS OF ACTIVITY
Criterion 8.1
Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations.
Findings: The CU had continued to monitor and review their activities for continuous improvement through the Continuous Improvement Plan. The activities that were directed at improving areas of key operations had been carried out and recorded in a brief table-form in the file on Principle 8. A periodical review of the progress on the implementation of the action plan was recorded and used as a management tool for continuous improvement. A mechanism to capture the performance in social aspects developed through the Social Management Plan and Community Development Plan had been established. The activities listed in the two Plans and the monitoring of the actions taken demonstrated the continuous improvement achieved in matters related to the social aspects. GAP practices had satisfactory been maintained within the industry norm. Mills waste had been re-cycled and used as soil supplement and EFB used as fertilizer in the field. Programmes on recycling and minimizing waste as well as by products generation had continued to be implemented. Recycling bins for organic and non-organic wastes were still being provided at all the line sites as well as the land fill sites. As part of the CDM programme, the utilization of biogas had been initiated in the mill. Oil traps had been constructed at all the workshops to prevent any leakage of waste oils into the environment. Notices had been erected to warn against any improper disposal of waste oils. The oil traps were inspected recently by Department of Environment A major improvement was the replacement of almost all of the old wooden quarters with the construction of a new Class H labour line. Every unit of the labour line had been equipped with electricity and treated water supply. Larger tanks for rain water storage were also added to each unit. Proper sanitation facilities with sewage treatment had also been provided.
Module E – CPO Mills: Mass Balance Certification for CPO mills is necessary to verify the volumes of certified and uncertified FFB entering the mill and volume sales of RSPO certified producers. A mill may be taking delivery of FFB from uncertified growers, in addition to those from its own certified land base. In that scenario, the mill can claim only the volume of oil palm products produced from processing of the certified FFB as MB. The estimated tonnage of CPO and PK products that could potentially be produced by the certified mill must be recorded by the certification body in the public summary of the certification report. This figure represents the total volume of certified palm oil product (CPO and PK) that the certified mill is allowed to deliver in a year. The actual tonnage produced should then be recorded in each subsequent annual surveillance report.
Findings: Since the last audit, there have been some changes in the key personnel performing activities related to the company’s supply chain system. Mr. Vitus Galip, the Mill Engineer has left the company but his position has yet to be filled up. A few of the supporting staff; Ms. Hernalisa Henry (RSPO Clerk), Ms. Asnuriwati Din (Weighbridge Clerk) and Mr. Atin Sarapudin (Security Guard) have also left the company. There was 8 new supporting staff being recruited to fill up the various vacancies. The Mill Manager, Mr. Edward was still responsible for the implementation and maintenance of the supply chain system. Ms. Helen Majunah has been appointed as the Management Representative (MR) to assist the Mill Manager on the compilation and administration of the relevant records as well as assuring the supply chain system would continue to be implemented fulfilling the requirements of the RSPO Supply Chain Certification Standard, November 2011 (RSPO Supply Chain Standard) for the MB module. RPOM has continued to implement the MB model for its supply chain system since obtaining certification from SIRIM QAS International in May 2011. RPOM’s main supply of RSPO-certified sustainable FFBs has been from its own estate, which has been awarded the RSPO Certificate for Sustainable Palm Oil Production in September 2010 by SIRIM QAS International. The RSPO Certificate for Sustainable Palm Oil Production is valid until 6 September 2015. There have been no changes in the procedures on the purchase of RSPO certified FFBs. There was no sales contract being issued by the supplying estate neither was there a purchase order issued by RBPOM. The payment of the in-coming RSPO certified FFBs was still being handled at the corporate level. In addition to its own supply bases, RPOM has also bought non-certified RSPO FFBs from independent small-holders in the surrounding areas. RPOM has not and would not be directly involved in the selling of the RSPO CSPO and certified PKs. All sales and marketing-related activities were still being done by the marketing departments at the Head Offices in Kuala Lumpur and Singapore. During the intervening period since the last audit, RPOM has not dispatched any RSPO certified CPO and PK. The last dispatch of RSPO CSPO was made on 25 September 2011. RPOM has not made any claims using the RSPO trademark. RPOM has continued to record and maintain the data for the in-coming RSPO and non-RSPO certified sustainable FFBs, production and oil extraction rate (OER) as well as the delivery and stock of RSPO and non-RSPO certified sustainable CPO in the ‘Daily CPO Production Record’ (Daily Production Record). The Daily Production Record has been expanded to capture the data on the production and dispatch of RSPO certified PK. The Daily Production Record has remained central to the company’s supply chain system as it serves as calculation sheet, which monitors the daily and computes the monthly and annual production, delivery and the stock balance of RSPO and non-RSPO certified sustainable CPO and PK and assures that the volume of certified and non-certified sustainable CPO and PK delivered does not exceed that being produced by the mill. An FFB dispatch note issued by the supplying estate still accompanied every lorry load of certified FFBs for delivery to RBPOM. A total of 15,739 such notes issued by the supplying estate (Ribubonus Estate) were received by RPOM during the same period (June 2012 to June 2013). An equivalent number of weighbridge tickets were issued by the Weighbridge Clerk after each lorry load of RSPO sustainable FFBs has been weighed at the mill’s weighbridge station. A total of 65 randomly selected weighbridge tickets were checked and verified and found to have stated the name of the supplying estate and made references to the FFB dispatch note numbers issued by the supplying estates and stamped with the words ‘RSPO Certified Sustainable FFBs’.
RPOM has outsourced the dispatch of the RSPO CSPO and PK to a transportation company, Haiweima Sdn Bhd (Haiweima). There were 2 signed contracts between RPOM and Haiweima. One was a contract ref. RBPOM/CPO-TA/2013/sb (for crude palm oil transport) of 35,000 @ RM 43.49/MT valued at RM 1,522,150 which was dated 1 January 2013. The other contract was ref. RBPOM/PK-TA/001/2013b (for palm kernel transport) for 4,500MT at RM 46.49 MT valued at RM 209,205 also dated 1 January 2013. There is a clause under both of the contracts, which requires Haiweima to comply with the relevant laws including taking reasonable steps to train, educate and inform its agents, employees, workers, staff and sub-contractors on the policies, objectives, targets and requirements of the EMS 14001, RSPO and any other applicable requirements of the applicable certification schemes. In addition to the contract, there was a self-declaration letter issued by Haiweima in which it has agreed to comply with the intents of the requirements of the RSPO Supply Chain Certification Standard and allow unrestricted access to its premise and operation system to a Certification Body (CB) for the purpose of conducting RSPO supply chain certification audit. RPOM has not and would not be directly involved in the selling of the RSPO CSPO and certified PK. All sales and marketing-related activities were still being done by the marketing departments at the Head Offices in Kuala Lumpur and Singapore. The present procedures, which require the relevant documents on the dispatch of RSPO certified CPO and PK such as the weighbridge advice ticket and delivery order to be stamped with the words ‘CSPO/MB’ or ‘PK/MB’ are therefore adequate to indicate the certified status of the CPO and PK respectively. The receiver of the RSPO CSPO or certified PK in this case SEO, then issues a receiving note after it has received each delivery of the RSPO CSPO or certified PK from RPOM. The receiving note issued by SEO cross refers the delivery order issued by RPOM. During the intervening period since the last surveillance audit, RPOM has not dispatched any RSPO CSPO. The last dispatch of RSPO CSPO was made on 25 of September 2011. RPOM has organized a briefing session on the company’s supply chain system for the key personnel whose works were related to the activities and implementation of the system as well as to familiarize them with the revised RSPO Supply Chain Certification Standard. The briefing was given by Ms. Lydia Michael on 30 August 2012. Ms. Lydia was assisted by Mr. Isaac Chan. They are both Supply Chain Executives from PPB Oil based in Sandakan, Sabah. Record on attendance at this briefing was made available. Four of six of the names in the attendance list were randomly selected and then interviewed. Based on the interviews held with them, it was found that they have clearly understood on their work activities related to the implementation of the supply chain system and the requirements of the RSPO Supply Chain Standard. RPOM has not and would not be directly involved in the selling of the RSPO CSPO or certified PK. All sales and marketing-related activities would still be done by the marketing departments at the Head Offices in Kuala Lumpur and Singapore. RBPOM would not be making any claims using the RSPO trademark on the RSPO CSPO or certified PK it delivers to SEO. However, it was observed that the SOP requires that any communications and the use of the RSPO trademark for RSPO certified products must comply with the document ‘RSPO Rules on Market Communication and Claims’. All certified FFB came from PPB own estate and non-certified FFB come from third party FFB supplier.
Month
FFB Intake
Sustainable Non Sustainable
(MT) (MT)
Opening stock as at 1st Jan 2012
Jan 5,873.40 3,109.00
Feb 4,265.95 2,342.91
March 3,322.52 1,840.98
April 4,564.55 3,362.36
May 4,902.28 4,036.53
June 5,256.00 4,349.64
July 6,164.72 4,310.75
August 6,312.00 4,352.80
Sept 7,482.54 5,120.26
Oct 8,119.93 5,010.27
Nov 8,414.84 5,774.80
Dec 8,911.21 4,849.74
Year 2012 Total 73,589.94 48,460.04
Month
FFB Intake
Sustainable Non Sustainable
(MT) (MT)
Opening stock as at 1st Jan 2013
Jan 7,970.17 4,340.25
Feb 6,765.34 3,468.93
March 3,996.76 2,443.96
April 5,522.56 3,594.93
May 5,875.19 3,798.61
June 4,987.83 3,341.65
July 5,355.07 3,450.38
August 5,768.94 3,834.82
September 5,862.17 4,243.97
October 6,755.53 4,882.18
November 6,973.13 4,930.70
December 7,134.79 5,341.07
Year 2013 Total 72,967.48 47,671.45
3.2 Identified Non-Conformities The details of the NCRs raised and the assessor’s verification of the corrective actions taken by Ribubonus CU are as in Attachment 3. 3.3 Status of Non-Conformities Previously Identified The assessors had verified on the corrective actions taken by the Ribubonus CU to address the one major NCR raised during the previous surveillance audit. The assessors were satisfied that the corrective actions taken have been adequate to address the NCR and had therefore close it out. Details of the verified NCR are in Attachment 4.
3.4 Noteworthy Positive Observations The Ribubonus CU had made further improvement on its compliance against the requirements of the RSPO P&C MY-NI: 2010. This was evident in terms of the physical improvement made on housing and related amenities, use of cover crops instead of herbicides, as well as chemical and wastes storage areas. The labour line had been equipped with electricity and treated water supply. Larger tanks for rain water storage were also added to each unit. Proper sanitation facilities with sewage treatment had also been provided. The level of awareness among the workers on the RSPO implementation was also found to be adequate. They are able to explain not only the operating procedure related to their work but also the consequence of not following them. Above all, it was evident that there was still strong commitment from the top management to continue complying with the requirements of the RSPO P&C and maintaining the certification.
4.0 ASSESSMENT RECOMMENDATION Based on the evidences gathered during this surveillance, the assessment team has raised four (4) major NCRs on the Ribubonus CU against the requirements of the RSPO MYNI: 2010. The Ribubonus CU had taken the appropriate corrective actions to address these major NCRs. The assessment team had accepted and verified the corrective actions taken by the CU to address these major NCRs and had subsequently closed them out. In addition, based on the findings of the supply chain audit on the RPOM, it was found that the mill had fulfilled all the requirements for the MB module of the RSPO Supply Chain Certification Standard, November 2011. The auditor also recommends that the Ribubonus Palm Oil Mill be allowed to maintain the RSPO Supply Chain Certificate.
Attachment 1
Location Map of Ribubonus CU
Attachment 2
RSPO SURVEILLANCE ASSESSMENT PLAN
1. Objectives
The objectives of the assessment are as follows: (i) To determine PPB Oil Palms Berhad – Terusan and Ribubonus Certification Units
conformance against the RSPO Principles & Criteria Malaysian National Interpretation (MY-NI).
(ii) To verify the effective implementation of corrective actions arising from the findings of last assessment.
(iii) To make appropriate recommendations based on the assessment findings. 2. Date of assessment : 15 - 16 July 2013 (Ribubonus Certification Unit) : 17 - 19 July 2013 (Terusan Certification Unit) 3. Site of assessment : PPB Oil Palm Berhad Ribubonus Certification Unit
Ribubonus Palm Oil Mill Ribubonus Estate
Terusan Certification Unit
Terusan Palm Oil Mill Terusan 1 Estate Terusan 2 Estate Rumidi Estate
4. Reference Standard a. RSPO P&C MY-NI b. RSPO Supply Chain Certification Standard (25 November 2011) c. Company’s audit criteria including Company’s Manual/Procedures
5. Assessment Team a. Lead Assessor : Dr. Yap Son Kheong b. Assessors : Mohamed Hidhir Zainal Abidin
Dr.Rusli Mohd Hazani Othman Selvasingam a/l Kandiah Ismail Ibrahim
If there is any objection to the proposed audit team, the organization is required to inform the Lead Auditor/RSPO Section Manager.
5. Audit Witness : Maris Zudrags (Lead assessor from ASI) : Reza Azmi (Local expert) : James Sandom (ASI trainee auditor) 6. Audit Method
Site audits including observation of practices, interviews with interested parties (employees, nearby population, etc.), documentation evaluation and evaluation of records.
7. Confidentiality Requirements
SIRIM QAS International shall not disclose any information concerning the company regarding all matters arising or coming to its attention with the conduct of the programme, which is of confidential in nature other than information, which is in the public domain.
In the event that there be any legal requirements for disclosing any information concerning the organization, SIRIM QAS International shall inform the organization of the information to be disclosed.
8. Working Language : English and Bahasa Malaysia 9. Reporting
a) Language : English b) Format : Verbal and written c) Expected date of issue : Thirty days after the date of assessment d) Distribution list : Client file
10. Facilities Required
a. Room for discussion b. Relevant document and record c. Personnel protective equipment if required d. Photocopy facilities e. A guide for each assessor
11. Assessment Programme Details : As follow
Page 32 of 38
Date: 15 July 2013 (Monday)
Activities /Areas to be Visited
Dr. Yap Son Kheong
Selvasingam a/l T Kandiah
Hazani Othman
Mohamed Hidhir
Dr. Rusli Mohd
Ismail Ibrahim (Supply Chain at Ribubonus CU)
Auditee
10:00 a.m. – 10:15 a.m.
Ribubonus CU & Terusan CU : Opening meeting, audit team introduction and briefing on audit objective, scope, methodology, criteria and programmes by audit team leader
Top mgmt & Committee
Member
10:15 a.m. – 10:30 a.m.
Briefing on the organization background and implementation of RSPO (progress of the smallholder) on RSPO standard of compliance and verifying previous assessment finding – non conformities Major or Minor (if any) Confirmation of audit plan
Management representative
10:30 a.m.– 5:00 p.m.
Ribubonus Estate Documentation verification Inspection
Area of more than 25
o
Inspection of protected sites with HCV attributes
Riparian zone
River system including POME discharge
Forested area
Ribubonus Estate Site visit and assessment
Good Agricultural Practice
fertilizer stores
witness activities at site (weeding/ spraying/harvesting) Assessment on P2 (C2.1, C2.2.- 2.2.1, 2.2.2, 2.2.3), P3, P4 (C4.1, 4.2, 4.3, 4.5, 4.6), C5.5, P6 (6.5, 6.6, 6.7, 6.8, 6.9, 6.10, 6.11), P8
Ribubonus Mill & Ribubonus Estate
Administration department
Facilities at workplace (rest area, etc)
Utilities (gen-set, boiler, etc.)
Production area
Chemical store
Workshop
Interviews with mill’s workers
Ribubonus Mill Site visit and assessment at Ribubonus Palm Oil Mill
Administration department
Facilities at workplace (rest area, etc)
Utilities (gen-set, boiler, etc.)
Production area
Chemical store
Workshop
Interviews with mill’s workers
Ribubonus Estate Discussion with relevant management (CSR, community affairs) and preliminary viewing of documentation relating to local communities issues such as EIA, SIA and management plans. Assessment on P1, P2-C2.1-2.1.1, P6 (6.1, 6.2, 6.3, 6.4) P8 Visit and assessment at:
Workers Issues
Line site
Ribubonus
Ribubonus Mill Verification on documents and records on:
Purchasing and receiving of certified materials
Organisation structure and responsibilities
Processing of certified materials (control, conversion and tracking)
Claims
Sales and delivery
Training
Record keeping
Outsource
Guide/PIC
Page 33 of 38
estates surrounding community
Humana School
Provision shop operator
Dispensary Safety
records
5.00 p.m. Review and writing of NCR (if any). End of audit at Ribubonus POM
8.00 p.m.– 9.30 p.m.
Audit team discussion on findings
Date: 16 July 2013 (Tuesday)
Activities /Areas to
be Visited
Dr Yap Son Kheong
Selvasingam a/l T Kandiah
Hazani Othman
Mohamed Hidhir
Dr. Rusli Mohd Ismail Ibrahim (Supply Chain)
Terusan CU Auditee
8.00 a.m.-12.00 p.m.
Continue auditing on unfinished elements Verification on documents and records on:
Purchasing and
receiving of
certified materials
Organisation
structure and responsibilities
Processing of
certified materials
Claims
Sales and
1.00 p.m.– 3.00 p.m.
Audit team discussion on findings, preparation for closing meeting and writing of NCR/OFI (if any)
Guide/PIC
3.00 p.m.– 5.00 p.m.
Closing meeting and oral presentation of Ribubonus CU findings
5.00 p.m.
End of audit on Ribubonus CU
Guide/PIC
Page 34 of 38
Date: 17 July 2013 (Wednesday)
Activities /Areas to be Visited
Dr Yap Son Kheong
Selvasingam a/l T Kandiah
Hazani Othman Mohamed Hidhir Dr. Rusli Mohd Auditee
8:00 a.m. – 8:15 a.m.
Opening meeting, audit team introduction and briefing on audit objective, scope, methodology, criteria and programmes by audit team leader at Terusan CU
Top mgmt & Committee
Member
8:15 a.m.– 8:30 a.m.
Briefing on the organization background and implementation of RSPO (progress of the smallholder) on RSPO standard of compliance and verifying previous assessment finding – non conformities Major or Minor (if any) Confirmation of audit plan
Management representative
8:30 a.m.– 5:00 p.m.
Terusan 1 & 2, Rumidi Estates Documentation verification Inspection
Area of more
than 25o
Inspection of
protected sites
with HCV
attributes
Riparian zone
River system
including POME
Terusan 1 & Rumidi Estates Site visit and assessment
Good Agricultural
Practice
fertilizer stores
witness activities
at site (weeding/
spraying/harvestin
g)
Assessment on P2 (C2.1, C2.2.- 2.2.1, 2.2.2,
Terusan Mill & Terusan 1 & 2 Estates
Administration
department
Facilities at
workplace (rest
area, etc)
Utilities (gen-set,
boiler, etc.)
Production area
Chemical store
Terusan Mill & Terusan 1 & 2 Estates
Administration
department
Facilities at
workplace (rest
area, etc)
Utilities (gen-set,
boiler, etc.)
Production area
Chemical store
Terusan Mill & Rumidi Estate Discussion with relevant management (CSR, community affairs) and preliminary viewing of documentation relating to local communities issues such as EIA, SIA and management plans. Assessment on P1, P2-C2.1-2.1.1, P6 (6.1, 6.2, 6.3, 6.4) P8 Visit and assessment at:
Workers Issues
Line site
Guide/PIC
delivery
Training
Record keeping
Outsource
Review and writing of NCR (if any). End of audit at Terusan POM
Page 35 of 38
discharge
Forested area
2.2.3), P3, P4 (C4.1, 4.2, 4.3, 4.5, 4.6), C5.5, P6 (6.5, 6.6, 6.7, 6.8, 6.9, 6.10, 6.11), P8
Workshop
Interviews with
mill’s workers
Workshop
Interviews with
mill’s workers
Terusan 1 estate
surrounding community
Humana School
Provision shop operator
Dispensary
5.00 p.m.- End of day one on Terusan CU
8.00 p.m.– 9.30 p.m.
Audit team discussion on findings
Date: 18 July 2013 (Thursday)
Date: 19 July 2013 (Friday)
Activities/Areas to be Visited
Dr Yap Son Kheong
Selvasingam a/l T Kandiah
Hazani Othman Mohamed Hidhir Dr. Rusli Mohd
Auditee
7.30a.m. -11.00 a.m.
Continue auditing on unfinished elements (if any) Relevant PIC
11.00 a.m.-1.00 p.m.
Audit team discussion on findings, preparation for closing meeting and writing of NCR/OFI (if any)
1.00 p.m.– 2.00 p.m.
Closing meeting and oral presentation of findings Top Management & committee member
02.00 p.m. End of audit on Terusan CU
Activities /Areas to be Visited
Dr Yap Son Kheong
Selvasingam a/l T Kandiah
Hazani Othman Mohamed Hidhir Dr. Rusli Mohd Auditee
8.00 a.m.-5.00 p.m. Continue auditing on unfinished elements
5.00 p.m. End of day two audit on Terusan CU Guide/PIC
8.00 p.m.– 9.30 p.m. Audit team discussion on findings
Page 36 of 38
Attachment 3
Details of NCRs and Corrective Actions Taken (2013)
P & C Indicator
Specification Major/Minor
Detail Non-conformances Corrective Action Taken Verification by Assessor
Indicator 2.1.1
Major Ribubonus Mill has yet to comply with: a) Jadual Pematuhan Kilang (No.
Lesen: 001854) with reference to requirement of competent person responsible for effluent treatment system in the mill.
b) During the audit day, there was no competent person–in-charge for electrical installation to replace grade A1 chargeman who has resigned in March 2013.
c) During the audit, there was no competent person-in-charge for the Internal Combustion Engine (ICE) as required under Regulation 23(1), Person in charge of Electric Supply Act 1990 – Section V (Competent Control).
(d) Ribubonus Estate had not
obtained the approval of the DoE as required under Regulation 7 of Environmental Quality (Scheduled Wastes) Regulation 2005 to transport clinical wastes;
(e) Ribubonus Estate had not obtained the approval of the DoE as required under Regulation 36 of Environmental Quality (Clean
Ribubonus Mill has taken action as follows: a) Name and
qualifications of the competent person responsible for effluent treatment plant was available and document has been submitted to Department of Environment (DOE)
b) The grade A1 chargeman had been appointed i.e. Mr. Mohd Khairul Syafiq and the mill had also submitted an application to DOSH for another candidate to seat the examination for grade A1 chargeman.
c) The competent person, a grade2 ICE had sat for Grade 1 exam on 17 May 2012 but failed. An application was made to the Department of Occupational Safety& Health (DOSH) to send a candidate to sit for an exam for an ICE competent person. An advertisement was made in the local newspaper to recruit an ICE competent person.
Ribubonus Estate had taken the following actions: a) A letter had been
submitted to the DoE on 1 August 2013 to apply with justifications for a special management of clinical waste.
The relevant information/ documents as evidences related to (a), (b) and (c) had been submitted to the assessment team. The assessment team had reviewed and accepted these corrective actions. However the approval from the authority i.e. DOE / DOSH on the applications would be verified in the next surveillance audit. Status: Closed out.
Page 37 of 38
Air) Regulation 1978 pertaining to installation of 3 units of generator sets; and
b) A consultant had been appointed to obtain the written approval of the DoE on the installation of the 3 units of diesel generator set.
Indicator 4.7.1
Major There was inadequate coverage of risk assessment for the following activities a) Discharge of steam and
condensate from the boiler and power house into the nearby open drain.
b) Uncovered drain near to mill compound (monsoon drain, steam condensate & sludge drain)
c) Confined space hazard while doing maintenance at ferry hull.
A risk assessment was carried out and documented for the activities (a), (b) and (c) on 1 August 2013. The relevant document related to the conduct of the risk assessment was submitted to the assessment team.
The relevant documents were reviewed and accepted by the assessment team. Status : Closed out
Indicator 4.8.1
Major There was no comprehensive training being conducted on the following: (a) Emergency and first aid; (b) MSDS interpretation; (c) USECHH 2000; (d) Roles and responsibilities of the
Safety and Health Committee; (e) Accident investigation for the
Safety and Health Committee; and
(f) Road safety.
Training programmes had been prepared for 2013 & 2014 and included all the training related to subject (a) to (f). These training programmes had been conducted.
Training records had been reviewed and verified by the assessment team. Status : Closed out
Indicator 5.6.1
Major There was no documented plan to mitigate all polluting activities being prepared for 2013.
A documented plan entitled “Waste and Pollution - Identification, Prevention, Mitigation and Enhancement Plan“, was prepared dated 1 August 2013.
The document was reviewed and verified by the assessment team. Status: Closed out.
Page 38 of 38
Attachment 4
Verification of Previous Audit Findings
P & C Indicator
Specification Major/Minor
Detail Non-conformances Corrective Action Taken Verification by Assessor
Indicator 2.1.1
Major (a) The generator sets in Ribubonus Palm Oil Mill and Estate were operated by 2
nd Grade instead of a First
Grade Internal Combustion Engine Boiler Chargeman. (b) Scheduled waste was stored at the Ribubonus Palm Oil
Mill for more than 180 days without any concern from Department of Environment (DoE).
a) Ribubonus CU has two persons having competency of 2
nd grade ICE
Boiler Chargeman. One of them had sat for the Grade 1 boiler chargeman examination on 17 May 2012 but had failed. An application was made to the DOSH for the same chargeman to re-sit the examination. However, they were informed by DOSH through a letter dated 26 Oct 2012 that there was no more place available. The DOSH would inform the CU when the next exam would be held. An advertisement was made in the local newspaper to recruit an ICE competent person.
b) Scheduled waste was sent for
disposal to Department of Environment (DOE) licensed contractor.
Ribubonus CU has taken necessary action and found satisfactory. Status: The corrective action will be verified during the next surveillance audit. Status: Closed out
