MALAYSIAN SUSTAINABLE PALM OIL (MSPO)apave.com.my/files/Report1.pdf · Site(s) concern Kam Garden...

APAVE Malaysia Sdn Bhd

1 MSPO_SUMMARYREPORT_NOV2018_REV01 MSPO PART 3/KG/02/2018

MALAYSIAN SUSTAINABLE PALM OIL (MSPO)

STAGE 2

PUBLIC SUMMARY ASSESSMENT REPORT

Part 3: General Principles for Oil Palm

Plantations and Organized Smallholders

KAM GARDEN SDN BHD

Peti Surat No. 21, Jalan Felda Sungai Klah, 35600 Sungkai, Perak, Malaysia.

Prepared by : Muhd Jamalul Arif Report Number : MSPO PART 3/KG/02/2018

Date of Completion : 20th February 2019 Certification Body : Apave Malaysia Sdn Bhd

Address : Suite E603, 6th Floor, East Wing, Wisma Consplant 1, No. 2 Jalan SS16/4, 47500 Subang Jaya, Selangor, Malaysia

Email : [email protected]

Tel : +603 5031 7669 Fax : +03 5621 4980

mailto:[email protected]



TABLE OF CONTENTS PAGE

SEGMENT 1

1. EXECUTIVE SUMMARY

1.1 Audit Methodology, Certification Assessment Scope and Recommendation

1.2 Certification Information And Company and Contact Details

1.3 Production and Forecasted

3

3-4

4

SEGMENT 2

2. ASSESSMENT Program

2.1. Qualification of Audit Team

5

SEGMENT 3

3. ASSESSMENT FINDINGS

3.1 Audit Information

3.2 Summary of the AOC and status

3.3 Findings by Principles and Criteria

6

12

13-30

SEGMENT 4

4. ACKNOWLEDGEMENT, CONCLUSION AND RECOMMENDATION OF THIS ASSESSMENT

4.1 Acknowledgement Of Sign Off Assessment Finding Summary

4.2 Sign 0ff of Assessment Finding Report

46

46



1 EXECUTIVE SUMMARY

1.1 Audit Methodology, Certification Assessment Scope and Recommendation

Audit Methodology

The methodology that practice to accumulate of target evidence involved procedures, review of documentation/data and record information. Checklist and guidance against the standard MS 2530-3:2013

Malaysian Sustainable Palm Oil (MSPO) Part 3: General principles for oil palm plantations and organized smallholders were utilized to direct the accumulation of data were a considered in the audit process to measure compliance.

Assessment Scope and Recommendation

APAVE Malaysia Sdn Bhd has performed the Stage 1 Assessment of Kam Garden Sdn Bhd, sited in Sungkai, Perak involving Ladang Kam Garden Sdn Bhd on 10th December 2018 and been recommended for Stage 2. This Stage 2 assessment was directed on 31st Jan – 1st Feb 2019 against the MS 2530-3:2013 Part 3: General standards for oil palm estates and organized smallholder. In view of the Stage 2 document review assessment conclusion, Ladang Kam Garden Sdn Bhd act in accordance with the MS 2530-3:2013 Part 3: General Principles for Oil Palm Plantations and Organized Smallholders and is RECOMMENDED to be awarded certificate of compliance.

1.2 Certification Information and Company and Contact Details

Certification Body Apave Malaysia Sdn Bhd

Certification Body Address Suite E603, 6th Floor, East Wing, Wisma Consplant 1, No. 2 Jalan SS16/4, 47500 Subang Jaya, Selangor, Malaysia.

Certification Scope Part 3: General Principles for Oil Palm Plantations and Organized Smallholders

Report Number MSPO PART 3/KG/01/2018

Certificate Number TBA

Issue Date TBA

Expiry Date TBA

Unit Name (Estate/POM/Smallholder/ Independent Smallholder)

Ladang Kam Garden

Stage 1 Date 10/12/2018



Stage 2/Main Assessment Date

31 Jan – 1 Feb 2019

Annual Surveillance 1 (ASA1) TBA




Company Name Kam Garden Sdn Bhd

MPOB License Details License No. : 522317002000

License Validity Date: 31st July 2019 Scope Activity Menjual dan Mengalih FFB

Site Name Ladang Kam Garden

Site Address Peti Surat No. 21, Jalan Felda Sungai Klah, 35600 Sungkai, Perak, Malaysia.

Longitude (Site Location)

101° 20’ 29’’ E Latitude 3° 59’ 19’’ N

Headquarter Address Peti Surat No. 21, Jalan Felda Sungai Klah, 35600 Sungkai, Perak, Malaysia.

Contact Person Choong Chee Kheong

Contact Number 012 651 1205

Fax Number 05 4388 106

Email ID [email protected]

1.3 FFB Production and Projected FFB (MT)

Producer Total Production

(ha)

Last Year Projected <month year>

Actual Production Jan – Dec 2018

Forecasted for Next Year Jan – Dec 2019

Ladang Kam Garden 820.03 Ha N/A 14,104.77 MT 15,000 MT

mailto:[email protected]



2 ASSESSMENT PROGRAM

2.1 Qualification Of Audit Team

LEAD AUDITOR Muhd Jamalul Arif

QUALIFICATIONS

Graduated in Plantation Management and Cargo Surveying from local university. Experience in auditing since 2011 in RSPO P&C, SCCS, ISCC, GMP B2 & B3, ESCAS Animal Welfare and Global Gap standards. Working experience in handling Q&Q survey for agricultural products such palm oil, soybean, maize and sugar.

Involved in MSPO assessment since 2015, have more than 50 man-days in MSPO auditing for various companies and smallholder group. Completed ISO 9001:2008 Lead auditor in 2011, trained in ISO 19011 & 17021 requirements in 2014 and MSPO Auditors Training in 2015 conducted by MPOB.

In this audit he is covering on Social aspect, Best practices, Safety and Legal. Fluent in both speaking and writing Bahasa Malaysia and English. AUDITOR Surenthiran Pannerselvam

QUALIFICATIONS

He is graduated from University of Abertay Dundee, Scotland, UK majoring in PgDip/ MSc Oil and Gas Accounting and also graduated from Universiti Tenaga Nasional, Malaysia with a Bachelor’s Degree in Accounting. Prior to joining Shell Business Operation as a Senior Cash Management Executive, he worked with Crowe Horwath as Senior Associate Auditor. He is equipped with experience in audit field, l ecturing and accounting. Fully trained in Malaysian Sustainable Palm Oil (MSPO2530), Roundtable Sustainable Palm Oil (RSPO), and ISO9001:2015 and ISO37001:2016. Completed and certified MSPO auditor course in year 2018 held by SGS Academy and ISO9001:2015 auditor course in year 2017 by TOMC. Able to communicate in both English and Bahasa Malaysia (written and spoken).



3 ASSESSMENT FINDINGS

3.1 Audit Information

This assessment has been measured by applying the associated MSPO standardizing requirement. The

review subtleness are given in Appendix A (Audit Plan).

MS 2530-1: MSPO, PART 1: GENERAL PRINCIPLES FOR SUSTAINABLE PALM OIL

MS 2530-2: MSPO, PART 2: GENERAL PRINCIPLES FOR INDEPENDENT SMALLHOLDERS

MS 2530-3: MSPO, PART 3: GENERAL PRINCIPLES FOR OIL PALM PLANTATIONS AND ORGANIZED SMALLHOLDERS

MS 2530-4: MSPO, PART 4: GENERAL PRINCIPLES FOR PALM OIL MILLS

3.2 Non-Conformities Identified During This Audit


Stage of Audit Initial Stage 1 Initial Stage 2

Surveillance Recertification

Audited Standard Part 3 -MSPO GENERAL PRINCIPLES FOR OIL PALM PLANTATIONS AND ORGANIZED SMALLHOLDERS

Client Number

NC No. / Ref. KG/2019/MAJ/01 Date Detected 01/02/2019

Site(s) concern Kam Garden Estate Target Completion 01/04/2019

Normative

Reference and

Requirement

4.3.1.1

All operations are in compliance with the applicable local, state, national and ratified

international laws and regulations.

NC Type Major Minor Area of Concern

Description of

Non-Conformity Legally required permits, l icense and applicable laws and regulations were not complied.



NC Objective Evidence:

Found 1 subcontracted foreign workers working as harvester is not having any legal documentation (i.e. passport,

work permit) working in the company premise.

During document verification, estate has established legal register to l ist all applicable laws and regulations. However according to Section 24(4) Employment Act 1955 highlighted deduction shall not be made except at the request in

writing of the employee and with the prior permission in writing of the Director General. Evidence sighted there is deduction of “Potongan Bil Elektrik & Air” for all workers. However, no permission permitted

by “Jabatan Tenaga Kerja”.

Lead Auditor Signature:

Client Signature:

Root cause Analysis (to be filled by client):

Overlook of the applicable laws and regulations of labour requirement.

Corrective action planned (to be filled by client):

1) All subcontracted foreign worker established required documents E.g. Passport, work permit and work

contract. 2) All deduction without approval from JTK is discontinued until proper approval from JTK is adhered.

Preventive Action (to be filled by client):

1) All deduction shall be via approved JTK letter

2) All future recruitment is only from personnel who have work permit and legal passport.

Review of corrective/preventive action (to be filled by Lead Auditor)

1. Letter discontinued of water and electricity bil l form salary worker to junior clerk (Chong Wai Chin)

2. Request form to JTK for deduction in future.

3. Comparison between previous salary slip (deduction) and new salary slip without deduction.

4. Legal documentation of workers such as passport and permit.

Evidence sent via email is accepted including RCA and CA provided by the company. This is conclude this major NC is

closed.

NC Closed: Yes No Site verification: Yes No

Date Verified: 11th March 2019 Lead Auditor Signature:







Client Number



Normative

Reference and

Requirement

4.5.3.3

The management shall establish Standard Operating Procedure for handling of used chemicals

that are classified under Environment Quality Regulations (Scheduled Waste) 2005,

Environmental Quality Act, 1974 to ensure proper and safe handling, storage and disposal.

4.5.3.4

Empty pesticide containers shall be punctured and disposed in an environmentally

and socially responsible way, such that there is no risk of contamination of water sources or

to human health. The disposal instructions on manufacturer’s labels should be adhered to.

Reference should be made to the national programme on recycling of used HDPE pesticide

containers.


Description of

Non-Conformity Empty chemical containers were not properly disposed on timely manner.


Schedule waste were not segregated, and disposal were not complied by 180 days (6 months). As observed from the schedule waste store, there was no proper labelling established to determine the waste generated date. (Scheduled Wastes) Regulations 2005. As per Regulation 11, Waste generator shall keep an inventory of scheduled wastes. A waste generator shall keep accurate and up-to-date inventory with inventory of schedule waste [Fifth schedule].

During site visit, there was empty containers were not properly handled in schedule waste store as per Environmental Quality Act 1974; Environmental Quality (Scheduled Wastes) Regulations 2005.


Client Signature:


No particular in-charge person to look over this requirement established




1) Nominated PIC to handle SW store, Mr. Lok Kam Mun.

2) The schedule waste now is segregated.

3) The schedule waste is disposed to l icensed contractor.

4) Inventory of schedule waste is updated.

5) Container is now triple rinse and punctured


Nominate a person in-charge to take responsibility to adhere to Environmental Quality Regulations (Scheduled Waste)

2005, Environmental Quality Act, 1974 to ensure proper and safe handling, storage and disposal.


1. Appointment letter for personal in-charge of scheduled waste.

2. Application form of disposal of schedule waste.

3. Segregation of schedule waste.

4. Stock card.

5. Picture of container already done for process triple rinse and punctured.

6. Consignment note. 7. Contractor license.

Evidences above was sent via email is accepted including RCA and CA provided by the company. This is conclude this

major NC is closed.







Client Number



Normative

Reference and

Requirement

Part 4 - 4.5.4

Management should ensure employees of contractors are paid based on legal or industry

minimum standards according to the employment contract agreed between the contractor

and his employee.




Description of

Non-Conformity

No evidence of management ensure employees of contractors are paid based on legal or

industry minimum standards


There is no evidence of contract between subcontracted, Haikal Enterprise and their workers available. Contractor name Azam Sungkai and Empayar Besout, sighted no payment details been specified in the contract.


Client Signature:


No awareness of minimum wage requirement to contract.


Contract agreement indicating minimum wages order (Amendment) 2018 between subcontracted and their workers. Management will also monitor the minimum pa yment through monthly payslip.


New contract within Ladang Kam Garden and subcontractors is established indicating that the contractor must adhere to minimum wages order.


1. Add term in contract agreement between Kam Garden SDN Bhd and contractor.

2. New contract agreement between contractor and their workers.

Evidences above was sent via email is accepted including RCA and CA provided by the company. This is conclude this

major NC is closed.









Client Number

NC No. / Ref. KG/2019/MIN/04 Date Detected 01/02/2019

Site(s) concern Kam Garden Estate Target Completion Next ASA

Normative Reference and

Requirement

4.2.1.2

Management documents shall be publicly available, except where this is prevented by

commercial confidentiality or where disclosure of information would result in negative

environmental or social outcomes.


Description of

Non-Conformity Inadequate control of confidential and non-confidential document were made available.


Sighted list of document and record information available in File: Transparency. No control was in place to ensure the

confidentiality of the information, or request for P&C documents by the respective people.


Client Signature:


Respective form were not formulated in detail.


Old form of ‘Borang Aduan, Permintaan dan Keluhan’ has been revised to include responsible person.


The new form has been included or description evaluation and final action for perusal to ensure the confidentiality of

the information, request for P&C documents by the respective people.


1. Old form of ‘Borang Aduan, Permintaan dan Keluhan’.

2. New form of ‘Borang Aduan, Permintaan dan Keluhan’.

Evidences above was sent via email is reviewed and accepted including RCA & CA provided by the company. However,

the implementation of the corrective action will be verify on next surveillance audit to close the Minor NC.





3.3 Summary of The Area Of Concern(AOC) And Status

Reference Number

Area of Concern (AOC)

AOC/01 Clause 4.5.3.3

Area/Location Kam Garden Estate

Requirement The management shall establish Standard Operating Procedure for handling of used

chemicals that are classified under Environment Quality Regulations (Scheduled Waste)

2005, Environmental Quality Act, 1974 to ensure proper and safe handling, storage

and disposal.

Summary of AOC Reporting of the inventory of schedule waste submitted to Department of Environment

(DOE) within 30 days from the disposal shall be monitored.

Conclusion of AOC Management has taken proactive action by takes preventive action such pictorial

reminder and appoint new licensed SW collector.



3.4 Findings by Principles and Criteria

Principle 1 : 4.1 Management commitment & responsibility

Criterion 4.1.1 Malaysian Sustainable Palm Oil (MSPO) Policy

Indicator 4.1.1.1 A policy for the implementation of MSPO shall be established.

- Major -

Finding There is policy established for MSPO implementation ‘’Commitment Policy’’ which includes: - Always respectful, trustworthy and always patient. - Always reliable - Showing integrity at all times

- Be transparent and honest in all communication. - Provide immediate response to any problem - Respond to prompt request and queries.

The policy also emphasized on continuously improvement and sustained developed. Policy is signed by Director (Ng Kim Cheong) and Estate Manager (Chong Chee Kheong). This policy is been communicated to workers during morning muster call as evidence in muster call

record on 3/11/2018 and 7/12/2018.

Compliance Yes □ No □ NA

Indicator 4.1.1.2 The policy shall also emphasize commitment to continual Improvement. –Major-

Finding The policy also emphasized on continuously improvement and sustained developed as stated in

policy itself.

Compliance Yes □ No □ Not Applicable

Criterion 4.1.2 Internal Audit

Indicator 4.1.2.1 Internal audit shall be planned and conducted regularly to determine the strong and weak points and potential area for further improvement. –Major-

Finding Complete internal audit report available. Last conducted on 08/10/2018 by Mr. Selvanathan , Mr.

Pala and Mr. Veloo. Details of NC raise well documented and corrective action taken is done appropriately to determine the strong and weak points and potential area.




Indicator 4.1.2.2 The internal audit procedures and audit results shall be documented and evaluated, followed

by the identification of strengths and root causes of nonconformities, in order to implement the necessary corrective action. –Major-

Finding There is proper internal audit procedure (KGSB/IAP/09) are established to determined mechanism of follow up activities such as verification of the actions taken i.e. RCA & CA, time frame etc. and the reporting of verification results and evaluation on the competency of internal auditors.


Indicator 4.1.2.3 Report shall be made available to the management for their review. –Major-

Finding Internal audit report and result is reviewed by estate manager during management review meeting. Evidence sighted in latest MR meeting minutes held on 2 Nov 2018 attended by 6 personnel

including Estate Manager.


Criterion 4.1.3 Management Review

Indicator 4.1.3.1 The management shall periodically review the continuous suitability, adequacy and

effectiveness of the requirements for effective implementation of MSPO and decide on any changes, improvement and modification.

–Major-

Finding Management review meeting is conducted once a year after internal audit conducted. MR meeting will discuss:

- Result of internal MSPO audit 2018. - MSPO Performances

- Status of Preventive and Corrective Actions - Overall evaluation and changes needed.

Evidence sighted in latest MR meeting minutes held on 2 Nov 2018 attended by 6 personnel

including Estate Manager.


Criterion 4.1.4 Continual Improvement



Indicator 4.1.4.1 The action plan for continual improvement shall be based on consideration of the main social

and environmental impact and opportunities of the company. –Major-

Finding Continual improvement action is derived from EIA and SIA conducted. Sighted continuous

improvement for environmental such to build bund and sump for chemical store, provide chemical handling training to workers etc. From SIA, impact identified such lack of information about Kam Garden Estate to surrounding stakeholders is taken continuous improvement by will providing them

information through signage and periodically meeting with stakeholders.


Indicator 4.1.4.2 The company shall establish a system to improve practices in l ine with new information and techniques or new industry standards and technology (where applicable) that are available and

feasible for adoption. –Major-

Finding No potential techniques or new industry standards is practices. Estate practices most of the best

practices in plantation management as sighted on technical aspect, safety & health and economical aspects.


Indicator 4.1.4.3 An action plan to provide the necessary resources including training, to implement the new

techniques or new industry standard or technology (where applicable) shall be established. –Major-

Finding Training is continuously conducted as per training programme for competency of the workers. No new activities or new technique is used by estate in past 12 months.


Principle 2 : 4.2 Transparency

Criterion 4.2.1 Transparency Of Information And Documents Relevant To MSPO Requirements

Indicator 4.2.1.1 The management shall communicate the information requested by the relevant stakeholders

in the appropriate languages and forms, except those limited by commercial confidentiality or disclosure that could result in negative environmental or social outcomes. –Major-



Finding List of Stakeholders document is maintained at estate (Ref document: List of Stakeholders). List of stakeholders is update annually by person in charge at both estate. List of stakeholders includes local community heads and other interested parties (government agencies, schools, hospitals etc.). Since last year Kam Garden has not received any request for information on (environmental, social and/or legal) issues from stakeholders relevant to MSPO Criteria. Procedure for External Communication “Flow Chart and Procedure on Handling Social Issues” described the process of information sharing on estate’s quality, safety & health and environment, social and legal.


Indicator 4.2.1.2 Management documents shall be publicly available, except where this is prevented by

commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. –Major-

Finding Non conformity (Minor): There were no procedures available to access for private and confidential documents. Sighted list of document and record information available in File: Transparency.

Any stakeholder require for confidential information, PIC may request upon Estate Manager approval. However, no control was in place to ensure the confidentiality, or request for P&C documents by the respective people. There is no clear justification were provided to determine

the publicly available document.

Compliance □ Yes No □ NA

Criterion 4.2.2 Transparent method of communication and consultation

Indicator 4.2.2.1 Procedures shall be established for consultation and communication with the relevant

stakeholders. –Major-

Finding Procedure has been established and stakeholders were delivered with Memo - “Pemberitahuan mengenai cara-cara membuat aduan, permintaan dan keluhan kepada Ladang Kam Garden’’. Letter

dated 12th December 2018, signed by Mr. Choong Chee Kheong, Estate Manager.

Sighted checklist notification of complaints, requests and complaints to stakeholders, in total 18 stakeholders were sent by post for their acknowledgement.




Indicator 4.2.2.2 A management official should be nominated to be responsible for issues related to Indicator

1 at each operating unit. –Minor-

Finding Sighted appointment letter dated 8th October 2018 of Mr. Muhammad Hamiz Kamdi as the person in charge for MSPO in Ladang Kam Garden, approved by Mr. Choong Chee Kheong, Estate Manager.


Indicator 4.2.2.3 List of stakeholders, records of all consultation and communication and records of action

taken in response to input from stakeholders should be properly maintained. –Major-

Finding Sighted the list of stakeholders were available, and separated based on: supplier,

sub-contractor,

private organization

government organization, local community

Surrounding estate.

Interview with stakeholders consists of 3 contractors (Azam Enterprise, Haikal Enterprise, & Empire Besaut) conducted during Stage 2 audit. Based on the interview them aware of the company

procedures.


Criterion 4.2.3 Traceability

Indicator 4.2.3.1 The management shall establish, implement and maintain a standard operating procedure

to comply with the requirements for traceability of the relevant product(s).

–Major-

Finding Sighted the process flow chart for harvesting and evacuation of fresh fruit bunch (FFB) from field to

weighbridge office.

As sampled:

Weighbridge ticket [Ticket no: P049971 & P049668] have been verified. FFB brought in has been total up against daily record.



Dispatch weighing note, S005434 & S005436 was verified listed with details of (years of crop, weights, and verification by clerk and lorry driver).


Indicator 4.2.3.2 The management shall conduct regular inspections on compliance with the established

traceability system. –Major-

Finding Estate management conduct the inspection on traceability system on daily basis.

After the bunch counter/mandore check FFB at the platform followed by issuing the bunch ticket. Supervisor/staff in charge will verify all the FFB record upon completion.


Indicator 4.2.3.3 The management should identify and assign suitable employees to implement and maintain

the traceability system.

–Minor-

Finding Sighted appointment letter dated 8th October 2018 of Mr. Muhammad Hamiz Kamdi as the person in charge for MSPO in Ladang Kam Garden, approved by Mr. Choong Chee Kheong, Estate Manager.


Indicator 4.2.3.4 Records of sales, delivery or transportation of FFB shall be maintained. –Major-

Finding Sighted the records for collection of FFB from the field to weighbridge.

As sampled: 1. Ticket no. P049971, dated 12th January 2019. [2014a, actual 250 bunches ] 2. Ticket no. P049668, dated 21st December 2018 [Site 98B -120 bunches].

Sighted the record documented by estate management. Estate will record all the bunch harvested by the harvester. The record will transfer to FFB Bunch Count Chit and crossed check with average bunch weight data.

Transport to KIM MA OIL PALM [TRANSPORT] SDN BHD – treated as the agent to collect the FFB bunches. Seen dispatch weighing notes, cross checked with delivery notes, verified that FFB brought in has been total up against daily record.

Interviewed Pn. Rahimah Bt Abd Rahim, Weighbridge clerk, mentioned average 40-50 tan/day, and she is responsible to update transportation of FFB out from estate.




Principle 3 : 4.3 Compliance To Legal Requirements

Criterion 4.3.1 Regulatory Requirements

Indicator 4.3.1.1 All operations are in compliance with the applicable local, state, national and ratified

international laws and regulations.

–Major-

Finding Sighted list of legal and other requirement matrix, reviewed by Mr. Mohamad Hamiz Bin Nordin and approved by Mr. Choong Chee Kheong, Estate Manager.

The company has established list of applicable laws and regulations that are applicable for estate.

MPOB Licence: 522317002000, expires on 31st July 2019, 809.4 Ha.

Permit Barang Kawalan Berjadual [No Siri: A017420] expires on 20th September 2017. [7,500

liter]. Perakuan Penentuan Timbangan dan Sukat. No license: B1340802, dated 28th September 2019.

Non conformity (Major):

Found 1 subcontracted foreign workers working as harvester is not having any legal documentation (i.e. passport, work permit) working in the company premise.

During document verification, estate has established legal register to list all applicable laws and regulations. However according to Section 24(4) Employment Act 1955 highlighted deduction shall not be made except at the request in writing of the employee and with the prior permission in writing of the Director General.

Evidence sighted there is deduction of “Potongan Bil Elektrik & Air” for all workers. However, no permission permitted by “Jabatan Tenaga Kerja”.


Indicator 4.3.1.2 The management shall l ist all laws applicable to their operations in a legal requirements

register. –Major-

Finding The legal l ist fully covered on the requirements that related to MSPO compliance. These documents include information on laws, enforcement bodies, main requirement, and environmental aspect, standard.

The list of applicable laws sighted includes :

- OSHA Act 1994 (Act 514) - Factories and Machinery Act 1967 (Act 139)

- Pesticides Act 1974 (Act 149)



- Electrical Supply Act, 1990 - Petroleum (Safety Measures) Act, 1984 - Fire Services Act, 1984

- Code of Practice for Safe Working in a Confined Space, 2010 - Environmental Quality Act, 1974 - Local Government Act - Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446)

- Akta Kerja 1955 - Employees Provident Fund 1991 (Act 452) - Employees Social Security Act 1969 (Act 4)

- Akta Kesatuan Sekerja 1959 - Minimum Retirement Age Act 2012 - National Wage Consultative Council Act, 2011, Minimum Wages Order 2012 - Weights and Measures Regulations 1981

- Electricity Regulation 1994 - Immigration Act 1959/63 (Act 155) - Holiday Act 1951

- Passport Act 1966


Indicator 4.3.1.3 The legal requirements register shall be updated as and when there are any new

amendments or any new regulations coming into force.

–Major-

Finding The periodic review and evaluation on the legal requirement register to ensure that any new/addition as well as changes and amendment are captured and update, through the following

manner : i) Enquiring the laws books publisher ii) Communication with law/enforcement officers iii) Website

Sighted list of legal and other requirement matrix, reviewed by Mr. Mohamad Hamiz Bin Nordin and approved by Mr. Choong Chee Kheong, Estate Manager. Last updated 18th December 2018. The PIC will update the legal register as at when there are new amendments coming into force.


Indicator 4.3.1.4 The management should assign a person responsible to monitor compliance and to track and

update the changes in regulatory requirements. –Minor-

Finding Responsible person for ensure compliance and to track changes in regulatory requirements is MSPO Representative (En. Mohamad Hamiz Hamdi).




Criterion 4.3.2 Land Use Rights

Indicator 4.3.2.1 The management shall ensure that their oil palm cultivation activities do not diminish the

land use rights of other users. –Major-

Finding Estate is able to shown all user right land titles for total 802.30 Ha land. There is no evidence of land conflict happen in this estate.

Oil Palm plantation in Ladang Kam Garden Sdn Bhd did not diminish the land use rights for other users. It was confirmed during stakeholder consultation, there was no issue on land used by Ladang

Kam Garden.


Indicator 4.3.2.2 The management shall provide documents showing legal ownership or lease, history of land

tenure and the actual use of the land. –Major-

Finding Estate land titles are available and maintained. No: GRN00145366 [No. Lot: 14048, 8.121 Ha]

No. GM00002358 [No. Lot: 201640, 0.7107 Ha]

No. GM00002038 [No. Lot: 903, 0.2985 Ha]

No. GRN00145368 [No. Lot: 14052, 10.91 Ha]

No. GRN00086370 [No. Lot: 5165, 0.095 Ha]

No. GRN00145370 [No. Lot: 14054, 0.9858 Ha]

No. GRN00085669 [No. Lot: 1249, 0.9131 Ha]

No. GRN00143139 [No. Lot: 14056, 70.12 Ha]

No. GRN00085670 [No. Lot: 5169, 44.1799 Ha]

No. GRN00143138 [No. Lot: 14055, 160.4 Ha]

No. GRN00086372 [No. Lot: 5171, 76.663 Ha]

No. GRN00086373 [No. Lot: 5172, 114.053 Ha]

No. GRN00145365 [No. Lot: 14047, 0.5547 Ha]

No. GRN00086368 [No. Lot: 5163, 6.163 Ha]

No. GRN00145369 [No. Lot: 14053, 10.14 Ha]

No. GRN00085671 [No. Lot: 5170, 79.036 Ha]

No. GRN00027389 [No. Lot: 5167, 5.76 Ha]

No. GRN00027388 [No. Lot: 5168, 152.311 Ha]

No. GRN00145367 [No. Lot: 14049, 78.61 Ha]

The copy of land titles is kept in estate office and were sighted during the audit. Cross checked with Land Title fi le and Bil Cukai Tanah dan Parit/Tali Air.



There is 2 land title stated “Syarat-syarat Nyata” for ‘’Getah’’ e.g. Land title #2038 (0.2985 Ha) and #2358 (0.7107 Ha). However, sighted the application to change the land title. Sighted letter from Pejabat Tanah dated 4th January 2019.


Indicator 4.3.2.3 Legal perimeter boundary markers should be clearly demarcated and visibly maintained on

the ground where practicable. –Major-

Finding Boundary stone is completely re-surveyed at the moment to located missing boundary stone surround the perimeter. Sighted contract for appointing land surveyor (Topland Services) date on 13/11/2018.

As per the map, there were 182 boundary markers were identified. During site visit, boundary marker was made available and was visible.


Indicator 4.3.2.4 Where there are, or have been, disputes, documented proof of legal acquisition of land title

and fair compensation that have been or are being made to previous owners and occupants; shall be

made available and that these should have been accepted with free prior informed consent (FPIC). –Minor-

Finding No disputes have been recorded in estate area. There is no evidence of conflict present in this

estate. There is no violence in instigated violence in maintaining peace because company has a clear procedure for land conflict It is wholly owned by Ladang Ka m Garden


Criterion 4.3.3 Customary Rights

Indicator 4.3.3.1 Where lands are encumbered by customary rights, the company shall demonstrate that these

rights are understood and are not being threatened or reduced. –Major-

Finding No customary rights land, disputes or claims involving these estates. The company has proper legal land tile for the land ownership.




Indicator 4.3.3.2 Maps of an appropriate scale showing extent of recognized customary rights land, if any,

should made available. –Minor-

Finding Maps were made available during Stage 2 audit. Sighted the maps for estate area. The maps were

recorded and documented under land use rights.


Indicator 4.3.3.3 Negotiation and FPIC shall be recorded and copies of negotiated agreements should be made

available. –Major-

Finding No customary rights land in Kam Garden Estate.


Principle 4 : 4.4 Social Responsibility, Health, Safety and Employment Condition

Criterion 4.4.1 Social Impact Assessment (SIA)

Indicator 4.4.1.1 Social impact should be identified and plans are implemented to mitigate the negative

impacts and promote the positive ones. –Minor-

Finding SIA was conducted internally by estate as sighted document ‘’Social Impact Assessment, Management Action Plans and Continuous Improvement Plans’’ on 19 July 2018.

This assessment objective is to serves as guidelines and reference on estate stand on handli ng social

issues. It also serves as a management plan to ensure that the welfare and safety of the workers are prioritized and well taken care of in all operating units.

The estate management will have to carry on the surveillance assessment and review monthly on the progress of the both social positive and negative impact. Any new impacts are to be taken into

consideration and any resolved impacts are to be documented along with the management plan.

Further, sighted also ‘’High Impact Analysis of SIA’’ is documented. Negative impacts is identified and been assessed includes root cause analysis and corrective action is taken to minimize the

negative impacts.




Criterion 4.4.2 Complaints And Grievances

Indicator 4.4.2.1 A system for dealing with complaints and grievances shall be established and documented.

–Major-

Finding There is comprehensive Grievance Procedure is established and documented including ‘’Grievances Reporting Flow Chart’’.

This procedure also available in Bahasa Malaysia and being displayed in public areas along with the

company policies and emergency telephone numbers.


Indicator 4.4.2.2 The system shall be able to resolve disputes in an effective, timely and appropriate manner

that is accepted by all parties. –Major-

Finding There is complaint, grievance and request procedure to resolve disputes in an effective, timely and appropriate manner. All these disputes will takes maximum 21 days to resolve based on each steps progress time.


Indicator 4.4.2.3 A complaint form should be made available at the premises, where employees and affected

stakeholders can make a complaint. –Minor-

Finding Complaint form and complaint/suggestion box is place in public area such outside the office area.


Indicator 4.4.2.4 Employees and the surrounding communities should be made aware that complaints or

suggestions can be made any time.

–Minor-

Finding Complaint form is made aware by the management to their workers during training and morning

muster call. Company is communicating this procedure to surrounding stakeholders by sending them copy of the flowchart process by hand.




Indicator 4.4.2.5 Complaints and resolutions for the last 24 months shall be documented and made available

to affected stakeholders upon request. –Major-

Finding No complaint received for past 24 months.


Criterion 4.4.3 Commitment To Contribute To Local Sustainable Development

Indicator 4.4.3.1 Growers should contribute to local development in consultation with the local communities.

–Minor-

Finding A CSR record sighted available to temple and funeral donation made on June 2017 and Sep 2018. Company also continuously supplies free water for the SJK (T) Ladang Sg. Kruit for past few years.


Criterion 4.4.4 Employees Safety And Health

Indicator 4.4.4.1 An occupational safety and health policy and plan shall be documented, effectively

communicated and implemented. –Major-

Finding Company has established ‘’Occupational Safety and Health Policy’’ date on 18/10/2018 signed by Director of Kam Garden Sdn Bhd in both English and Bahasa Malaysia. This policy is stated the company commitment to comply with requirements of Occupational Safety and Health Act 1994

and Factory & Machinery Act 1967.

This policy is displayed surround the estate and been communicate during morning muster call.

OSH Plan fi le also available which includes OSH organization charts, HIRARC, appointment letter,

training programme, medical surveillance, OSH meeting, fire dril l and etc.


Indicator 4.4.4.2 The occupational safety and health plan shall cover the following:

a) A safety and health policy, which is communicated and implemented. b) The risks of all operations shall be assessed and documented. c) An awareness and training programme which includes the following requirements for employees exposed to pesticides:

i . all employees involved shall be adequately trained on safe working practices



i i . all precautions attached to products shall be properly observed and applied d) The management shall provide the appropriate PPE at the place of work to cover all potentially hazardous operations as identified in the risk assessment and control such as Hazard Identification,

Risk Assessment and Risk Control (HIRARC). e) The management shall establish Standard Operating Procedure for handling of chemicals to ensure proper and safe handling and storage in accordance to Occupational Safety Health (Classification Packaging and Labeling) Regulation 1997 and Occupational Safety Health (Use and Standard of

Exposure of Chemical Hazardous to Health) Regulation 2000. f) The management shall appoint responsible person(s) for workers' safety and health. The appointed person(s) of trust must have knowledge and access to latest national regulati ons and collective

agreements. g) The management shall conduct regular two-way communication with their employees where issues affecting their business such as employee’s health, safety and welfare are discussed openly. Records from such meeting are kept and the concerns of the employees and any remedial actions

taken are recorded. h) Accident and emergency procedures shall exist and instructions shall be clearly understood by all employees.

i) Employees trained in First Aid should be present at all fiel d operations. A First Aid Kit equipped with approved contents should be available at each worksite. j) Records shall be kept of all accidents and be reviewed periodically at quarterly intervals. –Major-

Finding (a) This policy is displayed surround the estate and been communicate during morning muster

call. Last briefing record on 07/12/2018. (b) HIRARC is available and last review and approved on 10/08/2018.

(c) Training programme is sighted for year 2018 and 2019. Estate has done almost all training planned on 2018. All chemicals are handled by supervisor which adequately trained as accordance to products label.

(d) There is record of PPE distribution to the workers as per identified in HIRARC. E.g. Sprayer

(Safei) received apron, mask, nitrile gloves, helmet, and rubber boot. (e) SOP for Spraying/Manuring date on March 2018. (f) Responsible person for OSH implementation in estate is all member appointed in Safety

and Health Committee. (g) OSHA meeting held for 4x per year. Last meeting held on 30 Aug 2018. (h) Accident and emergency procedures available (i) First aid training last conducted on 28/09/2018 by staff name Azlan to 8 person first aider

in field. (j) No accident case is recorded in past 2018. Verified from both Form JKKP 6 & 8 there is no

case of accident happen in this estate.


Criterion 4.4.5 Employment Conditions

Indicator 4.4.5.1 The management shall establish policy on good social practices regarding human rights in

respect of industrial harmony. The policy shall be signed by the top management and effectively

communicated to the employees. –Major-



Finding Policy on good social practices regarding human rights is available dated on 18/10/2018 signed by Kam Garden Sdn Bhd.


Indicator 4.4.5.2 The management shall not engage in or support discriminatory practices and shall provide

equal opportunity and treatment regardless of race, colour, sex, religion, political opinion, nationality, social origin or any other distinguishing characteristics. –Major-

Finding Human Rights Policy has mentioned management shall not engage in or support discriminatory practices and shall provide equal opportunity and treatment regardless of race, colour, sex, religion, political opinion, nationality, social origin or any other distinguishing characteristics.


Indicator 4.4.5.3 Management shall ensure that employees’ pay and conditions meet legal or industry

minimum standards and as per agreed Collective Agreements. The living wage should be sufficient to meet basic needs and provide some discretionary income based on minimum wage. –Major-

Finding All workers is entitled with MAPA/ NUPW agreement which covered all the rights for plantation workers in Malaysia. Sighted this was mentioned in workers contract.

Pay and conditions are documented in the appointment letter of the sta ff and workers.

Interview with both Estate staff and workers and with both male and female confirmed that they understand the terms and conditions of their employment. No confinement history and no il legal or forced deduction as per this audit period.

The salary is according to National Wages Consultative Council Act 2011 (Act 732), ‘Minimum Wages Order (amendment) 2018’. Malaysian minimum salary is RM1, 100 as stated in the guidelines.


Indicator 4.4.5.4 Management should ensure employees of contractors are paid based on legal or industry

minimum standards according to the employment contract agreed between the contractor and his

employee. –Minor-

Finding Non conformity (Major):



There is no evidence of contract between subcontracted, Haikal Enterprise and their workers available. Contractor name Azam Sungkai and Empayar Besout, sighted no payment details been specified in the contract.


Indicator 4.4.5.5 The management shall establish records that provide an accurate account of a ll employees

(including seasonal workers and subcontracted workers on the premises). The records should contain full names, gender, date of birth, date of entry, a job description, wage and the period of employment. –Major-

Finding Database of workers available in system. However not full data available for the subcontracted workers such from Azam Sungkai Enterprise (Agustino & Jally), no details on full names, gender, date of birth, date of entry, a job description, wage and the per iod of employment.


Indicator 4.4.5.6 All employees shall be provided with fair contracts that have been signed by both employee

and employer. A copy of employment contract is available for each and every employee indicated in the employment records. –Major-

Finding Workers contracts available. Sighted sample of workers at daily operation activities is subcontracted to 3 contractors:

1. Empayar Besout Enterprise

2. Haikal Enterprise 3. Azam Sungkai Sdn Bhd

Employment contract stated the offered position, wages implied, working hours, OT, allowances, rest day, working on holiday etc. The contract is in Malay as it is easy to be understood by workers.

This contract is signed by both employee and employer and accompanied with respective witnesses . All workers enjoy the same scale of pay and provided with equal housing and work facil ities. This was

confirmed though interview with workers from the estate and also through verification of contracts of service and pay slips of workers.


Indicator 4.4.5.7 The management shall establish a time recording system that makes working hours and

overtime transparent for both employees and employer. –Major-



Finding Thumb print system is in place to record all workers time recording. Working hours is 8 hours. From Monday to Saturday. The overtime maximum is 104 hours according to Malaysian Law.

Seen the working hours being displayed at the notice board. The office will be working from 8.00

am to 5.00 pm and break time at 1.00 pm to 3.00 pm. The workers are from 6.30 am to 2.30 pm. Estate has used pocket check roll as a working time recording system.


Indicator 4.4.5.8 The working hours and breaks of each individual employee as indicated in the time records

shall comply with legal regulations and collective agreements. Overtime shall be mutually agreed and

shall always be compensated at the rate applicable and shall meet the applicable legal requirement. –Major-

Finding The working hour and break time has been clearly stated in the Employment Contract. Sighted in the

Contract Agreement the rate of overtime which agreed by both parties. There is no complaint received regarding payment or are forced to work overtime during site interview.


Indicator 4.4.5.9 Wages and overtime payment documented on the pay slips shall be in l ine with legal

regulations and collective agreements. –Major-

Finding Salary slips clearly shows the calculations of gross salary, all deductions and net salary of a worker. Workers interviewed confirmed that they are being paid more than the stipulated minimum wage and that they understand all the deductions being made. Documented payslip was distributed to individual workers on the day of payment.


Indicator 4.4.5.10 Other forms of social benefits should be offered by the employer to employees, their

families or the community such as incentives for good work performance, bonus payment, professional development, medical care and health provisions. –Minor-

Finding Workers are provided with medical services within the estate, free house with facil ities, water supply, electricity, temple, and road access.




Indicator 4.4.5.11 In cases where on-site l iving quarters are provided, these quarters shall be habitable and

have basic amenities and facil ities in compliance with the Workers' Minimum Standards Housing and Amenities Act 1990 (Act 446) or any other applicable legislation. –Major-

Finding There are 60 units of house is provided by the management to their workers and subcontracted workers. Each house equipped with the 2 bedrooms, 1 bathroom, 1 toilet, electricity and water. Housing area also has kindergarten.


Indicator 4.4.5.12 The management shall establish a policy and provide guidelines to prevent all forms of

sexual harassment and violence at the workplace. –Major-

Finding Sexual and Violence of Work Policy is available and been displayed around the estate area.

Interview with women workers found they are aware of the policy existence as management keep briefed them during morning muster.

The briefing discussed on the followings: Committee’s issues

Monitoring on gender cases, reproductive right and others related issues.

Committee’s activities

Health and safety


Indicator 4.4.5.13 The management shall respect the right of all employees to form or join trade union and

allow workers own representative(s) to facil itate collective bargaining in accordance with applicable laws and regulations. Employees shall be given the freedom to join a trade union relevant to the

industry or to organize themselves for collective bargaining. Employees shall have the right to organize and negotiate their work conditions. Employees exercising this right should not be discriminated against or suffer repercussions. . –Major-

Finding Freedom of Association Policy available and displayed around the estate notice board.

The documented social policy as specified above outlined the company’s commitment to allow the workers to join and formed union among the workers. The audit team observed that in general all

employees are a member to NUPW which is the organization that representing the workers. The NUPW is also a mechanism for the workers to voice their concerns pertaining to the working conditions and welfare.




Indicator 4.4.5.14 Children and young persons shall not be employed or exploited. The minimum age shall

comply with local, state and national legislation. Work by children is acceptable on family farms, under adult supervision, and when not interfering with their education programmes. Children shall not exposed to hazardous working conditions.

–Major-

Finding Based on the employee’s record compiled in Check-roll Employee Listing, sighted that there is no child labour employed by the Estate.

During field verification, all the workers sighted is engaged legally and no sign of under age 18 years old person is working in field.


Criterion 4.4.6 Training And Competency

Indicator 4.4.6.1 All employees, contractors and relevant smallholders are appropriately trained. A training

programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training shall be kept.

–Major-

Finding Yearly training plan is created based on Training Needs Analysis for workers involved in the operations, including contractor’s workers.

Sighted the Training Need Analysis of all workers which are based on their competencies and job description. Training record verified of following:

- Chemical Training - Fertil izer Training - Harvesting Training

- Handling Tractor Training - First Aid Training


Indicator 4.4.6.2 Training needs of individual employees shall be identified prior to the planning and

implementation of the training programmes in order to provide the specific skil l and competency

required to all employees based on their job description. –Major-

Finding Yearly training plan is created based on Training Needs Analysis for workers involved in the

operations, including contractor’s workers. Sighted the Training Need Analysis of all workers which are based on their competencies and job description.


Indicator 4.4.6.3 A continuous training programme should be planned and implemented to ensure that all

employees are well trained in their job function and responsibil ity, in accordance to the documented

training procedure.



–Minor-

Finding All workers involved in the operations have been adequately trained in safe working practice.

The estate has a comprehensive Training Needs Analysis for staffs and workers and this was sighted in the training records fi le.

Trainings conducted were recorded in the various trainings record and completed with attendance records, training materials and photographs of the training


Principle 5 : 4.5 Environmental , Natural Resources, Biodiversity and Ecosystem Services

Criterion 4.5.1 Environmental Management Plan

Indicator 4.5.1.1 An environmental policy and management plan in compliance with the relevant country and

state environmental laws shall be developed, effectively communicated and implemented.

–Major-

Finding Sighted the environmental policy for Kam Garden Sdn Bhd, signed by the director on 18th October

2018.

The estate has conducted Environmental Impact and Aspect Assessment (EIA) for all its’ activities in 2018. The environmental assessment findings are recorded in document titled “Environmental Aspect & Impact Identification Form“ and last reviewed and updated by Muhd Hamiz and approved by the

Estate Manager: EIA is being reviewed on annual basis. The environmental impact assessment has covered 51 keys activities of the plantation such as compound, Field- weeding and spraying, Field – FFB transportation,

road, Diesoline, Dispensary, Harvesting & collection and replanting. The environmental consequences for each activity is classified into 9 impact categories such as ozone

layer depletion, global warming, air pollution, water pollution, land contamination, unpleasant working environment, depletion of natural resources, community impact and business impact. The evaluation matrix of the environmental impact evaluation form has identified columns for Criteria, Weightage, and Operation condition – normal, abnormal and emergency.


Indicator 4.5.1.2 The environmental management plan shall cover the following:

a) An environmental policy and objectives; b) The aspects and impacts analysis of all operations. –Major-



Finding Sighted the environmental policy for Kam Garden Sdn Bhd, signed by the director on 18th October 2018, covering the environmental policy, aspect impacts analysis of all operations.

Sighted the environmental management plan (Management plan of EIA year 2018). EIA, management action plans and continuous improvement programme for Ladang Kam Garden was sighted, reviewed by Mr. Muhammad Azlan Bin Isa and approved by Mr. Choong Chee Kheong, Estate

Manager dated 6th August 2018.


Indicator 4.5.1.3 An environmental improvement plan to mitigate the negative impacts and to promote the

positive ones, shall be developed, effectively implemented and monitored.

–Major-

Finding Negative and positive impacts and monitoring plans are l isted in the aspect/impact assessment, example:

1. Chemical residue washed into water source by rainwater after spraying. Management control: Conduct training to sprayers on correct method of application.

Maintain riparian buffer zone along the water source. 2. Emission of greenhouse gases from chemical usage. Management control: To ensure dosage of chemicals are adhered.

3. Smoke emission of vehicle (tractor) – Harvesting Management control: To perform regular maintenance (changing exhaust filter) of the vehicle

involved.


Indicator 4.5.1.4 A programme to promote the positive impacts should be included in the continual

improvement plan. –Minor-

Finding Sighted management plan of EIA year 2018, approved by Mr. Choong Chee Kheong is including programme to promote the positive impacts such implementation of 3R (Reuse, Recycle and Reduce) of waste.


Indicator 4.5.1.5 An awareness and training programme shall be established and implemented to ensure that

all employees understand the policy and objectives of the environmental management and improvement plans and are working towards achieving the objectives. –Major-



Finding Sighted training held on environmental aspects includes;

1. Chemical spil lage training attended by 14 persons. 2. Manuring training attended by 16 persons.

3. MSPO training for workers attended by all workers.

4. Environmental Quality Act and Regulations 1974

5. Environmental, Safety & Health Policy

6. Scheduled waste management

7. Environmental Responsibil ity & Biodiversity – EAIA

8. Triple rinsing training and demonstration


Indicator 4.5.1.6 Management shall organize regular meetings with employees where their concerns about

environmental quality are discussed.

–Major-

Finding Management of Kam Garden Estate has conducted regular meeting with the estate employees concerning environmental quality which includes:

Latest meeting conducted on 21st December 2018 at Main Office, Ladang Kam Garden. Discussed on environmental issues. Attendance record seen and 9 participants were involved in the meeting. [No

littering, avoid throwing chemical and fertil izer in river]. Minutes of meeting was available to confirm the meeting held on the said date.


Criterion 4.5.2 Efficiency of Energy Use And Use Of Renewable Energy

Indicator 4.5.2.1 Consumption of non-renewable energy shall be optimized and closely monitored by

establishing baseline values and trends shall be observed within an appropriate timeframe. There should be a plan to assess the usage of non-renewable energy including fossil fuel, electricity and energy efficiency in the operations over the base period.

–Major-

Finding The non-renewable energy usage record is well maintained. The record available start from 2018 for the estate usage. The estimation of diesel usage for contractor is availaible.

Monitoring of Diesel Usage is conducted in Terms of Litre/MT FFB Transported:

Month Diesel (ltr) FFB Transported (Mt) Litres /mt

Jan-18 1767 938.47 1.88

Feb-18 1828 805.87 2.27

Mar-18 2110 1005.46 2.10

Apr-18 1790 804.32 2.23 May-18 1844 740.87 2.49

Jun-18 1764 768.35 2.30

Jul-18 1600 931.92 1.72

Aug-‘18 1584 874.39 1.81



Sep- ‘18 7445 1045.24 7.12 Oct-’18 7930 901.29 8.79

Nov ‘18 6259 845.64 7.40

Dec ‘18 2616 991.53 2.64


Indicator 4.5.2.2 The oil palm premises shall estimate the direct usage of non-renewable energy for their

operations, including fossil fuel, and electricity to determine energy efficiency of their operations.

This shall include fuel use by contractors, including all transport and machinery operations. –Major-

Finding The estate management has estimated the direct usage of non-renewable energy as below:

a. Fossil fuel :RM 14,607 (4,869 litre) b. Electricity :RM 21,400 c. Water :RM 24,170

It was monitored to optimize use of renewable energy. Data was compiled for comparison and control for future improvement.


Indicator 4.5.2.3 The use of renewable energy should be applied where possible.

–Minor-

Finding No possibility of renewable energy to be use at the moment.


Criterion 4.5.3 Waste Management And Disposal

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

–Major-

Finding Estate management has provided the list of waste products and sources of pollution during the audit.

Waste product identified: Quarters – Rubbish, Housing repair waste, food waste, human waste

Administration – Rubbish, paper, food waste, human waste

Workshop – Tyre/tube, scrap metal

Field – Oil palm frond (OPF), food waste, rubbish

Mr. Loke Kam Mun, is the PIC for waste management in Ladang Kam Garden.




Indicator 4.5.3.2 A waste management plan to avoid or reduce pollution shall be developed and implemented.

The waste management plan should include measures for:

a) Identifying and monitoring sources of waste and pollution b) Improving the efficiency of resource util ization and recycling of potential wastes as nutrients or converting them into value-added by-products –Major-

Finding Seen waste management plan for 2019 reviewed by Mr. Mohamad Hamiz Hamdi Bin Nordin, Management representative and approved by Mr. Choong Chee Kheong, Manager.

Location of rubbish pit/landfill is made available during the audit, signage was visible during site visit. Collection of scheduled waste by l icensed contractors [SS Setia Teknologi Enterprise]. Domestic waste disposed by Mohd Haikal Enterprise [Contract No. KG 8/19]. – Collection of rubbish.


Indicator 4.5.3.3 The management shall establish Standard Operating Procedure for handling of used

chemicals that are classified under Environment Quality Regulations (Scheduled Waste) 2005, Environmental Quality Act, 1974 to ensure proper and safe handling, storage and dis posal. –Major-


Schedule waste were not segregated, and disposal were not complied by 180 days (6 months). As observed from the schedule waste store, there was no proper labelling established to determine

the waste generated date. (Scheduled Wastes) Regulations 2005. As per Regulation 11, Waste generator shall keep an inventory of scheduled wastes. A waste generator shall keep accurate and up-to-date inventory with inventory of schedule waste [Fifth schedule].



Indicator 4.5.3.4 Empty pesticide containers shall be punctured and disposed in an environmentally and

socially responsible way, such that there is no risk of contamination of water sources or to human

health. The disposal instructions on manufacturer’s labels should be adhered to. Reference should be made to the national programme on recycling of used HDPE pesticide containers. –Major-






Indicator 4.5.3.5 Domestic waste should be disposed as such to minimize the risk of contamination of the

environment and watercourses. –Minor-

Finding Domestic waste from the housing area is well managed and all domestic wastes are disposed through the contractor appointed by estate management, Haikal Enterprise.


Criterion 4.5.4 Reduction Of Pollution And Emission

Indicator 4.5.4.1 An assessment of all polluting activities shall be conducted, including greenhouse gas

emissions, scheduled wastes, solid wastes and effluent. –Major-

Finding The estate has established the assessment of all polluting activities conducted including GHG emissions, scheduled wastes, solid wastes and effluent.

The polluting activities has been assessed during Environmental Impact Assessment (EIA).


Indicator 4.5.4.2 An action plan to reduce identified significant pollutants and emissions shall be established

and implemented. –Major-

Finding The action plan to reduce identified significant pollutants and emissions has been established and implemented.

Sighted the implementation of the management plan (training records). During site visit, signage of

no burning allowed were identified and visi ble.


Criterion 4.5.5 Natural Water Resources

Indicator 4.5.5.1 The management shall establish a water management plan to maintain the quality and

availability of natural water resources (surface and ground water). The water management plan may include:



a. Assessment of water usage and sources of supply. b. Monitoring of outgoing water which may have negative impacts into the natural waterways at a frequency that reflects the estate’s current activities.

c. Ways to optimize water and nutrient usage to reduce wastage (e.g. having in place systems for re-use, night application, maintenance of equipment to reduce leakage, collection of rainwater, etc.). d. Protection of water courses and wetlands, including maintaining and restoring appropriate riparian buffer zones at or before planting or replanting, along all natural waterways within the estate.

e. Where natural vegetation in riparian areas has been removed, a plan with a timetable for restoration shall be established and implemented. f. Where bore well is being use for water supply, the level of the ground water ta ble should be

measured at least annually –Major-

Finding The estate management establish the water management plan dated 13/12/2018, reviewed by Mr.

Mohamad Hamiz bin Nordin and approved by Mr. Choong Chee Kheong.

Program:

Monitoring of water usage and sources of supple (LAP) conducted on 16 th December 2018 – 12th

January 2019.

Monitoring of outgoing water which may have a negative impact into the natural waterways at

a frequency that reflects the estate’s current activities to be conducted on April 2019 and Oct 2019.

Protection of water courses and wetlands, including maintaining and restoring appropriate

riparian buffer zones at or before planting or replanting, along all -natural waterways within the

estate. Employees were briefed during the muster call every morning on the importance of riparian zone.

There is river water analysis has taken the sample from inlet and outlet point at Sungai Kruit [Report

No. AR-18-SV-023207-01] date issue: 24th August 2018, done by Eurofins NM Laboratory Sdn Bhd. No rainwater harvesting implemented for housing and offices, field site peat, water conservation is available during site visit. Estate management has maintained the riparian buffer zone signage along the river. Field visit on all audited estates observed no intervention on natural vegetation occurs. The

vegetation at riparian areas are well preserved.


Indicator 4.5.5.2 No construction of bunds, weirs and dams across main rivers or waterways passing through

an estate. –Minor-

Finding As per site visit indicates no construction of bunds or weirs that may block the waterways at the respective estate rivers.




Indicator 4.5.5.3 Water harvesting practices should be implemented (e.g. water from road-side drains can be

directed and stored in conservation terraces and various natural receptacles). –Minor-

Finding Estate management has implemented road side drain to conserve the moisture in the field.


Criterion 4.5.6 Status Of Rare, Threatened, Or Endangered Species And High Biodiversity Value

Indicator 4.5.6.1 Information shall be collated that includes both the planted area itself and relevant wider

landscape-level considerations (such as wildlife corridors). This information should cover: a) Identification of high biodiversity value habitats, such as rare and threatened ecosystems, that

could be significantly affected by the grower(s) activities. b) Conservation status (e.g. The International Union on Conservation of Nature and Natural Resources (IUCN) status on legal protection, population status and habitat requirements of rare, threatened, or endangered species), that could be significantly affected by the grower(s) activities.

–Major-

Finding In estate HCV assessment conducted by internal team. There is no status of rare, threatened or endangered species and high biodiversity value area in the estate. Status of RTE in estate is

available during the audit. List of species found in estate were published in notice board for awareness purpose.


Indicator 4.5.6.2 If rare, threatened or endangered species, or high biodiversity value, are present, appropriate

measures for management planning and operations should include:

a) Ensuring that any legal requirements relating to the protection of the species are met. b) Discouraging any il legal or inappropriate hunting, fishing or collecting activities; and developing responsible measures to resolve human-wildlife conflicts. –Major-

Finding Seen record of sighting of rare, threatened or endangered species, l ist of protected, totally protected wildlife species. Prepared by Mr. Mohamad Hamiz Bin Nordin and approved by Mr. Choong Chee Kheong, dated 28th December 2018.

As per interview with staff/workers, no hunting, fishing or collecting activities are allowed and awareness were given during muster call.




Indicator 4.5.6.3 A management plan to comply with Indicator 1 shall be established and effectively

implemented, if required. –Major-

Finding Management plan have been placed in continuous improvement, notice board has been installed, no

hunting was highlighted during muster call and training.


Criterion 4.5.7 Zero Burning Practices

Indicator 4.5.7.1 Use of fire for waste disposal and for preparing land for oi l palm cultivation or replanting

shall be avoided except in specific situations, as identified in regional best practice. –Major-

Finding No use of fire for any operation as recorded and verified during site visit.


Indicator 4.5.7.2 A special approval from the relevant authorities shall be sought in areas where the previous

crop is highly diseased and where there is a significant risk of disease spread or continuation into the next crop. –Major-



Indicator 4.5.7.3 Where controlled burning is allowed, it shall be carried out as prescribed by the

Environmental Quality (Declared Activities) (Open Burning) Order 2003 or other applicable laws. –Major-



Indicator 4.5.7.4 Previous crops should be felled or mowed down, chipped and shredded, windrowed or

pulverized or ploughed and mulched. –Minor-



Finding No use of fire for any operation as recorded and verified during site visit. As per Land Clearing SOP, previous crops should be felled or mowed down, chipped and shredded, windrowed or pulverized or ploughed and mulched.


Principle 6 : 4.6 Best Practices

Criterion 4.6.1 Site Management

Indicator 4.6.1.1 Standard operating procedures shall be appropriately documented and consistently

implemented and monitored. –Major-

Finding The estate has few set of SOP which covers most of the best practices in their estate. Among the sample SOP sighted based on work nature such: Harvesting

SOP for Harvesting FFB

SOP for Harvesting Mature FFB

SOP for Minimum Ripeness FFB

SOP for Pruning

SOP for Ablation at Immature Stage

SOP for FFB

SOP for Planning and Organizing Harvesting

Spraying

Spraying (type of Weeds and Type of Herbicides)

Type of Spraying

Spraying PPE

Spraying Pump Use

Spraying Process

SOP for Handling and Storage of Chemicals

IPM

SOP for Bagworm Control

SOP for Rhinoceros Control

SOP for Rat Control

SOP for Ganoderma Control

Manuring

Type of Fertil izer

Manuring PPE

Manuring Procedure

Fertil izer Store Management

Rate of Manuring Recommendation



SOP on Land Clearing


Indicator 4.6.1.2 Where oil palm is grown within permitted levels on sloping land, appropriate soil

conservation measures shall be implemented to prevent both soil erosion as well as siltation of drains and waterways. Measures shall be put in place to prevent contamination of surface and groundwater through runoff of either soil, nutrients or chemicals. –Major-

Finding Sighted terracing is practice for area with more than 15 degrees, as well stated in their SOP of Replanting. Maintaining the natural legume is practiced between the terraces.


Indicator 4.6.1.3 A visual identification or reference system shall be established for each field.

-Major-

Finding Sighted visual identification or reference system been established for each field. The signage is containing information such year of planting, hectarage and the material clone.


Criterion 4.6.2 Economic And Financial Viability Plan

Indicator 4.6.2.1 A documented business or management plan shall be established to demonstrate attention

to economic and financial viability through long-term management planning. -Major-

Finding There is documented business management plan established to demonstrate attention to economic and financial viability by Kam Garden in document ‘’Budget of Crop and Expenditure’’ for the year

2019 – 2020.


Indicator 4.6.2.2 Where applicable, an annual replanting programme shall be established. Long term

replanting programme should be established and review annually, where applicable every 3 - 5 years. -Major-

Finding Replanting program for next 3 years is available from year 2018 – 2020 as below breakdown:

2018 Field 94C & Field 96A – 70.41 Ha



2019 Field 94D & 96B – 91 Ha

2020 Field 94A, 95A, 94B, 95B and 95C – 124.17 Ha


Indicator 4.6.2.3 The business or management plan may contain:

a) Attention to quality of planting materials and FFB b) Crop projection: site yield potential, age profile, FFB yield trends c) Cost of production : cost per tonne of FFB d) Price forecast

e) e) Financial indicators : cost benefit, discounted cash flow, return on investment -Major-

Finding Business management plan included but not least:

A) Attention to quality of planting materials and FFB

B) Crop projection: site yield potential, age profile, FFB yield trends C) Cost of production : cost per tonne of FFB D) Price forecast

E) Financial indicators : cost benefit, discounted cash flow, return on investment


Indicator 4.6.2.4 The management plan shall be effectively implemented and the achievement of the goals

and objectives shall be regularly monitored, periodically reviewed and documented. -Major-

Finding This management plan is reviewed every year by Estate Manager, Choong Kee Cheong. The estate

engaged with Planting Advisor who will conduct a visit twice a year to ensure the management plan has been effectively implemented and achieve the company’s objective.

Sighted the Planting Advisor report on a visit to Kam Garden Sdn Bhd on 19th July 2018, prepared by Mr Ding Toy Huah.


Criterion 4.6.3 Transparent And Fair Price Dealing

Indicator 4.6.3.1 Pricing mechanisms for the products and other services shall be documented and effectively

implemented.

-Major-



Finding Price mechanism was determined by the top management via open tender process. The estate management will call for quotation and evaluate which quotation is beneficial to the estate.


Indicator 4.6.3.2 All contracts shall be fair, legal and transparent and agreed payments shall be made in timely

manner. -Major-

Finding Sighted the payment for contractors which was made on 8 th every month as per agreed in the contract agreement. The payments were released once the estate management has verified the job done through remarks made by assistant manager and need to get approval from estate manager before payment is prepared.

Sighted timely manner payment made by Kam Garden to contractor Hock Wan Transport Enterprise (Bidor) Sdn Bhd, Beh Miang Hock Timber and Hardware Enterprise, Azam Sungkai Enterprise as per payment slip date 8th January 2019.


Criterion 4.6.4 Contractor

Indicator 4.6.4.1 Where contractors are engaged, they shall understand the MSPO requirements and shall

provide the required documentation and information.

-Major-

Finding Sighted the additional clause stated that the contractor must comply with the requirement of MSPO

standard.


Indicator 4.6.4.2 The management shall provide evidence of agreed contracts with the contractor.

-Major-

Finding All contract sighted is signed by both parties. Sample as contract agreement between Kam Garden and LKL Contractor (replanting contractor) date on 8th January 2018. The contract is been signed by Estate Manager and Low Kam Loong (contractor).




Indicator 4.6.4.3 The management shall accept MSPO approved auditors to verify assessments through a

physical inspection if required. -Minor-

Finding Sighted the additional clause in contract agreement stated that the contractor must comply with the requirement of MSPO standard.


Indicator 4.6.4.4 The management shall be responsible for the observance of the control points applicable to

the tasks performed by the contractor, by checking and s igning the assessment of the contractor for each task and season contracted. -Major-

Finding Sighted the payment for contractors which was made on 8th every month as per agreed in the contract agreement. The payments were released once the estate management has verified the job

done through remarks made by assistant manager and need to get approva l from estate manager before payment is prepared.

Sighted form note written on 28/1/19 to Hock Wan Transport EFB from mill to field worth RM14, 873.


Principle 7 : 4.7 Development of New Planting

Not applicable. There is no new planting occur in Kam Garden for past 24 months.

ii€.liir:,... ,,8{= lnl faal\/l3{ l- lrJl l*, \,1 Y \-,


esentativeoftheoperationseekingorholdingcertification,agree

with the contents a nd a udit findings as presented in this document.

lalsoconfirm:r Accepta nce ofliabilityi n execution ofthe i nstructions given

r Thatthiscompanywasmadeawarethatthefindingsof theauditteamaretentative; pendingreviewanddecisionmakingby

the d u ly d e signated re presentatlves of Co ntrol U nio n Ce rtlf icatio ns.

. Thatduringtheclosingmeetingallagenda itemswascoveredbythe Lead Auditor.

Signature: -*,,;Dote: (7-s-l?.

Nome:

Z(iorle cHFe FeteoNe

orsanizotionNdme: Laoeuh llan &aowpPosition: r"4"f- /Lb

itrattnlsreportlsanacCUraterecordofthefindingsandoftheclosingmeeting.lfurtherconfirm thatthe summaryof thefindings as presented in this report are a true representation of the actualfindings of the

auditteam.

Date: 2Ch February 2079

Nome: Muhd JomqlulArifPosition: Lead Auditor

irrfoimationandcondusionsincludedinthisreporthavebeenpreparedingoodfaithandthatthecertificationdecisionhasbeenbaseduponthisinformation.

Dqte: 76h May 2079

Nome: Then Mozhi GunosegeronPositi on : Prog ro m Ma n o ger

MSPO SUMMARYREPORT NOV2O18 REVO1

46MSPO PART3/KG/02/2018



Appendix A: Stakeholder Consultation

As per ACB-Malaysian Sustainable Palm Oil (MSPO); ACB-OPMC4; Issue 1, 01st August 2017; Stakeholder Consultation Requirements For Certification Bodies Operating Oil Palm Management Certification Under Malaysian Sustainable Palm Oil (MSPO) Certification Scheme. The consultation during the audit will be car ried out during the stage 2 and recertification audit of

the management unit. The CB shall carry out stakeholder consultation to ensure continued compliance with the requirements of the certification standards. However, stakeholders’ consultation during surveillance audit may be limited to those stakeholders who have raised concerns, complaints or disputes prior to the audit.

No Stakeholders Name Subject raised / Identified Risk Company response and

proposed action to be taken. [What we did]

Assessment team findings [Outcome]

1. Ahmad Shahrim Che Ram (Contractor)

MSPO awareness, company policy

and SOP are briefed among workers during muster call.

Personal Protective Equipment

are distributed free of charged by management.

They have good understanding

about complaint and grievance mechanism.

No action requires Positive findings

2. Rohaya Bibi (Contractor)

They are very happy with the

management and hopes to continue their contract for a long time.

Company well managing the

welfare, health and safety of their

workers. Housing facil ities is provided with

water and electrical supply.


3. Jothy A/P Maruthan

[SJK (T) Ladang Kruit)

There is 10 students from Ladang

Kam Garden studied. Estate management always

helpful on their needs such water

tank aid, housekeeping, machinery etc.

No safety issue related to

plantation activities to students as

estate management take appropriate preventive action.




Appendix B: Audit Plan

Date Time Topics

Team Member’s Role

31/01/2019

(Thursday)

N/A Travelling from KL – Sungkai, Perak.

MJA / SP

09.15 Interim meeting

MJA / SP

09.30 Opening Meeting:

Presentation - Client

Presentation - Lead Auditor

Finalize on Audit Plan, Verification of

assessment scope and stakeholder’s consultation)

Last year NCs (IF any)

MJA / SP

AUDITEE

10.00 Document Audit: SOPs, Policies, Public documents, Analyze on social and environmental impact assessment (SEIA) documents, Internal audit records,

FFB pricing, , fee records, grievance records, employees records, training records, permits, etc.

MJA / SP

13.00 – 14.00 Lunch

14.00 Continue on Document Audit

MJA / SP

17.00 Interim meeting: Declare any unresolved disputes,

discussion and rep-up.

MJA / SP

End of Day 1

01/02/2019

(Friday)

09.00 – 12.00

Estate inspection:

Field inspection, boundary inspection, fertil izer

application, field spraying, harvesting, workers housing, buffer zone, conservation area, office, workshop, agriculture best practices, chemical

store, and pre-mixing, etc.

MJA / SP

Stakeholder’s consultation

Workers Interview

Surrounding stakeholder interview

MJA / SP

12.00 – 12.30 Interim meeting: Declare any unresolved disputes,

discussion and preparation for closing.

MJA / SP

12.30 – 13.00 Closing Meeting Chaired by the audit Lead Auditor

Presentation of findings by the audit team

Questions & answers and Final summary by Lead

Auditor

MJA/SP

AUDITEE



Appendix C: Maps

a) Figure 1: Location Kam Garden Estate in Peninsular Malaysia.

End of assessment



b) Figure 2: Location Kam Garden Estate in Sungkai, Perak, Malaysia.

Date post:	05-Jun-2020
Category:	Documents
Upload:	others
View:	16 times
Download:	4 times