MSPO CERTICATION SUMMARY REPORT Farms map o Land titles or land application o Standard Operating...

MSPO CERTICATION SUMMARY

REPORT

MALAYSIA PALM OIL BOARD (B3 JUGRA)

ANNUAL SURVEILLANCE 01

Date: 08/08/2018

TUV NORD (Malaysia) Sdn Bhd No. 9F-1A, 9th Floor, Tower 2 @ PFCC Jalan Puteri ½, Bandar Puteri Puchong

47100 Puchong, Selangor. Phone: +603 8600 4031/4032

Fax: +603 8600 4550

MSPO Certification Summary Report

Company Name: Malaysia Palm Oil Board Kuala Langat

Certifying Unit: SPOC B3 (Jugra)

Client Number: 92-067

Audit Type: ASA 01

MSPO-F04a / Rev 5 (2018/06) 2 of 37

Table of Contents

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

1.1. Objective 4

1.2. Scope 4

1.3. Appointment & Qualification of Team Members 4

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

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

4. CERTIFICATION ASSESSMENT ................................................................. 23

4.1. ASA 01 Error! Bookmark not defined.

4.2. Status of Non-Conformities Previously Identified 25

5. CONCLUSION .............................................................................................. 32

6. RECOMMENDATION ................................................................................... 33

7. REFERENCES ............................................................................................. 34

Table 7-1: Documents provided by SPOC B3 Jugra 34 Table 7-2: Background Investigation And Assessment Documents 35

Table 7-3: List of Interviewed Persons, Observers and Smallholders 36





Audit Type: ASA 01

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ABBREVIATIONS

CHRA Chemical Health Risk Assessment

CoC Chain of Custody

CPO Crude Palm Oil

CSR Corporate Social Responsibility

DOE Department of Environment

EFB Empty Fruit Bunch

EIA Environment Impact Assessment

ERT Endangered Rare and Threatened species

EU European Union

FFB Fresh Fruit Bunch

GGL Green Gold Label

GMP Good Manufacturing Practice

GPS Global Positioning System

HACCP Hazard Analysis and Critical Control Point

HCV High Conservation Value

HCVF High Conservation Value Forest

IPM Integrated Pest Management

MSDS Material Safety Data Sheet

NC Non Conformity

OSH Occupational Safety and Health

OSHAS Occupational Safety and Health Assessment Scheme

P&C Principle and Criteria

PK Palm Kernel

POME Palm Oil Mill Effluent

PPE Personal Protective Equipment

RSPO Roundtable on Sustainable Palm Oil

SA8000 Social Accountability 8000

SIA Social Impact Assessment

SOP Standard Operating Procedure

MT Metric Tonnes

WHO World Health Organization

MPOB Malaysian Palm Oil Board

HBV High Biodiversity Value

SPOC Sustainable Palm Oil Cluster

LKN Latihan Khidmat Nasihat

ISCC International Sustainability & Carbon Certification





Audit Type: ASA 01

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1. INTRODUCTION

Malaysia Plam Oil Board SPOC B3 Jugra has commissioned TÜV NORD (Malaysia) Sdn Bhd to conduct an initial certification audit for its ASA 1 independent smallholders according to MS 2530-2:2013 Part 2, General Principles for Independent Smallholders.

1.1. Objective

The objective of this ASA 1 audit is to assess the MPOB Cawangan SPOC of B3 Jugra as group manager managing the independent smallholders by an independent certification body. The aim of this surveillance audit is assessed on the compliance of the standard by MPOB Cawangan SPOC B3 Jugra.

1.2. Scope

The certification is based on the documentation developed by MPOB Cawangan SPOC of B3 Jugra in managing the independent smallholders’ scheme.

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

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

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

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

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

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

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

1.3. Appointment & Qualification of Audit Team Members

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

Qualification of the Lead Auditor Trainee: Zul Hairi Bin Abu Hassan

Requirement Qualifications

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

i) Agriculture;

ii) Science & Technology (e.g. Environmental

Sciences, Life Sciences, Geological

Sciences, Natural Sciences,);

Graduate in Plantation Industry Management.





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Requirement Qualifications

iii) Engineering, Process Technology;

iv) Energy Management, Quality Management;

v) Social Sciences and/or Anthropology;

vi) Business Management; or

vii) Other relevant related fields

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

9 years working experience in Oil Palm Plantations.

Attended the MS 2530 series of standards training

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

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

Under training as lead auditor for MSPO scheme.

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

Able to communicate in Bahasa Malaysia and English.

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


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


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

Successfully completed OHSAS 45001:2018 Lead Auditor series training

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

Successfully completed SA8000 Lead Auditor series training

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

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





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Qualification of Team Members

Requirement Assessor Qualification Compliance

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

i) Agriculture;

ii) Science & Technology (e.g.

Environmental Sciences, Life

Sciences, Geological Sciences,

Natural Sciences,);

iii) Engineering, Process

Technology;

iv) Energy Management, Quality

Management;

v) Social Sciences and/or

Anthropology;

vi) Business Management; or

vii) Other relevant related fields

Mohamad Norhisham Bin Mohd Salleh

Graduate in Applied Science (Major In Agrobiology).

Yes

Sheron Pui Graduate in Medical Science (life science)

Yes

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


5 years working experience in palm oil estates.

Yes

Sheron Pui 3.5 years working experience in rubber industry and as internal auditor

Yes

Attended the MS 2530 series of standards training


Successfully complete MSPO Lead auditor

training course.

Yes

Sheron Pui Successfully complete MSPO Lead auditor training course.

Yes

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


Qualified as auditor base on audit log.

Yes

Sheron Pui Trainee auditor base on audit log

Yes

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


Able to communicate in Bahasa Malaysia, and English languages.

Yes

Sheron Pui Able to communicate in Mandarin, Bahasa Malaysia, and English languages.

Yes





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Requirement Assessor Qualification Compliance

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



Yes

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



Yes

Sheron Pui 3 years’ experience in chemical management

Yes

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


Successfully completed OHSAS 45001:2018 and Working experience as auditor for ISO 14001 and ISO 9001.

Yes

Sheron Pui Successfully completed OHSAS 45001:2018 and Working experience as auditor for ISO 14001 and ISO 9001.

Yes

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


Successfully completed Basic SA 8000 training and qualified as RSPO and MSPO sustainability auditor.

Yes

Sheron Pui Successfully completed Basic SA 8000 training

Yes

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


Successfully completed ISO 14001 training and auditing experiences.

Yes

Sheron Pui Successfully completed ISO 14001 training and auditing experiences.

Yes

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


Has involved in auditing for RSPO SCC standard

Yes





Audit Type: ASA 01

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2. METHODOLOGY

The audit approach consists of the following steps:

Contract review;

Appointment of team members and reviewer / certifier;

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

Audit planning;

Background investigation, desk review of submitted documents;

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

On-site reporting

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

Draft audit reporting

Technical review

Final audit reporting

Peer review

Address Peer Review Comments (if any)

Certifying, final approval and issuance of certificate.

The surveillance audit was conducted 04/07/2018 in accordance to the certification procedure.

Surveillance Audit 01:

surveillance audit 01 was conducted on 04/07/2018 at SPOC B3 Jugra office that covers desk review activities:

Background investigation

Review of documentation established but not limited to below

o SPOC Operating Policies

o Farms map

o Land titles or land application

o Standard Operating Procedures

o Work Flow Charts

o MPOB licenses and approvals

o Training records

o Applicable Legislation Documents

Interviews of relevant operation personnel

Assessment reporting





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Surveillance Audit 01:

Surveillance 01 audit was conducted on 04/07/2018 covers the following activities but not limited to below:

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

Interview smallholders;

Reviewed revised and updated documentation established and implemented;

FFB production records;

Training records;

Land titles and land application approvals;

Work plans established;

Stakeholders consultation meeting;

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

Assessment reporting;

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

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

On-site Assessment

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

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

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

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

The group of smallholders consists of 90 members, 48 old members and 42 new members.

Since the are old and new members, the sample are separated for preserving conservativeness.

Based on the formula, the sample size for old members S = 6.93, and for new members, S = 6.48 therefore round up to the next integral of 14 smallholders. Thus, a total of 14 smallholders were selected for the onsite assessment and inspection listed in Table 2-1 below:

Table 2-1: List of Independent Smallholders

Name of independent smallholders Specific Address / site

Tung Bing Tat 101030' 49.5"E 20 49' 34.64"N

Lim Eng @ Lim Lin 101030'04.65"E 2050'0.9.43"N





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Name of independent smallholders Specific Address / site

Soosilah A/P Appu 101026'02.288"E 2049'20.976"N

Reta A/P Lajah 101021' 27.6"E 2050'08.6"N

Ang Ah Loong 101030’02.669"E 2049'50.364"N

Jais Bin Asin 101021'28.31"E 2050'11.05"N

Salmiah Binti Salleh 101032'40.189"E 2047'30.655"N

Tijah Binti Abdul Rani 101020'59.1"E 2050'28.3"N

Amah Anak Nagus 101020'54.0"E 2050'41.8"N

Awo A/P Dok 101021'09.0"E 2050'24.2"N

Ridzuan Anak Mohd Yatim 101021'11.7"E 2050'24.1"N

Sinah A/P Maseh 101021'10.2"E 2050'20.8"N

Chua Hui Liang @ Aliap 101021'10.9"E 2050'08.2"N

Tegap Anak Ambut 101021'09.8"E 2050'29.4"N

Non-conformance:

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

Major non-conformance shall be addressed and responded with 60 days from date of audit. All minor non-conformances will required submission of action plan and are accepted by Lead Auditor. Implementation of Minor NCs and OBS will be reviewed and verified during the next audit.





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3. ORGANISATION INFORMATION

MPOB Cawangan SPOC B3 Jugra, is a branch of MPOB located at Banting, Selangor to provide technical support as well as develop the independent smallholders’ scheme around the Kuala Langat district.

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

The location of the SPOC office is located at Banting, Selangor.

The locations for the smallholders are in Kuala Langat as shown in the below maps.

BIL NAMA GPS KOORDINAT

65 Baek Binti Sinthal 101°21'06.2"E 2°48’08.055”N

69 Amah Anak Nagus 101°20'54.0"E 2° 47' 25.024"N

70 Jizam Anak Ata 101°21'04.8"E 2° 48' 28.341"N

86 Zabree Anak Eken 101°20'55.4"E 2° 47' 48.573"N





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64 Sudin Bin Ab. Rani 101°21'07.6"E 2°50'18.5"N

66 Aemnas Bin Azman 101°21'12.0"E 2°50'25.4"N

67 Omar Anak Dolah 101°21'09.2"E 2°50'30.7"N

68 Tijah Binti Abdul Rani 101°20'59.1"E 2°50'28.3"N

71 Awo A/P Dok 101°21'09.0"E 2°50'24.2"N

72 Ridzuan Anak Mohd Yatim 101°21'11.7"E 2°50'24.1"N

73 Juni Anak Idris 101°21'08.4"E 2°50'22.1"N

74 Musa Bin Lihok 101°21'08.5"E 2°50'20.5"N

75 Sinah A/P Maseh 101°21'10.2"E 2°50'20.8"N

77 Bidin Bin Loya 101°21'21.5"E 2°50'26.4"N

79 Abas A/L Pat 101°21'11.0"E 2°50'26.5"N

80 Esah Anak Mail 101°21'09.3"E 2°50'28.6"N

81 Rajis Bin Jais 101°21'11.9"E 2°50'19.8"N

82 Nempak Binti Loya 101°21'19.5"E 2°50'26.5"N

83 Ageh A/L Dolah 101°21'07.2"E 2°50'20.0"N

87 Mahil Bin Dok 101°21'09.5"E 2°50'25.5"N

88 Tegap Anak Ambut 101°21'09.8"E 2°50'29.4"N

89 Eken Anak Sinthal 101°21'11.7"E 2°50'22.6"N

90 Johari Anak Rajah 101°21'11.9"E 2°50'18.3"N





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8 Jais Bin Asin 1010 21' 28.31"E 2050'11.05’’N

11 Reta A/P Lajah 1010 21' 27.6"E 2050'08.6’’N

13 Johari Anak Lihok 1010 21' 19.03"E 2050'00.26"N

76 Chua Hui Liang @ Aliap 101021'10.9"E 2050'08.2"N

78 Elas Bin Johari 101021'14.6"E 2050'11.9"N

84 Lek Bin Ajim 101021'22.2"E 2050'09.7"N

85 Nasrul Bin Jais 101021'26.7"E 2050'12.3"N





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54 Biah Anak Idris 101°22'18.3"E 2°49'45.6"N

55 Amai Binti Bujen 101°22'13.6"E 2°49'43.9"N

56 Zainab Binti Sagap 101°22'18.3"E 2°49'59.1"N

57 Goh Ah Teok 101°22'36.9"E 2°49'42.5"N

58 Salmah Binti Jonan 101°22'17.7"E 2°49'50.8"N

59 Dolah Anak Kadir 101°22'19.9"E 2°49'52.5"N

60 Pat Anak Linat 101°22'19.9"E 2°49'43.6"N

61 Samsuri Anak Adam 101°22'19.4"E 2°50'01.6"N

62 Li Bin Jonan 101°22'17.2"E 2°50'02.1"N

63 Ismail Bin Hachik 101°22'17.3"E 2°50'04.5"N





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9 Hasan Bin Nadi 101022'11.67"E 2049'19.71"N


36 Soosilah A/P Appu 101026'02.288"E 2049'20.976"N





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29 Lee Sor Luan 101°29'14.478"E 2°49'59.014"N

30 Lee Chean Huat 101°29'14.305"E 2°49'57.995"N

31 Lee Kim Wah 101°29'14.476"E 2°49'56.627"N

32 Lee Nee Kah@Lee Ah Keh 101°29'14.551"E 2°49'54.877"N

33 Tee Chew Loon@Tee Sew Doon 101°29'14.273"E 2°50'00.431"N

34 Tee Kean Kar 101°29'14.008"E 2°50'06.038"N





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1 Ang Jin Hee 101029'39.60"E 2ᴼ48'55.42"N

2 Tung Bing Tat 101ᴼ30'49.5"E 2ᴼ49'34.64"N

3 Lim Eng @ Lim Lin 101ᴼ30'04.65"E 2ᴼ50'0.9.43"N

5 Chong Tean Woh' 101ᴼ31'28.38"E 2ᴼ49'34.85"N

6 Low Fei Leng 101ᴼ30'39.63"E 2ᴼ50'57.19"N

16 Mohamad Noh Bin Rajimin 101°29'36.429"E 2°49'42.246"N

21 Teo Beng Heng 101°29'59.538"E 2°49'52.635"N

25 Ang Ah Loong 101°30'02.669"E 2°49'50.364"N

52 Lee Kok Heng 101°30'17.3"E 2°50'40.6"N





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10 Sellamah A/P Arumugam 101ᴼ33'37.58"E 2ᴼ51'44.22"N

12 Kasinan Bin Miskat @ Abd Rahim 101ᴼ34'26.37"E 2ᴼ52'24.09"N

14 Isnan Bin Mohd Superi 101ᴼ30'41.66"E 2ᴼ54'25.46"N

37 Nyeo Choo Sai 101°33'33.567"E 2°52'15.257"N

38 Sarim Bin Sarbani 101°31'33.701"E 2°53'44.154"N

39 Abdul Rahim@Rahim Bin Sariyo 101°32'20.117"E 2°54'16.089"N

40 Azman Bin Basarudin 101°30'54.497"E 2°52'36.827"N

41 Asmuni Bin Mahidin 101°33'39.000"E 2°53'48.100"N

43 Abd Ghani Bin Ahmad 101°33'34.486"E 2°54'32.479"N

44 Gun Kar Teck@Gan Kim Han 101°33'36.215"E 2°52'40.270"N

45 Ang Pier Nan 101°32'51.716"E 2°53'42.354"N

46 Gan Ban Chau 101°31'26.095"E 2°51'53.996"N

50 Yunos Bin Jantan 101°30'53.4"E 2°54'39.4"N

51 Mohd Ridzuan Bin Mohamad Ismail 101°30'53.4"E 2°54'35.6"N





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42 Gagandran A/L Perumal 101°34'21.400"E 2°50'56.400"N

47 Kunenthran A/L Periasamy 101°34'29.400"E 2°51'01.500"N

48 Chua Leng Keng 101°34'23.600"E 2°50'56.800"N





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4 Tan Kim Cheang @ Tan Kim Bee 101032'21.14"E 2046' 57.98"N

26 Arbangi Bin Diman 101°32'11.123"E 2°47'32.856"N

28 Salmiah Binti Salleh 101°32'40.189"E 2°47'30.655"N





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7 Ramanujam A/L Duraisamy 101o33' 20.01"E 2o47'10.05"N

17 Mathurai A/L Parasuraman 101°33'37.041"E 2°47'21.410"N

18 Mathurai A/L Parasuraman 101°33'37.417"E 2°47'08.273"N

19 Faridah Binti Lasimin 101°33'56.888"E 2°47'06.024"N

20 Faridah Binti Lasimin 101°33'56.867"E 2°47'04.092"N

22 Ahmad Bin Lasimin 101°33'50.575"E 2°47'08.522"N

23 Kamarudin Bin Harun 101°33'51.055"E 2°47'09.994"N

24 Gunaseelan A/L Maruthamuthu 101°33'51.419"E 2°46'37.218"N

27 Mohamed Salleh Bin Saharin 101°33'56.791"E 2°47'07.312"N

49 Suresh A/L Mathurai 101°33'42.4"E 2°47'20.6"N

53 Muniammah A/P Sengamalai 101°33'44.8"E 2°47'07.5"N





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15 Mohd Kasim Bin Bawon 101°34'53.259"E 2°47'23.619"N

35 Tan Kong Kok 101°34'20.125"E 2°47'47.184"N





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4. CERTIFICATION ASSESSMENT

4.1. Surveillance 01

The objective of the certification audit is to assess the activities of MPOB Cawangan SPOC B3 Jugra is in compliance with MS 2530-2: 2013 Part 2: General principles for independent smallholders’ requirements.

There are 90 smallholders joined the certification during surveillance 01 audit. The total number of smallholders remain the same during certification audit.

The certification audit was conducted 04/07/2018 that include inspection of the smallholders farms, farms boundary, interviews, conduct stakeholders’ consultation and review of the observations raised in the last audit.

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

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

During the onsite the following were verified.

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

2. Training and competence

3. Environmental management

4. Waste management and disposal

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

During the certification audit, there were one (1) minor and seven (7) observations raised. The audit team has reviewed and closed out Minor non-conformity the observations raised by means of inspection of smallholders’ farms, conduct interviews, review and verify documents that are established, corrected and implemented appropriately by the SPOC team. The corrective measures implemented could be verified as appropriate and the observations were closed out.

There are several P & C that could not be verified during surveillance 01 audit, have been verified after onsite observations, inspection conducted, interview of personnel and further reviewed of revised and updated procedures and documents established. It can be concluded the P & C requirements are met.

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

TUV NORD (Malaysia) Sdn. Bhd. has published the public notification on 01/06/2018 to obtain feedback and comments. As at audit date on 04/07/2018 there were no comments received.

In addition, invitation letters were sent on 06/07/2017 to invite relevant stakeholders to attend a local stakeholder consultation on 02/07/2018 to gather information from the local communities in accordance to §7, 3.2 of the Certification Procedure requirements.

The topics of discussion are as below:

a. Introduction of SPOC B3 (Jugra) objectives of MSPO standard certification for smallholders.





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b. Development of smallholders farms in SPOC B3 (Jugra) area;

Wildlife management area and impact to the smallholders;

c. Environmental issues on the impact of river contamination;

d. Type of wildlife around SPOC B3 (Jugra) area;

e. Support from processing palm oil mills at SPOC B3 (Jugra) area.

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

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

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

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

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

Stakeholders respond stated that they has been informed in regards to the MSPO audit. They are aware on MSPO trough communication with SPOC Managers.

Positive comment to SPOC B3 (Jugra).

2 Social context There are no social issue related to SPOC B2(Kelanang) as per confirmed by stakeholders.

SPOC B3 (Jugra) gather information in any issue trough engagement with smallholders.

3 Understanding of “NCR Land”?

Stakeholders either own freehold land or lease land. They understand the status of their land and no land issue involved.


4 Economy / Livelihood

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

Since MSPO is a sustainability scheme, there are positive impacts of gain in term of managing smallholders land via proper GAP programme.


5 Does MSPO/RSPO will largely benefits the local community?

Stakeholders has confirmed that they understand the benefit of the MSPO certification which one of the advantages s better communication in dealing with FFB price

SPOC Manager does involve local community (smallholders) trough Latihan Khidmat Nasihat (LKN) given.

6 HCV and environmental understanding

Stakeholder attend the meeting does aware of environmental and its conservation.


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

Stakeholder attending the meeting are aware on conservation of endangered species and the need to ensure minimum impact.


8 Support to smallholders SPOC Manager was continuously supporting smallholders through






Audit Type: ASA 01

MSPO-F04a / Rev 5 (2018/06) 25 of 37

road show and training conducted under the Latihan Khidmat Nasihat (LKN) Programme and introduction of new technology trough Warta Sawit.

9 FFB quality There are Koperasi Penanam Sawit Mampan Kuala Langat weighbridge which accept the FFB from smallholders. There are no issue in regards to quality since smallholders does attend the LKN training.


10 Are there any plantation or mill management practices that affect you?

Staekholder’s feedback confirms that there are no impacts caused by any of smallholder’s farms that affect their activities.


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

Stakeholders attending the meeting confirm there is no conflict arise by the SPOC management on MPSO certification


12 Do you have any suggestions for management?

There no other suggestion given by stakeholder.


4.2. Status of Non-Conformities Previously Identified

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

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

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

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

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

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

Non Conformity Number < NO 01 >

Indicator: 4.5.5.1 Independent smallholders should show a basic understanding of any species or habitats of concern, together with their conservation needs. Information on protected species and their habitat with high biodiversity value may be obtained from relevant government agencies, such as the Forestry Department, Forest Research Institute of Malaysia and the Wildlife Department.

Location Group Manager

Description of Finding / Objective Evidence:





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MSPO-F04a / Rev 5 (2018/06) 26 of 37

Non Conformity Number < NO 01 >

During the review of documentation, the list of wildlife on animals and birds around the sites of the smallholders location are not available and information for he smallholders was not available.

Classification Major Minor Observation

Raised by Lead Auditor:

Cheong, Chun Yuen, Robert

Date Raised:

26/07/2017

Deadline for implementation: Next Audit

Root Cause Analysis (by company):

Lack of knowledge and awareness about the list of wildlife on animals and birds around the site of smallholders location.

Correction (by company):

The list of rare, threatened and endangered species has been applied to the Wildlife Department on 26 Jun 2018 and the training session for smallholders has been conduct with Wildlife Department on the same day.

Corrective / Preventive Action (by company)

The training session and briefing of rare, threatened and endangered species by Wildlife Department will be conducted to smallholders every year to make sure the knowledge and awareness about this.

Review of Correction & Corrective / Preventive Action

Letter to Wildlife department dated 26/06/2018 and training record has been sighted. Field observation indicates improvement on smallholders awareness towards wild, rare and threatened species. Base on evidence received, the minor non-conformity raised was consider closed.

Closed: Yes No Site verification : Yes No

Name of Lead Auditor / Auditor:


Date of Closure:

04/07/2018

Review of Implementation for Major NC (where applicable)

Closed: Yes No

Name of Lead Auditor / Auditor:

Date of Closure:

Observation < No 1 >

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

Location Sampled smallholders






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MSPO-F04a / Rev 5 (2018/06) 27 of 37


The social and environmental assessment was conducted by SCCU from MPOB-HQ. The assessment resulted with mitigation measures that benefits the smallholders. Training records are available for individual smallholders, verified records of the sampled smallholders. However, during the field visit, 7 out of 9 sampled smallholders were found not fully aware of the continual improvement plans. The Group Manager could improve the training on peat management as during field visit for water management for peat land.


SPOC B2 (Kelanang) has incorporated peat management in their Latihan Khidmat Nasihat (LKN) for smallholders. Smallholders are aware on their continual improvement plans.

Closed: Yes No Site verification: Yes No

Name of Auditor:


Date of Closure:

04/07/2018


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



Reviewed the edition for Bil. 62(1) Jan-Apr 2016 [page 14-15] promotes the use of mechanized harvesting tool. The latest edition that available at site is Bil. 64 (3) Sep-Dis 2016. The 2017 editions will be circulated in Aug 2017. However, the Group manager could establish a mechanism to improve the disseminating information regards to new information and techniques timely to the group members.


Latest revision of Warta Sawit Bil 67 (3) September – December 2017 has been disseminated to smallholders as per sighted on field.

It was part of informing smallholders regarding new technologies.


Name of Auditor:


Date of Closure:

04/07/2018


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

Location Group Manager Office


Although the records of FFB sales are captured for the individual member, the group manager may consider to include which mill or dealer or ramp operatort he member has sold to.


Field visit on one of the weighbridge, Koperasi Penanam Sawit Mampan Kuala Langat Bhd has conclude that smallholders can send their FFB to any of their weighbridge.






Audit Type: ASA 01

MSPO-F04a / Rev 5 (2018/06) 28 of 37


Name of Auditor:

Zul Hairi Bin Abu Hassan

Date of Closure:

04/07/2018


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

Location Group Manager Office


Although the number of calls received are captured, the details of the information and caller was not recorded.

The grievance form established was not used to capture request information or complain from stakeholders or smallholder for the follow up status and time when it was resolved.


Grievance for has been established. There are no grievances sighted either via interview or record.


Name of Auditor:


Date of Closure:

04/07/2018


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



During field visit to land owned by Mathurai a/l Parasuraman – Lot 4425, found there was presence of foreign workers. The Tunas Officers could improve the training to the land owner on the procedures of hiring “Temporary / Foreign Workers” for plantation activities.


SPOC B2 (Kelanang) has included the awareness on legal requirement which also include minimum wages in their Latihan Khidmat Nasihat conducted by SPOC B2 (Klenang manager).


Name of Auditor:


Date of Closure:

04/07/2018


Indicator: 4.5.3.2: Independent smallholders shall ensure that waste from the smallholdings is disposed of appropriately

Location Group Manage and Smallholders






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MSPO-F04a / Rev 5 (2018/06) 29 of 37


Currently the disposal method for used or damaged containers is buried since the is no authorized schedule waste collector willing to collect the small amount generated.

The records of the smallholders who disposed by burying was on file.

1. The group manager could consider to the obtain records on the quantity disposed by the current method.

The group manager may further discuss with department of environment a better disposal method. Instead of burying these schedule waste.


Awareness on ban of open burning practise was conducted by Group Manager trough Latihan Khidmat Nasihat (LKN). There are no open burning sighted on smallholders farm.


Name of Auditor:


Date of Closure:

04/07/2018


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



Some visited fields seen the traces of pesticides application has affected the base of young palms [below 2 years]. The Group Manager could improve the training to educate farmers on pesticide usage along natural waterways.


Training on preservation of riparian area and restriction of usage of chemical on such area has been explained by Group manager trough Lathan Khidmat Nasihat (LKN). There are no evidence of non-permitted activities (sparying and manuring ) occur in riparian area at smallholders farm.


Name of Auditor:


Date of Closure:

04/07/2018





Audit Type: ASA 01

MSPO-F04a / Rev 5 (2018/06) 30 of 37

4.3 Detail of Audit Findings Identified During This Audit

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

AUDIT OUTCOME

MAJOR Non-Conformities 0

MINOR Non-Conformities 0

Observations 3

Observation < NO 1 >

Indicator: 4.3.1.1

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

Location Office SPOC B3 (Jugra)


Legal register was updated on 13/04/2018 which has indicated list of 14 acts for SPOC management. SPOC Group manager may consider including others important regulation as part of the legal register list such as Minimum Wage Order 2016.


Closed: Yes No Site verification : Yes No

Name of Lead Auditor:


Review Action Plan:

Next surveillance audit


Indicator: 4.4.1.1

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



Five complaints were been seen from non-member regarding the bag worm attack at SPOC B3 on 18/04/2018, 23/04/2018, 24/04/2018 (2 complaint) and 04/05/2018. Two of the complaint was not sign by the complainant too verify the issue was been taken or not. As the procedure is implementable to both member and non-member, the implementation does not suggest that member complaint are in compliance to the procedure. An observation was raise where the implementation may have failed in member of SPOC however this will be reviewed once there is member complaint.







Audit Type: ASA 01

MSPO-F04a / Rev 5 (2018/06) 31 of 37




Review Action Plan:



Indicator: 4.6.3.1

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



On the interview indicate that smallholder are acknowledge on price dealing via MPOB website and verbal communication with the dealer. Group manager may take into consideration for communication between smallholders and related stakeholders to be documented.





Review Action Plan:






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MSPO-F04a / Rev 5 (2018/06) 32 of 37

5. CONCLUSION

Malaysia Palm Oil Board, Cawangan SPOC Kuala Langat has commissioned TÜV NORD (Malaysia) Sdn Bhd to carry out the certification for the Sustainable Palm Oil Cluster (SPOC) consisting of 90 independent smallholders according to MS 2530-2:2013 Part 2, General Principles for Independent Smallholders.

Observations raised in this audit will be verified in the next surveillance audit.

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

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

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

Total certified number of independent smallholders: 90 Smallholders

Total certified acreage of smallholders: 111.54 Ha

Certified FFBs output January to December 2017: 321.74 mt

Certified FFBs output January to June 2018: 304.15 mt





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6. RECOMMENDATION

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

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

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

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

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

Recommended for Certification / Recertification

X Recommended for Continuity of Certification

Suspended of Certification

Puchong, 08/08/2018 Puchong, 08/08/2018

Name : Zul Hairi Bin Abu Hassan

TUV NORD (Malaysia) Sdn Bhd

Audit Team Leader

Terence, Ang

TUV NORD (Malaysia) Sdn Bhd

Certifier / Approver





Audit Type: ASA 01

MSPO-F04a / Rev 5 (2018/06) 34 of 37

7. REFERENCES

Table 7-1: Documents provided by SPOC Kuala Langat

Client Reference Document

Aduan Pekebun Kecil’, rev 1 dated 01/06/2014

Borang aduan /cadangan pekebun kecil, rev 1 dated 01/06/2014

Borang Pemeriksaan Tanah Kebun Kali Pertama (LK1) Skim Taman Semula Kebun Kecil (TSSPK0 Reference TSS02 Pin1 (03-2013)

Borang Permeriksaan Kebun Kedua (LK2)

Senarai Semak Pensijilan Mpob Amalan Pertanian Baik (GAP) Pekebun Kecil Sawit

Carta Aliran Penyata Pendapatan Dan Perbelanjaan Pekebun Kecil’, rev 1 dated 01/06/2014.

Complaint flow chart

Complaint Log Book / Suggestion form

Individual smallholder file:

1. Smallholder details

2. Land title grant

3. Land area size

4. MPOB approval

LK1, LK2 and Senarai Semak Pensijilan Mpob Amalan Pertanian Baik (GAP) Pekebun Kecil Sawit

Kawalan Rumpai & Kawalan Serangga Perosak” training dated 26/06/2018

Kursus Sehari Sawit untuk Pekebun Kecil

Updated and Signed MSPO Policy

Signed MSPO Policy by smallholders after briefing on 01/05/2016

MPOB GAP SOP Revision 1 dated 01/06/2014.

Memo dated 27/06/2014 issued by group manager to HQ to appoint an approved disposal collector for the removal of chemical containers and fertilisers bags





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MSPO-F04a / Rev 5 (2018/06) 35 of 37

Client Reference Document

Newsletter “Warta Sawit”

Pensijilan Kod Amalan Pertanian Baik (GAP) Pekebun Kecil

Rantaian Pengeluaran Minyak Sawit Mapan, rev 1 dated 01/06/2014

“Rantaian Pengeluaran Minyak Sawit Mapan

Skim Tanah Baru Sawai Pekebun Kecil (TBSPK) Borang Pemeriksaan Tapak – Pengesahan Penyediaan Kawasan dan Siap Tanah – LK1

Sesi latihan bersama pekebun kecil held on 26/06/2018.

Group Smallholders list as at 01/07/2018

Smallholder FFB output for January to December 2017 and January to June 2018

Table 7-2: Background Investigation And Assessment Documents

Reference Document

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

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

Akta Perlindungan hidupan liar 1972(Akta 76) Jadual Lima Serangga-Serangga yang Diperlindungi

Akta Perlindungan hidupan liar Jadual Tiga Burung Liar yang Diperlindungi Sepenuhnya

Akta Perlindungan hidupan liar Jadual Empat Burung Liar yang Diperlindungi

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

Akta Pemuliharaan Hidupan Liar 2010 dated 20/04/2012.

Children and Young Persons (Employment) Act 1966





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MSPO-F04a / Rev 5 (2018/06) 36 of 37

Reference Document

Employment Act 1995

Environmental Quality Act 1974 and Amended 2012

Environmental Quality (Clean Air) Regulations1978

Environmental Quality (Scheduled Wastes) Regulations 2005

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

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

Immigration Act 1959/63

MSPO Certification Procedures

MS 2530-2:2013: Malaysian Sustainable Palm (MSPO) Part 2: General principles for independent smallholders

Occupational Safety and Health Act 1994

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

Pesticides Act 1974

2nd

Surveillance Audit Report

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

No. Name Organization / Function

1 Helmi bin Nazeri MPOB Cawangan Kuala Langat / SPOC Group Manager

2 Tuan Zaid Tuan Ismail MPOB Cawangan Kuala Langat / SPOC Officer

3 Ahmed Zaki bin Mat Said MPOB Cawangan Kuala Langat / SPOC Officer





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No. Name Organization / Function

4 Nur Amalina Bt Mat Rasid MPOB Cawangan Kuala Langat / SPOC Officer

5 En. Fadzly Bin Barsari Pegawai Pejabat Pertanian Daerah Kuala Langat

6 En. Mohd Khairul Azwan AB Hamid

MPOB HQ / Research Officer

7 En. Muhammad Asyraf Bin Che Yusuf

MPOB HQ / Assistant Research Officer

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

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

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

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

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

Annex / Enclosures

Annex / corresponding audit documentation

P&C Audit Report / Checklist(s)

Audit Plan

Additional annexes, number

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

Company Name: Malaysia Palm Oil Board Client No: 92-067

Certifying Unit: SPOC B3 (Jugra) Audit Type: Surveillance audit (ASA 01)

MSPO-F05a / Rev 3 (2018/06) Page 1 of 23

Item Description

1 Company Name Malaysia Palm Oil Board Kuala Langat

2. Certifying Unit SPOC B3 (Jugra)

3. Address No 14, Tingkat 1, Jalan Cemerlang 2, Pusat Perdagangan Banting, 42700 Banting, Selangor.

4. Contact Tel: 03-31804704 Fax: Website:

5 Location of plantation / estate

Jugra, Klang, Selangor.

6 Geo Coordinates of plantation / estate

Refer to list attached

7 Contact Person Name: Ahmad Zaki Bin Mat Saad Tel: 03-31804704 Mobile: Email: [email protected]

8 Date of Audit 04/07/2018

9. Audit Team Members

Team Leader / LA Zul Hairi Bin Abu Hassan (Trainee Lead) - ZH

Auditor Member Mohamad Norhisham Bin Mohd Salleh – HS, Sheron Pui (Trainee auditor) – SP

Observer Terence Ang - TA

mailto:[email protected]





Clause Principle & Criteria

Verification Guidance Guidelines Findings & Comments Conformity

Yes / No

4.1 Principle 1 Management Commitment & responsibility

4.1.1 Criterion 1 Malaysian Sustainable Palm Oil (MSPO) Policy

4.1.1.1 There shall be a policy binding smallholders to MSPO

(MAJOR)

- Statement of commitment to MSPO signed by group manager

- This applies only to independent smallholders under group manager

SPOC B3 has established MSPO Policy for SPOC B3 (Jugra), which was sign by SPOC B2 Group manager dated 01/05/2016. The policy stated:

Komitmen dan tanggungjawab pihak pengurusan SPOC B3 (Jugra)

Keterbukaan dan memberikan maklumat kepada pihak berkepentingan.

Dokumentasi bagi tujuan kebolehjejakan

Pematuhan undang-undang tempatan, kebangsaan dan antarabangsa yang telah disahkan

Sumbangan kepada pembagunan mampan komuniti setempat

Penyelesaian aduan dan rungutan secara telus dan adil

Pematuhan keadaan pekerjaan, aspek keselamatan dan kesihatan pekerja.

Penjagaan alma sekitar, sumber semulajadi, biodiversity dan perkhidmatan ekosistem

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

Pelaksanaan pembakaran sifar dan amalan pertanian baik.

Pematuhan syarat-syarat bagi pembagunan baru sawit.

Yes







Yes / No

Site visit:

Interview with smallholders indicates they are aware and understand the MSPO policy. The awareness was gained through Latihan Khidmat Nasihat (LKN) conducted by MPOB.

4.1.2 Criterion 2 Continual Improvement

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

(MAJOR)

- Identified social and environmental impact

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

- Awareness programme for the need for continual improvement

- Interview and record assessment

- JKKK or JKKP meeting

- Dissemination of information to members about future activities

- Group manager to develop action plan

SPOC B3 (Jugra) has establish the SOP for the social and environmental impact. Document no MSPO/SSCC/L-04/ISP, dated effective: 13/04/2018 issue no: 1.

Social issue:

Harvesting, manuring & Chemical Spraying.

Social Impact: new acknowledge to the smallholder how to manage the oil palm systematic and good practice.

Action plan: Continuous

Environmental issue:

Chemical spraying

Environmental impact: Disposal of scheduled waste

Action plan: Wash 3 times, punched holes and stored special place.

Yes

4.1.2.2 Indicator 2 Group management shall establish a system to

- Identification of new technologies

- Dissemination of information regarding

Latest Warta Sawit Bil. 67 (3)/September-Disember 2017 has disseminated to smallholders trough Taklimat







Yes / No

improve practices in line with new information and techniques; and for disseminating this information throughout the group members.

(MAJOR)

new technologies :

Discussion

Site visit

Plot demo

Flowchart, etc.

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

- Acceptance and implementation among members

- Monitoring success or improvement with new technologies

- Internal audit to be conducted by group manager as applicable

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

MSPO 2018 dated 26/06/2018.

Internal audit was conducted 30/05/2018 to 01/06/2018 by Officer from HQ MPOB Bangi. The has finding 2 non-conformities,

4.1.1.1: perakuan menyertai MSPO bagi pekebun kecil 2018 (baru) tidak ditandatangani.

4.2.1.2: Resit jualan bagi pekebun kecil yang baru menyertai MSPO tiada dalam simpanan.

OFI

4.1.1.1: Polisi bagi GM setiap SPOC belum dipamerkan

4.3.1.1: Senarai daftar perundangan tiada dalam simpanan

4.5.4.1: Program bagi lawatan GAP untuk pekebun kecil yang baru menyertai MSPO perlu disediakan. Taklimat berkenaan amalan pertanian baik belum diberikan.

4.5.5.1: Poster atau maklumat berkenaan hidupan liar perlu dipamerkan di sudut MSPO.

4.6.1.2: Papan tanda maklumat kebun tidak dipamerkan.

Major NC will be close before 31/08/2018.

Site visit:

During Interviewing smallholders, they do received Warta Sawit which was provided by SPOC Manager trough the Latihan Kihdmat Nasihat conducted.







Yes / No

4.2 Principle 2 Transparency

4.2.1 Criterion 1 Traceability

4.2.1.1 Indicator 1 The group management shall commit itself to implement and maintain the requirements for traceability.

(MAJOR)

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

- Source of planting materials

- Applies to group manager for independent smallholders

SPOC B3 (Jugra) has established Pelan Daya Ekonomi Dan Kewangan, Doc no P-01/PDEK/2016 date effective 01/05/2017. SOP Garis Panduan Pelan Daya Ekonomi Dan Kewangan doc no: MSPO/SSCC/GP-01/PEK effective dated: 13/04/2018 issue no: 1

Rekod Aktiviti Kebun

1. Rekod penjualan BTS 2. Rekod penggunaan Baja/Racun 3. Rekod Perbelanjaan.

SPOC B3 (Jugra) established Flowchart for smallholder income.

1. Sending FFB to Ramp/Mill 2. Received selling receipt/weighbridge ticket. 3. Save the records in Buku Rekod Ladang (BRL) 4. GM will verify the records schedule.

Yes

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

(MAJOR)

- Verification of records and documents SPOC B3 (Jugra) has established summary of FFB for the smallholder from 2014 to June 2018 to keep records of sales delivery of FFB.

Site visit:

Sighted weighbridge ticket for smallholders:

From Jugra Palm Oil Mill Sdn. Bhd. dated 19/06/2018 for smallholder’s name: smallholder no 36, weight 0.77 mt

Site visit to Koperasi Penanaman Sawit Mampan Kuala

Yes







Yes / No

Langat berhad, independent weighbridge which was receiving FFB from group member. The price of FFB was shown in front of weighbridge office.

4.3 Principle 3 Compliance to legal requirements

4.3.1 Criterion 1 Regulatory requirements

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

(MAJOR)

- Interview to test awareness :

Licensing requirements

Labour Law

Environmental Act

Immigration

Child Labour – not applicable on family farms

Sighted the training report ‘Taklimat MSPO 2018’, dated: 26/06/2018, venue: Dewan Orang Ramai Telok Panglima Garang, prepared by (Penbantu Penyelidik) and approved by (Penolong Pegawai Penyelidik).

And training report ‘Sesi latihan Bersama pekebun kecil’, dated: 5,6,10 & 11/06/2017, prepared and approved by (Penolong Pegawai Penyelidik)

The training above include the training material such as:

1. Akta pemuliharran hidupan liar 2010 (akta 716)’,

2. Akta kualiti alam sekeliling 1974

Example of attendee for training above:

1. Smallholder no 76 2. Smallholder no 72

Site visit:

Interviews with smallholders indicates they are aware on legal requirements. There is no child labor sighted in the visited fields.

Obs







Yes / No

Obs:

Legal register was updated on 13/04/2018 which has indicated list of 14 acts for SPOC management. SPOC Group manager may consider including others important regulation as part of the legal register list such as Minimum Wage Order 2016.

4.3.2 Criterion 2 Land use rights

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

(MAJOR)

- Verification of land ownership Sighted the land ownership.

Example of ‘Pajakan Mukim’

1. Name: smallholder no 48, Lot 4819,

No. Hakmilik: 3521

No Fail: PTK.LGT 1/12/946

No. Pelan: 28692

Example of ‘Geran Mukim’:

1. Name : smallholder no 46, Lot: 940

No. Hakmilik: 2189

Venue: 15th mile tg xii road

No. Pelan: 116-A Site visit: There are no disputed in between smallholders and their neighbor related to the land ownership. There are boundary stone or boundary drains to indicates their boundary.

Yes







Yes / No

4.3.3 Criterion 3 Customary rights

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

(MAJOR)

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

- Verification of land ownership or user rights

Example of ‘Sijil Carian Rasmi’ from Kaedah Tanah Selangor:

1. Name: Smallholder no 48, Lot 4819,

No. Hakmilik : PM 3521

Syarat-syarat nyata: tanaman kepala sawit

2. Name: Smallholder no 45 Lot : PT 32641 No. Hakmilik: HSD 30246 Syarat-syarat: Tiada

Site visit:

Letter of acknowledgement from Jabatan Orang Asli dated 04/07/2011, sign by, Officer, Jabatan Kemajuan Orang Asli Pengesahan tanah Kebun di Kg. Orang Asli Kg Judah, Pulau Carey which shows the ownership of the land to the respective orang asli owner. Letter was sighted for:

Smallholder no 64 and smallholder no 61.

Yes

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

(MINOR)

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

Sighted the land/ map for all smallholders.

Example of the map/ land plan detail as follow:

1. Name: Smallholder no 48, Lot 4819

Bandar/Pekan: Mukim Tanjung Dua Belas







Yes / No

Jenis hakmilik : pajakan mukim

No. Pelan diperakui: 28692

Luas: 1.2469 Hektar

Dated: 06/11/2011

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

4.4.1 Criterion 1 Complaints and grievances

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

(MAJOR)

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

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

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

SPOC B3 (Jugra) has established SOP for complaints and grievances. Doc no: MSPO/SSCC/SOP-01/AR date effective 13/04/2018, issue no 01.

Site visit:

Site visit to smallholders indicates that there are no complaints made to the SPOC B3 (Jugra) manager.

Obs:

Five complaints were been seen from non-member regarding the bag worm attack at SPOC B3 on 18/04/2018, 23/04/2018, 24/04/2018 (2 complaint) and 04/05/2018. Two of the complaint was not sign by the complainant too verify the issue was been taken or not. As the procedure is implementable to both member and non-member, the implementation does not suggest that member complaint are in

Obs







Yes / No

compliance to the procedure. An observation was raise where the implementation may have failed in member of SPOC however this will be reviewed once there is member complaint.

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

(MINOR)

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

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

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

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

Procedure has been established for complaint and grievances for SPOC B3 (Jugra) Doc. No: MSPO/SSCC/SOP-01/AR, Effective date: 13/04/2018, Rev: 0. In Bahasa Malaysia

The procedure included:

1.Penerimaan Aduan dan Rungutan.

2. Tindakan Susulan/ Siasatan.

Group manager are responsible for handling for complaint received, investigation, monitoring on action taken and record maintained.

If there is any compliant received, Group manager should ensure the complaint and grievance close within 14 days from the date of complaint received according to ‘Carta Alir’ in the procedure ‘Aduan dan Rungutan’

Yes

4.4.2 Criterion 2 Employees safety and health

4.4.2.1 Indicator 1 Independent smallholders need not have a formal

- Group manager to promote awareness on the safe work practices

SPOC B3 (Jugra) has established SOP kemalangan, kejadian bahaya dan keracunan pekerja. Doc no:

Yes







Yes / No

health and safety plan but shall ensure that all work practices are safe

(MAJOR)

- Group manager to provide PPE & training in the premises

- Interview :

Accident

Safety equipment or PPE

Training on safety and health

- Observation of operation at site

MSPO/SSCC/SOP-04/KK, issue no: 01 dated effective: 13/04/2018.

Training for safety and health was conducted 26/08/2018. Attended list example:

Smallholder no 56

Smallholder no 69

SPOC B3 write memo to HQ, regarding to provide PPE to smallholder 06/09/2017 still pending at HQ and tendering process.

Site visit:

Interviews with smallholders indicates they understand the usage of PPE and does apply it on field when handling chemicals and fertilizer application.

4.4.3 Criterion 3 Employment Conditions

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

(MINOR)

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

- Evidence through interview

Sighted ‘Senarai Harga Upah Berdasarkan Kerja Harian Di Kebun SPOC B3 (Jugra) independent smallholders with temporary workers, work is pay according to the list as follow:

1. Menuai – RMXX - RMXX/mt

2. Membaja – RM XX – RM XX/ HA

3. Meracun – RM XX – RM XX/ HA

4. Pemangkasan – RM X – RM X / Pokok

Yes







Yes / No

Site visit:

Casual workers were hired due to their skills, there are no evidence of discriminatory practices occurs in field.

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

(MINOR)

- Absence of complaints on discrimination

- Interview workers

There was no complaint record found during the audit.

Site visit:

Onsite interview with smallholder indicate they understand on the not engage or support discriminatory practices.

.

Yes

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

(MAJOR)

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

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

standards with actual condition - Interviews :

Workers (regular & non-regular)

Contractor

Job specification

Payment

Satisfaction

All the smallholder work by the family member and if the paid to workers are the casual workers.

Site visit:

Example of pay given to casual workers.

Smallholder no 36. Harvesting rate: XX/mt of FFB

Smallholder no 2. Harvesting rate: XX/mt of FFB

Yes







Yes / No

4.4.3.4 Indicator 4 In cases where on-site living quarters are provided, these quarters shall be habitable and have basic amenities, where available and practical.

(MAJOR)

- Acceptable living conditions for workers, when provided

- Site visits - Interviews - Observation

Site visit:

There are no sighted living quarters as casual workers stays at their own houses nearby smallholder’s farm due there also the villagers people.

Yes

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

- Labour Law - Child and Young Person

(Employment) Act 1966 - Interviews - Observation

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

Sighted the ‘Syarat mengupah pekerja di kebun sawit’, Doc No: SMP-01/MSPO-SPOC/2017.

Example for children and young persons:

No 2. Tidak sama sekali membenarkan/ mengupah kanak-kanak di bawah umur 15 tahun untuk bekerja.

No 3. Tidak sama sekali membenarkan/ mengupah orang muda di bawah umur 15-18 tahun untuk membuat kerja berat dan merbahaya di Kawasan kebun sawit.

Site visit:

Field observation and interview with smallholders indicates that there is no evidence of child labour used in daily smallholders field work.

Yes

4.4.4 Criterion 4 Training and competency

4.4.4.1 Indicator 1 Independent smallholders are encouraged to seek

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

Planning for LKN was established for year 2017 -2018 for SPOC B3 (Jugra).

Yes







Yes / No

knowledge to increase their competency in oil palm management.

(MINOR)

GAP

Safety

Financial management

- Interviews - Expenditure on visits or reading

materials.

Example for the LKN

Dated 07/05/2018

To lot: Smallholder

GAP for the immature area for applying fertilizer and recommendation by GM SPOC B3 (Jugra).

Training for SPOC B3 (Jugra) was conducted on 26/06/2018 included:

1. GAP 2. Penjagaan Alam Sekitar 3. Spesis haiwan terancam dan dilindungi 4. Keselamatan dan kesihatan pekerja 5. Keadaan pekerja 6. Impak social dan pesekitaraan 7. Pengendalian dan pelupusan bahan kimia 8. Prosedur aduan dan rugutan.

Attendant smallholders:

Smallholder no 13

Smallholder no 8

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

4.5.1 Criterion 1 Environmental management plan

4.5.1.1 Indicator 1 Independent smallholders are expected to be aware of the environmental

- Training to be provided by the group manager

Sighted training report Taklimat MSPO, dated: 20/03/2018, prepared and approved by (Penolong







Yes / No

impact but are not expected to undertake any formal impact assessment unless there is a legal requirement.

(MINOR)

- Interviews :

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

Understanding of the agricultural impact to the sensitivity requirements

- Site visits - Observation

Pegawai Penyelidik)

The topic training includes:

1. GAP 2. Environment care 3. Endangered and protected animal species 4. Safety and health 5. Working conditions 6. Social and environmental impact 7. Control and disposal of chemical 8. Procedure for complaints and grievances.

Example of attendee for training above:

1. Smallholder no 76 2. Smallholder no 72 3. Smallholder no 69

4.5.2 Criterion 2 Efficiency of energy use and renewable energy

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

(MINOR)

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

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

This indicator is not applicable at this audit. No use of renewal energy was been applied during interview and site verification.

Site visit:

There is no renewal energy applied by them on field during observation on smallholder’s farms.

Yes

4.5.3 Criterion 3 Waste management and disposal

-







Yes / No

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

(MAJOR)

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

Sighted document ‘Senarai bahan buangan terjadual yang terdapat di SPOC B3 (Jugra) and record ‘pengurasan bahan buangan’ prepared by group manager Example:

Name Empty chemical

container

Fertilizer bag

Reused Kept Reused Kept

Smallholder

no 01

x x

Smallholder

no 10

x x

Yes

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

(MAJOR)

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

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

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

Sighted procedure:

1. ‘Pengendalian dan pelupusan bahan kimia’,

Doc. No: MSPO/SSCC/SOP-02/BK Effective date: 13/04/18 Rev no: 0 On 3.2: pelupusan racun perosak lapuk(obsolete) – ‘Racun makhluk perosak lapuk mesti dilupus oleh kontraktor sis abangan kimia yang dibenarkan sahaja.’

2. ‘Pengurusan bahan buangan terjadual’

Doc No: MSPO/SSCC/SOP-03/BT Effective date: 13/04/18

Yes







Yes / No

Rev No.: 0

On the procedure 2: ‘Bahan racun di dalam bekas yang kosong hendaklah dibersihkan terlebih dahulu sekurang-kurangnya 3 kali bilasan menggunakan air bersih sebelum disimpan untuk tujuan pelupusan.

Site visit:

Smallholders understand the schedule waste management. Empty chemical containers were properly collected and triple rinse for re-use purposed

4.5.4 Criterion 4 Natural water resources

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

(MINOR)

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

- No intrusion to riparian reserve

- Maintain vegetation at riparian reserve

- Frond stacking

- Cover crops

- No blanket spraying

- Built and maintain terraces according to specification

- Silt pit

Sighted training report Taklimat MSPO, dated:

20/03/2018, prepared and approved by (Penolong

Pegawai Penyelidik)

The topic training includes:

1. GAP

2. Environment care

3. Endangered and protected animal species

4. Safety and health

5. Working conditions

6. Social and environmental impact

7. Control and disposal of chemical

8. Procedure for complaints and grievances.

Attendee example:

1. Smallholder no 48


Yes







Yes / No


Site visit:

Site visit to smallholder’s farm indicates effort has been taken to ensure no run off water. Smallholders on peat area manage their farm with proper drain to ensure drain water are properly manage. There is no sight of spraying conducted nearby drain and they maintain their soft grass properly.

4.5.4.2 Indicator 2 Water harvesting practices should be implemented.

(MINOR)

- Implementation of any forms of water harvesting

Site visit:

Most of smallholders create collecting pond on their farm to collect rain water mainly for spraying purpose

Yes

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

4.5.5.1 Indicator 1 Independent smallholders should show a basic understanding of any species or habitats of concern, together with their conservation needs. Information on protected species and their habitat with high biodiversity value may be obtained from relevant government

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

- Interview to test understanding on the conservation needs of the rare, threatened, and endangered species (RTE) elements identified in above

Site visit:

Interviews with smallholders indicates that they do understand the requirement to not hunting or killing any wild life especially those which are protected by law.

Example animals was found: bird, snake

Yes







Yes / No

agencies, such as the Forestry Department, Forest Research Institute of Malaysia and the Wildlife Department.

(MINOR)

4.5.6 Criterion 6 Zero burning practices

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

(MAJOR)

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

- Observation on any evidence of open burning

There was SOP of ‘Garis panduan amalan pembakaran sifar’, Doc No: MSPO/SSCC/GP-04/APS, Effective date: 13/04/18, Rev No: 0.

The procedure state that ‘a) Pembakaran terbuka adalah dilarang dibawah Dasar Pembakaran Sifar Asean (1999) dan perintah kuality alam sekeliling (activii yang diisytiharkan) (pembakaran terbuka) (2003).

Site visit:

There are no open burning observed in the smallholders farm. Smallholders using trunk chipping or exposed to sun rather than burning during replanting proses.

Yes

4.6 Principle 6 Best Practices

4.6.1 Criterion 1 Site management

4.6.1.1 Indicator 1 All independent smallholders oil palm farms shall implement best practices such as the MPOB Codes of Practice, Malaysian Standards, ISO Standards and and the

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

best practices that are practical for independent smallholders.

Site visit:

There are several best practices sighted during field visit to smallholders which are:

a) Planting of cash crops such as pineapple and bananas by smallholders

Yes







Yes / No

Kod Amalan Baik (GAP) Pekebun Kecil.

(MINOR)

Smallholder name: Smallholder no 28.

b) Proper coverage of soft grass

Smallholder name: Smallholder no 2

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

(MAJOR)

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

SPOC B3 (Jugra) has establish identification for each field example:

Site visit

KEBUN KELOMPOK MINYAK PENANAM SAWIT MAMPAN (SPOC) B3 SELANGOR

NAMA PEMILIK Smallholder

LOT 1156

KELUASAN 0.8094 HA

KOORDINAT GPS 101030’02.669” E

2049’50.364” N

TAHUN TANAM 2014

Yes

4.6.2 Criterion 2 Economic and financial viability plan

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

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

Sighted procedure ‘Economic and financial viability plan’ Doc No: P-01/PDEK/2016, Effective date: 01/05/2017, Rev No: 0.

The plan involved as follow:

1. GAP

2. Panduan pembajaan

Yes







Yes / No

(MAJOR) 3. Panduan meracun atau merumpai

4. Rekod activiti kebun sawit

5. Analisis purata pendapatan bersih pekebun kecil

mengikut tahun dan bulan

GM has established budget for the smallholders for immature area for three years to six years planning for the field activity. Example of budget included:

1. Fertilizer cost 2. Harvesting rate 3. Transportation for FFB 4. Upkeep cultivation

Budget for the FFB production and cost/mt was mention. The profit and lost for the production was been seen until 7 years age of palm. Annual training for the smallholder was been seen included the tentative program and cost.

4.6.3 Criterion 3 Transparent and fair price dealing

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

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

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

From the interview smallholder able to get the FFB price from MPOB website and Ramp dealer via verbal communication.

Obs

On the interview indicate that smallholder are acknowledge on price dealing via MPOB website and verbal communication with the dealer. Group

Obs







Yes / No

(MINOR) manager may take into consideration for communication between smallholders and related stakeholders to be documented.

4.7 Principle 7 Development of new planting

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

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

(MAJOR)

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

- No development on HBV area

Site visit:

There is no development of new planting observed during field observation. A documented circle of new planting last is 2017.

Yes

4.7.2 Criterion 2 Soil Survey

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

(MINOR)

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


Yes

4.7.3 Criterion 3 Planting on steep







Yes / No

terrain, marginal and fragile soils

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

(MAJOR)

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

measures - No development on unsuitable area

for oil palm

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


Yes

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