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SQAS/MSC/FOR/32-09a of 54 Issue 2 Rev. 0

PUBLIC SUMMARY SECOND SURVEILLANCE ASSESSMENT

FELDA SEGAMAT SMALLHOLDERS SCHEME CERTIFICATION UNIT

Segamat, Johor, Malaysia

Prepared by:

Food, Agriculture and Forestry Section SIRIM QAS INTERNATIONAL SDN BHD

Building 4, SIRIM Complex, No. 1, Persiaran Dato’ Menteri, Section 2, P.O. Box 7035, 40700 Shah Alam, Selangor,

MALAYSIA Tel : 603-5544 6440 Fax : 603-5544 6763

Website: www.sirim-qas.com.my

17 November 2014

http://www.sirim-qas.com.my/


Table of Contents Page

SUMMARY 3 1.0 SCOPE OF CERTIFICATION ASSESSMENT 3 1.1 National Interpretation Used 3 1.2 Certification Scope 3 1.3 Location of Supply Base 5 1.4 Description of Supply Base (Fruit Sources) 6 1.5 Production Volume of All Certified Products 10 1.6 Certification Details 11 1.7 Other Certifications Held 11 1.8 Progress Against Time-Bound Plan 11 1.9 Progress of Associated Smallholders or Outgrowers Towards Compliance with

Relevant Standards 11 1.10 Organisational Information / Contact Person(s) 11 2.0 ASSESSMENT PROCESS 13 2.1 Certification Body 13 2.2 Qualifications of Lead Assessor and Assessment Team Members 13 2.3 Assessment Methodology and Programme 14 2.4 Stakeholder Consultation and List of Stakeholders Consulted 14 2.5 Date of Next Surveillance Visit 15 3.0 ASSESSMENT FINDINGS 16 3.1 Summary of Findings 16 3.2 Details on Non-Conformity Reports 48 3.3 Status of Non-Conformities Previously Identified 48 3.4 Complaints Received from Stakeholders 48 3.5 Noteworthy Positive and Negative Observations 48 4.0 RECOMMENDATIONS 48 5.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL

RESPONSIBILITY AND FORMAL SIGN-OFF OF ASSESSMENT FINDINGS 49

List of Appendix

Appendix 1 : Location Map of FELDA Segamat Smallholder Scheme Certification Unit 50 Appendix 2 : Assessment Programme 51 Appendix 3 : Detail of Non-Conformities and Corrective Actions Taken 53 Appendix 4 : Status of Non-Conformities Previously Identified 57


SUMMARY This public certification summary provides the general information on the Federal Land Development Authority (FELDA) Segamat Smallholders Scheme Certification Unit (FSSS CU), the assessment process, the findings of the surveillance, Non-Conformity Reports (NCRs), verification of corrective actions on the NCRs raised during the previous audit as well as the decision on the continued certification of the CU against the requirements of the RSPO Principles and Criteria for Sustainable Palm Oil Production, including smallholder, RSPO Standard For Group Certification: 26 August 2010 and Malaysia National Interpretation Working Group (RSPO MYNIWG: November 2010). The second surveillance assessment on the FSSS CU was conducted on 8-10 June 2014. SIRIM QAS International Sdn Bhd (SIRIM QAS International) was contracted by FELDA to conduct this surveillance assessment. SIRIM QAS International is the leading testing, inspection and certification body (CB) in Malaysia having provided its services to all sectors of the business and industry for over 30 years. SIRIM QAS International, as an accredited CB by the United Kingdom Accreditation Service (UKAS) and STANDARDS MALAYSIA provides a comprehensive range of management system certification services on quality, environment, and health and safety. SIRIM QAS International has wide experience in conducting assessments on palm oil mills and oil palm estates for certification of management system against the requirements of the ISO 14001 and OHSAS 18001. SIRIM QAS International was approved as a CB by RSPO on 21 March 2008. Since then, it has conducted many assessments on RSPO sustainable production of palm oil in Malaysia. This surveillance assessment on the FSSS CU has resulted in the issuance of five (5) major and six (6) minor Non-Conformity Reports (NCRs). The FSSS CU had taken appropriate corrective actions to address the major NCRs which had been verified by the assessors and therefore closed out. The FSSS CU had also submitted a corrective action plan to address the minor NCRs which had been reviewed and accepted by the assessor. The verification on these corrective actions would be conducted by SIRIM QAS International during the next surveillance audit. Based on the findings of this surveillance, it could be concluded that the FSSS CU has continued to comply with the requirements of the RSPO MY-NI: 2010 (including smallholder), RSPO Standard for Group Certification: 26 August 2010 and Malaysia National Interpretation Working Group (RSPO MYNIWG: November 2010). The five major NCRs raised during this surveillance assessment had been adequately addressed and therefore closed out. The assessment team therefore recommends the FSSS CU to maintain its certification against the RSPO MY-NI: 2010. 1.0 SCOPE OF CERTIFICATION ASSESSMENT

1.1 National Interpretation Used The operations of the FSSS CU were assessed against the requirements of the RSPO MYNI: 2010 (including smallholder), RSPO Standard for Group Certification: 26 August 2010 and Malaysia National Interpretation Working Group (RSPO MYNIWG: November 2010). 1.2 Certification Scope The certification unit (CU) assessed in this surveillance was the FSSS CU which is one of the eleven regional complexes of FELDA smallholder schemes. The scope of certification is the production of sustainable oil palm fresh fruit bunches (FFBs). Owing to the changes in the number of participants in the group certification scheme (GCS) since the last assessment, the size [hectare (ha)] of the CU under the certification scope has also changed. The size of the oil palm estate in Melaka during this surveillance was 2,087.68 ha compared to 2,777 ha during the previous audit whilst in Johore it has been reduced to 4,521.88 ha compared to 6,650 ha. Likewise, the number of scheme participants had been reduced to 1,666 from 2,290 during the previous assessment.


There was no issue on acquisitions/disposals, emergence/re-emergence of land disputes and/or labour conflicts reported during this surveillance. The scope of certification has also remained the same, the production of sustainable oil palm FFBs. Since FSSS CU is a fully developed land scheme, Principle 7 of the RSPO Principles and Criteria (P&C) was therefore not applicable.


1.3 Location of Supply Base This CU delivered its RSPO certified FFBs to other private palm oil mills (POMs) that were not certified for RSPO supply chain. The location map of FSSS CU (now fourteen land schemes) is shown in Appendix 1 while their locations (coordinates) are as detailed in Table 1 below.

Table 1

Locations (Coordinates) and Area of FSSS

No Mill/Estate Year of Establishment

Area (Ha) GPS Location (Office)

Titled Planted Latitude Longitude

1 FELDA Chempelak Barat, 85300 Labis, Johor Darul Takzim

1972/1973 384.37 384.37 2 23’ 29” N 102 56’ 00” E

2 FELDA Tenang, 85300 Labis, Johor Darul Takzim 1960/2000 1,186.04 688.25 2 26’ 42” N 103 02’ 26” E

3 FELDA Chempelak, 85300 Labis, Johor Darul Takzim

1986/1987 794.08 434.34 2 22’ 45” N 102 55’ 48” E

4 FELDA Kemelah, 85040 Segamat, Johor Darul Takzim

1973/1974 622.08 533.62 2 31’ 26” N 102 57’ 58” E

5 FELDA Pemanis 1, 85009 Segamat, Johor Darul Takzim

1978/2011 262.78 250.78 2 36’ 13” N 102 53’ 13” E

6 FELDA Pemanis 2, 85009 Segamat, Johor Darul Takzim

1978/2011 74.00 74.00 2 35’ 33” N 102 54’ 13” E

7 FELDA Medoi, 85050 Segamat, Johor Darul Takzim

2001 189.00 189.00 2 31’ 40” N 102 52’ 55” E

8 FELDA Sri Ledang, 85220 Jementah, Segamat, Johor Darul Takzim

1968 669.40 577.05 2 23’ 26” N 102 45’ 48” E

9 FELDA Bukit Serampang, 85210 Jementah, Segamat, Johor Darul Takzim

1991 530.52 530.52 2 20’ 16” N 102 47’ 25” E

10 FELDA Lenga, 84040 Muar, Johor Darul Takzim 2012 859.95 859.95 2 14’ 28” N 102 51’ 03” E

11 FELDA Tun Ghafar Machap/Menggong, 78000 Alor Gajah, Melaka

1960 528.72 528.72 2 24’ 43” N 102 18’ 06” E

12 FELDA Tun Ghafar Kemendore,77000 Jasin, Melaka

1958 305.47 305.47 2 21’ 40” N 102 24’ 23” E

13 FELDA Tun Ghafar Bukit Senggeh, Nyalas,77100 Asahan, Melaka

2002 1,253.49 1,253.49 2 23’ 26” N 102 27’ 51” E

Total 7,659.90 6,609.56


1.4 Description of Supply Base (Fruit Sources) Table 2 to 14 show the year of scheme establishment, their respective total land area and area planted with oil palm and planting cycle in each of the scheme.

Table 2 FELDA Chempelak Barat

Plot No.

Year Planted

Oil Palm Area (ha) Oil Palm Area (%) Planting Cycle (1st/2nd

Generation)

Total Area

Planted Area

Mature Immature Mature Immature

01 2002 196.97 196.97 196.97 - 100 - 1st

113Z* 2002 61.83 61.83 61.83 - 100 - 1st

112W* 2002 38.42 38.42 38.42 - 100 - 1st

111V* 2006 3.83 3.83 3.83 - 100 - 1st

118Z* 2002 7.82 7.82 7.82 - 100 - 1st

113W* 2002 46.46 46.46 46.46 - 100 - 1st

113Y* 2005 3.75 3.75 3.75 - 100 - 1st

Total 359.08 359.08 359.08 100 -

* the alphabet V, W, Y and Z denotes “supplying of palms” within the same plot that were later decided by settlers who were not able to work on their farm due to resource constraints and thus surrender their land and let FELDA to manage on their behalf.

Table 3

FELDA Tenang

Plot No.

Year Planted


Generation)

Total Area

Planted Area


01 1986 26.50 26.50 26.50 - 100 2nd

02 1984 247.42 247.42 247.42 - 100 2nd

03 1999 513.97 16.18 16.18 - 100 2nd

04 2000 398.15 398.15 398.15 - 100 2nd

Total 1,186.04 688.25 688.25 - 100 -

Table 4

FELDA Chempelak

Plot No.

Year Planted


Generation)

Total Area

Planted Area


01 1987 299.64 160 299.64 - 100 - 2nd

002 1988 335.41 147.02 335.41 - 100 - 2nd

003 1997 22.71 7.84 22.71 - 100 - 2nd

004 1997 159.03 119.48 159.03 - 100 - 2nd

Total 794.08 434.34 794.08 - 100 -- -


Table 5 FELDA Kemelah

Plot No.

Year Planted


Generation)

Total Area

Planted Area


04 2003 622.08 533.62 533.62 - 85.78 - 1st

Total 533.62 - 85.78 - -

Table 6

FELDA Pemanis 1

Plot No.

Year Planted

Oil Palm Area (ha) Oil Palm Area (%) Planting Cycle

(1st/2nd Generation)

Total Area

Planted Area


002 1985 100.78 100.78 - 100.78 - 100 1st

082 1985 162.00 150.00 - 162.00 - 100 1st

Total 262.78 250.78 - 250.78 - 100 -

Table 7

FELDA Pemanis 2 (Lot FELDA)

Plot No.

Year Planted


Generation)

Total Area

Planted area


83/84 1979 74.00 74.00 63.00 - 100.00 - 1st

Total 74.00 74.00 63.00 - 100.00 -

Table 8

FELDA Medoi

Plot No.

Year Planted


Generation)

Total Area

Planted Area


082 06/01 102.03 102.03 102.03 - 100.00 - 2nd

Total 102.03 102.03 102.03 - 100.00 - -


Table 9 FELDA Sri Ledang

Plot No. Year

Planted


Generation)

Total Area

Planted Area


9054001 2000 37.47 31.93 31.93 - 100 % - 2nd

9054002 2000 7.77 5.30 5.30 - 100 % - 2nd

9054003 1994 138.26 127.12 127.12 - 100 % - 2nd

9054004 2000 270.36 259.00 259.00 - 100 % - 2nd

9054005 2000 3.19 3.20 3.20 - 100 % - 2nd

4054001 2008 22.82 18.00 - 18.00 - 100 % 2nd

4054002 2008 18.51 13.00 - 13.00 - 100 % 2nd

4054003 2008 1.82 1.50 - 1.50 - 100 % 2nd

4054005 2008 169.20 118.00 - 118.00 - 100 % 2nd

Total 669.40 577.05 426.55 150.50 - - -

Table 10

FELDA Bukit Serampang

Plot No.

Year Planted


Generation)

Total Area

Planted Area


001 12/86 288.33 288.33 288.33 - 100 - 2nd

002 12/91 22.70 22.70 22.70 - 100 - 2nd

003 12/91 103.18 103.18 103.18 - 100 - 2nd

005 01/03 116.31 116.31 116.31 - 100 - 2nd

Total 530.52 530.52 530.52 - 100 - -

Table 11

FELDA Lenga

Plot No.

Year Planted


Generation)

Total Area

Planted Area


01 1986 427.88

Under development of resurveying.

02 1987 257.52

99f 1986 8.00

03 2003 166.55 166.55 166.55 - 100 - 2nd

Total 859.95 859.95 859.95 - 100 - -

Table 12

FELDA Tun Ghafar Machap/Menggong

Plot No.

Year Planted


Generation)

Total Area

Planted Area


001 85/86 243.79 243.79 243.79 - 100 - 2nd

82 85/86 28.41 28.41 28.41 - 100 - 2nd

001 85/86 87.39 87.39 87.39 - 100 - 2nd

002 85/86 106.50 106.50 106.50 - 100 - 2nd

83 85/86 62.63 62.63 62.63 - 100 - 2nd

Total 528.72 528.72 528.72 - 100 - -


Table 13 FELDA Tun Ghafar Kemendore

Plot No.

Year Planted


Generation)

Total Area

Planted Area


001 85 110.20 110.20 110.20 - 100 - 2nd

002 86 186.00 186.00 186.00 - 100 - 2nd

003 87 9.27 9.27 9.27 - 100 - 2nd

Total 305.47 305.47 305.47 - 100 - -

Table 14

FELDA Tun Ghafar Bukit Senggeh

Plot No.

Year Planted


Generation)

Total Area

Planted Area


001 2000 1,253.49 1,253.49 1,253.49 - 100 - 2nd

Total - - 1,253.49 - 100 - -


1.5 Production Volume of All Certified Products All the schemes had been producing FFBs and selling them to either the private POMs or private collection centres. FELDA had entered into an agreement with the private POMs to ensure fair FFB pricing for the settlers. The actual (June 2013 to May 2014) and projected (June 2014 to May 2015) contribution of RSPO certified sustainable FFB by each scheme to the Group Certification Scheme (GCS) is detailed in Table 15.

Table 15 Actual (June 2013 to May 2014) and Projected (June 2014 to May 2015) Contribution

Of RSPO Certified Sustainable FFB by Each Scheme to the Group Certification Scheme

Scheme Total Number

of Settlers Number of

GCS member

Actual FFB Production for the last reporting period

(MT)

FFB projection for the next reporting period (MT)

1 June 2013 to 31 May 2014 1 June 2014 – 31 May 2015

FELDA Chemplak Barat 198 93 8,371.27 8,419.00

FELDA Tenang 394 95 8,612.41 8,200.00

FELDA Chemplak 271 232 6,048.95 4,692.59

FELDA Kemelah 431 409 4,179.00 12,480.00

FELDA Pemanis 1 500 22 Replanting in 2014

FELDA Pemanis 2 0 LOT FELDA Replanting in 2014

FELDA Medoi 25 20 1,960.16 1,984.71

FELDA Sri Ledang 316 316 8,236.42 9,510.18

FELDA Bukit Serampang 158 158 1,855.20 2,397.08

FELDA Lenga 220 220 3,606.44 2,794.00

FELDA Tun Ghaffar Macap / Menggong 217 215 7,515.55 Replanting in 2014/15

FELDA Tun Ghaffar Kemendore 380 178 10,685.13 5,302.23

FELDA Tun Ghafar Bukit Senggeh 448 321 28,028.61 29,300

Total 3,558 2,279 89,099.14 85,079.79


1.6 Certification Details Parent company : FELDA RSPO Membership Number : 1-0013-04-000-00 Member since : 17/109/2004 Certificate Number : RSPO 012 Date of previous assessment : 28th to 31st May 2013 Date of certification : 13/06/2012

1.7 Other Certifications Held

FSSS CU does not hold any other certification.

1.8 Progress Against Time-Bound Plan FELDA is committed to ensuring that all their CUs are certified within the planned time-bound plan as shown in Table 16. To-date, FELDA has achieved RSPO Certification for seventeen (17) of its CUs. SIRIM QAS International had been involved with the certification of six of them.

1.9 Progress of Associated Smallholders or Outgrowers Towards Compliance with Relevant Standards FSSS CU itself is a scheme smallholder and there are no associated smallholders attached to this CU.

1.10 Organisational Information / Contact Person(s) FELDA has a regional office in Segamat, Johor, which is responsible for overseeing the FSSS CU and other plantation management units in Johor. The contact person and correspondence address are as detailed below: Name : Wan Zamri Wan Yusof Designation : General Manager Address : Km 5, Jalan Genuang 85000 Segamat Johor Darul Takzim Malaysia Telephone : +07-943 2410 Fax : +07-943 4182 e-mail : not available


Table 16 Time Bound Plan for FELDA’s Certification Units

2009 2010 2011 2012 2013 2014 2015 2016 2017

1 K.Gelanggi Jengka 21 Adela Belitong Palong Timor Neram Krau Chalok Aring A

2 L. Utara 6 Jengka 3 Lok Heng Bukit Besar Serting Hilir Pancing Mempaga J. Barat Aring B

3 Jengka 8 Semencu Kahang Maokil Besout Serting J. Baru Ciku

4 L. Utara 4 Waha Kulai Tenggaroh Trolak Pasoh Kertih Kemahang

5 Jengka 18 B. Kepayang Nitar T.Timor Keratong 2 Selancar 2A Selendang Tersang

6 Padang Piol Bukit Mendi Penggeli Kechau A Keratong 3 Selancar 2B J.Bistari Cini 2

7 Kemasul Lepar Hilir Kechau B Sg Tengi N. Permata Kalabakan Cini 3

8 Tementi Bukit Sagu Keratong 9 Embara Budi H.Badai Umas Sampadi

9 Triang F. Harapan L. Kemudi Air Tawar

10 Baiduri Ayu Kembara Sakti

11 Mercu Puspita

New 2 6 9 8 10 11 8 8 9

Total 2 8 17 25 35 46 54 62 71

Certified Report submitted to RSPO Internal Process Audited Future Activity


2.0 ASSESSMENT PROCESS 2.1 Certification Body SIRIM QAS International is the oldest and leading certification, inspection and testing body in Malaysia. SIRIM QAS International provides a comprehensive range of certification, inspection and testing services which are carried out in accordance to internationally recognised standards. Attestation of this fact is the accreditation of the various certification and testing services by leading national and international accreditation and recognition bodies such as the Department of Standards Malaysia (STANDARDS MALAYSIA), the United Kingdom Accreditation Services (UKAS), the International Automotive Task Force (IATF), and the Secretariat of the United Nations Framework Convention for Climate Change (UNFCC). SIRIM QAS International is a partner of IQNet, a network currently comprising of 36 leading certification bodies in Europe, North and South America, East Asia and Australia. SIRIM QAS International has vast experience in conducting assessments related to RSPO certification. We have certified more than a hundred palm oil mills and several estates to ISO 14001 & OHSAS 18001. We have also conducted assessments for certification against RSPO Principle and Criteria (RSPO P&C). SIRIM QAS International was approved as a RSPO certification body on 21st March 2008. 2.2 Qualifications of Lead Assessor and Assessment Team Members The assessment team consisted of three assessors. The details of the assessors and their qualifications are detailed below:

Member of the Assessment Team

Role/area of RSPO requirements

Qualifications

Valence Shem

Assessment Team Leader/ Good Agriculture Practice and Supply Chain

Collected more than 500 auditor days in auditing various schemes i.e. ISO 14001, RSPO P&C and RSPO Supply Chain

Nine years’ experience in Oil Palm Plantation management

Successfully completed IEMA accredited Lead Assessor training for ISO 14001: 2004

B. Tech. (Hons) Industrial Technology

Successfully completed and passed the RSPO Lead Assessor Course in 2011

Khairul Najwan Ahmad Jahari

Assessor / HCV habitats & ecology and social

7 years’ experience in Forest related areas as a researcher with FRIM since 2003

32 man-days in auditing MC&I(2002) as forest auditor

Attended Auditor Training Course on Malaysian Criteria and Indicators for Forest Management Certification [MC&I(2002)] organized by MTCC, April 2009.

Attended Auditor Training Course on Malaysian Criteria and Indicators for Forest Plantation Certification [MC&I (2002)] organized by MTCC 2010.

Attended a training on RSPO P & C and certification requirements in January 2011

Successfully passed EMS 14001: 2004 Lead Auditor Course, March 2009.

Successfully passed OHSAS 18001: 2007 Lead Auditor Course, Feb 2009.

Successfully passed QMS 9001: 2008 Lead Auditor Course, Feb 2009.


B.Sc. of Forestry (Forest Management)

M Sc. Environmental (GIS Remote Sensing, still pursuing)

Successfully completed and passed the RSPO Lead Assessor Course in 2011.

Jagathesan a/l Suppiah Assessor / Occupational Safety & Health and Environmental

More than 23 years working experience in Manufacturing concerns at various Managerial position, Managing Operation, Quality Assurance & Regulatory Affairs and Quality & Process Control Disciplines

Experience of carrying out audits on more than 700 companies around Malaysia for the past 15 years for various schemes i.e. ISO 9000, ISO 13485, ISO 14000, OSHAS 18000 and GMP/FDA regulations

Successfully completed Lead Assessor training for ISO 9001, ISO 14000, OSHAS 18001, ISO 13485 and RSPO

Bachelor of Chemical Science (Hons.)

2.3 Assessment Methodology and Programme The surveillance assessment was guided by the sampling formula of 0.8 √y. Therefore, of the thirteen, schemes, three of them were visited in this surveillance assessment. The Group Manager at the Segamat Regional Office had also been assessed mainly to verify the conformance against the requirements of the RSPO Standard for Group Certification. The assessment team had also carried out field and office assessments to check the CU’s conformance against the RSPO-MY P&C. The visits also covered HCV habitats, labour lines, storage areas and other workplaces. The planning of this surveillance audit was guided by the RSPO Standard for Group Certification approved July 2010 as each scheme has its own peculiar issues. The RSPO Standard for Group Certification categorized the sample size to be assessed as High Risk (0.8 √y) x 1.4, as the assessed schemes are geographically separated, have diverse sizes of plantation and border a forest reserve. Some of the plantations are located in the state of Melaka while the rest is in the state of Johor. The FELDA Settlers Schemes were being managed by FELDA Holdings but being assisted on their operations by FELDA Technoplant, an outsource company which provides services to the Group’s settlement smallholders from the supply of seedlings to harvesting and up-keeping of the plantations. It is important to note that the findings of this surveillance assessment are based on samples taken from the CU’s activities, procedures, records etc. Statistically, there is always a possibility that one or more problematic issues/areas will remain unidentified during the course of this audit. The absence of non-compliance in any area or activity does not necessarily imply that no lapses or non-compliance exist. The assessment programme is in Appendix 2. 2.4 Stakeholder Consultation and List of Stakeholders Consulted The stakeholder consultations were conducted mainly through interviews during the assessment. The CU has provided a list of its stakeholders to the assessors. Based on the list, the assessors have sampled a few of the stakeholders. Among the stakeholders consulted were contractors, surrounding communities, FFB suppliers and the settlers themselves.


2.5 Date of Next Surveillance Visit The next surveillance audit should be conducted within twelve months from the date this annual surveillance was conducted.


3.0 ASSESSMENT FINDINGS a) Changes to certified products in accordance to the production the previous year

FSSS CU has yet to claim any of its FFB as RSPO certified since all of the FFB recipients (independent collection centres and POMs) are not RSPO supply chain certified.

b) Changes to the risk level No change to the risk level.

c) Any minor non-conformities will be raised to major if not addressed by the following surveillance assessment No minor NCR was being upgraded to a major NCR.

d) Changes to the Group Certification structure and members There was no change to the Group Certification structure since the last assessment. However, the size of the oil palm estate during this surveillance had changed. In Melaka, it was 2,087.68 ha compared to 2,777 ha during the previous assessment whilst in Johore it has been reduced to 4,521.88 ha from 6,650 ha. Likewise, the number of scheme participants had been reduced to 1,666 from 2,290 during the previous assessment.

e) Evaluation of the performance of the internal assessor/Group Manager and internal assessment: Internal assessment was done but not in accordance to the FSSS CU’s procedures (see major NCR VS 03).

3.1 Summary of Findings The findings of the second annual surveillance assessment were presented during the on-site closing meeting. There were five major and six minor NCRs being raised on the FSSS CU’s compliance against the requirements of the RSPO MY-NI. The details on these NCRs and the corrective actions taken by the CU are as in Appendix 3. The detailed findings of the assessment on the CU’s compliance with the requirements of the RPSO MYNI are as follows: (I) RSPO Standard for Group Certification, Final – Approved July 2010 (Amendment April 2013)

Clause Indicators Yes/No

Findings

1.1 Group Elements 1.1.1 The group shall be managed by a central administration (i.e. The Group Manager), which is responsible for ensuring the

Yes The Group Manager was a management unit called the “Pengurusan Felda Wilayah –


Producers can form or join a group for group certification. The organization and its members shall demonstrate their ability to meet the RSPO Standard for Group Certification and the relevant RSPO Standard for Sustainable Oil Palm Production.

group‟s compliance with the applicable standards and manages the Group Management Documentation.

Sistem Penyeliaan RSPO SCCS GCS (Group Certification System)”.

1.1.2 The group shall consist of group members who have formally joined the group.

Yes Group members were settlers of 13 FELDA schemes (estates).

1.1.3 The Group Management Documentation shall include the documenting and monitoring of all the individual group members for membership status, production process, and other relevant aspects to ensure compliance with the relevant RSPO Standard for Sustainable Oil Palm Production and the RSPO Group Certification Requirements.

No As on 31/03/2014, total settlers in the 13 units of FSSS were 2,998. Formal members of GCS were 1,666 plus 1 FELDA Lot at Pemanis 2. However, the status of members of the GCS could not be accessed at the Pejabat Wilayah.

Even the figure on members who entered and left the Group was not available. The office only had the total number of members of the GCS. A major NCR VS 01 was therefore

raised.

1.1.4 The Group Manager shall specify in the Group Management Documentation the maximum number of members that can be supported by the management system and the human resource and technical capacities of the Group Manager.

Yes MANUAL RSPO (GROUP CERTIFICATION SYSTEM), ML-1B-GCS, Membership (0),

dated March 2012 specifies the Group management documentation and the maximum number of members. .

1.2. Compliance with standards 1.2.1 All group members that are formal members of the group seeking RSPO certification under group certification shall comply with the required relevant RSPO Standard for Sustainable Oil Palm Production.

Yes As stated in the letter ‘Perjanjian Peneroka Menyertai GCS, Doc. No. ML-1B-Perjanjian Peneroka (0), dated March 2012 para 3 (ii) ‘members shall follow any procedures by FELDA or the RSPO Committee from time to time on the Group Certification Requirements’.

1.2.2 Group managers may run a programme to support prospective members in achieving compliance with RSPO requirements. Where such a programme is in place, there must be robust mechanisms in place to ensure that neither the prospective members nor the Group Manager makes any claim suggesting they are RSPO certified. Once the prospective member is in compliance with the RSPO standard they shall be formally included as a member of the certified group. Until RSPO compliance is achieved, the FFB production from prospective member sites will not count towards the total certified production of the group.

Yes There has been no specific program being run so far to support members in achieving compliance with RSPO requirements. However, the members were given awareness on the RSPO scheme and its requirements from time to time during meetings such as the “Lawatan Rabu”.


1.2.3 Formal members of the Group shall sign an agreement with the Group Manager committing to achieving compliance with the relevant RSPO standard for sustainable oil palm production. The Group Manager and each member shall keep copies of the agreement .

Yes Copies of the agreement were available at the Pejabat Rancangan and the Group’s members.

1.2.4 All the individual group members shall adhere to and show evidence that the internal requirements, as set out in the systems, programmes or policies adopted by the Group Manager are met.

Yes Based on assessment done on the sampled individual members, generally they were aware of the intention and implication of meeting the internal requirements.

1.2.5 The group manager shall comply with the requirements of the RSPO Standard for Group Certification.

Yes Based on findings of this assessment, generally most of the requirements were being met, except those where NCRs were raised.

1.2.6 There shall be evidence to show that formal group members, individually and collectively, continually strive to maintain their compliance with the relevant RSPO Standard for Sustainable Oil Palm Production.

Yes It was observed that the Group Manager was committed to encourage group members to continue their compliance to the RSPO standard. This can be seen through encouragement turn-out in meetings, training programs and Lawatan Rabu.

1.3 Group Manager The Group Manager of the Group shall demonstrate its capacity for managing group certification and performance assessment against the RSPO Standard for Group Certification.

1.3.1 The Group Manager shall be either a legal entity or an individual acting as a legal entity.

Yes Group Manager is an employees of FELDA.

1.3.2 If the Group Manager is not an individual, there shall be a description of the general structure of the Group Manager detailing the positions and responsibilities of all personnel clearly identified.

Yes Responsibilities were defined in Lampiran 2 (Carta Tanggungjawab), doc. no. ML-1B-Tanggungjawab Peserta GCS (0), dated March 2012.

1.3.3 The Group Manager and/or their personnel shall be able to communicate in a language understood by all group members (in both spoken and written form).

Yes Language formally used was Bahasa Melayu understood by both Group Manager and members.

1.3.4 The Group Manager and/or their personnel shall be able to demonstrate knowledge of the requirements of oil palm production, the RSPO Standard for Sustainable Oil Palm Production, the RSPO Standard for Group Certification, and internal group procedures and policies.

Yes The Group Manager’s knowledge on these subjects was demonstrated through implementation of the standards.

1.3.5 The Group Manager and/or their personnel shall not have any conflict of interest likely to affect their capacity to meet the

Yes Any employee of FELDA could be the personnel of the Group Management


requirements for Group Managers and shall be able to provide evidence of this.

members without affecting the capacity to meet the standard requirements.

1.3.6 The Group Manager shall demonstrate sufficient resources – i.e. human, financial, physical and other relevant resources – to enable effective and impartial technical and administrative management of Group Certification.

Yes Resources were found to be sufficient. It was noted that the Group Management organisation chart had been filled up, approved financial request via Borang Permohonan Bayaran for chemical storage,

PPE, First Aid Kit, CHRA etc. Most expenses were incurred in 2010.

1.3.7 The Group Manager shall have the capacity to control, monitor and evaluate all members pertaining to their compliance to the RSPO requirements including communicating with them and visiting them at the required frequencies.

Yes Evaluations were done through: i) Internal audit (once/year) ii) Site inspection by Pegawai Pertanian

guided by Project Manager (as and when) – but no documented records. Findings were presented verbally to the project managers for follow-up actions.

1.3.8 The Group Manager shall have a documented system which sets out its mission and objectives, policies and procedures for operational management and decision making in order to demonstrate ability to manage the group in a systematic and effective manner.

Yes Documented system was described in the MANUAL RSPO (GROUP CERTIFICATION SYSTEM).

1.3.9 There shall be clear policies and procedures for communication between the Group Manager and group members.

Yes Manual Ladang Sawit Lestari: Through

internal audit and grievance procedure (Procedures 3 & 4)

1.3.10 The group manager shall ensure all formal and prospective members understand the relevant RSPO Standards. This may include the development of a strategic plan on how group certification shall be achieved for prospective members, and the identification, definition and/or provision of training needs and/or communication strategies relevant to the implementation of the applicable RSPO Standard for Sustainable Oil Palm Production and the RSPO Standard for Group Certification. This can be provided directly by the Group Manager, an externally run training course or other means of provision of training or expertise.

Yes Cross refer to findings on 1.2.2. The Group Manager ensured members understood the relevant RSPO standards by inviting all settlers for roll 1 hour calls once a month. Among the topics communicated in the roll call were current issues in FELDA. RSPO topics were inserted every now and then during the roll call.


1.3.11 The Group Manager shall ensure that if any group marketing system is developed and managed for the group, this is mutually fair and transparent to enable the securing of raw materials or trading of the group members‟ collective produce, or setting-up of an equivalent arrangement. The group marketing system shall include; rules for purchasing and selling within the group, rules for claims of RSPO certified, dissemination of markets, and price information and related logistics (i.e. transportation to mill etc).

Yes No group marketing system. Sales of certified FFBs were still being managed and decided by the HQ office in Kuala Lumpur.

1.3.12 The Group Manager shall ensure that the total of all sales and claims of RSPO certified FFB production from group members does not exceed the total certified FFB production of the group in its entirety.

Yes There were still no sales and claims of RSPO certified FFBs made since the previous assessment. All sales of FFBs were classified as conventional (non-certified) FFBs.

Clause Indicators Yes/ No

Findings

2. Group Management Documentation Requirements The Group Manager assesses compliance of the plantation practices and manages group members to ensure compliance with the RSPO Standard for Group Certification and the relevant RSPO Standard for Sustainable Oil Palm Production. The Group Manager shall have a documented internal system that contains the elements necessary for assessing the performance of group members and their plantations.

2.1. Group Management Documentation structure and content The Group Manager shall have its operational structure, policies and procedures, and basic information on individual group members documented. The system verifies whether operations within the group comply with the RSPO Standard for Group Certification Requirement and the

2.1.1 The Group Manager shall have an operating structure that defines group management documentation (i.e. internal control systems), decision-making and responsibilities within the group.

Yes The operating structure that defines the group’s management documentation was described in the ‘Manual Ladang Sawit Lestari’.

2.1.2 All group records shall be retained for at least 5 years. Yes Based on its operating structure, the group records would be retained for 5 years. It was observed that the oldest membership records was for the year 2011.


relevant RSPO Standard for Sustainable Oil Palm Production.

2.1.3 The Group Manager shall have documented membership requirements for the participation of individual members in the group. This shall include:

2.1.3.1 Requirements and procedures for joining the group. Yes In the Manual Ladang Sawit Lestari, clause 1.1.

2.1.3.2 Requirements and procedures for leaving the group. Yes In the Manual Ladang Sawit Lestari, clause 1.2.

2.1.3.3 Procedures for incorporating a remedial system for member non-compliance.

Yes In the Manual Ladang Sawit Lestari, clause 3.1.2.1 (iv).

2.1.3.4 Procedures for expulsion from the group. Yes In the Manual Ladang Sawit Lestari, clause

3.1.2.2 (iii).

2.1.4 There shall be a group-level operation manual that includes the following:

2.1.4.1 Internal assessment protocols. Yes In the Manual Ladang Sawit Lestari, clause 3.1.

2.1.4.2 Policies and procedures for accepting / removing members. No In the Manual Ladang Sawit Lestari, clause 1.1.2. It describes only for accepting members, but not for removing (see major NCR VS 02).

2.1.4.3 Policies and procedures for applying corrective action requests (CARs) to group members for non-compliance with the relevant RSPO standards.

Yes In the Manual Ladang Sawit Lestari, clause 3.1.2.1.

2.1.4.4 Procedures for communicating corrective action requests (CARs).

Yes In the Manual Ladang Sawit Lestari, clause

3.1.2.1 (iii)

2.1.4.5 Clear description of the process to fulfil any correction action requests (CARs) issued internally by the Group Manager or by the certification body including timelines and the implications if any of the CARs are not complied with.

Yes In the Manual Ladang Sawit Lestari, clause

3.1.2.3 (iii)

2.1.4.6 Policies and procedures for handling complaints, appeals, corrective action requests (CARs), and group member performance assessment.

Yes In the Manual Ladang Sawit Lestari, clause 3.1.2.3 & 4.0


2.1.4.7 Policies and procedures for group monitoring, including carrying out and updating group risk assessment and annual surveillance of group members.

Yes Described under internal assessment procedure.

2.1.5 The Group Manager shall develop and maintain a database of group members included within the Group Scheme. This includes the information below as a minimum for each member:

2.1.5.1 A copy of each group member’s application form to the group with relevant information for each member that is updated regularly, i.e. name of producer, address, contact details, type of land ownership, size of plantation area, location, etc.

Yes Personal file – application form. Information on the name of producer, address, contact details, type of land ownership, size of plantation area, location, etc. was available in the Sistem Komputar Bersepadu (SKB).

2.1.5.2 Total annual production and production per unit area (hectare) for previous years, from at least one year prior to joining the group, and the estimated production for the current year.

Yes Information was available in the SKB

2.1.5.3 Results from the last internal and external assessments showing performance levels to the relevant RSPO Standard for Sustainable Oil Palm Production, including dates these were carried out, any plans for implemented improvement and corrective action requests (CARs) raised and closed out for each group member.

Yes Information was available in the Member’s personal file (kept at project units/estates office)

2.1.5.4 The date of group membership acceptance and date of departure or expulsion from the group if relevant.

Yes The data was available in member’s personal file

2.1.5.5 Maps of the plantation area for each group member. This can be in the form of individual maps or a collective map covering all group members.

Yes Map was available in member’s personal file

2.1.6 A summary of all the data on land use (in hectares) shall be kept and regularly updated covering the entire group that includes at least the following:

2.1.6.1 Total overall land area for each group member.

Yes Available in the member’s personal file

2.1.6.2 Total oil palm planted area for each group member. Yes Found in member’s personal file

2.1.6.3 Total RSPO certified production area for each group member. Yes Found in the member’s personal file.

2.1.6.4 Other crop production areas (i.e. non-oil palm) for each group member if any.

NA Not applicable since there was no double cropping (oil palm or rubber).


2.1.6.5 Total undeveloped area or areas set aside for any particular reason (i.e. conservation, customary, identified HCV etc) for each group member, if any.

NA No undeveloped area in any of the members – 100% planted.

2.1.6.6 Total area with infrastructure for each group member, if any. NA No infrastructure in any of the group members’ area.

2.2 Internal assessment system 2.2.1 Prospective members intending to join the group to be included under group certification shall only be allowed to become formal members of the group after an initial compliance assessment for entry by the Group Manager. This initial assessment will determine that all group members who formally join the group with the intention of being included under group certification, are able fulfil the group membership requirements and are able to meet the relevant RSPO Standard for Sustainable Oil Palm Production.

No Unable to determine due to absence of membership status records. In addition, the identity of new members can only be accessed at the project sites and evidences to show that they had been internally assessed was not available at the Group Manager’s office. (see major NCR VS 03)

2.2.2 The Group Manager shall implement a regular and ongoing internal assessment programme for all current group members that includes at least the following:

2.2.2.1 Internal assessments shall be documented and these documents maintained for 5 years.

Yes Frequency of internal assessment as stated in the procedure was once in every 6 months or year. Internal assessment report can only be accessed at project site.

2.2.2.2 Regular (at least annual) internal assessment visits to a sample of group members to confirm continued compliance with all the requirements of the relevant RSPO Standard for Sustainable Oil Palm Production and RSPO Standard for Group Certification. All members shall be monitored at least once during the period of validity of the group certificate (normally 5 years).

No Sampled: Bukit Senggeh, total members: 321 Internal assessment had been done only once i.e. in 2012 which was not in accordance to the required frequency (see major NCR VS 03).

2.2.2.3 The Group Manager shall identify the relevant RSPO Standard for Sustainable Oil Palm Production that is appropriate for each group member. It is the performance against this standard that is assessed at each internal assessment.

Yes Audit criteria were described in the checklist.

2.2.2.4 The sample size for internal assessments shall be based on a risk assessment of the group members, where a higher risk requires a higher sample size.

Yes FSSS took the highest risk i.e. the highest sample size.


Example: Low risk groups are those where the group is relatively homogeneous, i.e. geographically as well as socioeconomically, there are no current replanting activities, there are no new members, the group is well established and has no history of non-conformities. Low risk can also be defined by the high likelihood that a group member will maintain compliance with the relevant standard. High risk groups are those where there is considerable heterogeneity in the group (e.g. geographically separated, very different terrain, different levels of experience of oil palm cultivation, very diverse sizes of plantation, different socioeconomic situations amongst members, etc). High risk can also be defined by a low likelihood for a group member to maintain compliance with the relevant standard.

2.2.2.5 The sample size shall be determined by the formula (0.8/y) x (z), where z is the multiplier defined by the risk assessment. Low risk = multiplier of 1, medium risk = multiplier of 1.2, high risk = multiplier of 1.4 (see Table 1).

Yes FSSS took the highest risk i.e. the highest sample size.

2.2.2.6 The group shall use a minimum sample to be visited annually for internal assessment of (0.8/y), where y is the number of group members, and where selection of group members is based on random selection techniques.

Yes Most of the number of samples has met the minimum requirement.

2.2.2.7 The Group Manager shall ensure that different group members are visited in each annual internal assessment to those that have been selected for assessment by the certification body, unless there are circumstances which require a revisit of the same members (e.g. pending corrective action requests (CARs), complaints received from stakeholders, risk factors etc.).

No Could not be verified since an internal audit has only been done once so far (see major NCR VS 03).

2.2.2.8 Additional internal assessments shall be scheduled when potential problems arise or when the Group Manager receives information from stakeholders about alleged non-conformities of the relevant RSPO Standard for Sustainable Oil Palm Production by group members.

No Could not be verified since internal audit has only been done once so far (see major NCR VS 03).

2.2.3 Non-conformities identified by the Group Manager shall be resolved internally according to a documented system of applying corrective action requests (CARs). See 2.1.4.3.

No Could not be verified since internal audit has only been done once so far (see major NCR VS 03).


Findings

3. Chain of Custody The Group Manager shall have a system in place to enable the trading of RSPO certified Fresh Fruit Bunches (FFB) produced from the group.

3.1 The group manager shall document and implement a system for the tracking and tracing of FFB produced by the group members, and intended to be sold as RSPO certified FFB.

Yes Documented in “STANDARD OPERATING PROCEDURE FOR SMALLHOLDER RSPO SUPPLY CHAIN CERTIFICATION SYSTEM GCS, FGVPM - RSPO SCCS GCS”.


3.2 There shall be a collective group procedure for the sale of all certified FFB originating from the plantations of group members that is agreed by the group members and the Group Manager and is designed to ensure that non-certified FFB are not sold as RSPO certified FFB. This shall be contained in any group marketing system that is developed for the group, and shall follow one of the supply chain models as per the RSPO Supply Chain Certification System, i.e. Identity Preserved, Segregation or Mass Balance.

Yes Refer to main procedure.

3.3 The group manager shall ensure that all invoices for sales of RSPO certified FFB originating from the group are issued with the required information as per the adopted supply chain model requirements within Annex 6 of the RSPO Supply Chain Certification Systems document – November 2009.

Yes No invoice was issued. Collection centre would send a summary of FFB received with the total price stated. If the receiver of the FFBs is FELDA’s POM, the quantity of FFB could be accessed via the SKB and payment would be done based on that info.

3.4 The physical transporting of RSPO certified FFB originating from the plantations of group members shall be done either directly by the group (i.e. through own transportation), or via sub-contracted intermediaries. For intermediaries the requirements as outlined in 3.7 shall also apply.

Yes Transportation of FFB was done by contractors.

3.5 All sales of FFB originating from the plantations of group members shall be documented. This shall include:

3.5.1 Invoices and receipts (purchase and sale). Not applicable.

3.5.2 Information on transport. Yes Stated in the delivery note and weighbridge ticket.

3.5.3 The relevant group members‟ group identification number.

Yes Stated in the delivery note.

3.5.4 Description of the product sold (i.e. RSPO certified or not), product volume and destination.

Yes Stated in the delivery note.

3.6 The Group Manager shall maintain copies of all relevant documentation and records of group product transactions for a period of 5 years.

Yes Relevant transportation documents such as delivery note, weighbridge tickets were maintained at each of the scheme.


3.7 If an intermediary exists in the supply chain from the group to the mill that wants to be included within the group certification control rather than obtain their own supply chain certification, the intermediary shall be identified by the Group Manager. The Group Manager shall have a contract with the intermediary to fulfil the RSPO Standard for Group Certification and agree to be assessed on an annual basis by the Group Manager as well as in certification assessments. It is the responsibility of the Group Manager to ensure that the intermediary shall comply with the following conditions:

Intermediaries were not RSPO supply chain certified and therefore no certified FFBs had been sent to the intermediaries.

3.7.1 There shall be a contract between the intermediary and the Group Manager.

Not applicable.

3.7.2 The intermediary shall have complete purchasing and selling records.

Not applicable.

3.7.3 The intermediary shall have RSPO supply chain systems in place to separate certified from non-certified materials through any of the RSPO supply chain options (i.e. Identity Preserved, Segregation or Mass Balance).

Not applicable.

(II) Roundtable on Sustainable Palm Oil (RSPO), Malaysia National Interpretation (MY- NI)

Principle 1: COMMITMENT TO TRANSPARENCY


Findings

C 1.1 Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making

1.1.1 Records of requests and responses must be maintained. Major.

Yes ‘Rekod Permohonan & Maklumbalas’ was

maintained on requests from settlers and contractors. FSSS CU had provided adequate information to other stakeholders on environmental, social and legal issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision making. However there were no official requests received from other stakeholders in 2013.

C 1.2 Management documents are publicly available, except where this is prevented by

1.2.1 Land titles / user rights (C 2.2) Yes Evidence of legal ownership of land and land-use rights was sighted. All 215 settlers had already obtained their land titles. The


commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes. This concerns management documents relating to environmental, social and legal issues that are relevant to compliance with RSPO Criteria. Documents that must be publicly available include, but are not necessarily limited to:-

verification of the smallholders’ land titles and land-use rights was done at FELDA Tun Ghafar Machap/Menggong.

1.2.2 Safety and health plan (C 4.7) No Safety and Health Plan was not available- an NCR was raised under indicator 4.7.

1.2.3 Plans and impact assessments relating to environmental and social impacts (C 5.1, 6.1, 7.1, 7.3)

No The following documents were made available at FELDA Tun Gaffar Machap/Menggong: i) RSPO 2010 – ‘Laporan Aspek Impak Alam

Sekitar Melalui Aktiviti Perladangan, Bahan Buangan dan Pencemaran – Pemantauan’ – Document No : 1/2010; and

ii) FAS- IMSL2 / L4 /1.4 – Aspect Identification and Impact Assessment carried out – 12/04/ 2010 – the present status had not been clearly described – an NCR was raised under indicator 7.1.

Management plan and organized social activities had also been prepared and made publicly available.

1.2.4 Pollution prevention plans (C 5.6) Yes Pelan Pengurangan Aktiviti Pencemaran dan Pelan Pengurangan Aktiviti Pencemaran, Rancangan Pencegahan Pencemaran, Rancangan / Pelan dan Impak Taksiran Berkaitan Alam Sekitar was available at FELDA Sri Ledang but needed up-dating in a timely manner.

1.2.5 Details of complaints and grievances (C 6.3) Yes Complaints and their outcomes had continued to be appropriately recorded in the complaints book. Records showing the details on complaints and grievances were made available in FELDA Tun Ghafar Machap/Menggong.

1.2.6 Negotiation procedures (C 6.4) Yes FELDA Tun Ghafar Machap/Menggong Associations included Koperasi Permodalan FELDA (for settlers and their family members to join and invest), Belia 4B (Youth Association),


GPW, for the female employee, JKKK (Jawatan Kuasa Kemajuan Kampung) and many others were used for any negotiations in the management of the scheme. The availability of the document and minutes of meeting were in place? (The findings does not address this indicator which is on negotiation procedure).

1.2.7 Continuous improvement plan (C 8.1) Yes Continuous improvement Plan was in place in FELDA Sri Ledang and being followed through but could be further improved. A continuous improvement plan “Program Penentuan KPI dan KRA Rancangan FELDA Machap/Menggong Tahun 2014” was also

verified at FELDA Tun Ghafar Machap/Menggong, as a mechanism to highlight the performance and expenditure on social issues, environmental, GAP, and occupational safety and health matters.

Principle 2: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS


Findings

C 2.1 There is compliance with all applicable local, national and ratified international laws and regulations

2.1.1 Evidence of compliance with legal requirements. Major No FELDA Sri Ledang FPI/L2/QOHSE – 17.0 – Evaluation of Compliance to Legal and Other Requirements ‘Daftar Perundangan dan lain – lain Keperluan’ has been established dan ‘Status Pematuhan’ – cannot be explicitly evidenced? The following Licenses reviewed : i) MPOB License No : 5009114902000 –

Activity Oil Palm Production - Akta Lembaga Minyak Sawit Malaysia – expiry 31st March, 2015

ii) Permit Barang Kawalan Berjadual – No Siri

: J012544 – Chemical Fertilizer – 500 tonnes – expiry : 3rd Dec, 2014


2.1.2 A documented system, which includes written information on legal requirements. Minor

Yes FELDA Sri Ledang

Legal List has been established – sampled reviewed? i) Akta Kualiti Alam Sekitar ( Akta 127 ) ii) Akta Racun Makhluk Perosak 1974 ( Akta

149 ) iii) Akta Keselamatan dan Kesihatan

Pekerjaan 1994 ( Akta 514 ) iv) Akta Kilang dan Jentera 1967 ( Akta 139) (Findings do not address the indicator)

2.1.3 A mechanism for ensuring that they are implemented. Minor No It was verified during a site visit made to FELDA Sri Ledang that a monitoring mechanism to ensure compliance with all the applicable local, national and ratified international laws and regulations was not available. A minor NCR JS 1 was therefore raised.

2.1.4 A system for tracking any changes in the law. Minor Yes The tracking/monitoring of changes to the laws was carried out by the ‘Agriculture Sector’ at the HQ office.

C 2.2 The right to use the land can be demonstrated, and is not legitimately contested by local communities with demonstrable rights.

2.2.1 Evidence of legal ownership of the land including history of land tenure. Major

Yes The settlers were able to show legal ownership and rights to use their land. The legal ownership of the land had been verified at FELDA Tun Ghaffar Machap Menggong. There were a total of 215 individual land titles.

2.2.2 Growers must show that they comply with the terms of the land title. [This indicator is to be read with Guidance 2] Major

Yes Generally, the terms of land title was for planting oil palm except for 16 settlers who had converted their lands from rubber to oil palm and were currently in the process of amending the term of the land tittle for planting oil palm.

2.2.3.1 Evidence that boundary stones along the perimeter adjacent to state land and other reserves are being located and visibly maintained. Minor

Yes Boundary stones along the perimeter were still being maintained as sighted at FELDA Tun Ghafar Machap/Menggong. During a site visit to the same schemes, maps indicating the locations of the boundary stones were still made available.


2.2.3.2 Where there are, or have been, disputes, proof of resolution or progress towards resolution by conflict resolution processes acceptable to all parties are implemented. Cross ref. to 2.3.3, 6.4.1 and 6.4.2. Minor

Yes There were no disputes or conflicts in FELDA Tun Ghafar Machap/Menggong. It was confirmed during the discussions held with the settlers and the staff at this FELDA scheme.

C 2.3 Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free, prior and informed consent.

2.3.1 Where lands are encumbered by customary rights, participatory mapping should be conducted to construct maps that show the extent of these rights. Major

Yes There was no land issue at FELDA Tun Ghafar Machap/Menggong related to customary rights, or other users. Through the Land (General Settlement Area) Act 1960, the schemes’ management had been given the legal right to the land for cultivation.

2.3.2 Map of appropriate scale showing extent of claims under dispute. Major

Yes There was no land claim in FELDA Tun Ghafar Machap/Menggong.

2.3.3 Copies of negotiated agreements detailing process of consent (C2.2, 7.5 and 7.6). Minor

Yes There was no issue related to land claims in FELDA Tun Ghafar Machap/Menggong.

Principle 3: COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY


Findings

C 3.1 There is an implemented management plan that aims to achieve long-term economic and financial viability.

3.1.1 Annual budget with a minimum 2 years of projection Major Yes Approved Budget for Fiscal Years 2013 and 2014 were sighted at the FELDA Sri Ledang. Budget for Fiscal Year 2015 shall be finalised in September 2014.

3.1.2 Annual replanting programme projected for a minimum of 5 years with yearly review. Minor

Yes The whole plantation area at FELDA Pemanis 1 had just been replanted in 2013. Therefore, it was still too early to establish the next replanting programme.

Principle 4: USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS


Findings

C 4.1 Operating procedures are appropriately documented and consistently implemented and monitored.

4.1.1 Documented Standard Operating Procedures (SOP) for estates and mills. Major

No The ‘Oil Palm Estate Manuals’ (Estate Manual) sighted at the FELDA Sri Ledang and Permanis 1 prescribes the procedures on the following activities:


i) Replanting; ii) Nursery Maintenance; iii) Management of pre matured palm; and iv) Palm Manuring The Estate Manual had continued to the implemented and monitored. It was found at FELDA Pemanis 1 that felled palms in the area newly replanted in 2013 had been openly burnt without the DOE approval. This was against the Estate Manual and law. Therefore, a major NCR VS 04 was raised.

4.1.2 Records of monitoring and the actions taken are maintained and kept for a minimum of 12 months. Minor

Yes It was found in FELDA Sri Ledang and Pemanis 1 that monthly Report on estimated crop per hectare, OER achieved, FFB pricing was still being done and forwarded to Regional HQ office for monitoring. Reports for March, April and May, 2014 were sighted and reviewed. All records on monitoring had continued to be kept for more than 12 months.

C 4.2 Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and sustained yield.

4.2.1 Monitoring of fertilizer inputs through annual fertilizer recommendations. Minor

Yes Fertilizer recommendation in FELDA Pemanis 1 was still made by FELDA’s Agronomist. For immature area (planted in 2013), the recommended fertilizer dosage (current year) was around 7.5 kg/palm/year with straight fertilizers. Manuring programme was established thereafter with the total MT for each field. The actual quantity of fertilizer applied in 2014 was found to be in line with the program.

4.2.2 Evidence of periodic tissue and soil sampling to monitor changes in nutrient status. Minor

Yes Foliar sampling result and fertilizer recommendation were still made available in FELDA Pemanis 1. The description of nutrients (N, P, K, Mg, Ca & B) content was reported in % of dry matter and ppm.


4.2.3 Monitor the area on which EFB, POME and zero-burn replanting is applied. Minor

No There was no EFB application being made at FELDA Pemanis 1. All FFB were sent to FELDA’s Selancar 2A POM. Normally the EFBs were sent to the nearby FELDA’s non-settlers estates. Traces of open burning during replanting was found in the estates belonging to the settlers. A major NCR VS 04) was therefore raised.

C 4.3 Practices minimise and control erosion and degradation of soils.

4.3.1 Documented evidence of practices minimizing soil erosion and degradation (including maps). Minor

Yes The following practices had been carried out in FELDA Sri Ledang to minimize soil erosion and degradation: i) Terracing on replanted areas; ii) Maintenance of soft grasses; and iii) Frond stacking

4.3.2 Avoid or minimize bare or exposed soil within estates. Minor

Yes The following practices had continued to be done at FELDA Sri Ledang to avoid or minimize bare or exposed soil: i) Planting and maintaining soft grasses; and ii) Planting of Mucuna and soil cover in Phase

5.

4.3.3 Presence of road maintenance programme. Minor

Yes Road maintenance program had been planned for Phases 3 and 5 in FELDA Sri Ledang which was expected to start in August, 2014.

4.3.4 Subsidence of peat soils should be minimised through an effective and documented water management programme. Minor

Yes There was no peat soil in this CU.

4.3.5 Best management practices should be in place for other fragile and problem soils (e.g. sandy, low organic matter and acid sulphate soils). Minor

Yes There was no fragile or problematic soil in this CU.

C 4.4 Practices maintain the quality and availability of surface and ground water.

4.4.1 Protection of water courses and wetlands, including maintaining and restoring appropriate riparian buffer zones at or before replanting along all natural waterways within the estate. Major

Yes It was observed that FELDA Tun Ghafar Machap/Menggong had continued to protect water courses and wetlands, maintain and restore appropriate riparian buffer zones during or before replanting along all natural waterways.


There were evidences of continued implementation on practices to maintain the quality and availability of surface and ground waters in the scheme. FELDA Tun Gaffar Machap/Menggong had also continued to follow the Drainage and Irrigation Department (DID) guidelines for maintenance of buffer zone. The riparian buffer with a width from 10m to 20m along Sungai Batang Melaka was inspected and was found to be intact with natural vegetation.

4.4.2 No construction of bunds/weirs/dams across the main rivers or waterways passing through an estate. Major

Yes During the site visit, it was found that there was no construction of bunds/weirs/dams across the Sungai Batang Melaka.

4.4.3 Outgoing water into main natural waterways should be monitored at a frequency that reflects the estates and mills current activities which may have negative impacts (Cross reference to C 5.1 and 8.1). Major

Yes FELDA Tun Ghafar Machap/Menggong had continued to monitor the quality of incoming and outgoing water in the natural water courses of the Sungai Batang Melaka in accordance to the 2006 Interim National River Water Quality Standard (INQWS) by sending water samples to the Chemistry Department, Malaysia for analysis. The results of the laboratory test had shown that the water quality was still within the acceptable Class III index.

4.4.4 Monitoring rainfall data for proper water management. Minor Yes Rainfall records were still being monitored. The average rainfall was 2,300 mm/year over 100 rain-days.

4.4.5 Monitoring of water usage in mills (tonnage water use/tonne FFB processed). Minor

- Not applicable as FSSS CU does not operate a POM.

4.4.6 Water drainage into protected areas is avoided wherever possible. Appropriate mitigating measures will be implemented following consultation with relevant stakeholders. Minor

Yes There was no evidence to indicate that there was water drainage into protected areas.


4.4.7 Evidence of water management plans. Minor No There was no water management plan in FELDA Tun Ghafar Machap/Menggong. Therefore a minor NCR KN-1 was raised.

C 4.5 Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest Management (IPM) techniques.

4.5.1 Documented IPM system. Minor

Yes It was observed in FELDA Pemanis 1 that the same IPM system as documented in the ‘Manual Ladang Sawit Lestari’ was still being used.

4.5.2 Monitoring extent of IPM implementation for major pests. Minor

No A major pest in FELDA Pemanis 1 was rat. The biological control recommended by the CU was still by having barn owls. However, there was no evidence to indicate that a census has been carried out to monitor the population of the bird. Therefore, a minor NCR VS 05 was raised.

4.5.3 Recording areas where pesticides have been used. Minor

Yes The Pesticide Application Log had continued to be used in FELDA Sri Ledang to record the areas (supported with location map) where pesticide had been applied.

4.5.4 Monitoring of pesticide usage units per hectare or per ton crop e.g. total quantity of active ingredient (a.i.) used/ tonne of oil. Minor

Not applicable.

C 4.6 Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used that are categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam Conventions, growers are actively seeking to identify alternatives, and this is documented.

4.6.1 Written justification in Standard Operating Procedures (SOP) of all agrochemicals use. Major

Yes The ‘Pengawalan Rumpai Dengan Kimia Bagi Tanaman Sawit’ was still being used in FELDA

Sri Ledang to determine the procedures/methods for pesticide application as well as justifications for using them.

4.6.2 Pesticides selected for use are those officially registered under the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A); and in accordance with USECHH Regulations (2000). Major

Yes The types of pesticides being used in FELDA Sri Ledang were still those registered under the Pesticides Act 1974 (Act 149) and the relevant provision (Section 53A); and in accordance with USECHH Regulations (2000).

4.6.3 Pesticides shall be stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and Regulations and Orders and Pesticides Act 1974 (Act 149) and Regulations. Major

Yes The storage and handling of pesticides in FELDA Sri Ledang were being handled by the contractors and not the CU. Based on meeting with the scheme settlers, it was found that the storage of pesticides had been done properly.


4.6.4 All information regarding the chemicals and its usage, hazards, trade and generic names must be available in language understood by workers or explained carefully to them by a plantation management official at operating unit level. Major

Yes The Material Safety Data Sheet (MSDS) was still in place in FELDA Sri Ledang. Briefings had continued to be carried out with the settlers to inform them on the safe use of chemicals. Based on meetings held with the settlers and contractors it was found that they had a good understanding on the significance of the MSDS and CSDS and the safe use of chemicals.

4.6.5 Annual medical surveillance as per CHRA for plantation pesticide operators. Major

Yes Pesticide spraying had been sub-contracted in FELDA Sri Ledang. Therefore, the annual medical surveillance was carried out by the sub-contractors.

4.6.6 No work with pesticides for confirmed pregnant and breast-feeding women. Major

Yes All pesticide sprayers engaged by the sub-contractors were male workers.

4.6.7 Documentary evidence that use of chemicals categorised as World Health Organisation Type 1A or 1B, or listed by the Stockholm or Rotterdam Conventions and paraquat, is reduced and/or eliminated. Adoption of suitable economic alternative to paraquat as suggested by the EB pending outcome of the RSPO study on IWM. Minor

Yes No Paraquat had been used in FELDA Sri Ledang. This was evident from the List of ‘Permitted Chemicals’ used by the sub-contractor. The following chemicals were used as a substitute to Paraquat. i) Glyphosate Isopropylmine (Ecomax) ii) Metsulfuron – methyl (Ally 20DF)

4.6.8 Documented justification of any aerial application of agrochemicals. No aerial spraying unless approved by relevant authorities. Major

Yes There has been no aerial agrochemicals spraying in FSSS CU.

4.6.9 Evidence of chemical residues in CPO testing, as requested and conducted by the buyers. Minor

Not applicable, as the FSSS CU has not processed FFBs.

4.6.10 Records of pesticide use (including active ingredients used, area treated, amount applied per ha and number of applications) are maintained for either a minimum of 5 years or starting November 2007. Minor

No A log book to record on the use of pesticides, size of the area being sprayed, workers and pumps used was still being kept in FELDA Sri Ledang since 2009. However the information on the active ingredients used, amount applied per hectare had not been recorded. A minor NCR JS 2 was therefore raised.


C 4.7 An occupational health and safety plan is documented, effectively communicated and implemented.

4.7.1 Evidence of documented Occupational Safety Health (OSH) plan which is in compliance with OSH Act 1994 and Factory and Machinery Act 1967 (Act139). Major The safety and health (OSH) plan shall cover the following:

a) A safety and health policy, which is communicated and implemented

Yes FSSS CU had continued to follow the same safety and health policy. This policy had continued to be displayed prominently in the offices.

b) All operations have been risk assessed and documented. No There was no evidence to indicate that HIRARC had been conducted. A major NCR JS 3 was therefore raised.

c) An awareness and training programme which includes the following specifics for pesticides : i. to ensure all workers involved have been adequately

trained in a safe working practices (See also C 4.8) ii. all precautions attached to products should be properly

observed and applied to the workers.

Yes FELDA Sri Ledang Training Plan for 2014 for FELDA Sri Ledang had included the following programmes to build awareness on pesticides for the settlers and contractors: i) Safe working practices and precaution to

be taken; and ii) Appropriate PPE usage.

d) The appropriate personal protective equipment (PPE) are used for each risk assessed operation. i. Companies to provide the appropriate PPE at the place

of work to cover all potentially hazardous operations such as pesticide application, land preparation, harvesting and if used, burning.

Yes It was found that training on ‘PPE Usage’ was provided to the settlers in FELDA Sri Ledang. However, the procurement of the PPEs was the responsibilities of the settlers.

e) The responsible person (s) should be identified.

Yes Mr. Md Nasir bin Md. Shah – was the Smallholder Scheme Manager in FELDA Sri Ledang.

f) There are records of regular meetings between the responsible person(s) and workers where concerns of workers about health and safety are discussed.

Yes FELDA Sri Ledang had continued to convene the Jawatankuasa Kemajuan Kampung (JKKK) or (Village Development Committee) meeting every month during which the CU’s management, settlers and contractors discussed issues affecting the CU and the adjacent communities of which safety and health, environmental and social issues were among them. Records in the form of minutes


were being kept. Minutes of the Committee’s meetings on 22 January, 12hb February and 23 April, 2014 were sighted.

g) Accident and emergency procedures should exist and instructions should be clearly understood by all workers.

Yes Accident and emergency protocols had been established and workers were being made aware of these protocols during periodic meetings.

h) Workers trained in First Aid should be present in both field and mill operations.

Yes The CU had continued to make available workers who had been trained in First Aid in the estates’ offices and for the scheme participants.

i) First Aid equipment should be available at worksites Yes i) First Aid equipment was still made available – 5 sets of First Aid kits in the office.

ii) A government Clinic was still operating within the scheme to provide health service to the workers.

4.7.2 Records should be kept of all accidents and periodically reviewed at quarterly intervals. Major

Yes Accident statistic was still being kept in FELDA Sri Ledang. However there was no accident being recorded during the intervening period since the last audit. Incident and accident- related cases were being discussed in the monthly Village Development Committee meeting.

4.7.3 Workers should be covered by accident insurance. Major Yes i) For the settlers:

the Bantuan Rakyat 1 Malaysia (BRIM)

coverage of RM30,000, for death by accident and RM10,000 for normal death (provided by Government)

‘Badan Khairat’, managed by FELDA

coverage of RM 10 000 for normal death.

ii) For the staff, insurance coverage under ‘Etiqa Takaful’ provided by FELDA.

What about the private workers?

C 4.8 4.8.1 A training programme (appropriate to the scale of the organization) that includes regular assessment of training

Yes The JKKK meetings which were attended by the settlers and management on a monthly


All staff, workers, smallholders and contractors are appropriately trained.

needs and documentation, including records of training for employees are kept. Major

basis had also discussed on the training need particularly on health and safety. ‘Safety Committee’ and ‘Health Committee’ had been established to oversee the conduct and assessment of the training programmes.


Principle 5: ENVIRONMENTAL RESPONSIBILITY AND CONSERVATION OF NATURAL RESOURCES AND BIODIVERSITY


Findings

C 5.1 Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

5.1.1 Documented aspects and impacts risk assessment that is periodically reviewed and updated. Major

Yes Risk assessment on the aspects of plantation activities had been carried out and their impacts identified.

5.1.2 Environmental improvement plan to mitigate the negative impacts and promote the positive ones, is developed, implemented and monitored. Minor

No There was no environmental improvement plan in FELDA Sri Ledang. A minor NCR JS 4 was

therefore raised.

C 5.2 The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any, that exists in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation taken into account in management plans and operations.

5.2.1 Identification and assessment of HCV habitats and protected areas within landholdings; and attempt assessments of HCV habitats and protected areas surrounding landholdings. Major

Yes The HCV Assessment Report which was updated on 4th May 2011 had covered all the High Conservation Value (HCV) within and adjacent to their estates. The assessment had also identified endangered, rare and threatened species (ERTs). A management plan and action plan had subsequently been developed in consultations with the related stakeholders. Within FELDA Tun Ghafar Machap/Menggong, no sites had been classified as HCV 1, 2, 3 & 5. However, endangered and vulnerable species were documented to have their distribution range in the estates. The report had also listed endemic mammals and birds whose range had overlapped within the oil palm estates in the FSSS CU. The HCV identified at FELDA Tun Ghaffar Machap/Menggong was on HCV4 for buffer zone conservation along the Sungai Batang Melaka. The buffer zone was inspected and was found to be intact with natural vegetation. A wildlife monitoring report dated 4th April 2014 had indicated the presence of “ayam hutan” (Gallus gallus), which is listed as protected in


Wildlife Act 2010 and Lease Concern (LC) species under the IUCN Red List.

5.2.2 Management plan for HCV habitats (including ERTs) and their conservation. Major

Yes It was observed that generally, FSSS CU had conducted a wildlife monitoring quarterly. The wildlife monitoring record at FELDA Tun Ghaffar Machap Menggong had been verified. There was no ERT found in FELDA Tun Ghafar Machap/Menggong.

5.2.3 Evidence of a commitment to discourage any illegal or inappropriate hunting fishing or collecting activities, and developing responsible measures to resolve human-wildlife conflicts. Minor

Yes During the field assessment at FELDA Tun Ghaffar Machap/Menggong, it was observed that there was still signage being erected at the entrance to the scheme on the ban of hunting.

C 5.3 Waste is reduced, recycled, re-used and disposed off in an environmentally and socially responsible manner.

5.3.1 Documented identification of all waste products and sources of pollution. Major

Yes Waste products and source of pollution had been identified.

5.3.2 Having identified wastes and pollutants, an operational plan should be developed and implemented, to avoid or reduce pollution. Minor

Yes Wastes and pollutants had been identified and a reduction / mitigation plan was still in place.

5.3.3 Evidence that crop residues / biomass are recycled (Cross ref. C 4.2). Minor

Yes It was observed in FELDA Sri Ledang that felled frowns were placed in the ‘Frown Row’ to be decayed and used as biomass.

C 5.4 Efficiency of energy use and use of

renewable energy is maximized.

5.4.1 Monitoring of renewable energy use per tonne of CPO or palm product in the mill. Minor

Not applicable.

5.4.2 Monitoring of direct fossil fuel use per tonne of CPO or kW per tonne palm product in the mill (or FFB where the grower has no mill). Minor

Not applicable.

C 5.5 Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as identified in the ASEAN Guidance or other regional best practice.

5.5.1 No evidence of open burning. Where controlled burning occurs, it is as prescribed by the Environmental Quality (Declared Activities) (Open Burning) Order 2003. Major

Yes FSSS CU had not used any fire for waste disposal.

5.5.2 Previous crop should be felled/mowed down, chipped/shredded, windrowed or pulverized/ ploughed and mulched. Minor

No Felled palms at the newly replanted area in the FELDA Pemanis 1 had been openly burnt without DOE approval. This was a breach of the ‘Manual Ladang Sawit Lestari’ (see major

NCR VS 04).


5.5.3 No evidence of burning waste (including domestic waste). Minor

Yes There was no evidence of waste burning in FELDA Sri Ledang. The domestic waste were still being collected in 5 collection stations and disposed by a sub-contractor, Universal Environmental Resources Sdn. Bhd.

C 5.6 Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.

5.6.1 Documented plans to mitigate all polluting activities (Cross ref to C 5.1). Major

No NCR JS 4 was raised. Cross refer findings on indicator C 5.1.

5.6.2 Plans are reviewed annually. Minor

No NCR JS 4 was raised. Cross refer findings on indicator C 5.1.

5.6.3 Monitor and reduce peat subsidence rate through water table

management. (Within ranges specified in C 4.3). Minor

Yes There was no peat soil in this CU.

Principle 6: RESPONSIBLE CONSIDERATION OF EMPLOYEES AND OF INDIVIDUALS AND COMMUNITIES BY GROWERS AND MILLERS


Findings

C 6.1 Aspects of plantation and mill management, including replanting, that have social impacts are identified in a participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to demonstrate continuous improvement.

I 6.1.1 A documented social impact assessment including records of meetings. Major

Yes A documented social impact assessment (SIA) including records of meetings had been verified at FELDA Tun Ghafar Machap/Menggong.

I 6.1.2 Evidence that the assessment has been done with the participation of affected parties. Major

Yes As reported in the previous audit report, FSSS CU had conducted an SIA with the participation of the relevant stakeholders.

I 6.1.3 A timetable with responsibilities for mitigation and monitoring is reviewed and updated as necessary. Minor

No The FSSS CU had not drawn up a timetable with responsibilities for mitigation and monitoring. The last time such a timetable was prepared was in 2009. Therefore a minor NCR KN-2 was raised.

C 6.2 There are open and transparent methods for communication and consultation between growers and/or millers, local communities and other affected or interested parties.

I 6.2.1 Documented consultation and communication procedures. Major

Yes The same documented consultation and communication procedures entitled Prosedur Komunikasi, Penglibatan dan Rundingan (ML-1A/L2-PR3 (0) dated March 2012.was still being referred to.


I 6.2.2 A nominated plantation management official at the operating unit responsible for these issues. Minor

Yes Mr. Ayob Abdul Karim (Assistant Manager) was the nominated plantation management official at the operating unit responsible for these issues.

I 6.2.3 Maintenance of a list of stakeholders, records of all communication and records of actions taken in response to input from stakeholders. Minor

Yes A list of stakeholders, records of all communication and records of actions taken in response to input from stakeholders was still being maintained at FELDA Tun Ghafar Machap/Menggong. Records of all communication and records of actions taken can be seen in minutes of meeting between FELDA scheme management and settlers, local communities and other affected or interested parties.

C 6.3 There is a mutually agreed and documented system for dealing with complaints and grievances, which is implemented and accepted by all parties.

6.3.1 Documentation of the process by which a dispute was resolved and the outcome. Major

Yes Documentation of the process by which a dispute was resolved and the outcome as described in the “Garis Panduan Pengurusan Aduan Pelanggan” was still being referred.

6.3.2 The system resolves disputes in an effective, timely and appropriate manner. Minor

Yes The system had been able to resolve disputes in an effective, timely and appropriate manner. There were only 3 complaints received and all of them had been resolved.

6.3.3 The system is open to any affected parties. Minor

Yes The system had remained open to any affected parties and it was confirmed during consultations held with the settlers.

C 6.4 Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented system that enables indigenous peoples, local communities and other stakeholders to express their views through their own representative institutions.

6.4.1 Establishment of a procedure for identifying legal and customary rights and a procedure for identifying people entitled to compensation. Major

Yes There had been no history of legal or customary right claim by indigenous people, local community or other stakeholders. The FELDA schemes were established about 50 years ago.

6.4.2 A procedure for calculating and distributing fair compensation (monetary or otherwise) is established and implemented. This takes into account gender differences in the power to claim rights, ownership and access to land; and long-established communities; differences in ethnic groups’ proof of legal versus communal ownership of land. Minor

Yes There had yet to be a documented system that enables local communities to express their views. During this surveillance audit, there was no case reported concerning compensation for loss of legal or customary rights.


6.4.3 The process and outcome of any compensation claims is documented and made publicly available. Minor

Yes Since there was no compensation claim raised against the CU during this surveillance audit, therefore this indicator is not applicable.

C 6.5 Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum standards and are sufficient to provide decent living wages.

6.5.1 Documentation of pay and conditions. Major Yes The pay and conditions for employees were still as documented in the FELDA Scale of Payment and its implementation was verified during the audit. Their salary, wages and benefits scheme closely followed that of the Government of Malaysia rules and regulations. This was sighted at FELDA Tun Ghaffar Machap/Menggong.

6.5.2 Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave, reasons for dismissal, period of notice, etc) are available in the language understood by the workers or explained carefully to them by a plantation management official in the operating unit. Minor

Yes Labour laws, union agreements or direct contracts of employment detailing payments and conditions of employment were still available in the language understood by the workers or explained carefully to them by a plantation management official in the operating unit. The payment for contract workers was still based on a piece rate. The rate of payment was made known to all workers. There were only a few foreign workers at FELDA Tun Ghafar Machap/Menggong. For foreign workers, their terms of employment were explained to them by FELDA Management.

6.5.3 Growers and millers provide adequate housing, water supplies, medical, educational and welfare amenities in accordance with Workers’ Minimum Standard of Housing and Amenities Act 1990 (Act 446) or above, where no such

public facilities are available or accessible (not applicable to smallholders). Minor

Not applicable.

C 6.6 The employer respects the right of all personnel to form and join trade unions of their choice and to bargain collectively.

6.6.1 Documented minutes of meetings with main trade unions or workers representatives. Major

Yes FELDA maintained advocacy of the freedom and rights of the settlers, employees and contractors to form associations and to bargain collectively for


Where the right to freedom of association and collective bargaining are restricted under law, the employer facilitates parallel means of independent and free association and bargaining for all such personnel.

the benefits of the settlers and employees. At the scheme level the Scheme Managers of FSSS CU respected the right of participants to form and represent themselves through their own representative associations and / or trade unions and accepted them as parties to participatory processes, consultations, communications and negotiations in the management of the scheme. Such associations included Koperasi Permodalan FELDA (for settlers and their family members to join and invest), Belia 4B (Youth Association), GPW, for the female employee, Persatuan Ibu Tunggal Daerah Segamat (Single Women Association, Segamat District).and many others.

6.6.2 A published statement in local languages recognizing freedom of association. Minor

Yes The workers whom were consulted had confirmed that they were aware of their rights to join a union.

C 6.7 Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and when not interfering with education programmes. Children are not exposed to hazardous working conditions.

6.7.1 Documented evidence that minimum age requirement is met. Major

Yes FELDA had continued to uphold its written policy entitled Polisi Pekerja-Pekerja Kanak-Kanak (Child Labour Policy) prohibiting the employment of children below 17 years of age and this was still being displayed at the offices.

C 6.8 Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union membership, political affiliation, or age, is prohibited.

6.8.1 A publicly available equal opportunities policy. Major

Yes The existing policy of equal opportunities, Polisi Kesetaraan Peluang”, was still being displayed in the offices.

6.8.2 Evidence that employees and groups including migrant workers have not been discriminated against. Minor

Yes There was no record on employees or group being discriminated. This was verified during discussions with settlers, workers and staff at FELDA Tun Ghafar Machap/Menggong.


C 6.9 A policy to prevent sexual harassment and all other forms of violence against women and to protect their reproductive rights is developed and applied.

6.9.1 A policy on sexual harassment and violence and records of implementation. Major

Yes FELDA had continued to abide by its policy on sexual harassment and violence as defined in the “Polisi Gangguan Seksual” (Seksyen 22, Kod Etika dan Tatalaku Petugas).

Records of implementation were verified at FELDA Tun Ghafar Machap/Menggong. An awareness training was held with a presentation by Klinik Kesihatan Hutan Percha on 6 Jun 2014 on safety, sexual harassment and reproductive issues.

6.9.2 A specific grievance mechanism is established. Major

Yes The scheme participants were aware of this policy and the associated grievance mechanism. This was confirmed through interviews with randomly selected participants.

C 6.10 Growers and mills deal fairly and transparently with smallholders and other local businesses.

6.10.1 Pricing mechanisms for FFB and inputs/services shall be documented. Major

Yes The CU had continued to use the same pricing mechanism which it had established to pay members and other parties for their FFB.

6.10.2 Current and past prices paid for FFB shall be publicly available. Minor

Yes Current and past prices paid for FFB were still being placed on the notice board in FELDA Tun Ghafar Machap/Menggong Office.

6.10.3 Evidence that all parties understand the contractual agreements they enter into, and that contracts are fair, legal and transparent. Minor

Yes At Tun Ghafar Machap/Menggong, all parties had understood the contractual agreements they enter into, and that the contracts had been legally signed by both parties in the transactions. This was verified during discussions held with the settlers and contractors (Koperasi).

6.10.4 Agreed payments shall be made in a timely manner. Minor

Yes Agreed payments had continued to be made in a timely manner. It was confirmed during the discussions held with the settlers and contractors (Koperasi) in Tun Ghafar Machap/Menggong.

C 6.11 Growers and millers contribute to local sustainable development wherever appropriate.

6.11.1 Demonstrable contributions to local development that are based on the results of consultation with local communities. Minor

The following were typical examples of FELDA’s contribution to local sustainable


development and settler’s well-being at FELDA schemes assessed.

Financial assistance by FELDA HQ of RM5,000/year to GPW, RM5000/year to JKKR & JKKK and RM4000/year to Youth Club

Job opportunity was given within the settler’s community for transporting the FFB to the private mill collection center, weeding, agrochemicals spraying and harvesting.

Principle 7: RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS

FSSS CU has no plan for any new planting and no new development of area was observed during the visit. Thus Principle 7 is not applicable. Principle 8: COMMITMENT TO CONTINUOUS IMPROVEMENT IN KEY AREAS OF ACTIVITY


Findings

C 8.1 Growers and millers regularly monitor and review their activities and develop and implement action plans that allow demonstrable continuous improvement in key operations. MY NIWG commits to demonstrate progressive improvement to the following but not limited to:

8.1.1 Minimise use of certain pesticides (C4.6). Major

Yes There was still no paraquat being used in the CU. A list of ‘Permitted Chemicals’ used had been established.

8.1.2 Environmental impacts (C5.1). Major

No Environmental Impacts had been identified. However an environmental improvement plan has yet to be prepared – refer to NCR raised under indicator 5.1.2.

8.1.3 Maximizing recycling and minimizing waste or by-products generation. Major

Yes Recycle activities on wastes had continued with different bins to segregate paper, glass, metal and plastics which could be seen within the office premises.

8.1.4 Pollution prevention plans (C5.6). Major

No Cross refer to Indicator 8.1.2. (NCR?)


8.1.5 Social impacts (C6.1). Major

Yes Implementation and improvement being made on social impacts could be seen as in “Program Penentuan KPI dan KRA Rancangan FELDA Machap/Menggong Tahun 2014”.

8.1.6 A mechanism to capture the performance and expenditure in social and environmental aspects. Minor

Yes A mechanism to capture the performance and expenditure in social and environmental aspects was well established. It was not limited to these two aspects only but being extended to GAP, Institusi Peneroka and occupational safety and health matters. This was evident as in the Program Penentuan KPI dan KRA Rancangan Felda Machap/Menggong Tahun 2014.


3.2 Details of Non-Conformities Report Details of the non-conformities, corrective actions taken by FSSS CU and assessors’ verification of the corrective actions taken are in Appendix 3. Total no. of minor NCR(s): 6 List: VS 05, JS 1, JS 2, JS 4, KN 1, KN 2 Total no. of major NCR(s): 5 List: VS 01, VS 02, VS 03, VS 04, JS 3 3.3 Status of Non-Conformities Previously Identified All corrective actions to address the previous non-conformities were reviewed, accepted and verified for their effectiveness by the assessors. The assessors were satisfied that the corrective actions have been adequate to address the non-conformities and had therefore closed them out. The details of the verified nonconformities are as in Appendix 4. 3.4 Complaint Received from Stakeholders (if any) There were various stakeholders interviewed during this assessment comprising of workers, surrounding villagers and contractors. Generally, all of the stakeholders had given positive feedbacks on the operations of FSSS CU with respects to complying with the requirements of the RSPO MY-NI: 2010 (including smallholder). 3.5 Noteworthy Positive and Negative Observations Commitment among FSSS employees was observed to be as strong as previous assessment. Nonetheless, maintaining the implementation of the RSPO standard requirements has been quite a challenge since the last audit, especially for the Group Certification Standard.

4.0 RECOMMENDATIONS Based on the evidences gathered during the on-site audit, it was found that the FSSS CU had continued to comply with the requirements of the RSPO MYNI 2010 (including smallholder), RSPO Standard for Group Certification: 26 August 2010 and Malaysia National Interpretation Working Group (RSPO MYNIWG: November 2010). The CU had satisfactorily addressed the five (5) major and six (6) minor NCRs raised during this surveillance audit. The major NCRs had therefore been closed out. The corrective actions plan to address the minor NCRs had been reviewed and accepted by the assessment team. These corrective actions would be verified during the next surveillance assessment. As all the major NCRs had been satisfactorily closed out, the assessment team therefore recommends that the certification of FELDA Segamat Smallholder Scheme CU against the RSPO MYNI 2010 (including smallholder), RSPO Standard for Group Certification: 26 August 2010 and Malaysia National Interpretation Working Group (RSPO MYNIWG: November 2010) be maintained.


5.0 CERTIFIED ORGANIZATION’S ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY AND FORMAL SIGN-OFF OF ASSESSMENT FINDINGS I, the undersigned, representing FELDA Segamat Smallholder Scheme Certification Unit acknowledge and confirm the content of the assessment report and findings of assessment. Name : Wan Zamri Wan Yusof Signature : Date : 17/11/2014 I, the undersigned, representing SIRIM QAS International Sdn Bhd acknowledge and confirm the content of the assessment report and findings of assessment. Name : Valence Shem Signature : Designation : Assessment Team Leader Date : 13/10/2014


Appendix 1 Location Map of FELDA Segamat Smallholder Scheme Certification Unit

NOTES

PM1 : Felda Pemanis 1

PM2 : Felda Pemanis 2

MDI : Felda Medoi

KMLH : Felda Kemelah

TNG : Felda Tenang

SLDG : Felda Sri Ledang

CMLK : Felda Chemplak

CMLKT : Felda Chemplak Timur

CMLKB : Felda Chemplak Barat

BSMP : Felda Bukit Serampang

MCP/MG : Felda Machap

Menggong

BSGH : Felda Bukit Senggeh

KMD : Felda Kemendor

LNG : Felda Lenga


Appendix 2 Assessment Programme

Day 1: 8th June 2014 (Sunday)

Time Activities / areas to be visited

0800 – 0815 Opening Meeting – Venue to be prepared by FELDA Segamat Audit team introduction and briefing on assessment objectives, scope, methodology, criteria and programmes by SIRIM QAS Audit Team Leader.

0815 – 0845 Briefing on the organization background and implementation of RSPO at all schemes (i.e. changes on organization activities, if any, time bound plan and corrective actions taken to address previous assessment findings) by FELDA Management Representative.

0845 – 0900 Logistics discussion to the sites to be visited. Each assessor to be provided with a FELDA transportation and Guide(s) at each named site as each of the assessor will go separate ways.

0900 – 1300 Jagathasan Valence Khairul Najwan

Site visit and assessment at Felda Sri Ledang relating to OHS and environment. Assessment on related Indicators of P1, P2, P3, P4, P5, P8

Site visit and assessment at Pejabat Wilayah relating to Group Certification Standard and Chain of Custody

Site visit and assessment at Felda Tun Ghafar Machap availability of surface ground water, HCV and social responsibility. Assessment on related Indicators of P1, P2, P3, P4, P5, P6, P8

1300 – 1400 Lunch Break

1400 – 1700 Continue assessment

Day 2: 9th June 2014 (Monday)



Continue assessment at Felda Sri Ledang. Continue assessment at Pejabat Wilayah. Continue assessment at Felda Tun Ghafar Machap.


1400 – 1700 Continue assessment. Site Visit at Felda Pemanis 1 good agricultural practice. Assessment on related Indicators of P1, P2, P3, P4, P8

Continue assessment.


Day 3: 10th June 2014 (Tuesday)



Continue assessment at Felda Sri Ledang. Continue assessment at Felda Pemanis 1. Continue assessment at Felda Tun Ghaffar Machap.


1400 – 1600 Verification on any outstanding issues. Note: Assessor to inform auditee on the required document / records. Audit team discussion and preparation of audit findings

1600 – 1700 Closing meeting and presentation of findings & NCR (if any)


Appendix 3 Details of Non-Conformities and Corrective Actions Taken

P & C Indicator

Specification Major/Minor

Detail Non-conformances Corrective Action Taken by the CU and

Verification by Assessors

RSPO Standard for Group Certification, Clause 1.1.3

Major NCR # VS 01

Some of the records of the individual scheme (Group Certification System) were not accessible at the Group Manager’s Pejabat Wilayah (Regional Office) FELDA Segamat. The following records/information were not accessible at the Pejabat Wilayah FELDA Segamat: i) Individual membership status e.g. membership validity, date of

joining or leaving the group, ii) Summary results of internal assessment as required according to

MANUAL RSPO (GROUP CERTIFICATION SYSTEM), doc. no.: ML-1B-GCS Membership Compliance (0), dated March 2012, Clause 3.1.1 (v).

The Group Manager of FSSS CU had submitted a complete set of documents containing the information regarding the membership status, and summary results of the internal assessment. The audit team had reviewed, accepted and verified and found them adequate to address this major NCR. Status: Major NCR #VS 01 was closed out.

RSPO Standard for Group Certification, Clause 2.1.4.2

Major NCR # VS 02

The requirements in RSPO Standard for Group Certification (Clause 2.1.4.2) were not being addressed in the MANUAL RSPO (GROUP CERTIFICATION SYSTEM), doc. no.: ML-1B-GCS dated March 2012 or any other procedure and evidences that the new members have passed the initial compliance assessment for entry were not available at Pejabat Wilayah FELDA Segamat.

FSSS had revised its procedure in July 2014 to include the method of removing members. The procedure was described in Clause 1.3 of the MANUAL RSPO (GROUP CERTIFICATION SYSTEM). The audit team had reviewed, accepted and verified the amended procedure as satisfactory in addressing this major NCR. Status: Major NCR # VS 02 was closed out.

RSPO Standard for Group Certification, Clause 2.2

Major NCR # VS 03

All the internal assessments of the participating FELDA schemes which were conducted in 2013 were done by the individual Scheme Manager instead of the Pegawai Pertanian Wilayah. This was not in accordance to the CU’s procedure [MANUAL RSPO (GROUP CERTIFICATION SYSTEM), doc. no.: ML-1B-GCS, Clause 3.1.2.1 Penilaian Dalaman]. The manager had done the internal assessment in their own Project Unit themselves. Hence, impartiality was questionable. There were some findings in the internal assessment checklist [doc. no.: ML-1B- Checklist Audit (0)], which were marked with “x”. However, the objective evidence of these findings had not been

FSSS has submitted updated internal assessment forms which were done by the Pegawai Pertanian Wilayah. The results of assessment and actions taken had been included in the internal assessment forms. The updated internal assessment forms were reviewed, accepted and verified and found to be satisfactory in addressing this major NCR. Status: Major NCR # VS 03 was closed out.


clearly explained whether they were non-compliance or not applicable and no action plan had been prepared.

Criterion 4.1 Indicators: 4.1.1

Major NCR # VS 04

Felled palms were openly burnt without the permission from the Department of Environment (DOE). It was found in FELDA Pemanis 1 that felled palms in the newly replanted areas in 2013 had been openly burnt without DOE’s approval. This was against the CU’s procedure [FELDA’s Manual Ladang Sawit Lestari [MLSL (Ed.2) – Sec.2 (1.0), dated 1/6/2012] Clause 1.6.2(x)] and the law.

FELDA Pemanis 1 had held a meeting with DOE Muar Branch on 15/6/2014 and discussed on the issue related to open burning. The department had given a written stern warning to FELDA Pemanis 1 not to repeat the mistake [letter ref.: ASJMR (B) 91/110/607/003 Jld.3 (13) dated 30/6/2014]. FELDA Pemanis 1 had also held a meeting with all the relevant settlers on 18/6/2014 to inform them on the restriction to open burning during replanting in and to prevent recurrence of the incident. Minutes of the Meeting and attendance record had been submitted to the assessor for verification on 26/8/2014. Status: Major NCR # VS 04 was closed out.

Indicator 4.5.2

Minor NCR # VS 05

A major pest in FELDA Pemanis 1 was rat. The biological control

recommended by the CU was still by having barn owls. However,

there was no evidence to indicate that a census has been carried

out to monitor the population of the bird.

FELDA Pemanis 1 had updated its barn owls population census according to the established format [ML-1A/L4-F16 (0)], which was last done on 29/5/2014 and submitted to the assessor on 6/8/2014 for verification. Based on the census record, it was found that the current number of barn owl boxes were not adequate to cover the total area of the estate. FELDA Pemanis 1 had then documented its action plan to increase the number of boxes in stages which eventually also had increased the barn owl population. The documented action plan was submitted to the assessor on 19/8/2014 for verification. Status: The action plan was reviewed and accepted. However, the effectiveness of the action taken shall be verified during the next surveillance assessment.


Indicator 2.1.3

Minor NCR # JS 1 It was verified during a site visit made to FELDA Sri Ledang that a monitoring mechanism to ensure compliance with all the applicable local, national and ratified international laws and regulations was not available.

FELDA Sri Ledang had up-dated and established a ‘Legal and Other Requirements Register’ (LORR) and has monitored the status of its compliance with all the applicable laws and regulations. The updated LORR dated 1/1/2014 had been submitted to the assessor. Status: The corrective action was reviewed and accepted but verification on the effectiveness shall be conducted during the next surveillance assessment.

Indicator 4.6.10

Minor NCR # JS 2 The mechanism for ensuring the identification of the active Ingredients and the amount applied per hectare was not effective. At FELDA Sri Ledang, a log book record was maintained to control and monitor the use of pesticide in the field. However, the identification and the amount per hectare of the concerned Active Ingredient being used was not recorded.

FELDA Sri Ledang had updated the ‘Pesticide Application Monitoring’ Log Book to include information on the type of the pesticide and the amount per hectare of the concerned Active Ingredient being used. Status: Action plan was reviewed and accepted but the verification on the effectiveness of corrective action shall be done during the next surveillance assessment.

Indicator 4.7.1

Major NCR # JS 3 There was no evidence to indicate that HIRARC had been conducted.

FELDA Sri Ledang has updated and established a HIRARC Register and established an OSH plan. The updated HIRARC and OSH plan had been submitted to the assessor as evidence of the corrective action taken. Status: Major NCR # JS 3 was closed out.

Indicator 5.1.2

Minor NCR # JS 4 There was no environmental improvement plan in FELDA Sri Ledang.

FELDA Sri Ledang had updated and established its ‘Aspect and Impact Plan’. This plan dated 1/1/2014 had been submitted to the assessor as evidence of the corrective action taken. Status: Action taken was reviewed and accepted and the effectiveness of implementation of the


corrective action shall be verified during the next surveillance assessment.

Indicator 4.4.7

Minor NCR # KN-1

Water management plans was not available at FELDA Tun Ghafar Machap/Menggong.

FELDA Tun Ghafar Machap/Menggong had prepared a water management plan and submitted to the assessor for verification. Status: Action plan was reviewed and accepted but the effectiveness of implementation shall be verified during the next surveillance assessment.

Indicator 6.1.3

Minor NCR # KN-2

A time table to mitigate the negative impacts with responsibilities assigned and time to review the plan had not been drawn up and implemented at FELDA Tun Ghafar Machap/Menggong. The last action plan was drawn up in 2009. Since then, there was no review and update being conducted on the plan.

FELDA Tun Ghafar Machap/Menggong had reviewed and updated the SIA for year 2014 and included the timetable on the mitigation of the negative impacts. Status: Corrective action taken was reviewed and accepted but the effectiveness of implementation shall be verified during the next surveillance assessment.


Appendix 4 Status of Non-Conformities Previously (2013) Identified

P & C Indicator

Specification Major/Minor/

OFI Detail Non-conformances Corrective Action Taken

Verification by Assessor at this assessment

Indicator 4.8.1

Major NCR #: MM-2 Area/Location: FELDA Tun Ghaffar Bukit Senggeh, FELDA Chempelak Barat, and FELDA Bukit Serampang.

Some key training courses had not been conducted, example, Aspect/Impact, Hazard Identification, Risk Assessment, Risk Control, RSPO Awareness, Social Impact Assessment. etc There was no such training record available at FELDA Tun Ghaffar Bukit Senggeh, FELDA Chempelak Barat, and FELDA Bukit Serampang.

Each Scheme Management will monitor the Training Plan and Training Program prepared. Records of training conducted including attendance sheet, training evaluation and competency assessment will be kept in RSPO File 4.8 and monitored periodically.

Training Plan for 2014 has been prepared, where the key Awareness training has been identified for the settlers and contractors, to be carried out throughout year 2014: i) Aspect / Impact Hazard Identification –

planned for 2nd Half 2014 ii) Risk Assessment and Risk Control –

planned for 2nd Half 2014 iii) RSPO Awareness – carried out in

March, 2014 iv) Social impact Assessment – planned

for 2nd Half 2014 Status: Major NCR MM-2 was closed out.

Indicator 6.1.1

Major NCR #: KN-1 Area/Location: FELDA Tun Ghaffar Bukit Senggeh

The records on SIA conducted were not sufficient. A time bound mitigation plan with responsibilities was not drawn and implemented. It was observed that there was SIA conducted, however the records was not adequate at; 1. FELDA Tun Ghaffar Bukit Senggeh (only two survey forms filled) A time bound mitigation plan with responsibilities also not available

A SIA study has been carried and submitted to SIRIM QAS International on FELDA Tun Ghaffar Bukit Senggeh.

The SIA study is acceptable and has been improved during audit at FELDA Machap/Menggong. However, the timetable was not updated. Therefore NCR was assigned under Indicator 6.1.3. Status: Major NCR KN-1 was closed out.

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