SOP - bqas.com.my€¦ · Title: SOP Author: BQAS Certification Sdn Bhd;Wilfred Landong Keywords:...

INITIAL CERTIFICATION AUDIT REPORT

BQAS/SGSB/010/09/19

SECRET GREENS SDN BHD

MSPO MS 2530-3:2013

September, 2019

1

Standard: MS2530-3:2013 (Part 3)

General Principles for Oil Palm Plantations and Organized

Smallholders

Type of Certification: Individual Certification

Organization: SECRET GREENS SDN BHD (938123-V)

Main Office Address:

No 9, 1stFloor, Jalan Kai Peng, 96000, Sibu, Sarawak.

Phone/Fax No:

Tel: 084 311 998

Fax: 084 311663

Plantation Site Address:

Secret Greens, Ulu Kenyana, Mukah, Sarawak

Project No:

BQAS/SGSB/010/09/19

September, 2019

Certification Body:

BQAS Certification (M) Sdn Bhd (11179994-x)

Sublot 6, 2nd Floor, Block A, Kings’ Center, Simpang Tiga,

93350, Kuching, Sarawak.

Accreditation No: [MSPO 06092019 CB 0015]

Tel:

Mobile:

Email:

Website:

+6 082 572 043

+6 017 814 1112

[email protected]

www.bqas.com.my

Documented by:

Wilfred S Landong

Lead Auditor

Certified by:

Patrick Sibat

01 10 2019

Certificate issued on:

05 10 2019

Validity: 05 10 2019 to 04 10 2024

Disclaimer:

This Report (inclusive of enclosures & attachments) had been prepared for the exclusive use and benefits of the addressee(s)

and solely for the purpose for which it was intended. Unless BQAS provide prior written consent, no part of this report should be

reproduced, distributed or communicated to any third party. BQAS would not accept liability if this report is used for an

alternative purpose from which it was intended, nor would we owe any duty of care to any third party in respect of this Report.

MSPO INITIAL CERTIFICATION SUMMARY REPORT

http://www.bqas.com.my/


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019

of 62 BQAS Certification (M) Sdn Bhd All aspects of the Audit are Confidential 20thSeptember 2019

TABLE OF CONTENTS

NO DESCRIPTION PAGES

EXECUTIVE SUMMARY 4

1. INTRODUCTION

1.1 Information: Certification Assessment 4

1.2 Information: Certified Entity 4

2. THE AUDIT TEAM 5-6

3. AUDIT METHODOLOGY 6-7

4. AUDIT PLAN 7-8

5. AUDIT PROCESS 9-10

6. STAGE 1 AUDIT

6.0 Stage 1 Audit Report 11-28

6.1 Summary of Findings/Action Taken/Closure 28

7. STAGE 2 AUDIT – MAIN ASSESSMENT

7.1 Basic Information 29

7.2 Stage 2: Main Assessment Report 29-51

7.3 Summary of Findings 51-53

7.4 Lead Auditor Remarks 53

7.5 Corrective Action Reports [CAR] / Closures 53-60

8. AUDIT CONCLUSION & RECOMMENDATION 61

9. ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY &

CONFIRMATION OF AUDIT FINDINGS

61

10. CERTIFICATION RECOMMENDATIONS [CERTIFIER] 61

11. DATE OF 1ST YEAR SURVEILLANCE AUDIT 61

ATTACHMENTS:

Plantation Maps 62-63


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


EXECUTIVE SUMMARY

This is an Initial Certification Audit & scope is Individual Certification of Secret Greens Sdn Bhd [SGSB]

under the Standards MSPO MS2530-3:2013 for Oil Palm Plantations & Organized Smallholders

Secret Greens Sdn Bhd [SGSB] main office is located at No 9, 1st Floor, Jalan Kai Peng, 96000, Sibu,

Sarawak. The Plantation site is located at Geo-coordinates N2°44:49.423’ E112°19:41’.893’ with its’

address @Ulu Kenyana, Mukah, Sarawak.

Established in December, 2011, the Plantation has a total certified area of 1045 hectares of lowland

with sandy loam type soil. Total planted area is 876.9ha and 168.1ha is reserved land and riparian

zones. Plantation lands are rented from local landowners with tenure of up to 30 years.

SGSB employed a total headcount of 16 fulltime employees [all local]. The major field activities of the

plantation are outsourced to local contractors; most of whom are landowners and the local

communities and stakeholders of the Plantation.

The assessment method used follows principles of 3P (Paper, Practice & People).

This certification assessment is a sampling process where management systems effectiveness &

efficiency are confirmed via an Audit Trail that the Auditor established to make an accurate

conclusion. Information & data were systematically gathered & documented from interviews [with a

cross section random sample of stakeholders], observations of process and activities, field audits &

review of documentations and records.

Assessments were done at both the Main Office in Sibu and the Plantation/Site Office in Mukah during

both Stage 1 & Stage 2 Audits. Stage 1 Audit was conducted on 6th to 9th May 2019 & Stage 2 on 8th to

10th July 2019 respectively. 2 Auditors were assigned to do the Assessments; clocking a total of 14

Mandays to complete the Audits.

There were 9 Findings in Stage 1 Audit classified as AWF (acceptable with findings noted); in areas of

process for internal and external communication, management review, internal audit, HIRARC, Training

Program, Environmental Policy, Water Management Plan, Social Impact Assessment [SIA] and safety

requirements. The corrective action report (CAR) raised for these findings were closed out on 30 06

2019. In Stage 2 Audit 5 OFI (opportunity for improvements) were recorded; in areas of Social Impact

Assessment, Complaint & Grievances, Employees Safety & Health, Environmental Management Plan

and Efficiency of energy use and use of renewable energy. The corrective action report (CAR) for

these findings were closed out on 10 09 2019.

In both Audit Stages, dialogues and interviews were conducted with stakeholders [workers, local

communities, landowner & other land users] to gauge understanding of MSPO principles, applications

& its importance and relevance to sustainable growth and production of palm oil products.

Also assessed were their opinion & working relationship with SGSB Management and this was found to

be positive; with the landowners claiming that their business partnership with the plantation company

had been a financially beneficial relationship. Local communities were also allowed access and use of

roads within the plantation; and road maintenance to the surrounding villages is done annually by the

plantation owners.

Plantation workers & staffs are remunerated well above minimum wage; and living conditions in the

Estate are well above minimum requirements of health & safety regulations.

Available amenities in both estates include treated water, domestic waste collection & disposal,

electricity and telecommunication services. Good housing facilities are given to staffs in the estate;

and contractors are given rest rooms of their own,

The Audit team has conducted a rigorous assessment of SGSB and it is evidenced that it has complied

& conformed to MSPO2530-3:2013 Certification standards, conditions & requirements.

Conclusively, the Lead Auditor therefore, recommended that upon conclusion and closure of [OFI] of

Stage 2 Audit Secret Greens Sdn Bhd be certified under MSPO Standards MS2530-3:2013.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


1. INTRODUCTION

Secret Greens Sdn Bhd [established in 2011] is a company headquartered in Sibu Sarawak. The

plantation site is located at Ulu Kenyana area, Mukah; distance of approximately 20km from Mukah

Town.

This report presents the assessments, findings & recommendations on certification evaluation of NSSB

which is seeking certification under MSPO MS2530-3:2013.

This is an Initial Certification Audit to assess the entity’s preparedness, compliance & conformance to

MSPO Standards MS2530-3:2013 (Part 3: Requirements for Oil Palm Plantations & Organized

Smallholders)

1.1. INFORMATION: CERTIFICATION ASSESSMENT

Type of Assessment: Initial Certification Audit

Scope of MSPO Certification: Palm Oil Plantation Certified Area: 325.54hectares

MSPO Standard: MS2530-3:2013

1.2. INFORMATION: CERTIFIED ENTITY

Company Name: Secret Greens Sdn Bhd Registration No 938123-v

Address: No 9, 1stFloor, Jalan Kai Peng, 96000, Sibu.

Site Name: Secret Greens Sdn Bhd

Address: Ulu Kenyana, Mukah, Sarawak

Management Contact details:

Name Job Title Mobile Telephone Email

Kho Lian Whui Director 019 8192585 085 412568 [email protected]

Awang Khairuddin Awang Dol Manager 019 4590907 085 412568 [email protected]

No of Employees Local 16 Total 16

MPOB License No: 5511 0700 2000 Expiry date 30 06 2020

Scope of Activity: Menjual dan Mengalih FFB#

Date of Establishment 29 03 2011 Geo-Coordinates N2°44:49.423’ E112°19:41’.893’

Certified Area: 1045ha Planted Area: 876.9ha Reserved Area: 168.1ha

FFB Production (actual) 2018: 11,297.78mt FFB Production (estimate) 2019: 14,785mt

Sources of FFB: Own estate Main FFB purchaser: Unique Palm Oil Mill, Mukah

No of Planting Blocks: 21 No of Palm trees: 109,913

Palm Species: Calix 600: Sime Darby Age Range of Palm Trees: 4 to 8 years old

Land Status: Ownership ☐ Own Land ☒ Rented ☐ Joint Venture

Other Sustainability Certification: Nil

mailto:[email protected]



BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


2. THE AUDIT TEAM

Audit Stage Name: Role

Stage 1 Wilfred S Landong Lead Auditor

Duke Ladin Auditor

Stage 2 Wilfred S Landong Lead Auditor

Duke Ladin Auditor

A. Wilfred S Landong Lead Auditor

Qualifications:

Advanced Dip in Business & Management, UK

Degree in Marketing, UK

Masters in Marketing, UK

Successfully completed MSPO Lead Auditor Course (Pioneer Group) 0n 30th January, 2015

Working Career & Experience:

Year ended Employer Highest Job

1980 Cigarette Importers & Distributor Area Executive

1990 Sebor Sarawak Sdn Bhd Divisional Manager

1997 Gillette (M) Sdn Bhd Country Manager

1999 Zuelling (M) Sdn Bhd Sales & Marketing Director

2002 TimeDotCom. Bhd Vice President

2012 Sarawak Forestry Corporation Sdn Bhd General Manager

Present BQAS Certification (M) Sdn Bhd Managing Director

Relevant MSPO Related Credentials:

Sarawak Forestry Corporation SB

Pioneer GM of Sarawak Forestry Corporation SB (SFC), a wholly owned Company of Sarawak

Government; responsible for formulating and implementing the Company’s organization

structure, policies, regulations, procedures etc. Custodian of accreditation & certification

related to management of Protected areas & Biodiversity conservation.

During tenure of office, Certification achieved included ISO9001 (2004), ISO14001(2004),

OHSAS1800 (2007)

Intimate knowledge of sustainable forestry management and regulatory requirements

enhanced a clear perspective & understanding of how palm oil industry should be managed

sustainably.

Highly conversant & knowledgeable on Sarawak Forests Ordinances, Wildlife Protection

Ordinance, Land Code, Native/NCR land laws; easily can relate and apply to governance

and implementation of MSPO Principles & guidelines.

BQAS Certification (M) SB

As MD of BQAS responsible for the formulation & implementation of Quality Manual, Policies &


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Procedures as required for Accreditation as Certified Body by Department of Standards

Malaysia (DSM) under ISO/IEC 17021-1.

Top management accountability & responsibility to ensure BQAS conformance & compliance

on operations, implementation & administration of MSPO MS2530:2013 as required by the

owner of the Standard (MPOCC).

B. Duke Ladin Auditor

Qualifications

Bemidji State University, Bemidji, Minnesota, USA in 1999

Bachelor of Arts (Hons) in Management, Open University Malaysia [OUM] 2016

Successfully completed MSPO Auditor Course in February 2019

Working Career & Experience

Oil Palm Planter [MPOB License 4528 2700 1000 since 2009]

Contractor – Construction Company [2014-2017]

Project Manager [2007-2013]

Relevant MSPO Related Credentials:

As an Oil Palm Planter, highly conversant and experienced in operating Oil Palm Smallholding

Company

Practical experience in Palm oil Business & Business management practices.

3. AUDIT METHODOLOGY

This certification assessment is a SAMPLING process where management systems effectiveness &

efficiency are confirmed via an audit trail that the Auditor established to make an accurate

conclusion.

Information gathering

Data collection

Interviews

Observation of process & activities

Review of documentations & records

Site visits

Field inspections

Assessment method Paper

Assessing past implementations from records, reports of the

management system

Practice

Assessing current implementation from observing current

practices

People

Assessing future maintenance from interviewing personnel on

understanding & assessing competencies

Stage 1: Audit Findings Classification

Term Meaning / Description

Acceptable Fulfill requirement of audited standard


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Acceptable with findings

noted

Demonstrate conformity. There are, however, improvement

opportunity identified that will benefit the organization

Not acceptable Demonstrate absence or total breakdown of system to meet standard

requirement

Stage 2: Audit Findings Classification

Term Meaning Description

YES Compliance Fulfill requirement of audited standard

OFI Opportunity for improvements Demonstrate conformity. There are, however,

improvement opportunity identified that will

benefit the organization

NO (minor NC) Minor non conformity Non-compliance to standard requirements or

company’s SOP; or are issues that when

combined, jeopardized the functioning of the

system

NO (major NC) Major non conformity Demonstrate absence or total breakdown of

system to meet standard requirement, or a

number of minor NC against a clause of standard

requirements / at a particular area. Of last

assessment that are not effectively addressed will

be classified as major NC.

4. AUDIT PLAN

AUDIT SITES:

For both Stage 1 & Stage 2 the Audit Team performed assessments at:

Secret Greens Sdn Bhd main office [documentations]

Plantation site office/field Audits

STAGE 1 AUDIT PROGRAM:

Date 6th to 9th May 2019 No of Auditors 2 No of Mandays 8

Day 1 Documentation Audit at Secret Green Main Office, Sibu/Opening Meeting

Day 2 Documentation Audit at Secret Green Main Office, Sibu

Day 3 Plantation Site & Field Audit/ Stakeholders Consultation & interviews

Day 4 Closing Meeting & Stage 1 Audit Report presentation

Audit Parameters:

Basic information about the entity

Management system: scope & documentation

Evaluation of location/site specific conditions

Review understanding regarding requirements of the MSPO Standards (key performance,


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


processes, objectives)

Related statutory & regulatory aspects & compliance

Land status/legality

MSPO policies, procedures

Management Manual

Management Plan

Resources management (water/non-renewable energy use)

Determine preparedness for Stage 2 Audit

Fertilizers/Chemical/Schedule waste stores

Estate Office & Workers Quarters, Signages

Boundary Markers, Geo-coordinates, Buffer Zone, Riparian Reserves

Stakeholders interviews

STAGE 2 AUDIT PROGRAM:

Date: 8th to 10th July, 2019 No of Auditors: 2 No of Mandays: 6

Day 1 Documentation Audit at Secret Green Main Office, Sibu/Opening Meeting

Day 2 Plantation Office Site & Field Audit/ Stakeholders Consultation & interviews

Day 3 Documentation Audit at Secret Greens Main Office/Closing Meeting/Audit Report

Audit Parameters:

Evaluate implementation, including effectiveness of the management system

Information & evidence about conformity to all requirements

Performance monitoring, measuring, reporting

Reviewing against key performance objectives & targets

Performance as regards legal compliance

Operational control of the client’s process

Internal auditing & Management review

Management responsibilities for policies

Links between the normative requirements, policy

Competence of personnel

Customer specific requirements

Harvesting / collection of loose fruits / logistics & traceability of FFB

Use of PPE / Safety & Health training program

Revisit other points/areas of buffer zone, Riparian reserves, boundaries

Implementation of Policies & procedures at all stores (fertilizer, chemical, schedule waste

store)

Improvements to workers quarters – health & safety

Infrastructure / roads & drainage / natural water management

Continuous improvement plan & implementation

Implementation of Best practices

Implementation of environmental management plan

Stakeholders & workers interview


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


5. AUDIT PROCESS

The Audit Process for Stage 1 Assessments was programmed as follows:

No Process Description / Activities

1 Public Notification Written notice to inform public on MSPO Audit is posted at

Plantation Office 1 month before Audit dates. [1st April, 2019]

↓

2 Audit Plan Auditee received 2 weeks before Audit dates

↓

3 Audit Day 1 Main Office, Sibu

a. Opening Meeting

Participants:

Audit Team & Auditee Management

Agenda:

Audit Plan, Objectives, Assessment Method

b. Documentation Review

Management Systems, Policies, Procedures, MSPO

Principles 1 to 6 documents etc.

↓


Documentation Review



Audit Day 3

Secret Greens Plantation Site / Office Audit

Stakeholders interviews, MSPO knowledge of Estate staffs,

Checks & verifications on Boundary, Buffer Zone, Riparian

Zone, Waste/scheduled waste management, Water

management, Water courses, Staff/workers housing &

amenities, Harvesting, Use of PPE, Stores, Workshop

5 Audit Day 4

Closing meeting

Participants:


Agenda:

Report / Checklists: review, discuss & decide corrective &

forward action to be taken with Auditee


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


The Audit Process for Stage 2 Assessments was programmed as follows:

No Process Description / Activities

1 Public Notification Written notice to inform public on MSPO Audit is posted at

Plantation Office 1 month before Audit dates. [3rd June , 2019]

↓

2 Audit Plan Auditee received 2 weeks before Audit dates

↓


Opening Meeting

Participants:


Agenda:

Audit Plan, Objectives, Assessment Method

Documentation Review



↓

4 Audit Day 2

Secret Greens Plantation Site / Office Audit

Stakeholders interviews, MSPO knowledge of Estate staffs,

Checks & verifications on Boundary, Buffer Zone, Riparian

Zone, Waste/scheduled waste management, Water

management, Water courses, Staff/workers housing &

amenities, Harvesting, Use of PPE, Stores, Workshop

5 Audit Day 3

a. Continue documentation Audit

b. Closing meeting

Participants:


Agenda:

Report / Checklists: review, discuss & decide corrective &

forward action to be taken with Auditee


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


6. STAGE 1 AUDIT MSPO MS2530-3:2013

MSPO Stage 1 Audit Report Reference No.: SGSB/AU/ST1/05/19

Standard(s): MS 2530-1 MS 2530-2 MS 2530-3 MS 2530-4

Other Standard and/or

Edition:

NIL

Organization:

Address:

City, State, Zip:

Country:

SECRET GREENS SDN BHD (938123-V)

NO 9, 1ST FLOOR JALAN KAI PENG, 96000, SIBU, SARWAK

Organization representative: AWANG KHAIRUDDIN AWANG DOL

Stage 1 audit date: 6TH – 9TH May, 2019

Stage 2 scheduled date: to be confirmed (tentatively in July, 2019)

BQAS audit team:

Name Role

Wilfred S Landong Lead Auditor

Duke Ladin Auditor

This acknowledges the BQAS audit team’s visits to this location and the organizations receipt of the report.

Distribution of this report consists of the organization named above and parties names per contractual agreement.

Additional distribution must be authorized by the organization

Company Representative : AWANG KHAIRUDDIN AWANG DOL

1. INFORMATION ABOUT THIS ORGANISATION

NOTE: Provide here information about the main site or excerpt site(s) that is included in this Certification

ORGANIZATION SECRET GREENS SDN BHD

1 Site or Remote Location Individual Site

2 Facility covered under this Audit Plantation Facilities, Amenities,

Infrastructure, Site Office, Utilities, Stores,

Workers Quarters

3 Primary Function of the Site Plantation/Organized Smallholders

4 Address Main Office No 9, 1st Floor, Jalan Kai Peng, 96000, Sibu

Plantation Ulu Kenyana Mukah, Mukah, Sarawak

5 Headcount Staffs 16 General Workers Nil

6 Planned / Recommended Stage 2 Audit Mandays 6 man-days

7 Production Capacity Estimated 2019 14785.5MT

8 Certifed Area 1045 HA Planted Area 876.9 HA

Reserved Area 168.1 HA

NOTE: Do not complete this column for sites where another Stage 1 Audit is required


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


SCOPE Lists the Scope of Registration for each applicable standards

MPOB Registration No 5511 0700 2000 Expiry Date: 30 06 2020

Scope of Registration MENJUAL DAN MENGALIH FFB#

2. Management System Readiness (General)

Was the review of the client’s

status and understanding

regarding requirements of the

standard/ specification, in

particular with respect to the

identification of key performance

or significant aspects, processes,

objectives and operation of the

management system was found

to be adequate?

Acceptable

Acceptable with findings noted

Unacceptable – recommend audit (Stage 2) to be delayed

Comments/Justification/Evidence:

1. Secret Greens Sdn Bhd (SCSB started the process of MSPO

preparations since end 2017.

2. MSPO Consultant was engaged in Jan 2019 to assist Management of

SGSB to prepare for Certification process.

3. 2 SCSB Managers in-charge and dedicated to implementation of

MSPO were trained and qualified as MSPO Auditors in January 2018

(viewed Certificates)

4. 3 other staffs also attended MSPO Towards Operation Management

System (MSPO Standards) on September 2018 (viewed certificate)

5. Management review was conducted on 14 02 2019 and attended by

top management of SCSB

6. Briefing & training to Plantation staff & contractors by MSPO

Consultant were conducted in March & April

7. All documentations on MSPO (Principle 1 to 6) were viewed and

found to be in order (38 files are kept & maintained).

Operations of the Management systems were found to be adequate &

maintenance and upkeep of the system is a continuous improvement

process. The Staffs of SCSB are also equipped with adequate knowledge to

implement MSPO MS2530-3:2013

The Top-Level Management

System Manual detailing

justification for exclusions, inclusion

of or reference to documented

procedures for the management

system, and providing a

description of the interaction

between processes?

Acceptable




Viewed Management System Manual: Doc Ref: SGSB/MSM/2019(02) dated

effective 01 05 2019.

Contents:

Scope & Policy, Controls of Documents, Quality System Structure,

Management Responsibility, Resource Management, Corrective Actions,

Policies & Procedures

Referencing of Manual to Policies & Procedures in order

List any manual discrepancies:

1. No response to BQAS required

2. Changes will be reviewed during Stage 2 audit

The policy is defined and

appropriate to the purpose of the

organization?

Acceptable




Policy Doc No: SG/POLICY/MSPO/01 signed by Managing Director on 01 02

2019. MSPO Policy contain 7 principles:

Management Commitment & Responsibility: Transparency: Compliance to

legal requirements: social responsibility: health, safety and employment

condition: environment, natural resources, biodiversity & ecosystem: best

practices: development of new planting


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Policies documented include:

1. MSPO Policy

2. Occupational Health & Safety Policy

3. Environmental & Biodiversity Policy

4. Social Policy

5. Sexual Harassment Policy

6. Zero Burning Policy

Policies are clearly defined and appropriate to the purpose of the

organization.

Transparency is identified to

ensure management of

stakeholders meet with MSPO

requirement.

Acceptable




Doc No: SGSB/MSPO/PFC/01 dated 01 07 18

Transparency is identified by a process flow chart to ensure management of

stakeholders meet with MSPO requirement. Flow chart as follows:

No Process Responsibility

1 Harvesting Contractors

↓

2 Platform Contractors

↓

3 Loading Lorry/Tractor Contractors

↓

5 Weight Bridge (Mill) Contractors

↓

6 Grading Mill Graders

↓

7 Mill Documentation Mill Management

Transparency is identified in

complying with traceability

system.

Acceptable




Doc No: SG/SOP/TA/OPERATION/06 dated 21 02 2019

Transparency is identified and complied with traceability system. Each

process is documented and records maintained.

SGSB using direct billing system.

Process Transparency documents

Harvesting Harvesting Muster-chit

Loading: Lorry/Tractor BTS Block Transportation Chit

Weight Bridge (Mill) Weight bridge Advice Ticket, FFB

Checking Chit, dispatch note

Grading (loading ramp) Grading Ticket

Weight Bridge Weight bridge Ticket

Mill final documentation Weight bridge Ticket, FFB Checking

Chit, Payment Voucher

Process for identification of legal

and other requirements.

Acceptable




SCSB keep and maintained a legal register in which all legal and other

requirements are kept and monitored

Doc Ref: SG/LEGAL/LICENSE/01 dated 01 02 19

Docs monitored include:

MPOB / FFB sales license: Trading license: Nursery License: Land lease titles:

Quit Rent: Customs Windfall profit levy: Vehicle Registration:


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Diesel/Petrol/Fertilizer license: SSM license: Pesticide Act License: OSH/DOSH

health & safety Certificates: Labor Dept docs: Visa for foreign labor: SOCSO:

EPF: NREB.

Process for internal and external

communication.

Acceptable




This process is documented in the Consultation and communication

procedure. Doc SGSB/SOP/CC/22 dated 21 02 19.

However, the documentation is incomplete as only external communication

procedure is available. Internal communication procedure is not

documented.

The outputs from management

reviews are consistent with the

commitment to continual

improvement.

Acceptable



Not applicable due to not required for group management of

independant smallholder (refer to 2.1d for detail)

Special case with valid reason agreed by Lead Auditor


2 Management reviews were held on 14 02 19 & 28 04 19 respectively.

Attended by MD, Management Team, Estate managers.

Agenda of MR 28 04 19 were stated as

Status of action from previous management review

MSPO certification status

Results of Internal Audit

Opportunities for improvements

However, meeting minutes are not available at Audit time. Thus not, able to

determine outputs of the management review

Internal audits planned and

performed? Records are

available?

Acceptable



Not applicable due to not required for group management of

independant smallholder (refer to 2.1d for detail)


Internal Audit conducted on 17th to 18th April 2019.

Objective:

To Audit SGSB preparedness for MSPO MS2530-3:2013. Principle 1 to 6.

Methodoloogy: Site visit verification, interviews and documentation review.

Audit report done on 20th, April 2019. Records available.

The findings are not closed out at time of Audit.

The findings are not classified thus Auditee could not ascertain whether the

findings are OFI/NC etc.etc. In the Audit format this classification is not made

clear also.

Is a translator required? Yes No

2.1. Supplement for MS 2530-2, MS 2530-3 & MS 2530-4

Review the information listed below to determine readiness of the organization for the stage 2 audit.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


MSPO Policy

Acceptable




Policy documented: Doc no SG/Policy/MSPO/01 dated 01 02 19

Signed by MD. Viewed and verified to be in conformance.

Safety and Health Policy

Acceptable



Not Applicable for MS 2530-2 (Independant Smallholder)



Signed by MD. . Viewed and verified to be in conformance.

Sexual Harrassment Policy Acceptable







Good Social Practice Policy Acceptable







Environmental Policy Acceptable






Signed by MD. Viewed and verified to be in conformance

Zero Burning Policy Acceptable







a. PROCEDURES


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Training Procedure

Acceptable





Training procedure is documented in a File ref: SGSB/MSPO/SOP/T/01 revision

dated 17/05/19.

Internal Audit Procedure

Acceptable





1. Internal Audit procedures for MSPO document: SGSB/SOP/AUDIT/21

in the folder No.6 Procedures (S.O.P) which was signed by the

Executive Director on the 21st February 2019.

2. The documented internal audit procedures are explained in series of

flowcharts of a) qualification requirement for internal auditors b)

Audit Plan c) formation of Audit team d) Auditing scheme and

processes e) Audit findings review and reports.

3. Qualification for MSPO internal auditors required MSPO training

certification is in accordance to the Internal Audit S.O.P

documentation.

4. MSPO Audit was done on 17th -18th April 2019 as agreed in the first

management meeting on MSPO dated 14th February 2019. The report

was presented to the management for review on 28th April 2019.

The procedures are clearly defined and documented.

Complaint and grievance

Procedure

Acceptable





1. The complaint and grievance procedure covered internal and

external stakeholders; the document is to be found in

SGSB/GRP/SOCIAL/01 in the folder No. 29 Complaint and Grievance

Documents.

2. A Grievance Committee (GC) under the preview of MSPO

Committee and headed by the Estate Manager was formed on the

1st of March 2019.

3. Apart from providing complaints box in the estate, the internal audit

team also conducted interviews on the stakeholders and explained

the procedures for complaints and grievances during the

stakeholders meeting conducted on the 18th March 2019.

4. The minutes of meeting are in the folder Stakeholder Meeting and

Activity Documents. Interview sample is included.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Communication Procedure

Acceptable





1. The communication procedure documentation can be found in the

file with ref: SG/SOP/CP/SOCIAL/04 and SGSB/SOP/CC/22 located in

the folder No.6 Procedures (S.O.P).

2. The underlying of the communication and consultation procedure

has been approved by the Executive Director and enforced by 21st

February, 2019.

3. The documented flowcharts indicate the communication process

down-up started with Communication and Consultation Form to be

fill both by internal and external stakeholders.

4. Any complaints, grievances and also suggestions found in the form is

to be reviewed by the estate manager and reported directly to

executive director. Face to face meeting is the preferred method of

addressing issues with stakeholders.

5. The communication procedure has been explained to the

stakeholders during their meeting on the 18th March 2019.

No records of complaints and grievances to be documented yet to prove

the implementation of the procedure.

Emergency and Incident

procedure

Acceptable





1. The Emergency and incident procedure is documented in the file

rev: SG/SOP/EPR/SHE/02 in the folder No.6 Procedures (S.O.P).

2. According to the Emergency Response Plan (ERP), SGSB divided the

Respond Station into 4 areas that are Administrative, Estate,

Workshop and Workers. Each with its own person-in-charge.

3. The Flow Chart 1 founded in SG/SOP/EPR/SHE/02 page 6 indicated

the establishment of ERP procedures and Flow Chart 2 page 8

showing the action and communication system in case of

emergency.

The emergency and incident procedures are appropriately documented.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Traceability SOP Acceptable





The traceability procedure is mentioned in a flow chart founded in the file ref:

SGSB/MSPO/PFC/01 under the folder No.31 Traceability & Transparency

Documents that cited documents trails from harvesting to Mill.

Traceability is clearly defined in the chart and samples of documents of each

section of the flowchart are to be attached and review.

Site Management SOP Acceptable




Not Applicable for MS 2530-4 (palm oil mill)

Note: in case of single site certification


1. The procedures for Good Agricultural Practices or Site Managements are

defined using series of work flowcharts and pictures of appropriate

equipment to be used on each site jobs. Also mentioned is the person

responsible for each section of the work flow.

2. The S.O.P cited in the folder No. 6 Procedures (S.O.P) are:

SOP Item File Ref/No:

Harvesting SGSB/SOP/HV/13

Transporting FFB SGSB/SOP/HV/14

Chemical handling SGSB/SOP/UP/15

Chemical Spraying SGSB/SOP/UP/16

FFB Loading SGSB/SOP/HV/17

Handling of Tractors SGSB/SOP/HV/18

Manuring SGSB/SOP/MAN/19

Fire fighting SGSB/SOP/FIRE/20

Workshop and Machinery SGSB/SOP/WS/24

Domestic waste SGSB/SOP/REFUSE/23

Note:

The S.O.P for site management & Good Agriculture Practices should have a

summary page with Table of Contents.

Mill Management SOP Acceptable




Not Applicable for MS 2530-3 (plantation)

Note: in case of single site certification


NA


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Chemical Handling SOP

Acceptable





1. Chemical handling procedures are cited in the file ref:

SGSB/SOP/UP/15 which include the work flow of chemical

management and handling and SOP for handling of Chemical

containers. In the file ref: SGSB/SOP/UP/16 mentioned the SOP of

handling pesticide and chemical mixing.

2. Also shown are the pictures of PPE to be used by the handler.

The procedures for chemical handling are well documented.

Scheduled Waste Handling SOP

Acceptable





1. The work flow and documentation for schedule waste procedures

can be found in the file ref: SGSB/MSPO/WMP/ENV/01 under the

folder No.18 Waste Management Systems and also mentioned in file

ref: SGSB/SOP/REFUSE/23 in the folder No.6 Procedures (S.O.P).

2. Schedule waste management supposed to effectively enforce by 1st

March 2019.

3. Schedule wastes are being identified in the wastes matrix cited in

page 2 of the file ref: SGSB/MSPO/WMP/ENV/01 and ways of disposal

also being clarified properly.

2.3. DOCUMENTS

List of Stakeholders

Acceptable





List of stakeholders compiled and documented. Doc No

SG/MSPO/LOS/HRD/01. In the listings are:

Customers

Employees

Vendors/suppliers

Contractors/consultants

Government departments

Surrounding communities

Media

Stakeholders listings viewed and found to be adequate.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Land ownership

Acceptable




SGSB plantation do not own the land. Plantation is established

through rental agreement with landowners from the local

communities.

Total rented area:

1045 Hectares: Phase 1- 129 lots (129 Landowners). Phase 11 – 19 lots

(19 Landowners).

All agreement are legally documented. Document sequenced with

No: SGSB/AGREEMENT/LA/HRAD/1 – 90.

Total of 90 agreement signed between SGSB & Landowners from

2011 to 2018.

All agreement carries tenure of 30 years. Rentals are paid twice a

year.

Viewed a copy of Doc No: SGSB/Agreement/LA/HRAD/90 signed on

01 05 2018. Found to be legally proper & enforceable by law by both

parties

Customary Right document

Acceptable


Not applicable to the occupied land



All plantation lands are Native Customary Rights Land currently in the process

of being perimeter surveyed by the authorities and be granted title when

all due process completed. Auditor interview with 5 landowners (a

random sample) confirmed no known disputes among landowners and

SGSB.

Boundary mapping of the land Acceptable




Viewed latest boundary Map dated 20th April 2019.

Site Audit done on 22 05 19 confirmed boundary markers are done on

ground. Landowners’ land boundaries were confirmed to have been

demarcated by SGSB to ascertain ownership and avoid overlapping

claims.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


HIRARC

Acceptable





1. HIRARC are cited in the file ref: SGSB/SOP/HIRARC/OSH/01 found in

the folder No. 6 Procedures (S.O.P) that mentioned the definitions

and purpose of HIRARC, risk assessment and definitions of Risk Matrix

Table and definitions of Hazard Management and controls.

2. In the file ref: SGSB/MSPO/SH/F03 under the folder No.20 Risk

Assessment (HIRARC) contains the Risk Matrix Table and legends for

hazard identification, risk assessment and controls. Date of

enforcement was 1st February 2019 which the matrix was prepared

by the estate manager and approved by the executive director.

3. The person-in-charge for the risk management is the estate manager

as stated in the organizational chart and to be assisted by Field

supervisor on field activities, senior mechanic for workshop and chief

clerk for the office activities.

The HIRARC are appropriately documented; however, there is no periodical

records of assessment and monitoring of HIRARC as evidence of

implementation. A Summary Table on execution & implementation needed.

Training Program

Acceptable





1. In the record file rev: SGSB/TRAINING/PPE/SHE/02, the first MSPO

training was conducted on 14th May 2019 on the use of PPE in the

estate. Other training programs are in progress.

2. The next training is on Basic First Aid will be conducted on 15th of June

2019.

The first training was supposed to start in January 2019, as stated in the

Training plan matrix. Actual Training record not documented.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Environmental Policy and

Management Plan Acceptable





1. In the file ref: SG/POLICY/EBP/MSPO/03 as in the folder No.5 Policy

(MSPO), Secret Greens Sdn Bhd stated the company committed to

their environmental and Biodiversity policy which was signed by the

managing Director dated 1st February 2019.

2. Minutes of meeting by the environmental committee chaired by the

Executive Director in the file ref: SGSB/MEETING/SHE/001 dated 23rd

April 2019 indicate the establishment of Environmental Monitoring

Plan 2019 in which to start in 15th June 2019 (also as cited in the table

of Environmental Monitoring Plan 2019 found in the folder No.17

Environmental Management Systems)

Documentation on Environmental Aspect/Impact Assessment is incomplete.

Non-renewable energy estimation

Acceptable





The price and usage of diesel from the month of January 2019 until

April 2019 is RM 14,379.35 that used 6,354 liters of the oil.

Records of non-renewable energy usage are available, kept and

maintained.

Waste Identification

Acceptable




Waste identification is being cited in the file ref: SGSB/MSPO/WMP/ENV/01

dated 1st of March 2019, under the folder No.18 Waste Management Systems.

The documentation clearly specify/classify the types of wastes products and

categories.

Water Management Plan

Acceptable





In the folder No.19 Water Management Systems contain the documents titled

Implementation of Water Management Plan, National Water Quality

Standards and Rain Water Management Programme (Water Supply) 2019.

The documents did not have any written references number for identification.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Business Management Plan

Acceptable




The business plan was prepared on 15th February 2019 and reviewed

and approved by the management on the 28th February 2019. The

file can be found in the folder No.15 Business Plan.

The plan documented the organization business objectives and

financial plan for the next 3 years.

, Product Pricing Mechanism

Acceptable





Oil Extraction Rate (OER)= 19.32%

Kernel Extraction Rate (KER)= 3.80%

Calculation of price:

MPOB avg. price for CPKO/CPO/PK – (Fixed Distribution + MPOB

Monthly Cess + MPOB Quarterly Cess + MPOB Cess Subsidy + Refinery

PGEO + Sales Tax)= Ex-Mill Price

((CPO Mill Price x OER)+ (PK Mill Price x KER)) - Processing Cost = Net

delivered price

Net delivered price x FFB delivered to Mill = Total Amount (RM) +

Transport Subsidy + Incentives = Net Total Amount (RM)

Transport Subsidy = RM10/Ton

Incentives = RM 6.00/Ton + RM 2.00/Ton (Over 1000 MT)

Product pricing mechanism documentation in order.

Social and environmental impact

assessment

- Environmental Impact

Assessment

- Social Impact

Assessment –

- HCV Assessment

Acceptable





SIA documentation viewed.

However, documentation is incomplete and major & relevant factors

and inputs missing.

Legal Assessment of Customary

land

Acceptable


Not Applicable




Customary land is now under perimeter survey by authorities which the first

process of granting title to land. Evidence of proper assessment is viewed and

noted


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Compensation claim of customary

land

Acceptable


Not Applicable




No compensation is neccessary as ownership remains with Landowners

throughout and after the rental period

Safety Requirements

Acceptable




Wiring of electrical cable exposed to inclement weather & fire:

1. At generator house (workers quarters)

2. At generator house (office building)

Job Description

(Except for independant

smallholder)

Acceptable Not Acceptable


Job description viewed for:

Estate Manager

Assistant Estate Manager

Plantation Supervisor

Administrative Executive

Foreman

Mandore

Storekeeper

Office clerk/document controller

Security Assistant

Payslip

(Except for independant

smallholder)



Viewed pay-slip (February 2019) for

1. Jamal bin Roup – Estate Manager

2. Rosli bin Marali – Mechanic

All in order. Above minimum wage and mandatory contribution (EPF, SOCSO

& EIS) subscribed to.

Sales and Delivery record of FFB

(for independant smallholder only)



Record is available and documented daily, weekly and monthly.

FFB sold to Unique Palm Oil Mill

Other records: No other records

d). In case of Group Management is applied (According to MSPO Certification System)

Appointment of Group Manager Acceptable Not Acceptable


Not Applicable

Technical knowledge of Group

Manager



Not Applicable


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Features of group certification

- Group Manager

- Members

- Internal Control System

(ICS)

- Binding contract

- Internal procedures for

handling grievances and

complaints



Not applicable

Adequacy of Internal Control

System (ICS)



Not applicable

Conducting assessment to group

member



Not applicable

Other Records: Provided in soft/hard copies.

Findings & Actions: Refer to CAR (corrective action report) forms enclosed

Action will be taken by: Date: 30 06 19 Management Rep: Awang Khairuddin Awang Dol

The Findings as discussed are suitable & agreeable

This column to be filled by Audited Organization. Signature:

Further special technical competencies needed? Yes, please specify: No

List any further information necessary for planning the Stage 2 audit: SIA Report to be completed accordingly in

the approved format

Based upon review of the above, please state your Ready for Stage 2 as scheduled

Ready for Stage 2 with concerns

Not ready for Stage 2

The stage 1 audit was based on collecting the necessary information regarding:

• the scope of the management system, processes and location(s)

• reviewing the organization’s status and understanding regarding the requirements of the standard

• the identification of objectives, processes and operations of the management

The above stated recommendation regarding the organization’s readiness for registration or upgrade is limited to

this information collected and was not based on a full audit of the management system. The information in this

report should assist the organization in determining any action(s) needed prior to the stage 2 audit and whether

to proceed with the stage 2 audit as currently scheduled

Implementation review prior to Stage 2 audit (if applicable) Yes, please specify: No

STAGE 1 AUDIT RESULTS

Having examined the AWF (acceptable with Findings),

Secret Green SB is confirmed to be in readiness to be

Audited under Stage 2 provided all AWF is closed out

before Stage 2 Audit.

Signature/Date:

09 05 2019

4. STAGE 1 FINDINGS


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


LISTS OF FINDINGS STAGE 1 AUDIT 6 – 9th May,2019

1. Process for external & internal communication

Documentation incomplete

2. Management Review

Internal communication procedure not documented

3. Internal Audit

Findings not classified and not closed out at Audit time

4. HIRARC

No periodical record of Assessment and monitoring to monitor implementation

5. Training Program

Actual Training Program not documented

6. Environmental Policy & Management Plan


7. Water Management Plan


8. Social Impact Assessment


9. Safety requirement

Wiring of electrical cable at generator house & staff quarters exposed to inclement

weather & fire THE FINDINGS AS DISCUSSED ARE SUITABLE

Action will be taken by Date: 30 06 19

Management Representative

Name: Awang Khairuddin Awang Dol

Signature:

Lead Auditor Name:

Wilfred Landong

Signature:

5. STAGE 1 AUDIT RESULTS

Further special technical competencies needed? Yes, please specify:

No

List any further information necessary for planning the Stage 2 audit: Nil

Based upon review of the above, please state your Ready for Stage 2 as scheduled

Ready for Stage 2 with concerns

Not ready for Stage 2

OVERALL ASSESSMENT OF STAGE 1

Based on overall Audit results, Secret Greens Sdn Bhd is ready to be assessed under STAGE 2. This is

conditional to all action to be taken in STAGE 1 Corrective Action Report is completed & closed by or

before STAGE 2 Audit Date.

WILFRED LANDONG

LEAD AUDITOR

09 05 2019


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Notes

The stage 1 audit was based on collecting the necessary information regarding:

the scope of the management system, processes and location(s)

reviewing the organization’s status and understanding regarding the requirements of the standard

the identification of objectives, processes and operations of the management

The above stated recommendation regarding the organization’s readiness for registration or upgrade is

limited to this information collected and was not based on a full audit of the management system.

The information in this report should assist the organization in determining any action(s) needed prior to

the stage 2 audit and whether to proceed with the stage 2 audit as currently scheduled.

6.1 REPORT SUMMARY: FINDINGS/ACTION TAKEN / CLOSURE

6.1.1 SUMMARY OF FINDINGS

There were 9 Findings in Stage 1 Audit classified as AWF (acceptable with findings noted).

9 corrective action reports [CAR] were raised on these findings and presented to Auditee for action [at

end of Stage 1 Audit] with timeline of 2 months from 09 05 2019 to respond.

6.1.2 ACTION TAKEN BY AUDITEE

Auditee responded with documentations & photo evidence [where appropriate] on corrective action

taken; last submission of response by Auditee received on 27 06 2019.

6.1.3 CLOSURE OF CAR BY LEAD AUDITOR

The corrective action report (CAR) for these findings were closed out by Lead Auditor on 30 06 2019;

upon satisfactory confirmation and verification that all corrective action taken were in line with MSPO

requirements & MS2530-3:2013 Standards


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


7.0. STAGE 2 AUDIT [ASSESSMENT] MSPO MS2530-3:2013

7.1 BASIC INFORMATION

A. CERTIFICATION BODY

Name BQAS Certification (M) Sdn Bhd

Audit Dates: From 8th to 10th July 2019

Audit Duration: 6 man-days

Audit Team: Name Role

Wilfred S Landong Lead Auditor

Duke Ladin Auditor

B. CERTIFIED ENTITY

Company Name: Secret Greens Sdn Bhd Registration No 938123-v

Address: No 9, 1stFloor, Jalan Kai Peng, 96000, Sibu.

Site Name: Secret Greens Sdn Bhd

Address: Ulu Kenyana Mukah, Mukah, Sarawak

Management Contact details:

Name Job Title Mobile Telephone Email

Kho Lian Whui Director 019 8192585 085 412568 [email protected]

Awang Khairuddin Awang Dol Manager 019 4590907 085 412568 [email protected]

No of Employees Local 16 Foreign Nil Total 16

MPOB License No: 5511 0700 2000 Expiry date 30 06 2020

Scope of Activity: Menjual dan Mengalih FFB#

Date of Establishment 29 03 2011 Geo-Coordinates N2°44:49.423’ E112°19:41’.893’

Certified Area: 1045ha Planted Area 876.9ha Reserved Area 168.1ha

FFB Production (actual) 2018 11,297.78mt FFB Production (estimate) 2019 14,785mt

Sources of FFB Own estate Main FFB purchaser Unique Palm Oil Mill, Mukah

No of Planting Blocks 21 No of Palm trees 109,913

Palm Species Calix 600: Sime Darby Age Range of Palm Trees 4 to 8 years old

Land Status: Ownership ☐ Own Land ☒ Rented ☐ Joint Venture

Other Sustainability Certification: Nil

PRINCIPLE 1: MANAGEMENT COMMITMENT & RESPONSIBILITY

Criterion 4.1.1: Malaysian Sustainable Palm Oil (MSPO) Policy

Indicator Requirement Compliance Findings

4.1.1.1 A policy for the implementation of

MSPO shall be established. ☒ Yes

☐ No

☐ OFI

Policy Doc No: SG/POLICY/MSPO/01-06 signed by

Managing Director on 01 02 2019.

MSPO Policy contain 7 principles:

Management Commitment &




BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Responsibility:

Transparency:

Compliance to legal requirements:

social responsibility:

health, safety and employment condition:

environment, natural resources,

biodiversity & ecosystem:

best practices: development of new

planting

Policies documented include:

7. MSPO Policy

8. Occupational Health & Safety Policy

9. Environmental & Biodiversity Policy

10. Social Policy

11. Sexual Harassment Policy

12. Zero Burning Policy

Policies are clearly defined and appropriate to the

purpose of the organization.

Verified all Policies are posted & displayed at Main

Office & Estate Office Notice Boards; staff briefing

on Policies were conducted in March & May 2019.

4.1.1.2 The policy shall also emphasize

commitment to continual

improvement.

☒ Yes

☐ No

☐ OFI

Verified and noted compliance in the MSPO

Policy 01 02 19 signed by MD last paragraph

reads:

“SGSB commit & will strive to achieve continual

improvements and comply with the objective of

the MSPO as a guideline to a sustainable good

agriculture practices”

Criterion 4.1.2: Internal Audit


4.1.2.1 Internal audit shall be planned and

conducted regularly to determine

the strong and weak points and

potential area for further

improvement.

☒ Yes

☐ No

☐ OFI

SCSB Management Plan doc 20 02 19:

Noted & stated Internal Audit will be conducted

at least once a year.

Internal Audit 2019 was conducted on 17th to

18th April. Noted in the Audit Plan [03 03 19]

1. Objective: to assess compliance on MSPO

standards & improve operations

2. Scope: Review documentation; physical

site inspection; observation of tasks &

processes; interview of staff, workers and

affected stakeholders

3. Audit Criteria: MSPO Principles & Criteria

Audit report done on 20th, April 2019. Records

available & viewed. 21 Findings & action to be

taken are documented. Findings all closed out by

Company Director on 30th April.

4.1.2.2 The internal audit procedures and

audit results shall be documented

and evaluated, followed by the

identification of strengths and root

causes of nonconformities, in order to

implement the necessary corrective

action.

☐ Yes

☐ No

☐ OFI

SOP for Internal Audit doc:

[SGSB/SOP/AUDIT/21 dated 21 02 19]

IA conducted on 17th/18 April

Internal Audit Report [20 04 19] documented

findings and actions to be taken. Corrective

reports [CAR] were raised with identification of

root causes of non-compliance [NC]. All [CAR]

were closed out before or within time frame of 1

month required in the Report.

Verified to be in compliance.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


41.2.3 Report shall be made available to

the management for their review. ☒ Yes

☐ No

☐ OFI

Noted & verified SGSB managers involved in the

Internal Audit. Report [CAR] submitted to & was

closed out by Managing Director

Criterion 4.1.3: Management review


4.1.3.1 The management shall periodically

review the continuous suitability,

adequacy and effectiveness of the

requirements for effective

implementation of MSPO and decide

on any changes, improvement and

modification.

☒ Yes

☐ No

☐ OFI

SCSB Management Plan doc 20 02 19:

Noted & stated Management Review [MSPO

related] will be conducted in conjunction with

Directors Meeting every quarterly.

In 2019: 2 Management Reviews were conducted

14 02 19 attended by Directors, Managers

& Estate Manager to review MSPO

Certification Audit preparation

12 04 19 attended by Director/Managers

& Estate Managers to review Internal

Audit Report & final preparation for Stage

1 Audit.

Viewed & verify the Management Meeting

minutes of both review and following among

agenda dicsussed and action taken

Communication wtih stakeholders

Extent to which quality & safety objectives

have been met

Non-conformities and correctve actions

Analysis of Internal Audit results &

performance & conformity of site activities

Actions for continuous improvements

All in compliance with requirements

Criterion 4.1.4: Continual improvement


4.1.4.1 The action plan for continual

improvement shall be based on

consideration of the main social and

environmental impact and

opportunities of the company.

☒ Yes

☐ No

☐ OFI

SCSB doc ref: [Continuous Improvement Plan

SCSB/MSPO/C1/19/001 dated 01 02 19]. Among

the CIP for implementation in 2019:

1. Construction of new/improved facilities

according to OSH & Environmental

requirements such as washroom,

chemical mixing premises, lubricant store,

general, chemical store, and emergency

shower

2. Housing maintenance

3. Riparian zone

4. Corporate social responsibilities

5. Minimum wages

6. Safety, Health and environmental training

All above plan were checked during site audit

and verified to have started and being

implemented.

4.1.4.2 The company shall establish a system

to improve practices in line with new

information and techniques or new

industry standards and technology,

where applicable, that are available

and feasible for adoption.

☒ Yes

☐ No

☐ OFI

SCSB had documented and establish a system

vide doc [Best Management Practices

SC/BMP/MSPO/01 dated 02 02 19]

2 new technology implemented:

1. SCSB subscribed to reduce its

pollution/emission in estate arising from

use of diesel to generate power to

provide electricity for its workers quarters.

In 2017 SCSB installed 6 Solar panels to


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


reduce the use of generators [diesel] and

had since been able to provide

adequate renewable energy source for its

estate workers lighting facilities. The panels

were inspected during site audit.

2. In 2019 SGSB implemented use of new

secure communication system [Hytera

Digital Migration Radio PD5 Series DMR].

This ‘walkie talkie’ type equipment is

capable of communicating within 40

kilometer radius; especially useful in estate

areas where normal telecommunication

coverage is not available.

This criterion is complied.

4.1.4.3 An action plan to provide the

necessary resources including

training, to implement the new

techniques or new industry standard

or technology (where applicable)

shall be established.

☐ Yes

☐ No

☐ OFI

Noted & verified SCSB had documented an

Annual Training Program 2019.

[SG/TRAINING/TMA/HRD/06 dated 02 03 19]. 27

types of training planned for all level of staff in the

Estate; mainly on skills development, safety &

health, harvesting.

Estate staff & Managers trained on the use

of Hytera Digital Migration Radio PD5

Series [DMR].

PRINCIPLE 2: TRANSPARENCY

Criterion 4.2.1: Transparency of information and documents relevant to MSPO requirements


4.2.1.1 The management shall

communicate the information

requested by the relevant

stakeholders in the appropriate

languages and forms, except those

limited by commercial confidentiality

or disclosure that could result in

negative environmental or social

outcomes.

☒ Yes

☐ No

☐ OFI

Information request can be made by filling in the

Consultation and Communication Form sighted in

the file Ref: SG/FORM/HR/05 or a written letter to

request information.

Policies, Safe Working Procedures, Memo on

Publicly Available Documents, Endangered

Wildlife, Zero Burning, Waste Dumping and

Chemical Handling posters and MSPO pamphlets

were sighted at on-site office’s notice boards.

Also, in the first MSPO stakeholders meeting dated

18th March, 2019, the above topics were

explained by the plantation MSPO officers and

MPOB representatives.

4.2.1.2 Management documents shall be

publicly available, except where this

is prevented by commercial

confidentiality or where disclosure of

information would result in negative

environmental or social outcomes.

☒ Yes

☐ No

☐ OFI

Publicly Available Documents to be requested by

stakeholders was viewed in the file Ref:

SGSB/MSPO/PAD/01.

It was put up on a notice board located outside

the main on-site office building.

Criterion 4.2.2: Transparency method of communication and consultation


4.2.2.1 Procedures shall be established for

consultation and communication ☒ Yes

☐ No

The procedures for consultation and

communication with both internal and external


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


with the relevant stakeholders. ☐ OFI stakeholders can be found in the file Ref:

SG/SOP/CP/SOCIAL/04 dated 21st March 2019 and

approved by the Managing Director.

4.2.2.2 A management official should be

nominated to be responsible for

issues related to Indicator 1 at each

operating unit.

☒ Yes

☐ No

☐ OFI

The management appointed Mr Awang

Khairuddin Bin Awang Dol and Mr Mohammad

Zulfadly bin Rasidi as person in charge of in-

document monitoring as stated in the

appointment letter Ref:

SGSB/APPOINMENT/BP/HRAD/07 and

SGSB/APPOINMENT/BP/HRAD/08 dated 21st

February 2019.

At the main office, Mdm Ngu Hie Sing was

appointed to be in charge of transparency of

information and documents as stated in an

appointment letter Ref.

SGSB/APPOINTMENT/DC/HRAD/05 dated on 21st

February 2019.

4.2.2.3 List of stakeholders, records of all

consultation and communication

and records of action taken in

response to input from stakeholders

should be properly maintained.

☒ Yes

☐ No

☐ OFI

Records of all consultation and communication

are to be compiled and maintained using the

Consultation and Communication Form.

As of the time of the Audit, no records had been

compiled yet.

List of stakeholders were properly documented in

the file Ref: SG/MSPO/LOS/HRD/01 dated 21st

February 2019.

Criterion 4.2.3: Traceability


4.2.3.1 The management shall establish,

implement and maintain a standard

operating procedure to comply with

the requirements for traceability of

the relevant product(s).

☒ Yes

☐ No

☐ OFI

The Standard Operating Procedure (SOP) can be

viewed as a flow chart in the file Ref:

SG/SOP/TA/OPERATION/06 rev.01 dated 23rd May

2019, approved by the executive director.

4.2.3.2 The management shall conduct

regular inspections on compliance

with the established traceability

system.

☒ Yes

☐ No

☐ OFI

The management will conduct the inspection of

traceability system twice a week by the estate

manager and the compilation of related

documents are send to the main office once a

month. The procedure is verified through the audit

conversation with the estate manager during on

site visit.

4.2.3.3 The management should identify

and assign suitable employees to

implement and maintain the

traceability system.

☒ Yes

☐ No

☐ OFI

The job of maintenance and implementation of

traceability system was given to Mdm Lishella binti

James Takun as stated in an appointment letter

Ref: SGSB/APPOINTMENT/TS/HRAD/01 dated 21st

February 2019, approved by the Executive

director.

4.2.3.4 Records of sales, delivery or

transportation of FFB shall be

maintained.

☒ Yes

☐ No

☐ OFI

Available records maintained are:

FFB Checking Chit

FFB Block transportation Chit


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


FFB Grading Form

Weight bridge advice ticket

Sales/payment invoice from Unique Palm Oil

Mill Sdn Bhd

PRINCIPLE 3: COMPLIANCE TO LEGAL REQUIREMENTS

Criterion 4.3.1: Regulatory requirements


4.3.1.1 All operations are in compliance with

the applicable local, state, national

and ratified international laws and

regulations.

☒ Yes

☐ No

☐ OFI

Record of regulatory requirements are properly

kept & maintained and all operations are to be in

Compliance as viewed in:

Borang 1 (Section 5, 23 and 24(2)) of The

businesses, Professions and Trading Licensing

Ordinance, licence No. A 718249

Borang 9, (Section 16(4)) Akta Syarikat 1965 of

Companies Commission of Malaysia (SSM)

with company no: 938123 V

MPOB licence No: 551107002000

List of company directors as stated in Borang

49, (Section 141(6)) Akta Syarikat 1965

The company demonstrate compliance with

applicable local, state, national and ratified

international law and regulations. As an example,

the minimum wages of the employees and

workers are in accordance the Minimum Wages

Order (Amendment) 2018.

Adopting zero burning policy as per Air Quality Act

1974 and Environment Quality Act 2001.

4.3.1.2 The management shall list all laws

applicable to their operations in a

legal requirement register.

☒ Yes

☐ No

☐ OFI

The list of laws applicable to the company

operation can be viewed in file Ref:

SG/LEGAL/LICENCE/01 rev.01 dated 1st February

2019.

4.3.1.3 The legal requirements register shall

be updated as and when there are

any new amendments or any new

regulations coming into force.

☒ Yes

☐ No

☐ OFI

The file titled Monitoring of Legal Compliance Ref:

SG/LEGAL/LICENCE/01 was reviewed occasionally

with the latest was on 23rd May 2019.

4.3.1.4 The management should assign a

person responsible to monitor

compliance and to track and

update the changes in regulatory

requirements.

☒ Yes

☐ No

☐ OFI

Mdm Ngu Hie Sing was appointed as person in

charge of monitoring legal compliance and

responsible to track, informed the management or

being informed of changes in regulatory

requirements.

Her appointment was mentioned in a letter of

appointment SGSB/APPOINTMENT/DC/HRAD/06

dated on 21st February 2019.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Criterion 4.3.2: Land use rights


4.3.2.1 The management shall ensure that

their oil palm cultivation activities do

not diminish the land use rights of

other users.

☒ Yes

☐ No

☐ OFI

As stated in the series of agreement file Ref:

SGSB/AGREEMENT/LA/HRAD/01 between SGSB

and landowners, the lands were rented to the

company since the year 2011.

An interviewed with one of the land owner Mr

Garai Anak Empaling (71228-13-5655), stated that

so far there was never any dispute arise between

the landowners and SGSB.

4.3.2.2 The management shall provide

documents showing legal ownership

or lease, history of land tenure and

the actual use of the land.

☒ Yes

☐ No

☐ OFI

The copy of legal documents and land maps in

regards to land lease agreements can be viewed

entirely in the folder, Legal Assessment and

Customary land/No 10.

4.3.2.3 Legal perimeter boundary markers

should be clearly demarcated and

visibly maintained on the ground

where practicable.

☒ Yes

☐ No

☐ OFI

Traditionally, the boundary markers were

demarcated by bamboo trees and land contours.

During audit site visit, the boundary markers were

clearly visible using red and white coloured

bamboo sticks.

4.3.2.4 Where there are, or have been,

disputes, documented proof of legal

acquisition of land title and fair

compensation that have been or are

being made to previous owners and

occupants; shall be made available

and that these should have been

accepted with free prior informed

consent (FPIC).

☒ Yes

☐ No

☐ OFI

No disputes recorded as being verified by viewed

documents and interviews with landowners.

Rental payments can be viewed in the folder,

Compensation of Customary Land (Payment Land

Rental)/No 24.

Criterion 4.3.3: Customary rights


4.3.3.1 Where lands are encumbered by

customary rights, the company shall

demonstrate that these rights are

understood and are not being

threatened or reduced.

☒ Yes

☐ No

☐ OFI

Viewed sample of signed rental agreement

between SGSB and landowners in the file Ref:

SGSB/AGREEMENT/LA/HRAD/01 dated 1st June

2011. The land rental was stated to be 30 years or

until 2041.

4.3.3.2 Maps of an appropriate scale

showing extent of recognized

customary rights shall be made

available.

☒ Yes

☐ No

☐ OFI

Maps customary lands rented by SGSB are

available for viewing in the folder, Legal

Assessment and Customary land/No 10. The

individual boundaries were marked on the map

by using GPS coordinates, latitude and longitude.

4.3.3.3 Negotiation and FPIC shall be

recorded and copies of negotiated

agreements should be made

available.

☒ Yes

☐ No

☐ OFI

Copies of negotiated agreements can be viewed

in the folder, Legal Assessment and Customary

land/No 10.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


PRINCIPLE 4: SOCIAL RESPONSIBILITY, HEALTH, SAFETY, & EMPLOYMENT CONDITION

Criterion 4.4.1: Social impact assessment (SIA)


4.4.1.1 Social impacts should be identified

and plans are implemented to

mitigate the negative impacts and

promote the positive ones.

☐ Yes

☐ No

☒ OFI

Identification of social impacts and mitigation

plans were properly incorporated in the file Ref:

SGSB/MSPO/SIA/01 dated 14th April 2019.

Signed approval from top management needed

for the plans mentioned in Appendix E.

Criterion 4.4.2: Complaints and grievances


4.4.2.1 A system for dealing with complaints

and grievances shall be established

and documented.

☐ Yes

☐ No

☒ OFI

A system for complaints and grievances was

documented as a comprehensive flowchart and

viewed in the file Ref: SG/GRP/SOCIAL/01, dated

8th February 2019.


for the procedure mentioned in the flowchart.

4.4.2.2 The system shall be able to resolve

disputes in an effective, timely and

appropriate manner that is

accepted by all parties.

☐ Yes

☐ No

☒ OFI

As cited in the procedure sighted in the file Ref:

SG/GRP/SOCIAL/01, any grievances should be

resolved within 30 days of receiving either

Grievance and Complaint form or Consultation

and Communication Form from stakeholders.

A central committee consist of a person in charge

of Consultation and Communication will meet

and try to solve any complaints and grievances

arise.

A sample for Grievance and Complaint form can

be found as file Ref: SGSB-MSPO-SHC-F-02

effective used on 8th February 2019. Consultation

and Communication form was sighted as file Ref:

SG/FORM/HR/05, effective used on 21st February

2019.

4.4.2.3 A complaint form should be made

available at the premises, where

employees and affected

stakeholders can make a complaint.

☒ Yes

☐ No

☐ OFI

As verified during on site audit visit, the complaints

and grievances form is available at the site office.

There was a complaints and suggestion box

installed beside the office main door.

4.4.2.4 Employees and the surrounding

communities should be made aware

that complaints or suggestions can

be made any time.

☐ Yes

☐ No

☐ OFI

The employees and surrounding community

awareness in regards to complaints and

suggestions, was made during the first

stakeholders meeting on 18th March 2019,

attended by more than 20 peoples from the

surrounding communities as cited in the

attendance sheets (Appendix A). The minutes of

the meeting was viewed in the folder Stakeholder

Meeting and Activity Documents/No 30.

4.4.2.5 Complaints and resolutions for the

last 24 months shall be documented

and made available to affected

stakeholders upon request.

☒ Yes

☐ No

☐ OFI

As the time of the audit, there was no complaints

and grievances received and recorded by the

company.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Criterion 4.4.3: Commitment to contribute to local sustainable development


4.4.3.1 Growers should contribute to local

development in consultation with the

local communities.

☒ Yes

☐ No

☐ OFI

Corporate Social Responsibility (CSR) was an

important policy as stated by the managing

director on an introduction letter to the CSR

Activity Logbook, written on 5th April 2019 as

sighted in the folder Corporate Social

Responsibility/No 33.

Lists of CSR activities can be viewed in the folder,

as an example, on 12th April 2019, SGSB helped to

repair the road to the local cemetery at Ulu

Kenyana, Mukah as cited in the file Ref:

SGSB/CSR/HRAD/05.

Criterion 4.4.4: Employees safety and health


4.4.4.1 An occupational safety and health

policy and plan shall be

documented, effectively

communicated and implemented.

☐ Yes

☐ No

☐ OFI

Viewed Occupational Safety and Health(OSH)

policy was in the file Ref:

SG/POLICY/OSHP/MSPO/02 dated 1st February

2019, signed and approved by the Managing

Director.

OSH is under the preview of the Occupational

Safety and Health Committee, which was

established on 5th January 2019 as cited in the

minutes of the committee first meeting on the

above mentioned date in the file Ref:

SGSB/MEETING/MKKP/SHE/01.

The list of activities and plans of the OSH

committee can be viewed as Appendix A to the

minutes of meeting mentioned above.

4.4.4.2 The occupational safety and health

plan shall cover the following: ☐ Yes

☐ No

☐ OFI

A. A safety and health policy, which is

communicated and implemented. ☒ Yes

☐ No

☐ OFI

The OSH related training plans can be viewed in

the file titled Executive Staff & Workers Annual

Training Programme Schedule Year 2019 - 2020

Ref: SG/TRAINING/ATP/HRD/03.

The first training conducted was on the proper

usage of PPE, held on 14th May, 2019 as sighted in

the file Ref: SGSB/TRAINING/PPE/SHE/02.

Standard Operating Procedures (SOP) that are

related to OSH can be viewed in:

Hazard Identification Risk Assessment

Determining Control (HIRARC) -

SG/SOP/HIRARC/OSH/01

Emergency Preparedness and Response -

SG/SOP/EPR/SHE/02

Personal Protective Equipment -

SG/SOP/PPE/SHE/03

All the SOP were established on 21st February 2019,

signed and approved by the Executive Director.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


B. b) The risks of all operations shall be

assessed and documented ☒ Yes

☐ No

☐ OFI

The HIRARC for all operations was well

documented in the file Ref: SGSB/MSPO/SH/F03,

dated 1st February 2019.

C. An awareness and training

programme which includes the

following requirements for employees

exposed to pesticides:

☐ Yes

☐ No

☐ OFI

C.1 All employees involved shall be

adequately trained on safe working

practices; and

☒ Yes

☐ No

☐ OFI

Training programme on OSH is still on going as

mentioned in Executive Staff & Workers Annual

Training Programme Schedule Year 2019 - 2020

Ref: SG/TRAINING/ATP/HRD/03.

Workers had been trained in the Chemical Mixing

and Chemical Spraying Procedure on 16th April

2019 as cited in Training matrix Analysis for the

Year 2019 Ref: SG/TRAINING/TMA/HRD/06.

Other related training was in Proper PPE on 14th

May 2019 as sighted in the file Ref:

SGSB/TRAINING/PPE/SHE/02

C.2 All precautions attached to products

shall be properly observed and

applied.

☒ Yes

☐ No

☐ OFI

Sighted on site during audit visit, Safety Data Sheet

(SDS) on chemical, lubricant and fertilizer were

found inside each respective stores.

Safe chemical handling posters were seen at the

wall of the chemical storage area.

D. The management shall provide the

appropriate personal protective

equipment (PPE) at the place of

work to cover all potentially

hazardous operations as identified in

the risk assessment and control such

as Hazard Identification, Risk

Assessment and Risk Control

(HIRARC).

☒ Yes

☐ No

☐ OFI

PPE were being distributed to the workers as

sighted during site visit to the plantation. The

workers found to have use proper PPE while

working at the plantation.

Distribution of PPE was recorded using Receipt for

Personal Protective Equipment as viewed in the

file Ref: SGSB-MSPO-F-004.

E. The management shall establish

Standard Operating Procedure for

handling of chemicals to ensure

proper and safe handling and

storage in accordance to

Occupational Safety Health

(Classification Packaging and

Labeling) Regulation 1997 and

Occupational Safety Health (Use and

Standard of Exposure of Chemical

Hazardous to Health) Regulation

2000.

☒ Yes

☐ No

☐ OFI

Viewed SOP for chemical handling in the file Ref:

SGSB/SOP/UP/15, dated 23rd February 2019 and

approved and signed by the Executive Director,

was adequately complied with the mentioned

Regulations.

F. The management shall appoint

responsible person(s) for workers'

safety and health. The appointed

person(s) of trust must have

knowledge and access to latest

national regulations and collective

☒ Yes

☐ No

☐ OFI

The management appointed Mr Kho Lian Whui,

SGSB Executive Director as the chairman of Safety,

Health and Environment Committee as being seen

in an appointment letter dated 20th February 2019,

approved and signed by the Managing Director.

As one of the top management and founder of


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


agreements. the company, Mr Kho had the experiences and

knowledge of regulations and collective

agreements related to the OSH.

G. The management shall conduct

regular two-way communication with

their employees where issues

affecting their business such as

employee's health, safety and

welfare are discussed openly.

Records from such meetings are kept

and the concerns of the employees

and any remedial actions taken are

recorded

☒ Yes

☐ No

☐ OFI

The OSH committee meeting was held on 5th

January 2019 with agendas and minutes can be

found in the folder Safety and Health

Documents/No 26.

Planned activities of the committee can be

viewed as Appendix A to the minutes of the

meeting mentioned above.

H. Accident and emergency

procedures shall exist and instructions

shall be clearly understood by all

employees.

☐ Yes

☐ No

☒ OFI

Accident and Emergency procedures can be

viewed in the file Ref: SG/SOP/EPR/SHE/02. All

employees can have access to the procedures

through the procedure folder found inside the site

office.

However, there was no record or documentation

that training on accident and emergency

procedure had been conducted to make the

employees aware of such procedure.

I. Employees trained in First Aid should

be present at all field operations. A

First Aid Kit equipped with approved

contents should be available at

each worksite.

☒ Yes

☐ No

☐ OFI

4 employees had attended the basic first aid

training conducted by Red Crescent Malaysia in

Sibu on 15th June 2019 as verified by the

attendance certificates viewed in the folder

Training and Training Programme/No 8.

First aid kits were seen to be available at each

building and carried by authorized persons while

working in the field.

J. Records shall be kept of all accidents

and be reviewed periodically at

quarterly intervals.

☒ Yes

☐ No

☐ OFI

As the time of the audit, there was no accident

has been reported. Accident Report Form as

sighted in the file Ref: SG/FORM/HSE/03 will be

used to record any accident.

Criterion 4.4.5: Employment conditions


4.4.5.1 The management shall establish

policy on good social practices

regarding human rights in respect of

industrial harmony. The policy shall

be signed by the top management

and effectively communicated to

the employees.

☒ Yes

☐ No

☐ OFI

Social Policy was established on 1st February 2019

as cited in the file Ref: SG/POLICY/SP/MSPO/04,

approved and signed by the Managing Director.

The policy was seen at the main and site office

boards to be viewed by everyone.

4.4.5.2 The management shall not engage

in or support discriminatory practices

and shall provide equal opportunity

and treatment regardless of race,

color, sex, religion, political opinion,

nationality, social origin or any other

distinguishing characteristics.

☒ Yes

☐ No

☐ OFI

There is no evidence of gender, racial or religious

discrimination in SGSB based on observation and

interviews.

4.4.5.3 Management shall ensure that

employees’ pay and conditions ☒ Yes Viewed Record of monthly payslips and wages

indicated that SGSB paid its workers to have met


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


meet legal or industry minimum

standards and as per agreed

Collective Agreements. The living

wage should be sufficient to meet

basic needs and provide some

discretionary income based on

minimum wage.

☐ No

☐ OFI

the legal and industry minimum requirements.

4.4.5.4 Management should ensure

employees of contractors are paid

based on legal or industry minimum

standards according to the

employment contract agreed

between the contractor and his

employee.

☒ Yes

☐ No

☐ OFI

SGSB has ensured that the contractors paid their

employees based on legal or industry minimum

standards. Conversation with the workers during

site visit verified that the contractors paid them

according to the promised rates. Also, there were

no complaints and grievances received by SGSB

from the contractors’ workers in regards to their

wages as they were encouraged to do so.

There was no written contract between the

contractors and their workers.


records that provide an accurate

account of all employees (including

seasonal workers and subcontracted

workers on the premises). The records

should contain full names, gender,

date of birth, date of entry, a job

description, wage and the period of

employment.

☒ Yes

☐ No

☐ OFI

Viewed records of employees are well

documented and contained all the mentioned

details. Employees record can be viewed in the

folder Employees Record 2019.

4.4.5.6 All employees shall be provided with

fair contracts that have been signed

by both employee and employer. A

copy of employment contract is

available for each and every

employee indicated in the

employment records.

☒ Yes

☐ No

☐ OFI

Details of employment contract is found to be fair

with a copy of the agreement is given to the

employee.

Employees’ Contracts can be viewed on a

separate employees files at the main office.

4.4.5.7 The management shall establish a

time recording system that makes

working hours and overtime

transparent for both employees and

employer.

☒ Yes

☐ No

☐ OFI

The estate employees used attendance card to

record their working hours and days which to be

signed by the estate manager by the end of the

day. The card will be collected and compiled as

monthly attendance/time record at the end of

the month by the estate manager.

Wages will be paid according the record

submitted to the main office.

4.4.5.8 The working hours and breaks of

each individual employee as

indicated in the time records shall

comply with legal regulations and

collective agreements. Overtime

shall be mutually agreed and shall

always be compensated at the rate

applicable and shall meet the

applicable legal requirement.

☒ Yes

☐ No

☐ OFI

The attendance card included the time of breaks

and overtimes of each staff.

The contractors’ workers however seem to work

according to their own flexible hours as their works

are based on contractual rates.

Overtime for SGSB employees is mutually agreed

by both parties and compensated accordingly

base on legal requirements.

4.4.5.9 Wages and overtime payment

documented on the pay slips shall be ☒ Yes Viewed wages and overtimes payment are clearly

stated in the payslips as can be seen in the


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


in line with legal regulations and

collective agreements. ☐ No

☐ OFI

monthly payroll for May 2019 and individual

payment voucher.

4.4.5.10 Other forms of social benefits should

be offered by the employer to

employees, their families or the

community such as incentives for

good work performance, bonus

payment, professional development,

medical care and health provisions.

☒ Yes

☐ No

☐ OFI

The SGSB employees were offered free medical

care, annual leaves, maternity leave,

compassionate leaves, bonuses and free housing

if staying at the estate as per employment

contract.

4.4.5.11 In cases where on-site living quarters

are provided, these quarters shall be

habitable and have basic amenities

and facilities in compliance with the

Workers' Minimum Standards Housing

and Amenities Act 1990 (Act 446) or

any other applicable legislation.

☒ Yes

☐ No

☐ OFI

The on-site living quarters found to be in excellent

conditions that provide basic amenities and

facilities in compliance with the Workers’ Minimum

Standards Housing and Amenities Act 1990 (Act

446) or any other applicable legislation.

4.4.5.12 The management shall establish a

policy and provide guidelines to

prevent all forms of sexual

harassment and violence at the

workplace.

☒ Yes

☐ No

☐ OFI

The Sexual Harassment Policy sighted in the file

Ref: SG/POLICY/SHP/MSPO/05 was established on

1st February 2019, approved and signed by the

Managing Director.

4.4.5.13 The management shall respect the

right of all employees to form or join

trade union and allow workers own

representative(s) to facilitate

collective bargaining in accordance

with applicable laws and regulations.

Employees shall be given the

freedom to join a trade union

relevant to the industry or to organize

themselves for collective bargaining.

Employees shall have the right to

organize and negotiate their work

conditions. Employees exercising this

right should not be discriminated

against or suffer repercussions.

☐ Yes

☐ No

☐ OFI

The Social policy incorporated the right of workers

to freedom of association and effective

recognition of the right to collective bargaining.

The policy Ref. SG/POLICY/SP/MSPO/04 was

formulated and signed by the Managing director

on the 01/02/2019.

It was prominently display at the main office and

site office boards.

4.4.5.14 Children and young persons shall not

be employed or exploited. The

minimum age shall comply with local,

state and national legislation. Work

by children and young persons is

acceptable on family farms, under

adult supervision, and when not

interfering with their education. They

shall not be exposed to hazardous

working conditions.

☐ Yes

☐ No

☐ OFI

No underage/children and young person is found

to have work for SPSB, complying with the

minimum age legislation.

Criterion 4.4.6: Training and competency


4.4.6.1 All employees, contractors and

relevant smallholders are

appropriately trained. A training

programme (appropriate to the

scale of the organization) that

☒ Yes

☐ No

☐ OFI

Training programme and plans were incorporated

in the file Ref: SG/TRAINING/TMA/HRD/06 titled

‘Training Matrix Analysis for the year 2019. The

training seemed to be on going according to the

programme written in the mentioned file.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


includes regular assessment of

training needs and documentation,

including records of training shall be

kept.

Training that had been done also mentioned in

the file with training timeline recorded.

4.4.6.2 Training needs of individual

employees shall be identified prior to

the planning and implementation of

the training program in order to

provide the specific skill and

competency required to all

employees based on their job

description.

☒ Yes

☐ No

☐ OFI

Training needs of individual employees that are

group together based on jobs designation were

been properly identified in the file Ref:

SG/TRAINING/TMA/HRD/06.

4.4.6.3 A continuous training programme

should be planned and

implemented to ensure that all

employees are well trained in their

job function and responsibility, in

accordance to the documented

training procedure.

☒ Yes

☐ No

☐ OFI

The current training plan is incorporated in

Executive Staff & Workers Annual Training

Programme Schedule for the Year 2019-2020 as in

the file Ref: SG/TRAINING/ATP/HRD/03 and Training

Matrix Analysis for the year 2019 file Ref:

SG/TRAINING/TMA/HRD/06.

In the continuous improvement plan in file Ref:

SGSB/MSPO/CI/19/001 mentioned all training listed

under the above programme should be

completed before 1st January 2020.

Training programme will be reviewed after the

above schedule reached its end date

PRINCIPLE 5: ENVIRONMENT, NATURAL RESOURCES, BIODIVERSITY & ECOSYSTEM SERVICES

Criterion 4.5.1: Environmental management plan


4.5.1.1 An environmental policy and

management plan in compliance

with the relevant country and state

environmental laws shall be

developed, effectively

communicated and implemented.

☒ Yes

☐ No

☐ OFI

SCSB has documented the ENVIRONMENTAL &

BIODIVERSITY POLICY dated 01 02 2019 signed by

the Managing Director. Compliance in the Policy

is noted in as follows [part of Policy statement]

Policy doc: SG/POLICY/EBP/MSPO/03

Policy is posted at both Main office & Estate

Notice Boards

4.5.1.2. The environmental management

plan shall cover the following: ☐ Yes

☐ No

☐ OFI

A. An environmental policy and

objectives ☒ Yes

☐ No

☐ OFI

Compliance in the Policy is noted in as follows

[part of Policy statement]

[quote]

SGSB recognize its responsibility to protect the

environment beyond legal and regulatory

requirement. We are committed to protect our

environment and biodiversity.

We will strive to achieve environmental goals

through:

Compliance with all relevant statutory

and regulatory requirements

Continuous addressing environmental and

biodiversity issues through implementation

of beneficial biodiversity conservation


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


programs

Incorporate environmental factors into

business decisions

B. The aspects and impacts analysis of

all operations. ☒ Yes

☐ No

☐ OFI

Noted in doc [Aspect Impact Assessment] dated

01 03 2019. The following operations were

assessed:

1. SGSB/AIA/MANURING/01 – Manuring

2. SGSB/AIA/WU/02 – Weeding/Upkeep

3. SGSB/AIA/HARVEST/03 – Harvesting

4. SGSB/AIA/ES/04 – Fertilizer

5. SGSB/AIA/SWS/06 – Schedule Waste Store

6. SGSB/AIA/LS/07 – Lubricant Store

7. SGSB/AIA/WS/08 – Workshop

8. SGSB/AIA/MQ/10 – Mobile equipment

9. SGSB/AIA/DS/11 – Dumpsite

4.5.1.3 An environmental improvement plan

to mitigate the negative impacts and

to promote the positive ones, shall be

developed, effectively implemented

and monitored.

☐ Yes

☐ No

☒ OFI

SCSB has not fully documented [partially only] its’

Environmental Management / Improvement Plan;

this is noted during Stage 2 Audit.

4.5.1.4 A programme to promote the

positive impacts should be included

in the continual improvement plan.

☒ Yes

☐ No

☐ OFI

Noted and confirmed these programs are tabled

in the Continuous Improvement plan dated 01 02

19 [SCSB/MSPO/C1/19/001]

4.5.1.5 An awareness and training

programme shall be established and


employees understand the policy

and objectives of the environmental

management and improvement

plans and are working towards

achieving the objectives.

☐ Yes

☐ No

☒ OFI

Training Schedule/Program is documented; but

there no evidence of implementation or training

being conducted; this is noted as a finding during

Stage 2 Audit

4.5.1.6 Management shall organize regular

meetings with employees where their

concerns about environmental

quality are discussed.

☐ Yes

☐ No

☒ OFI

Although regular meetings are held; there is no

specific evidence on environmental training or

discussion on environmental issues are

documented.

Criterion 4.5.2: Efficiency of energy use and use of renewable energy


4.5.2.1 Consumption of non-renewable

energy shall be optimized and

closely monitored by establishing

baseline values and trends shall be

observed within an appropriate

timeframe. There should be a plan to

assess the usage of non-renewable

energy including fossil fuel, electricity

and energy efficiency in the

operations over the base period.

☐ Yes

☐ No

☒ OFI

SCSB had started documenting non-renewable

energy usage with effect from January 2019. The

records are not complete during Audit time as

only consumption of diesel for vehicles are

recorded. No record of electricity consumption

for estate office/workers/staff quarters are

recorded

4.5.2.2 The oil palm premises shall estimate

the direct usage of non-renewable

energy for their operations, including

fossil fuel, and electricity to

determine energy efficiency of their

☐ Yes

☐ No

☒ OFI

Projection of usage of non-renewable energy is

noted in the Business Management Plan, However

there is no detail breakdown of itemized usage

projection by area of operations

[contractors/office/generators etc.]


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


operations. This shall include fuel use

by contractors, including all transport

and machinery operations.

4.5.2.3 The use of renewable energy should

be applied where possible. ☒ Yes

☐ No

☐ OFI

SGSB has implemented the use of Solar energy. 6

panels installed since 2017. This is now generating

lighting supply for estate office. SGSB is currently

appraising the costing [cost & benefits] on

installation of more solar panel that could

generate power supply for use to all estate

facilities. Verified as compliance.

Criterion 4.5.3: Waste management and disposal


4.5.3.1 waste products and sources of

pollution shall be identified and

documented.

☒ Yes

☐ No

☐ OFI

Verified and noted during site audit SGSB had

documented a Waste inventory list vide doc

[SGSB/MSPO/WIL/ENV/01 dated 01 03 19].

Following are recorded:

Facility

Type of waste

Pollution source

Environmental hazard category

Storage area

Current output

Waste disposal vendor

4.5.3.2 A waste management plan to avoid

or reduce pollution shall be

developed and implemented. The

waste management plan should

include measures for:

Waste Management Plan doc viewed & verified

[ref: SGSB/MSPO/WMP/ENV/02 dated 01 03 19].

Evidenced during Site Audit the plan is

implemented by Estate Management

A Identifying and monitoring sources of

waste and pollution ☒ Yes

☐ No

☐ OFI

Sources of waste and pollution identified and

monitored. Doc ref: [Waste Management Process

table 01 03 19. 3 categories of waste classified:

Non-hazardous

Potentially hazardous

Hazardous

WMP Table indicators:

Waste stream & location

Initial disposal point

Final disposal point

Waste carrier

Location of transfer/consignment notes

B. Improving the efficiency of resource

utilization and recycling of potential

wastes as nutrients or converting

them into value-added by-products.

☒ Yes

☐ No

☐ OFI

Noted and verified during site audit that biomass

and empty fruit bunches were recycled as

fertilizers


Standard Operating Procedure for

handling of used chemicals that are

classified under Environment Quality

Regulations (Scheduled Waste) 2005,

Environmental Quality Act, 1974 to

ensure proper and safe handling,

storage and disposal.

☒ Yes

☐ No

☐ OFI

Noted and verified SGSB had established SOP on

Chemical /Used Chemical Handling and is

contained in [ doc ref: SGSB/SOP/CH/05 dated 01

03 2019]

This criterion is complied.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


4.5.3.4 Empty pesticide containers shall be

punctured and disposed in an

environmentally and socially

responsible way, such that there is no

risk of contamination of water

sources or to human health. The

disposal instructions on

manufacturer’s labels should be

adhered to. Reference should be

made to the national programme on

recycling of used HDPE pesticide

containers.

☒ Yes

☐ No

☐ OFI

Noted and verified during Site Audits empty

containers are punctured and disposed following

prescription of SOP [SCSB/SOP/PC/15 dated 01 03

2019]

Empty pesticide containers are collected by

Licensed Scheduled Waste Co and disposed of

quarterly.

In compliance.

4.5.3.5 Domestic waste should be disposed

as such to minimize the risk of

contamination of the environment

and watercourses.

☒ Yes

☐ No

☐ OFI

Domestic wastes are disposed of in

Landfill/Dumpsite at appropriate location in the

Estate. Verified and seen during Site Audits

location of used landfill and new dumpsite.

Disposal method and dumpsite management

conform to requirement.

Criterion 4.5.4: Reduction of pollution and emission


4.5.4.1 An assessment of all polluting

activities shall be conducted,

including greenhouse gas emissions,

scheduled wastes, solid wastes and

effluent.

☒ Yes

☐ No

☐ OFI

Doc Ref [Waste Management Plan dated 01 03

19]. Doc contents include assessment of pollutants

and polluting activities. SOP and action plan

established on managing

Air pollution

Water pollution

Soil pollution

Documentation verified to be in compliance

4.5.4.2 An action plan to reduce identified

significant pollutants and emissions

shall be established and

implemented.

☐ Yes

☐ No

☐ OFI

3 Action plans documented on 01 03 19 to

manage:

Air pollution

Water pollution

Soil pollution

Verified and inspected during field audit the plan

is implemented and monitored by Estate

Manager.

Criterion 4.5.5: Natural water resources


4.5.5.1. The management shall establish a

water management plan to maintain

the quality and availability of natural

water resources (surface and ground

water). The water management plan

may include:

☐ Yes

☐ No

☐ OFI

Noted and viewed SGSB documented the

Water Management Plan vide doc

[SGSB/MSPO/WMP/01 dated 01 03 19]

A Assessment of water usage and

sources of supply.

☒ Yes

☐ No

☐ OFI

Assessment of Water Usage / source of supply

noted in the Water Management Program

[contained in WMP 01 03 19]. Factors assessed

include:

Inspection of water storage/tank and

piping irrigation

Contamination prevention

Natural water sources – inspection

Criterion complied with.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


B Monitoring of outgoing water which

may have negative impacts into the

natural waterways at a frequency

that reflects the estate’s current

activities.

☒ Yes

☐ No

☐ OFI

Monitoring points/ & work order noted and verified

as follows:

Location – Labor Line Camp 1 & 2

Maintenance Program – Labor Line Camp

1 & 2

Water rationing – during dry season

No spraying, manuring on drain sites and

streams [signage installed]

C Ways to optimize water and nutrient

usage to reduce wastage (e.g.

having in place systems for re-use,

night application, maintenance of

equipment to reduce leakage,

collection of rainwater, etc.).

☒ Yes

☐ No

☐ OFI

The water management plan [WMP] detail action

plan as follows to optimize/reduce wastage:

Leak detection/repair

Re-plumbing

Water reuse/recycle

Environmental awareness training

Regulated hours on use of treated water

Criterion is complied

D Protection of water courses and

wetlands, including maintaining and

restoring appropriate riparian buffer

zones at or before planting or

replanting, along all natural

waterways within the estate.

☒ Yes

☐ No

☐ OFI

Noted and verified during Site Audits

Riparian reserves in 4 locations at

confluence of streams running through

the plantation

Buffer zones created along drains &

natural waterways

Deposition of palm fronds to prevent

water runoff and contamination of

streams/water courses

Appropriate location and installation of

signage on conserved areas

E Where natural vegetation in riparian

areas has been removed, a plan with

a timetable for restoration shall be

established and implemented.

☒ Yes

☐ No

☐ OFI

Noted and verified during site Audit riparian areas

in the vicinity of workers quarters is being restored

by planting beneficial & native plants.

This is observed as implementation of earlier plan.

F Where bore well is being use for

water supply, the level of the ground

water table should be measured at

least annually.

☒ Yes

☐ No

☐ OFI

Field audit confirmed no construction of bore well.

As the estate has sufficient water resources &

supply there is no necessity for bore well

4.5.5.2 No construction of bunds, weirs and

dams across main rivers or waterways

passing through an estate.

☒ Yes

☐ No

☐ OFI

Field audits verified no constructions of

bunds/weirs and dams in the plantation

4.5.5.3 Water harvesting practices should be

implemented (e.g. water from road-

side drains can be directed and

stored in conservation terraces and

various natural receptacles).

☒ Yes

☐ No

☐ OFI

Water harvesting techniques/programs is

prescribed in the water management plan [WMP].

Implementation of programs [verified during site

audit] includes creation of water catchment spots

in slight slope areas; these water used for irrigation

and spraying during dry season.

Criterion 4.5.6: Status of rare, threatened, or endangered species and high biodiversity value area


4.5.6.1. Information shall be collated that

includes both the planted area itself

and relevant wider landscape-level

considerations (such as wildlife

corridors). This information should

cover:


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


A Identification of high biodiversity

value habitats, such as rare and

threatened ecosystems, that could

be significantly affected by the

grower(s) activities.

☒ Yes

☐ No

☐ OFI

The auditors conversations with SGSB estate

employees indicated that animals that were

sighted in the estate mostly pythons and lizards.

The Record of Wildlife Discovery in Estate log sheet

with Ref: SG/FORM/HDR/01found in the site office

seem to verified the sighting by the employees.

The latest sighting recorded was on 7th July 2019

which worker saw a soft shell turtle at Block 15.

B Conservation status (e.g. The

International Union on Conservation

of Nature and Natural Resources

(IUCN) status on legal protection,

population status and habitat

requirements of rare, threatened, or

endangered species), that could be

significantly affected by the

grower(s) activities.

☒ Yes

☐ No

☐ OFI

The estate is mostly bordered to and surrounded

by other oil palm smallholders and a large

plantation. There are few spots of secondary

jungles that were supposed to be reserved land

for additional planting that can be converted to

wildlife conservation areas.

4.5.6.2. If rare, threatened or endangered

species, or high biodiversity value,

are present, appropriate measures

for management planning and

operations should include:

A Ensuring that any legal requirements

relating to the protection of the

species are met.

☒ Yes

☐ No

☐ OFI

Posters Sarawak endangered species can be

found at the site office boards.

Reserved areas of i68.1 hectares for additional oil

palm cultivation can be used if not all as

conservation area for wildlife habitat.

B Discouraging any illegal or

inappropriate hunting, fishing or

collecting activities and developing

responsible measures to resolve

human-wildlife conflicts.

☒ Yes

☐ No

☐ OFI

A few no hunting and private properties signage

had been erected on site to encouraged

outsiders to illegally hunting and fishing at the

estate.

Signage and marking of riparian zone area should

be completed by June 2020 as cited in the

company continuous plan in file Ref:

SGSB/MSPO/CI/19/001.

4.5.6.3 A management plan to comply with

Indicator 1 shall be established and

effectively implemented, if required.

☒ Yes

☐ No

☐ OFI

Awareness on conservation and environments

were incorporated in the training of employees

and workers as stated in file Ref:

SGSB/MSPO/CI/19/001.

Signage of no hunting and fishing should be

reminded others such as the locals not the

encroached the area for hunting or any other

activities that may result in human-wildlife conflict.

Criterion 4.5.7: Zero burning practices


4.5.7.1 Use of fire for waste disposal and for

preparing land for oil palm cultivation

or replanting shall be avoided

except in specific situations, as

identified in regional best practice.

☒ Yes

☐ No

☐ OFI

Waste disposal was done either by sending the

waste to the municipal dumping areas or using

landfill methods.

Preparation for the land on oil palm cultivation in

the past was done mostly using heavy machines

as per auditors’ conversation with Mr Kho, the


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


Executive Director.

4.5.7.2 A special approval from the relevant

authorities shall be sought in areas

where the previous crop is highly

diseased and where there is a

significant risk of disease spread or

continuation into the next crop.

☒ Yes

☐ No

☐ OFI

There were no disease crops recorded and as

verified by auditors conversation with the estate

manager and Executive Director.

4.5.7.3 Where controlled burning is allowed,

it shall be carried out as prescribed

by the Environmental Quality

(Declared Activities) (Open Burning)

Order 2003 or other applicable laws.

☒ Yes

☐ No

☐ OFI

No open burning or any charcoal residue was

sighted even near the workers quarter during on

site audit visit.

4.5.7.4 Previous crops should be felled or

mowed down, chipped and

shredded, windrowed or pulverized

or ploughed and mulched.

☒ Yes

☐ No

☐ OFI

Currently, there are no oil palm trees being felled

in the estate.

PRINCIPLE 6: BEST PRACTICES

Criterion 4.6.1: Site management


4.6.1.1 Standard operating procedures shall

be appropriately documented and

consistently implemented and

monitored.

☒ Yes

☐ No

☐ OFI

SGSB had established the following SOP on Best

Management Practices. All dated 21 02 2019:

No DOC REF : TITLE OF SOP

1 SG/SOP/HIRARC/OSH/01

Hazard Identification Risk Assessment Determining

Control

2 SG/SOP/EPR/SHE/02

Emergency, Preparedness & Response

3 SG/SOP/PPE/SHE/03

Personal Protective Equipment

4 SG/SOP/CP/01

Communication Procedure

5 SG/SOP//CI/SHE/04

Conducting Inspection

6 SG/SOP/TA/OPERATION/06

Traceability Procedure

7 SG/SOP/BZ/SHE/07

Management of Natural River Buffer Zone

8 SG/SOP/WC/ENV/08

Waste Control

9 SG/SOP/MWP/ENV/10

Managing Water Pollution

10 SG/SOP/MSP/ENV/11

Managing Soil Pollution

11 SG/SOP/MAP/ENV/12

Managing Air Pollution

12 SG/SOP/HV/13

Harvesting FFB

13 SG/SOP/HV/14

Mengangkut FFB

14 SG/SOP/UP/15

Chemical handling / Meracun

15 SG/SOP/MAN/15

Manuring

Verified during Stage 2 site Audit above SOP

implemented by Estate Management

4.6.1.2 Where oil palm is grown within

permitted levels on sloping land,

☐ Yes

☐ No

SGSB Plantation topography is mixed areas of

slightly hilly (slope 5-10 degrees) and lowland


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


appropriate soil conservation

measures shall be implemented to

prevent both soil erosion as well as

siltation of drains and waterways.

Measures shall be put in place to

prevent contamination of surface

and groundwater through runoff of

either soil, nutrients or chemicals.

☐ OFI (largely). During Site Audit, noted SC had taken

the following measures to mitigate/prevent

erosion/siltation/soil contamination:

Terracing – 7 to 10ft width

Planting of ground cover plants (local

species)

Use of Palm fronds

Appropriate road design –monthly

maintenance

Construction of stop bunds in areas

where there is potential runoff to natural

water courses

4.6.1.3 A visual identification or reference

system shall be established for each

field.

☒ Yes

☐ No

☐ OFI

Verified [visual identification] during field audit of

plantation, Block Markers are placed/planted

[with concrete base] on ground in appropriate

locations in all 21 blocks. Each markers contain:

Block No

Total size in ha

Planted species (Culix 600:Sime Darby)

Year of planting

Criterion 4.6.2: Economic and financial viability plan


4.6.2.1 A documented business or

management plan shall be

established to demonstrate attention

to economic and financial viability

through long-term management

planning.

☒ Yes

☐ No

☐ OFI

Business Plan 2019/2020 [dated 28th February 19

approved by MD] was viewed and verified.

Contents include:

Funding plan/mechanism

Profit & Loss projection (2019/2020)

OPEX & CAPEX

FFB [harvest] projections

This criterion is complied with.

4.6.2.2 Where applicable, an annual

replanting programme shall be

established. Long term replanting

programme should be established

and review annually, where

applicable every 3-5 years.

☒ Yes

☐ No

☐ OFI

Not applicable yet.

SCSB palm trees currently are between 4-8 years

old. At this Stage a replanting program is not

required.

4.6.2.3 The business or management plan

may contain: ☐ Yes

☐ No

☐ OFI

A Attention to quality of planting

materials and FFB. ☒ Yes

☐ No

☐ OFI

All planted species are Culix 600 [Sime Darby]

B Crop projection: site yield potential,

age profile, FFB yield trends. ☒ Yes

☐ No

☐ OFI

2019/2020 projections

Items 2019 2020

Yields [YPH] 16.86 mt/ha 19.05mt/ha

Age profile 4 to 8 yrs 5-9 yrs

FFB total 14,785m 16,705mt

2017 2018

FFB total 9503mt 11297mt

10.84mt/ha 12.89mt/ha

C Cost of production: cost per ton of

FFB. ☒ Yes

☐ No

Projection for cost per ton of FFB; as noted in the

business plan


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


☐ OFI 2019 2020

Expenses [RM] 4,124,000 4,295,000

harvest[mt] 14,785 16,705

Cost per mt [RM] 278 257

D Price forecast ☒ Yes

☐ No

☐ OFI

Price forecast for FFB 2019/2020; noted in the

business plan to be RM400 per mt

E Financial indicators: cost benefit,

discounted cash flow, return on

investment.

☐ Yes

☐ No

☐ OFI

Noted contents of the Business Plan

Capital expenditure [estimate]

Working capital requirement [estimate]

Projected income statement

Projected cash flow

Development cost

Noted net income projection after tax [forecast]:

2019: RM612,730/-

2020: RM1,320,097/-

4.6.2.4 The management plan shall be

effectively implemented and the

achievement of the goals and

objectives shall be regularly

monitored, periodically reviewed

and documented.

☐ Yes

☐ No

☐ OFI

Directors meeting planned quarterly to

review management plan

GM [overall operating Head] monitor

performance on site weekly

Estate Management meeting is held at

least once a month to discuss site

management plan implementation.

Monthly meeting records (Feb, Mar, April,

May) is verified and confirmed estate staff

meet monthly

Morning muster is held daily

Criterion 4.6.3: Transparent and fair price dealing


4.6.3.1 Pricing mechanisms for the products

and other services shall be

documented and effectively

implemented.

☒ Yes

☐ No

☐ OFI

SCSB had documented its pricing mechanism as

follows

Oil Extraction Rate (OER)= 19.32%

Kernel Extraction Rate (KER)= 3.80%

Calculation of price:

MPOB avg. price for CPKO/CPO/PK –

(Fixed Distribution + MPOB Monthly Cess +

MPOB Quarterly Cess + MPOB Cess

Subsidy + Refinery PGEO + Sales Tax)= Ex-

Mill Price

((CPO Mill Price x OER)+ (PK Mill Price x

KER)) - Processing Cost = Net delivered

price

Net delivered price x FFB delivered to Mill

= Total Amount (RM) + Transport Subsidy +

Incentives = Net Total Amount (RM)

Transport Subsidy = RM10/Ton

Incentives = RM 6.00/Ton + RM 2.00/Ton

(Over 1000 MT)

Product pricing mechanism documentation

verified to be in order & implemented.

Contractors [transport] are paid RM20 per mt of

FFB. [explicit in an Agreement]

4.6.3.2 All contracts shall be fair, legal and

transparent and agreed payments

shall be made in timely manner.

☒ Yes

☐ No

☐ OFI

Contracts are in the form of legal documentation

& legal enforceable.

Payment to Transport contractors are done


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


monthly. Verified during site audit/stakeholders

interview with Enggu ak Lambat [KP 591110-13-

5799] a Contractor; full satisfaction with SGSB

business relationship.

Criterion 4.6.4: Contractor


4.6.4.1 Where contractors are engaged,

they shall understand the MSPO

requirements and shall provide the

required documentation and

information.

☒ Yes

☐ No

☐ OFI

All Contractors were briefed on 18 03 19 on MSPO

requirements [stakeholders briefing] by SGSB

management and consultant. Verified and

confirmed by/through;

Briefing report/photos

Interview during site Audit

Contractors of SGSB are landowners / planters

/SPOC members. High awareness of MSPO

requirements. Compliance.

4.6.4.2 The management shall provide

evidence of agreed contracts with

the contractor.

☒ Yes

☐ No

☐ OFI

Evidenced [random sample] were viewed in legal

agreement between SGSB and [contractor] Garai

ak Empaling [KP 671228-13-5655] dated 1st June

2016. In total SGSB have 4 Contractors. On long

term agreement.

4.6.4.3 The management shall accept MSPO

approved auditors to verify

assessments through a physical

inspection if required.

☒ Yes

☐ No

☐ OFI

All 4 contractors were interviewed during Stage 1

Audit; done independently 7 without the presence

of SGSB management.

Additionally the Contractors are given working

office/quarters in estate premise. This criterion fully

complied.

4.6.4.4 The management shall be

responsible for the observance of the

control points applicable to the tasks

performed by the contractor, by

checking and signing the assessment

of the contractor for each task and

season contracted.

☒ Yes

☐ No

☐ OFI

Estate management monitor and manage

contractors through:

Morning muster – briefing/inspection &

verification of lorry chits

Weighbridge tickets – from Mills

Route lists spot checks by Estate manager

Diesel acquisition & usage chits [diesel

issue note]

PRINCIPLE 7: DEVELOPMENT OF NEW PLANTINGS

Principle 7 is not applicable as there is no development of new planting in Secret Greens Plantation.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


7.3 SUMMARY OF FINDINGS

PRINCIPLE 4: SOCIAL RESPONSIBILITY, HEALTH, SAFETY, & EMPLOYMENT CONDITION







☐ Yes

☐ No

☒ OFI










and documented.

☐ Yes

☐ No

☒ OFI




8th February 2019.





A. Accident and emergency



employees.

☐ Yes

☐ No

☒ OFI




through the procedure folder found inside the site

office.





PRINCIPLE 5: ENVIRONMENT, NATURAL RESOURCES, BIODIVERSITY & ECOSYSTEM SERVICES







and monitored.

☐ Yes

☐ No

☒ OFI


Environmental Management / Improvement Plan;

this is noted during Stage 2 Audit.









☐ Yes

☐ No

☒ OFI



being conducted; this is noted as a finding during

Stage 2 Audit



BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019



4.5.2.1 Consumption of non-renewable

energy shall be optimized and

closely monitored by establishing

baseline values and trends shall be

observed within an appropriate

timeframe. There should be a plan to

assess the usage of non-renewable

energy including fossil fuel, electricity

and energy efficiency in the

operations over the base period.

☐ Yes

☐ No

☒ OFI

SCSB had started documenting non-renewable

energy usage with effect from January 2019. The

records are not complete during Audit time as

only consumption of diesel for vehicles are

recorded. No record of electricity consumption

for estate office/workers/staff quarters are

recorded

4.5.2.2 The oil palm premises shall estimate

the direct usage of non-renewable

energy for their operations, including

fossil fuel, and electricity to

determine energy efficiency of their

operations. This shall include fuel use

by contractors, including all transport

and machinery operations.

☐ Yes

☐ No

☒ OFI

Projection of usage of non-renewable energy is

noted in the Business Management Plan. However

there is no detail breakdown of itemized usage



7.4 CONCLUSION BY LEAD AUDITOR; 12 06 2019: [end day of Stage 2 Assessment]

No of “NO”: Non-Conformance Nil

No of “OFI”: Opportunity for Improvement 7 [seven]

Report Summary & Recommendations

Secret Greens Sdn Bhd [SGSB] preparation for Certification improved tremendously from Stage 1 to

Stage 2. This is especially evident during the field audits whereby interviews were held with stakeholders.

Workers interviewed during Stage 2 were noted to have better understanding of MSPO principles and

requirements. SGSB had dedicated 2 Managers to administer and manage MSPO implementation. Both

are trained MSPO Auditors.

Overall, although SGSB had opted to get certified under MSPO MS2530-3:2013 only recently, their

investment & commitment to achieve compliance to all Principles & criteria is commendable. SGSB had

demonstrated that it had generally satisfied the requirement of certification under this MSPO Standards.

It is therefore recommended that subject to closure of all OFI and approval of the Final Audit Report,

Sare Plantation Sdn Bhd be certified under MSPO MS2530-3:2013.

Lead Auditor: Acknowledged by Auditee Name Job Title

Wilfred S Landong Secret Greens Sdn Bhd Awang Khairuddin Awang Dol Manager

Signature/Date:

12 06 2019

Signature/Date:

12 06 19


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


7.5 CORRECTIVE ACTION REPORTS [CAR]

The following Corrective Action Reports were raised on 10 07 19

1. CORRECTIVE ACTION REPORT (NC/OFI)

No. 1 of 7 Date: 10 07 19

1 FINDINGS To be completed by Lead Auditor

Standards

MSPO MS2530-3:2013 Reference

SG/AU/ST2/07/19







☐ Yes

☐ No

☒ OFI






2 CLASSIFICATION To be completed by Lead Auditor

Major Non-conformity Minor-nonconformity Opportunity for Improvement (OFI) ☒

Type of follow up

Document review (off-site audit and may be charged)

On site audit (effort required will be charged)

Date

10 07 2019 Remarks: (if any)

3 CONFIRMATION To be completed by Company

Finding + classification is correct Yes No

Comments: (if any)

4 ROOT CAUSE(S) of NC / OFI To be completed by Company

Remarks:

Management oversight

5 CORRECTIVE ACTIONS TAKEN To be completed by Company

Remarks:

Rectification done. Director Mr Kho Lian Whui signed the document on 20 07 2019. Evidence enclosed with this

submission

Date 24 08 2019 Name/Job of Management Rep Awang Khairuddin

Manager

Signature:

6 CLOSURE of NC / OFI To be completed by Lead Auditor

Remarks / Evidence:

Acknowledged receipt of signed documents on 25 08 19. OFI can be closed out

Corrective Actions taken to close this NC or OFI has been implemented and found acceptable

Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:10 09 19


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


2. CORRECTIVE ACTION REPORT (NC/OFI) No. 2 of 7 Date: 10 07 2019


Standards


SG/AU/ST2/07/19





and documented.

☐ Yes

☐ No

☒ OFI




8th February 2019.




Major Non-conformity Minor-nonconformity

Opportunity for Improvement (OFI) ☒

Type of follow up



Date




Comments: (if any)


Remarks:

Management oversight


Remarks:

Rectification done. Director Mr Kho Lian Whui signed the document on 20 07 2019. Evidence enclosed with this

submission


Manager

Signature:


Remarks / Evidence:

Acknowledged receipt of signed documents on 25 08 19. OFI can be closed out


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date: 10 09 19


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019




Standards


SG/AU/ST2/07/19



B. Accident and emergency



employees.

☐ Yes

☐ No

☒ OFI




through the procedure folder found inside the

site office.








Type of follow up



Date




Comments: (if any)


Remarks:

Training and briefing not conducted according to schedule due to heavy harvesting work


Remarks:

Training conducted on 17 08 19. Photos and training report enclosed as evidence.


Manager

Signature:


Remarks / Evidence:

Photos and training report received on 25 08 2019. Viewed and verified. This OFI can be closed


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:30 06 19


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019




Standards


SG/AU/ST2/07/19







and monitored.

☐ Yes

☐ No

☒ OFI


Environmental Management / Improvement

Plan; this is noted during Stage 2 Audit.




Type of follow up



Date




Comments: (if any)


Remarks:

Not aware of documentation incomplete


Remarks:

Environmental Management/Improvement Plan re-documented and completed on 20 08 19. Enclosed with this

submission as evidence.


Manager

Signature:


Remarks / Evidence:

Completed Environmental Management/Improvement Plan received on 25 08 19. Viewed and verified

completed. This OFI can be closed.


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:10 09 2019


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019




Standards


SC/AU/ST2/07/19











☐ Yes

☐ No

☒ OFI



being conducted; this is noted as a finding

during Stage 2 Audit




Type of follow up



Date




Comments: (if any)


Remarks:

80% of training had been conducted according to schedule. However, they are not properly documented


Remarks:

Enclosed with this submission are 5 training reports conducted up to date in 2019. As evidence of

implementation.


Manager

Signature:


Remarks / Evidence:

Training reports received on 25 08 2019. Sufficient evidence training had been conducted. This OFI can be

closed out


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:10 09 19


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019




Standards


SG/AU/ST2/07/19


Indicator Requirement Complianc

e

Findings

4.5.2.1 Consumption of non-renewable energy shall

be optimized and closely monitored by

establishing baseline values and trends shall

be observed within an appropriate

timeframe. There should be a plan to assess

the usage of non-renewable energy

including fossil fuel, electricity and energy

efficiency in the operations over the base

period.

☐ Yes

☐ No

☒ OFI

SCSB had started documenting non-

renewable energy usage with effect from

January 2019. The records are not

complete during Audit time as only

consumption of diesel for vehicles are

recorded. No record of electricity

consumption for estate office/workers/staff

quarters are recorded




Type of follow up



Date




Comments: (if any)


Remarks:

Records of contractors’ usage of diesel still being updated at the time of audit.


Remarks:

Non-renewable energy consumption had been updated. Usage figures [consumption in liters] enclosed with this

submission.


Manager

Signature:


Remarks / Evidence:

Received updated data on 25 08 2019. Verified figures had been updated. This OFI can be closed out


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:10 09 19


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019




Standards


SG/AU/ST2/07/19


Indicator Requirement Complianc

e

Findings

4.5.2.2 The oil palm premises shall estimate the direct

usage of non-renewable

Energy for their operations, including fossil

fuel, and electricity to determine energy

efficiency of their operations. This shall

include fuel use by contractors, including all

transport and machinery operations.

☐ Yes

☐ No

☒ OFI

Projection of usage of non-renewable

energy is noted in the Business

Management Plan. However there is no

detail breakdown of itemized usage






Type of follow up

Document review (off-site audit and may be charged


Date




Comments: (if any)


Remarks:

Not aware of requirement to itemize projected consumption


Remarks:

Updated budget [with itemized projection [3 years forward] enclosed with this submission.


Manager

Signature:


Remarks / Evidence:

Updated budget documents received on 25 08 2019. Verified updated and itemized projection. This OFI can be

closed out


Yes No

Confirmed by:

Wilfred S Landong

Lead Auditor

Date:

Note: All Corrective Action Reports above were closed out on 10 09 2019.


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


8.0. LEAD AUDITOR CONCLUSION & RECOMMENDATION

Based on the Findings/Action taken by Auditee/Closures above, Secret Greens Sdn Bhd had been able

to demonstrate generally its compliance to and with requirements of the MSPO MS2530-3:2013

Standard for Oil Palm Plantations & Organized Smallholders.

Therefore, it is recommended that the Initial Certification of Sare Plantation Sdn Bhd be approved.

Signed for & On Behalf of

BQAS Certification (M) Sdn Bhd

Wilfred S Landong

LEAD AUDITOR

Dated: 15 09 2019

9. ACKNOWLEDGEMENT OF INTERNAL RESPONSIBILITY & CONFIRMATION OF AUDIT FINDINGS

This is to acknowledge and confirm the Audit Visits/Assessments described in this Report and the

Acceptance of the Contents and Findings in the said Audit Report.

Signed for & On Behalf of

Secret Green Sdn Bhd

Awang Khairuddin Awang Dol

Manager

Dated: 20 09 2019

10. CERTIFICATION RECOMMENDATION / DECISION [CERTIFIER]

I/the undersigned, being the Certifier, confirm that I have examined thoroughly all contents of the

Report in its’ entirety, including the incorporation of Peer Review comments/report and other related

reports [where applicable and relevant].

I confirm that, to the best of my knowledge the information and conclusions included in this report have

been prepared in compliance with the Standards requirements; and done in good faith and that the

certification decision had been based upon this information.

I, hereby confirm that, Secret Green Sdn Bhd be certified and awarded the Certificate under the

Standard MSPO2530-3:2013 [Part 3: Standard for Oil Palm Plantations & Organized Smallholders]

CERTIFIER

PATRICK SIBAT SUJANG

Dated: 01 10 2019

11. DATE OF 1ST YEAR SURVEILLANCE AUDIT SEPTEMBER, 2020


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019

61


BQAS/SGSB/010/09/19


MSPO MS 2530-3:2013

September, 2019


SOP - bqas.com.my€¦ · Title: SOP Author: BQAS Certification Sdn Bhd;Wilfred Landong Keywords:...

Documents

Transcript of SOP - bqas.com.my€¦ · Title: SOP Author: BQAS Certification Sdn Bhd;Wilfred Landong Keywords:...