PUBLIC SUMMARY SURVEILLANCE AUDIT 1 (FIRST CYCLE) ON ANAP MUPUT FOREST MANAGEMENT UNIT FOR FOREST MANAGEMENT CERTIFICATION

Transcription

1 PUBLIC SUMMARY SURVEILLANCE AUDIT 1 (FIRST CYCLE) ON ANAP MUPUT FOREST MANAGEMENT UNIT FOR FOREST MANAGEMENT CERTIFICATION Certificate Number: FMC 0006 Date of First Certification: 25 July 2013 Audit Date : June 2014 Prepared by: Food, Agriculture and Forestry Section SIRIM QAS International Sdn. Bhd. Block 4, SIRIM Complex 1, Persiaran Dato Menteri Section 2 P.O. Box Shah Alam Selangor MALAYSIA Tel / Fax : Website : 13 August 2015 Page 1 of 22

2 1 EXECUTIVE SUMMARY INTRODUCTION Name of FMU Contact Person and Address Scope of Certification Audited Standard General Background on the Zedtee Anap Muput FMU Date First Certified Location of the Certified FMU Forest Management System Annual Allowable Cut / Annual Harvest under the Forest Management Plan Environmental and Socioeconomic Context AUDIT PROCESS Audit Dates Audit Team Stakeholder Consultations Audit Process SUMMARY OF AUDIT FINDINGS... 6 Attachment 1 Map of Zedtee Anap Muput FMU Attachment 2 Comments by Stakeholders and Responses by Audit Team Attachment 3 NCRs and OFIs Raised During this Audit and Corrective Actions Taken (2014) Attachment 4 Verification on Corrective Actions Taken on NCRs and OFIs Raised During Previous Audit 19 Page 2 of 22

3 1 EXECUTIVE SUMMARY SIRIM QAS International Sdn. Bhd. (SIRIM QAS International) is the oldest and leading certification, inspection and testing body in Malaysia. SIRIM QAS International provides a comprehensive range of certification, inspection and testing services which are carried out in accordance with internationally recognised standards. Attestation of this fact is the accreditation of the various certification and testing services by leading national and international accreditation and recognition bodies such as the Department of Standards Malaysia (STANDARDS MALAYSIA), the United Kingdom Accreditation Services (UKAS), the International Automotive Task Force (IATF), and the Secretariat of the United Nations Framework Convention for Climate Change (UNFCCC). SIRIM QAS International is a partner of IQNet, a network currently comprising of 36 leading certification bodies in Europe, North and South America, East Asia and Australia. This surveillance audit was conducted on the Anap Muput Forest Management Unit (hereafter referred as Anap Muput FMU) from June 2014, to assess on the overall forest management system compliance against the Malaysian Criteria and s for Forest Management Certification (Natural Forest) [MC&I (Natural Forest)] using the verifiers stipulated for Sarawak. The Anap Muput FMU is managed by Zedtee Sdn Bhd (Zedtee). The surveillance audit was conducted by a two-member audit team comprising Dr. S.K. Yap (Lead Auditor) and Khairul Najwan Ahmad Jahari (Auditor). Based on the findings of this surveillance audit, it was found that Zedtee had continued to manage the Anap Muput FMU in compliance with the requirements of the MC&I (Natural Forest). However, there were still lapses and this surveillance audit had resulted in the issuance of 5 Minor Non Conformity Reports (NCRs) and 7 Observation for Improvements (OFIs). The audit team had also verified the corrective actions taken by Zedtee to address the 3 Minor NCRs and 6 OFIs which were raised during the previous audit and found them to have been implemented effectively and therefore closed them out. There was no major NCR raised during this surveillance audit. The audit team had reviewed and accepted the proposed corrective actions by Zedtee to address the minor NCRs and OFIs raised during this surveillance audit. Therefore, the audit team had recommended that the Certificate for Forest Management awarded to the Anap Muput FMU be maintained. 1.1 INTRODUCTION 1.2 Name of FMU Anap Muput FMU 1.3 Contact Person and Address Mr. Wong Ing Yung (Director) Zedtee Sdn. Bhd. Lot , 2 nd Floor, Boulevard Commercial Centre Miri-Pujut Road Miri Sarawak Malaysia Phone #: Fax #: zedteemiri@gmail.com 1.4 Scope of Certification Management of 83,535 hectares (ha) of natural forest within the Permanent Forest Estate (PFE) of the Anap Muput FMU. Page 3 of 22

4 1.5 Standard Used Malaysian Criteria and indicators for Forest Management certification (Natural Forest) [MC&I (Natural Forest)] 1.6 General Background on the Zedtee Anap Muput FMU The Anap Muput FMU is managed by Zedtee under Timber Licence No. T/4317 which will expire on 8 March It covers an area of 83,535 ha of natural tropical forest located in the Tatau District of Bintulu Division, Sarawak. The FMU is bounded by Sg. Muput Kiba to the north; Sg. Malat and Sg. Anap to the east; Sg. Belawit to the southeast; Bt. Maleng, Bt. Obar and Bt. Likang mountain ridges on the south and the cut-line common boundary with another FMU bearing Licence No. T/3393 to the west. The map of the FMU is as in Attachment 1 The forest areas covered in this surveillance audit are as in Table 1 below: Table 1 Area Covered in the Surveillance Audit Forest Management Unit Anap Muput Forest District Anap Muput Forest Management Unit, Tatau District, Bintulu Division Anap Muput Forest Management Unit, Tatau District, Bintulu Division Address Sekawie Camp at Sungai Ayam Coupes 11,13,14,16 and neighbouring long houses 1.7 Date First Certified 25 July Location of the Certified FMU The FMU is located between latitudes 2 08 and 2 32 N, and longitudes and 113 E 1.9 Forest Management System The FMU is classified as PFE under the Anap Protected Forests (76,935 hectares) constituted on 1 st March 1958 under Notification No. 587 and Mukah Hills Protected Forests (6,600 hectares) gazetted on 1 st September 1956 (No. 1102) and 13 th June 1958 (No. 790) Annual Allowable Cut / Annual Harvest under the Forest Management Plan Timber was the main product of the Anap Muput FMU and only tagged trees were harvested. The volume harvested was controlled by the quota approved by the Sarawak Forest Department and the Annual Allowable Cut (AAC). Non-timber forest products were not harvested except by the local communities for their own consumption. As of 30 October 2012, the monthly production limit was set at 7,000 cubic metres (m 3 ) with 2,800 m 3 (40%) as Reservation Quota exclusively for local mills. Record of log production from January 2013 to May 2014 had indicated that the harvested volumes were below the 7,000m 3 limit. It was noted that there were gazetted royalty structures and rates for the Anap Muput FMU available at the log pond in Sagan. Page 4 of 22

5 1.11 Environmental and Socioeconomic Context The relevant documentations on the customary rights of indigenous peoples lands were kept at the Sekawie Base Camp at Sungai Ayam. It was observed that the management and use of such lands and resources were controlled by the local communities unless they had delegated control with free, prior and informed consent to other parties. As documented in the previous audit report, such instances were documented on 23 February 2012 when the residents of Rh Bilong had permitted the FMU to harvest timber from their Pulau in blocks 40-43, Coupe 13. In return as compensation, the FMU had agreed to level their new housing sites and supply building materials for the new 16 units of longhouse. Another case was the list on participants for the proposed RISDA Community Rubber Project 2012/2013 (Phase 1) which had included 8 participants from Rh Entrie (19.3 ha), 2 participants from Rh Gasah (2 ha), 12 participants from Rh Mawang (22.38 ha), 3 participants from Rh Philip (1.8 ha) and 8 participants from Rh Sayong (8.2 ha). Each of the participant had given consent to be involved in the project. The mechanism used to resolve conflicts and grievances was still through the Anap Sustainability Development Unit Liaison Committee (ASDU LC). Records of conflicts and grievances between parties involved concerning their legal and customary rights within the FMU were kept in the Laporan Pencerobohan Kawasan Hutan Dalam Kawasan Unit Pengurusan Hutan Anap Muput (Report on the Encroachment in Areas within Anap Muput FMU) dated 8 July Any matter related to land encroachment would be referred to the Anap Muput Conservation and Community Development (CCD) Committee for resolution. An EIA report for the Re-entry Hill Logging Within the Anap-Muput FMU Under Timber Licence No. T/4317 and LPF/0039, Bintulu and Sibu Divisions Sarawak was produced as required under the Natural Resources and Environment (Prescribed Activities) Order The potential impacts and strategies to mitigate them were written in this document. The EIA was approved on 26 November 2008 by the Natural Resources and Environment Board (NREB), reference no. (20) NREB/6-3/2G/18 with conditions to be implemented by the FMU. It had specified quarterly environmental monitoring be conducted every year and the submission of the monitoring reports to NREB. A section of the Environmental Management System had been included in the revised Forest Management Plan (FMP) for Anap-Muput FMU ( ). This revised FMP had included on the evaluation of impacts, controlling procedures and implementation, monitoring, auditing and management review. In addition measures on harvesting according to specifications of Reduced Impact Logging (RIL) and protection of wildlife and threatened species had also been described in the revised FMP. Study on the potential impacts of harvesting activities on endangered, rare and threatened species of flora and fauna was being continuously monitored within the FMU as specified in the with the assistance of the Sarawak Forestry Corporation (SFC). The enforcement of no hunting policy had continued to be implemented in accordance to the Wildlife Protection Ordinance The circular DF 6/99 from the Director of Forest banning all hunting by employees of the FMU and selling of wild meat and closing of feeder roads on completion of harvesting activities was posted in the office at the base camp. It was reported in the FMP that 18 FMU senior staff and members of the Anap Muput CCD Committee were appointed as Honorary Wildlife Rangers by the Controller of Wildlife in April There were continuous dialogues and education on conservation being organized which formed part of the CCD Committee operating under the ASDU. 2. AUDIT PROCESS 2.1 Audit Dates June 2014 (12 man-days) 2.2 Audit Team Dr. S.K. Yap (Audit Team Leader) Page 5 of 22

6 Khairul Najwan Ahmad Jahari (Auditor) 2.3 Stakeholder Consultations A one-month stakeholder consultation was conducted beginning on 23 May 22 Jun 2014 to solicit feedback from stakeholders on the compliance of the Anap Muput FMU to the requirements of the MC&I (Natural Forest). The comments by the stakeholders and responses from the audit team are shown in Attachment Audit Methodology Process The audit was conducted primarily to evaluate the level of continued compliance of the Anap Muput FMU s current documentation and field practices in forest management with the MC&I (Natural Forest), using the verifiers stipulated for Sarawak. For each, the auditors had conducted a documentation review, consultation with the relevant personnel of the FMU or stakeholders or field audit or a combination of these methods. Depending on the compliance with the verifiers for a particular indicator, the auditors then decided on the degree of the overall compliance in the indicator and decided whether or not to issue a major or minor NCR or an OFI. Consultations were held with the contractors and workers operating within the FMU. Meeting was also conducted with the management representatives and the forest rangers based at the FMU. 3. SUMMARY OF AUDIT FINDINGS The details of the findings (evidences) of this surveillance audit were presented in full in the surveillance audit report. The summary of the findings are as follows: PRINCIPLE STRENGTHS WEAKNESSES Principle 1 The Anap Muput FMU had generally continued to respect all applicable laws and international treaties and agreements to which Malaysia is a signatory and complied with all the relevant state and local laws as well as the Principles and Criteria of the MC&I (Natural Forest). The FMU had continued to maintain records of all the relevant national and local laws and regulations and policies related to forest management. The senior forest managers had continued to demonstrate a good understanding of the federal, state and local laws and regulatory framework for forest management. They were also still aware of the major binding international agreements related to forest management. The management of the Anap Muput had identified potential conflicts in its forest management operations with the Sarawak laws and regulations and had sought the views of the Sarawak Forest Department and Sarawak Timber Association (STA). The FMU had continued to protect its forest areas against illegal harvesting and encroachment and abide by its written policy on The construction of a skid trail ST-1-1 in Block 53 of Coupe 14A following the old trail had passed through a short stretch into the neighbouring forest without the field workers being aware of the boundary. Thus, a minor NCR 1/2014 was raised. It was observed that owing to the proposed development of a mill at Muput and decommission of Sekawie Camp, the northern gate had been temporary removed. A new main gate at proposed Muput camp site should have been constructed to control entry. Therefore an OFI 1/2014 was raised. Page 6 of 22

7 Principle 2 Principle 3 sustainable forest management. Zedtee s long-term tenure and use right to the land and forest resources has been clearly defined, documented and legally established. The timber licence T/4317 had been revised with extension from 2011 to 8 March Related documents specified in the were also available in the base camp office. The General Harvesting Plan was revised on 27 February 2014 and approved on 20 March The same mechanisms through the ASDU LC had continued to be employed to resolve disputes over tenure claims and use rights of the local communities. There were no records of cases that required resolution by the Native Courts or Civil Courts. During a consultation process conducted during this surveillance audit, there was an appeal by the Tua Rumah Gasah for assistance to clear a forest patch in Coupe 23 for planting of oil palm. This land had been claimed as his pulau. This issue was documented in the ASDU Liaison Committee (ASDU LC) on 21 May 2014 and was discussed in the meeting held on 23 June The relevant documentations on the customary rights of the indigenous peoples lands were being kept at Sekawie Base Camp at Sungai Ayam. It was observed that the management and use of such indigenous lands and resources were still being controlled by the local communities unless they had delegated control with their free, prior and informed consent to other parties. As described in the previous report, such instances had happened on 23 February 2012 when the residents of Rh Bilong had permitted the FMU to harvest timber from their Pulau in blocks 40-43, Coupe 13. In return as compensation, the FMU had agreed to level their new housing sites and supply building materials for the 16 unit new longhouses. Another case was related to the list of participants for the proposed RISDA Community Rubber Project 2012/2013 (Phase 1) which had included 8 participants from Rh Entrie (19.3 ha), 2 from Rh Gasah (2 ha), 12 from Rh Mawang (22.38 ha), 3 from Rh Philip (1.8 ha) and 8 from Rh Sayong (8.2 ha). Each of the participant had given consent to be involved in the project. The FMU had continued to protect sites of special cultural, ecological, economic or religious significance. There was still provision for the Nil. Nil. Page 7 of 22

8 Principle 4 Principle 5 rights of access to these sites. Based on consultations held with the villagers, the FMU had continued to provide employment opportunities to the local communities over the years. Opportunities for employment were advertised on posters and displayed at the neighbouring long houses. The dwellers of RH Agul, RH Serai, RH Sayong and RH Enteri had informed that the FMU had continued to contribute to social programmes such as timber for the construction of housing and earth works for the construction of a new church and financial assistance during annual Gawai celebration. The Safety and Health Safety Policy was still being displayed at the notice board in the camp site. There were records on dissemination of upto-date information on safety and health to the forest workers. In addition, a pamphlet on guidelines on safety and health was also provided to the workers. Workers were still being equipped with safety equipment such as hard hats, gloves and ear plugs. The safety equipment checklist was still being done by the block supervisor monthly to ensure the equipment was in good condition. Workers were still free to join any legal union as stated in a notice dated 2 January Grievances raised by the workers were still being channelled to the Management Workers Committee for resolution. The process on resolving grievances had been documented in the Grievance Procedure Flow Chart. The provisions and measures within the relevant federal, state and local laws were still being observed to prevent loss or damage affecting the local communities legal or customary rights, property, resources or their livelihoods. Direct negotiation was still being employed to work out a compensation scheme for any loss or damage. Timber (log) had been the main product of the Anap-Muput FMU. Non-timber forest products had not been harvested except by the local communities for their own consumption. Of the monthly log production, 40% was still being Instead of conducting its own meeting, the Safety and Health Committee was held together under the Staff and management Meetings starting from May The minutes of the meetings had only included discussions related to the safety and health of the workers. The Safety and Health Committee should have conducted its own Committee meeting and prepare a separate minutes of the meeting. Hence, a minor NCR 2/2014 had been raised. The number of accidents had increased from 3 in 2012 to 6 cases in 2014 but the reason for the increase was not analysed by the Safety and Health Committee to determine the root causes so as to avert reoccurrence. Thus, a minor NCR 3/2014 had been raised. It was observed that workers at the Sagan log pond had not been aware of the process on grievance resolution. Therefore, an OFI 2/2014 was raised. Social impacts study had been conducted in 2007 and a report entitled Socio- Economic Profiling and Agroforestry Options Among Communities Within and Surrounding the Anap-Muput Forest Management Unit Tatau, Bintulu Division, Sarawak had been prepared. The report should have been revised and updated with recent data gathered as inputs in forest planning and management practices. Therefore an OFI 3/2014 had been raised. During a field inspection, it was observed that the domestic waste water from the mobile homes at Sg. Kemayau was discharged into Page 8 of 22

9 Principle 6 allocated as reservation quota for domestic processing as required by the Sarawak State Government. The FMU had continued to implement the guidelines on reduced/low impact logging. Directional felling had continued to reduce damage to residual trees. It was observed that the felling and hauling of the felled trees using the log fisher had resulted in minimal damage on residual trees. Hollow logs not taken out were used as culvert and bridges. Short logs, not economically viable to be taken out were being used to reinforce earth bunds. The FMU had continued to protect riparian buffer zone which had remained intact. The FMU had continued to maintain record on the monthly production of timber (log). The Sarawak Forest Department had approved a monthly production limit (MPL) of 7,000 m3 for the FMU which had never been exceeded. The revised Forest Management Plan for Anap- Muput FMU ( ) had included a section on environmental management system which describes on the evaluation of environmental impacts resulting from the forestry operation, mitigation measures and their implementation, monitoring procedures as well as on the protection of endangered, rare and threatened (ERT) wildlife. The FMU had continued to implement the guidelines on identification and protection of ERT species and monitored these species with the cooperation of the Kyoto University and WWF- Malaysia. The no hunting policy had continued to be observed. The circular DF 6/99 from the Director of Forest Sarawak banning all hunting and selling of wild meat by employees of Zedtee and the closing of feeder road on completion of harvesting operations was still being posted to remind employees. Harvesting plan being implemented had taken into consideration of the need for biological corridors and buffer zones. Representative areas of existing forest ecosystem had been set aside for conservation. Signboards had been erected at appropriate locations around the protected areas. drains that lead directly to the river. The headman of Rumah Gasah had also raised the issue of potential pollution of the river to the audit team. Hence, Minor NCR 4/2014 has been raised A standard procedure of tree tagging had been instituted within the FMU. There were two incidences where the number of supplementary tags was more than the tags issued to trees for felling. This would have to be minimized. Therefore an OFI 4/2014 was raised. The data from the PSP plots established within the FMU had not been analysed to provide support to the changes made in the harvesting diameter limit. Therefore, an OFI 5/2014 had been raised. It was observed that a nesting tree for hornbills at km 66 could be protected and marked for protection as part of the programme for protection of forest flora and fauna. Therefore, OFI 6/2014 had been raised Page 9 of 22

10 The layout and construction of road, log landings and drainage requirements had continued to follow the prescribed guidelines. It was observed that main access and secondary roads had good drainage system and well-compacted surfaces. Disposal of non-organic solid wastes and Scheduled Wastes (lubricant and oil) was still done in accordance to the Fifth Schedule (Regulation 11) Environmental Quality Act 1974 Environmental Quality (Scheduled Wastes) Regulation There was no natural forest area within the FMU which had been converted to plantation and the FMU had no such plan of doing so. Principle 7 Principle 8 A management plan appropriate to the scale and intensity of the operations has been written, implemented, and kept up to date. The long term objectives of management, and the means of achieving them, has been clearly stated. The Forest Management Plan had incorporated all the items listed from a) to i) in Criterion 7.1. Harvesting had also been conducted in accordance to RIL/RI specifications. Presence of rare, threatened and endangered species had been documented and measures for their protection considered. The revised Forest Management Plan had incorporated data obtained from monitoring and research activities within the FMU. Forest managers had provided training to the workers and training records were made available to the audit team. The summary of the Forest Management Plan for Anap Muput ( ) was made available in the publicly available web page of the FMU. The FMU had continued to follow the procedures being instituted by the SFC to monitor the social, ecological, environmental and economic impacts of its forestry operations. The FMU had continued to submit the quarterly Environment Monitoring Report to the NREB. The FMU had constantly consulted the relevant regulatory agencies and local communities through the consultative meetings to monitor the environmental and social impacts of its forestry operations. Nil. A flow chart of the whole process of COC control could have be established so that all staff members at the Sagan Log Pond would be able to fully understand the process. Therefore an OFI 7/2014 was raised. Page 10 of 22

11 Principle 9 The FMU had continued to gather and keep data on the yield of timber harvested from each coupe. A new set of PSPs had been established to monitor growth of the forest. The FMU had continued to implement the system for chain of custody (CoC) it had developed from the felling site to the forest gate. At the log pond, logs from the FMU were segregated from those harvested LPF logging areas. The results from the various monitoring activities had been incorporated in the revised FMP. A summary of the results of monitoring indicators had been made publicly available. The summary had also included figures on the efficiency on the management of the FMU in terms of a profit margin. The FMU had identified HCVF sites and potential HCVF sites following the procedures as described in the Malaysian HCVF Toolkit. 2 HCVF sites had been demarcated on the map and on the ground. The FMU had consulted the relevant stakeholders when determining HCVF sites. Signage with site number and conservation attribute was being maintained. The boundary of each HCVF site was marked by blue paint on tree trunks. The public summary had included the HCVF sites which the FMU had identified and the associated measures for their protection. Although an annual monitoring to assess the effectiveness of monitoring of the two HCVF sites was stated in the SOP for FR 03 HCVF and Biodiversity Module B VI but it had not been conducted. Thus, a minor NCR 5/2014 has been raised Based on the findings of this audit, it was found that Zedtee had continued to manage the Anap Muput FMU in compliance with the requirements of the MC&I (Natural Forest). This surveillance audit had resulted in the issuance of 5 Minor NCRs and 7 OFIs. The details on the NCRs and OFIs raised are shown in Attachment 3. The audit team had also verified the corrective actions taken by Zedtee to address the 3 Minor NCRs and 6 OFIs which were raised during the previous audit and found them to have been implemented effectively and therefore closed them out. There was no major NCR raised during this surveillance audit. The audit team had reviewed and accepted the proposed corrective actions by Zedtee to address the minor NCRs and OFIs raised during this surveillance audit. However, these corrective actions taken by Zedtee shall be verified by the audit team during the next audit. The details on these NCRs and OFIs, the verification on the corrective actions taken and the status of the NCRs are shown in Attachment 4. Based on the findings of this surveillance audit, the audit team had therefore recommended that the Certificate for Forest Management awarded to the Anap Muput FMU be maintained. Page 11 of 22

12 Map of Anap Muput FMU Attachment 1 Page 12 of 22

13 Attachment 2 Comments by Stakeholders and Responses by Audit Team No. Name, Organisation, date received, Address and Contact Numbers 1 Headman Rumah Gasah Written note submitted on 25 June 2014 Detail of Issue Raised No land in LPF area No logging camp next to Sg. Sg. Kemayau Company did not allow entry of lorries to carry Belian wood. Company paying less for timber harvested. Supply of diesel terminated Anap Muput Corporation objectives not achieved Comments by Audit Team Leader LPF was not included under the scope of this certification audit. A NCR raised on the need to control pollution. FMU had to protect its area under the Standard and to enforce total COC control on all timber leaving the forest. Sale of timber had been negotiated as willing buyer and seller. These issues should be discussed under the ASDULC meeting. Page 13 of 22

14 NCRs and OFIs Raised During this Audit and Corrective Actions Taken (2014) Attachment 3 Detail Non-conformances Minor NCR 1/2014 The construction of skid trail ST- 1-1 in Block 53 of Coupe 14A following the old trail had passed through a short stretch of the neighbouring forest without the field workers being aware of the boundary Minor NCR 2/2014 Instead of conducting its own meeting, the Safety and Health Committee was held together under the Staff and management Meetings starting from May The minutes of the meetings had only included discussions related to the safety and health of the workers. The Safety and Health Committee should have conducted its own Committee meeting and prepare a separate minutes of the meeting. Corrective Action Plans Taken Immediate action: (1) All relevant workmen and logging supervisors had been alerted to be aware of the boundary which had been repainted and signposted. (2) The tree fellers shall be specifically shown the boundary with relevant warning before the commencement of felling along ST-1-1. Stringent supervision during harvest. Preventive action: (1) FMU Forest Survey Department shall conduct a review of the competence of the surveyors in fulfilling the RILP requirements. (2) Only experienced/competent surveyors shall be assigned to carry out RILP preparation for logging blocks along the common boundary. (3) On-going discussions would be held with SFC on SOP for PEC management affecting coupes along common boundary for prevention of encroachment and illegal felling involving licensees Immediate action: The Health and Safety Committee would be established as an independent and separate committee from the Management-Worker Committee (for compliance with legislation). Preventive action: The SOP manual shall be revised to clearly define the terms of reference of the Health and Safety Committee. Comments by Audit team Both the immediate and preventive measures implemented by the FMU were appropriate. The training to keep all field workers alert on the importance of boundary with neighbouring FMUs was most critical. Both the proposed immediate and preventive actions were accepted. The preventive action would be verified in the next surveillance. The audit team had reviewed and accepted both the immediate and preventive actions. The verification of these corrective action would be verified during the next surveillance audit. Page 14 of 22

15 4.2.4 Minor NCR 3/2014 The number of accidents had increased from 3 in 2012 to 6 cases in 2014 but the reason for the increase was not analysed by the Safety and Health Committee to determine the root causes so as to avert reoccurrence. The 3 cases in 2012 involved a mechanic and two chainsaw operators. The 6 cases in 2013 involved 3 mechanics, 2 truck drivers and 1 surveyor (bitten by snake); 3 cases filed with SOCSO in 2014 involved 2 traffic accidents outside the FMU and 1 surveyor (injured nose while cutting rentis). Immediate action: (1) All cases had been reviewed by the Management-Worker Committee for the respective Unit Head to follow through with the appropriate remedy. (2) These and future cases shall be recorded and dealt independently by the Health and Safety Committee. Preventive measures: (1) Continuing training in Occupational Safety and Health for all workmen. Identify and supply safety equipment to workmen where appropriate. (2) Improved workshop layout and facility for the planned permanent camps at Muput and Belawit. (3) Improve safety condition at Ayam workshop where appropriate. (4) Control traffic movement into and within FMU; improve road signage between the Sangan dumping point and FMU for other users. The explanation on the accident cases was noted. As these cases had been reviewed the immediate action could be accepted. The training to be conducted and increase safety measures would be verified during the next surveillance Minor NCR 4/2014 Minor NCR 4/2014 During the field inspection, it was observed that the domestic waste water from the mobile homes at Sg. Kemayau was discharged into drains that lead directly to the river. The headman of Rumah Gasah had also raised the issue of potential pollution of the river to the audit team. Immediate action: (1) The mobile homes at Sg. Kemayau shall be decommissioned as soon as possible. (2) Domestic waste water from the mobile homes are collected in septic tanks with outfall into the forest away from the river Preventive action: (1) Extension of temporary quarters at Ayam Camp. (2) Phased construction of permanent quarters at Belawit Camp. The proposed corrective action had been reviewed and accepted by the audit team. The control of discharge from the mobile homes would prevent pollution of the river. The next surveillance would verify the construction of the new mobile camps Minor NCR 5/2014 Although an annual monitoring to assess the effectiveness of monitoring of the two HCVF sites was stated in the SOP for FR 03 HCVF and Biodiversity Module B VI but it had not been conducted. Immediate action: (1) The boundaries established to protect the HCVFs from logging/harvest were effective and maintained. (2) Monitoring of the two HCVF sites had been done. The surveillance of the HCVFs boundaries included: The proposed immediate and preventive actions had been reviewed and accepted by the audit team. The monitoring results on the effectiveness of HCVF sites would be examined in the next surveillance. Page 15 of 22

16 Stage 1 Audit April 2013 Internal Audit - June 2013 Field Inspection by research scientists - Dr Hiromitsu Samejima (September 2013), Professor Yahara (June 2014) (3) The Forest Manager shall record and prepare annual report on the monitoring activities and effectiveness of the boundaries. Preventive action: (1) Management and monitoring of the HCVFs would be based on the recommendation of the specialist officers and researchers. (2) AMFMU would incorporate future/proposed research activities within its HCVFs for revision of the management, monitoring and assessment prescription. (3) The SOP would be revised from time to time to respond to new management recommendation if any, and reconcile assessment and monitoring activities. Page 16 of 22

17 OFI Actions Taken Comment by audit team OFI 1/2014 A new main gate was under The audit team had accepted construction at KM31. the proposed action. The Owing to the proposed construction of the main gate development of a mill at Muput and decommission of Sekawie Camp the northern gate had was appropriate and would be verified during the next surveillance audit. been temporarily removed. A main gate at proposed Muput camp site could be constructed to control entry OFI 2/2014 It was observed that workers at the Sagan log pond had not been aware of the process on grievance resolution. OFI 3/2014 Social impacts study had been conducted in 2007 and a report entitled Socio-Economic Profiling and Agroforestry Options Among Communities Within and Surrounding the Anap-Muput Forest Management Unit Tatau, Bintulu Dision, Sarawak had been prepared. The report could have been revised and updated with recent data gathered as inputs in forest planning and management practices. The Administration Department and person in-charge of the Sangan Camp would conduct a review and tutorial on grievance resolution and other related processes/procedures for the workers at Sangan Camp in July AMFMU would continue to monitor socio-economic dynamics within ASDU as a result of the implementation of the ASDU IRCM Plan and impacts wrought by the SCORE development projects and the Sangan-Melukan road. The social report would be revised and up-dated based on the recent data gathered on the socio-economic dynamics within the ASDU. The proposed action was accepted and this would be verified during the next surveillance. The proposed action had reviewed and accepted. The verification of the action would be verify during the next surveillance audit OFI 4/2014 A standard procedure of tree tagging had been instituted within the FMU. There were two incidences where the number of supplementary tags was more than the tags issued to trees for felling. This would have to be minimized. The relevant department would take the necessary action for training and supervision. The proposed corrective action had been accepted and the verification would be done during the next surveillance audit. Based on the RIL assessment conducted on 27 March 2014, it was suggested that the forest surveyor had failed to tag some harvestable trees during the RILP preparation while the logging team had produced a passable RIL performance OFI 5/2014 The data from the PSP plots established within the FMU could be analyzed to provide AMFMU would commence remeasurement of PSPs in January 2015 to assist Forest Department Sarawak in the related studies and justification The proposed corrective action would be reviewed during the next surveillance audit. Page 17 of 22

18 support to the changes made in the harvesting diameter limit. of changes to the cutting limits and harvest cycle OFI 6/2014 Nesting tree for hornbills at KM 66 could be protected and marked for protection as part of the programme for protection of forest flora and fauna. (1) The identified Meranti tree at Km66 had been painted in Blue for protection and demarcated in the Geographical Information & Biodiversity Database (GIBD) for protection. The immediate action to mark the tree was accepted. The proposed action to identify and demarcate all nesting trees would be verified during the next surveillance audit. (2) AMFMU would carry out similar identification and demarcation of all nesting trees visible and accessible from logging roads which were not decommissioned OFI 7/2014 A flow chart of the whole process of COC control could be established so that all staff members at Sagan Log Pond are able to fully understand the process. (1) COC Department would conduct a tutorial of the COC process for the staff at Sangan Camp in July (2) A simplified COC flowchart would be posted at Sangan Camp during the tutorial. Both of the proposed actions were accepted but the verification would be done during the next surveillance audit. Page 18 of 22

19 Attachment 4 Verification on Corrective Actions Taken on NCRs and OFIs Raised During Previous Audit P & C Detail Non-conformances Corrective Action Taken Verification by Auditor and status of NCR Minor NCR # 1/2013 (1) FMU had disseminated The audit team had verified up-to-date information on and was satisfied with the Records of dissemination of up-todate safety and health through corrective actions taken. information on safety and a Safety & Health Minor NCR 1/2013 was health o forest workers based on Guidelines pamphlet that therefore closed out. Occupational Safety and Health Act was attached to Workers 1994 as well as guidelines on Handbook issued to all occupational safety and health in staff. logging operation had not been (2) In house training was presented to the audit team. conducted on 21 June 2013 at Sekawie Camp. (3) An assessment on the understanding of the training was conducted. (4) During a site inspection at the harvesting site at Coupe 14 the members of the harvesting team were able to present these documents to the audit team Minor NCR #:2/2013 The used lubricant oil, fuel, tyres, containers, liquid and solid nonorganic wastes, were not disposed off in an environmentally appropriate and legally acceptable manner. SOP EM/06-Scheduled Waste (SW) Oil prepared by the FMU had not being complied with as it was observed that containers for used lubricant were not disposed off as scheduled in the SOP at the Ayam Camp. There was no containment for diesel storage containers at rumah tarik at Blocks 7 and 10, Coupe 13A There was no appropriate labelling of the used engine oil collected at the workshop in Sekawie Camp At the Sekawie Base Camp the containment for the diesel storage was smaller than the prescribed 110% requirement. (1) All the mobile quarters operating in the forest had been issued with steel pans to contain any seepage of fuel into the ground. (2) The Sekawie Camp had been decommissioned on October 2013 and the storage skid tanks had been moved to Ayam Camp where containment was constructed. (3) Disposal of Scheduled Wastes was conducted according to EQA specifications. The corrective actions that had been implemented were verified during this surveillance audit by the audit team and found to be adequate in addressing this minor NCR. Minor NCR 2/2013 was therefore closed out Minor NCR # 3/2013 The public summary made available in the web page The publicly available public summary had included figures on the efficiency of the FMU management with a The publicly available summary was verified during the surveillance. This minor NCR 3/2013 was therefore Page 19 of 22

20 Public Summary anapmuputfmu.com does not include costs and efficiency of forest management profit margin in link 16 Extract of Audited Financial Report. closed out. Page 20 of 22

21 Details Verification by Auditor OFI # 1/2013 Briefing to field staff on the FMU s Policy Statement of Sustainable Forest Management of the Anap-Muput FMU and MC&I (Natural Forest) had not been conducted to familiarise them on the requirements of these documents. OFI # 2/2013 The process on resolution of grievances could be enhanced by providing briefings to the field staff. OFI # 3/2013 It was observed that Zedtee Sdn Bhd s financial report did not separate the costs of research and human resource development, protection, environmental and social aspects. Additionally, expenses on conservation, environment and social aspects were not clearly defined. OFI # 4/2013 It was observed that the field workers at the harvesting sites in Blocks 9 & 10 had not clearly understood on the need to protect the endangered, rare and threatened (ERT) species. OFI # 5/2013 The FMU had used the consultative meetings with the relevant authorities and local communities to assess and monitor social, ecological, environmental and economic impacts of its forestry operations. This process could be Briefings to field staff on the Policy and MC& I (Natural Forest) was conducted on 17 July Presentation materials and attendance list were presented. OFI# 1/2013 was closed out. The process on resolution of grievances was presented in the Grievance Procedure Flow Chart and also in the Management Worker Committee Grievance Form. SOPs for LR/02 Grievance Procedure, LR/04 Maintenance of Worker Committee and LR/05 Management-Worker Committee Meeting Management were presented during this surveillance. Briefing on 17 July 2013 on the process of presenting grievances to field workers was conducted. OFI# 2/2013 was closed out. A proposed budget of expenditures from 1 May 2015 to 30 April 2016 was presented during the surveillance. This budget had included local community benefits, training for staff under worker benefits while other expenses on environment were placed under operating expenses. The breakdown on the contribution to various communities for Gawai celebration in 2014, and 2013 were also presented. OFI# 3/2013 was closed out. In order to enhance the workers awareness on the need to protect the ERT species, the FMU had taken the following actions: (1) Posters on protected flora and fauna were distributed to long houses and were displayed in the base camp. (2) The circular from the Director of Forest DF 6/00 banning all hunting and selling of wild meat and closing of feeder roads on completion of harvesting activities was posted in the canteen at the base camp. The circular was also posted at the FMU/LPF boundary at Sg. Muput, entrance to base camp, junction to Coupes 14, 15 and 16 as well as the southern entrance security gate. OFI# 4/2013 was closed out. The FMU had constantly consulted its stakeholders especially through the ASDULC meetings..the minutes and summaries of meetings were presented during this surveillance. The impacts of different activities within the FMU were recorded. OFI# 5/2013 was closed out. Page 21 of 22

22 8.3.1 improved with documentation on the different impacts and progress in the monitoring report. OFI # 6/2013 It was observed that the clerks in charge at the Sagan log pond had not been able to properly understand on the chain of custody control mechanism The management had given hands-on instructions to the clerks which had enabled them to better understand the process and control mechanisms related to CoC. Based on consultations held with these clerks they were able to demonstrate the whole process of CoC and the related documentations. OFI# 6/2013 was closed out. Page 22 of 22