Compliance Checklist / Report

Transcription

1 Compliance Checklist / Report TLAS SFMLA Sabah Licensee Details Company: Hijauan Bengkoka Plantations Sdn. Bhd. Ref #: G Date: 1 Oct 2014 Address: KK Office: Lot 2.10 & 2.11, 2 nd Floor, Jalan Asia City, Kompleks Asia City, 88000, Kota Kinabalu, Sabah, Malaysia. Contact: Bernd Hahn-Schilling (Chief Forestry Officer) bernd@hijauanasia.com.my Tel: Fax: Assessment Date 8 th 12 th September 2014 Assessment Details GFS Lead Assessor GFS Assessor(s) SFD Staff SFD Staff Lai Jia Woei Dayang Hanisah Maidin and Rex Thomas Subari Suparlan (FLEGT officer) Mohd. Noor Ahmad (DFO Pitas), Kenson Gunting (KPPM Pitas) and Jory Julhani (PPM Pitas) OBJECTIVES: The objective of this checklist is to verify compliance to the conditions listed in the Timber Legal Assurance System for Sabah All issues identified under this standard shall be considered appropriate to the scale and degree of forestry operations undertaken by the parties under the agreement Hijauan Bengkoka Plantations Sdn. Bhd. Page 1

2 Overview of Licensee and history Summary Information In 1976, Sabah Forest Development Authority (SAFODA) was established by the State Government of Sabah, with the initial objective to reforest 250,000 ha of degraded land dominated by lalang (Imperata cylindrical) mainly in the northern and interior regions of Sabah. However, owing the various problems of land acquisition and further land re-delineation and degazettement exercise currently SAFODA has a land bank of about 63,000 ha throughout Sabah, mainly in the Bengkoka area (Pitas District), Kota Marudu District, and Keningau District. The first trial plantation of Acacia mangium in the Bengkoka Plantation was established by SAFODA in the year 1981, followed by planting of an area of 17,000 ha on the Bengkoka Peninsula. In year 1982, SAFODA introduced the Reforestation and Re-settlement Scheme at Bongkol, which involved the resettlement of 200 local families into a centralised housing scheme. This was the first attempt in the state of Sabah to resettle shifting cultivators into settlement housing, using forest plantation establishment as the vehicle for economic development. A 4,000 ha pilot forest plantation was then financed under a World Bank pilot project between 1985 and During these period SAFODA s personnel was trained in large-scale plantation establishment. Through the involvement of affected smallholders, SAFODA had a mutual agreement with them by permitting them to develop a land area of 15 acres each with Acacia mangium plantation and housing was provided. In return, SAFODA will grant the smallholder with a land title. The species planted are mainly Acacia mangium. By the year 2001, SAFODA had returned the land to the cultivators as promised for their owned use. As at the end of 2006, SAFODA had established about 18,400 ha of Acacia mangium plantations. In 2003 SAFODA had signed a 60 years joint venture project agreement with Mangium Plantations Sdn. Bhd. [now known as Hijauan Bengkoka Plantations Sdn. Bhd. (HBP)] over a total area of 25,000 ha of SAFODA gazetted land to be developed for forest plantations on the Bengkoka Peninsula. The agreement detailed the company s involvement in the development of infrastructure, training and forest management. HBP is a subsidiary company of the holding company Hijauan Asia Sdn. Bhd. Acacia Forest Industries Sdn. Bhd. (AFI), a joint venture company between SAFODA and HBP on a 50:50 equity basis, was established in year 2004 to plant and replant an area of 25,000 ha with timber species for a period ending in year HBP currently engages ten subcontractors for harvesting activities, which is: Timber Wave Sdn. Bhd., Z.R.H. Enterprise, Perusahaan Khiong Liong, Kelisa Jaya, JW Merit, B.V.Lu Enterprise, Landau Eden, SRW, Jun Kian Enterprise and Milik Wijaya. Land preparation are carried out by Teguh Asia Jaya Enterprise, K.S. Corporation, Hexa Usaha Sdn. Bhd. Planting, replanting and maintenance activities are mostly carried out by AFI s workers, and through some contracts with local companies. Hijauan Bengkoka Plantations Sdn. Bhd. Page 2

3 Land classification FMP Area (ha) Current (ha) Total Plantation Area NA 18, (*to date) Production Area - Natural Forest Management Area NA Not applicable - Plantation Forest (ITP) NA 16, (*to date) Protected Forest & Conservation Areas NA 1, (*to date) Social Community & Agriculture NA - Infrastructure, Roads, Buildings, etc NA (*to date) *As of May 2014 figure Environmental context The major land use pattern surrounding the site is dominated by a blend of shrubs, secondary forest used for mixed horticulture and wild Acacia forest. The project site was previously planted with Acacia mangium. Currently, the project site is pre-dominated by natural vegetation of secondary forest and Acacia wildings as well as undergrowth vegetation such as ferns, coarse grasses and aquatic habitat (Sg. Telaga, Sg. Malubang, Sg. Bongkol, and Sg, Kakarangan). Bengkoka and Tambalugu Forest Reserve (both are Class I Protection Forest Reserves), Bengkoka Peninsula Forest Reserve (a Class V Mangrove Forest Reserve) and Paitan Forest Reserve (a Class II Commercial Forest Reserve) can be found within and in the immediate surrounding area of project site. Existing development (human settlements and mixed horticulture) located near the proposed project have caused fewer fauna species to be found in the area. In addition, the area within the project site was previously planted with Acacia mangium. Some common faunal species, which can be found in the project area, include squirrel (Sciurus sp.), rat (Rattus sp.), dove (Streptopelia chinensis), bulbul (Pyconotus goiaver), lizard (Calotes versicolor), toad (Bufo asper), grass frog (Rana limnocharis), and tree frog (Polypedates leucomystax). A study was carried out from December 2009 to January 2010 using Malaysian HCVF identification toolkit. One compartment of 43 ha (BH 11 Wasoi Forest) stocked with natural forest of high biodiversity, including some protected plant species under Schedule II of the Sabah Wildlife Conservation Enactment Graveyards and water catchment areas of local communities to be left undisturbed. Lakes and wetland areas have been earmarked for conservation. On the fauna side, the reptiles, amphibians, freshwater fish and other aquatic life did not reveal species of any protection category. Out of the 46 bird species recorded, only two are listed as threatened: Anorrhinus galeritus and the Bushy-crested Hornbill. Besides, out of the 20 indentified mammal species, however, only several vulnerable to endangered species were reported from the Bengkoka plantation and adjacent areas: the Probocis monkey (Nasalis larvatus), the Tembadau (Bos javanicus), the Clouded Leopard (Neofelis nebulosa) and the Sun Bear (Helarctos malayanus). These species are listed under Schedule I of the Sabah Wildlife Conservation Enactment EIAs have been carried out for both timber harvesting and replanting operations at HBP. The recommended mitigation measures deal with steep slope protection, erosion, proper road maintenance, condition and maintenance of buildings, quarters and workshops, effective river protection and water quality, proper waste disposal, fire control, noise and air pollution, traffic and transportation, ecological impacts, as well as with occupational safety and heath procedures. Hijauan Bengkoka Plantations Sdn. Bhd. Page 3

4 Social context - Three social studies have been carried out in conjunction with the FMP preparation. The first Social Impact Assessment (SIA) was carried out Kiwiheng Wood & Environmental Consultant Sdn. Bhd. during the 2 nd half of 2009, covering 125 households in 14 out of 29 settlements identified within and in the vicinity of the plantation area. The second survey in regard with High Conservation Values (HCV) covering 72 households in 17 villages was carried out in December 2009 and January The first two studies served as input for the third study, which used the results for strategy development. - The FMP stated the dominant ethnic group is formed by the Rungus, followed by the Tembenuo, Sungai, Dusun, Bugis, Bajau and other minorities. SAFODA employed local people as planting contractors to establish the Acacia plantations and then to assist with silvicultural tending measures from year In year 1996 there was a change in government, and the funding to support the project has ended. Once the plantations matured, fewer jobs were required. In year 2003, the number of staff and local people employed on daily-rated pay dropped dramatically. There was no information regarding the dependency of gazetted area in the livelihood and Native Customary Rights in the current FMP. - The vast majority of people living within and surrounding the SAFODA gazetted area now are farmers. 80% of the village leaders consulted reported almost all households rely on farming for income. The primary crops are dry and wetland rice, as well as vegetables. Rubber and oil palm also planted for additional income. - Currently, AFI is carrying out a new Social Baseline Survey (SBS) since July 2014, to identify and update socioeconomic data and information of villages located inside and adjacent to SAFODA gazetted areas. To date, a total of 52 registered villages were identified. A full report on the SBS would be available in year Villages identified are as follows (to date): a) Datong: Datong, Sungai Eloi, Manggis, Kabatasan Laut, Kalipuon, Kuyuh, Tampakahu, Kinangoh, Andab, Batu 10 Lout, Kabatasan Darat. b) Malubang: Malubang, Pansuran, Dalas, Bawing. c) Maringgan: Maringgan, Mangkubau Laut, Mantaya, Naruntung, Mangkubau Darat, Suang Duyung, Tanjung Layak-layak. d) Bongkol: Bongkol, Bukit Cantik, Gumpa, Boluoh, Pagung, Kandingo, Pagasaon, Mapanmapan. e) Mangkapon: Mangkapon, Mangkapon Darat, Pongiton Polod, Pituru, Kamuning. f) Telaga: Telaga, Kodong, Liu Darat, Kandang, Kipahung,Kapuk, Liu Pusat, Lok Dangkaan. g) Latip: Latip, Untang-untang, Narandang Laut, Ampungoi, Tiomboi Dagang, Narandang Darat, Kadayan, Lumikong, Petani Baru. - Social activities benefiting the local communities were recorded and maintained. Hijauan Bengkoka Plantations Sdn. Bhd. Page 4

5 Scope of Assessment The scope of the evaluation is to verify compliance of Hijauan Bengkoka Plantations Sdn. Bhd. (HBP) to the current Sabah Legality Standard (G188c Sabah Legality Standard v04 Dec 2013). Site evaluation to verify and report the level of compliance by HBP and contractors to the standard in respect to each of the criteria within this report. Compliance is defined when the auditee demonstrates that operations have no or consist of only minor gaps identified against any applicable criteria of the standard. Non-compliance to the Sabah Legality Standard occurs when the auditee does not demonstrate adequate compliance to a criterion. Itinerary of Assessment Date Activity 8 th September 2014 Travelling to Pitas and Opening Meeting (Overnight in Pitas). Site visit to BD 23 (Acacia second cycle planting and maintenance area, Pilipino Group F workers campsite), BD20/Forest Reserve boundary, BD 18 (Acacia harvesting area), harvesting contractor campsite (B.V. Lu Enterprise and Milik 9 th September 2014 Wijaya), BD 18 Kipahung COC gate, Bawing Logyard, encroached area by settlers of Kg. Mangkubau, MY 4 Mantaya Camp, MGN13/SAFODA/Bengkoka Forest Reserve/UN6 boundary, Bukit Balaman fire tower, interview local communities representative (WKAN), AFI/HBP site office (Overnight in Pitas). 10 th September 2014 Document Review at AFI Bongkol site office (Overnight in Kota Kinabalu). 11 th September 2014 Document Review at Hijauan Bengkoka Plantations KK office (Overnight in Kota Kinabalu). 12 th September 2014 Closing Meeting and travelling back to Sandakan. Highlights of Assessment Hijauan Bengkoka Plantations Sdn. Bhd. (HBP) has complied with the Sabah Legality Standard (G c - Sabah Legality Standard v04 Dec 2013) as no non-compliance was identified during the assessment in September HBP is given harvesting rights by SAFODA to carry out Acacia mangium harvesting within the SAFODA gazetted area, covering the remaining mature Acacia mangium timber stocks planted by SAFODA (1 st rotation). A joint venture company named Acacia Forest Industries Sdn. Bhd. (AFI) was established in October 2004 on a 50 : 50 equity basis between SAFODA and HBP. The objective of this company is to carry out replanting of harvested Acacia forestsfrom 1 st rotation and to undertake new plantings in additional areas to achieve an overall planted area of 25,000 ha. The operation on ground starts with HBP harvesting the mature stocks from 1 st rotation. Following completion of harvesting, these areas will be replanted by the AFI. For this purpose, SAFODA transfers the resource management rights of the harvested areas to AFI. In addition, SAFODA identifies new extension areas on their gazetted land which will be developed by AFI. New planting areas involve land clearing, planting, and subsequent Hijauan Bengkoka Plantations Sdn. Bhd. Page 5

6 Highlights of Assessment maintenance and silvicultural activities until the stands are ready for harvesting in about 10 years time. Due to the involvement of both companies in harvesting and replanting operations, the assessing team will assess HBP and AFI as one management unit. The operations of both companies are covered by a joint 10-year Forest Management Plan ( ). HBP was audited voluntarily under Sabah Legality Standard using TLAS SFMLA Sabah checklist. Given the land status of SAFODA as government gazetted land, many of the criteria in this checklist (which is designed for SFMLA assessment) were not applicable to HBP. Nonetheless HBP has demonstrated legal compliance throughout this assessment. Current status of operations: To date, the total of gross area obtained for harvesting is 18,455 ha. A total of 11,573 ha have been handed over to AFI for reforestation development. Total area established by AFI as of August 2014 is 8,328 ha. The FMP mid term review is scheduled for the last quarter of year HBP and AFI management have decided to diversify planting species (Eucalyptus pellita and Hevea brasiliensis) to be planted at commercial scale commencing 4 th quarter AFI is carrying out a new Social Baseline Survey at local communities, which are located within and adjacent to the operation area. Final results and participatory mapping will be available by year The assessment identified two observations in respect to: C : a) All (10) HBP s harvesting subcontractors are not registered with the Sabah Forestry Department. b) Two out of seven workers sampled were not able to provide legal documents by their employer (B.V.Lu Enterprise and Milik Wijaya Enterprise). C : Observed oil spillage at the back of Milik Wijaya s workshop. Results: No gaps were raised against indicators & criteria during the September 2014 assessment. GAP Type Checklist Description Status Highlights of Close out visit (if applicable) Not applicable. Date Hijauan Bengkoka Plantations Sdn. Bhd. Page 6

7 Recommendations Hijauan Bengkoka Plantations Sdn. Bhd. (HBP) is recommended to receive a Statement of Compliance based on compliance with the Sabah Legality Standard (G c - Sabah Legality Standard v04 Dec 2013) requirements. All observations must be addressed by the next surveillance visit scheduled for September Actions required to improve identified observations include: HBP is required to check the applicability of sub-contractors and machinery registration with Sabah Forestry Department. To carry out frequent monitoring to ensure compliance of sub-contractors to all rules and regulations as stipulated by relevant Government Departments. End of Summary Report Hijauan Bengkoka Plantations Sdn. Bhd. Page 7