Sabah TLAS Audit Report
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1 Sabah TLAS Audit Report Sabah Legality Standard Principles 1 4 Licensee Contact Person Office Address Rakyat Berjaya Sdn. Bhd. (Licensee) Sarjana Hartamas Sdn. Bhd. (Contractor) Banting Yukang (RBJ OIC) Albert Tsin (Sarjana Hartamas) Keningau Office: Pusat Kraftangan Sabah, KM5 Jalan Apin-Apin, Peti Surat 961, Keningau, Sabah. Sarjana Hartamas Sdn. Bhd. Lot 12, Yee Shing Commercial Centre, Jalan Masak, P.O. Box No.1037, Keningau. Reference # G Date of Report Date of close out 11/06/2017 Telephone (RBJ) Fax (RBJ) emonday6700@gmail.com Approved By Dr. Kevin T. Grace Statements Audit Statement GFS 102 LVS Issuance Date 01 July 2017 Expiration Date 30 June 2018 Assessment Details Assessment Dates June 2017 Scope of Assessment TLAS Principles 1-4: RIL Harvesting, SFMLA 09/97, KGU.01/16 (YS 1/06) Species Dryobalanops spp. (Kapur), Dipterocarp spp. (Keruing), Shorea inappendiculata (Selangan batu), Koompassia malaccensis (Impas), Parashorea spp. (White seraya), Shorea spp. (Red seraya, Yellow seraya, Melapi), Sapotaceae spp. (Nyatoh), Shorea pauciflora (Oba suluk), Neolamarckia cadamba (Laran), Duabanga moluccana (Magas), Octomeles sumatrana (Binuang), Planchonia valida (Putat), Lithocarpus & Quercus (Mempening), Cotylelobium spp. (Resak batu), Hopea sangal (Gagil), Macaranga spp. (Sedaman), and Tristaniopsis merguensis (Pelawan-pelawan) Lead Assessor Paramjit S. Gill Assessor(s) Mohd Akram Mansur, Dayang Hanisah Maidin, and Salapan Amat FDS Staff Daim Balingi (FLEGT Officer), Henry Ladsou (Sook DFO), Sunanto Saibu (ADFO Sook), Evan Akong (KPPM Pandiwan), Julius Janusip (MCEE Keningau) OBJECTIVES: The objective of this checklist is to verify compliance to the Criteria listed in the Sabah Legality Standard as defined by Principles 1-4 for Sabah dated 01 st January 2015 (FDS-TLAS-002). Compliance is defined when all applicable criteria are observed to be compliant. A Minor Gap to any indicator does not constitute non-compliance to a criterion. A Major Gap to any applicable indicator does reflect non-compliance to a criterion. Compliance for a criterion where multiple minor gaps are identified in indicators under the criterion may reflect non-compliance to the criterion. 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. 1
2 Summary Information Overview of Licensee: Coupe YS 1/06 covers an area of 2, ha which is part of the Natural Forest Management area under the FMU 15. Coupe YS 1/06 is part of a greater area licensed by the State Government of Sabah to Yayasan Sabah Group by way of the Sustainable Forest Management License Agreement (SFMLA) 09/97. Through its Clause 120, empowers Rakyat Berjaya Sdn. Bhd. to manage the concession area. Rakyat Berjaya Sdn. Bhd. (RBJ) is the subsidiary company wholly owned by the the Yayasan Sabah Group. RBJ has assigned the area to be logged by Sarjana Hartamas Sdn. Bhd. The work planning and all physical works on site shall be carried out by the Sarjana Hartamas which is the Project Proponent. YS 1/06 was contracted to Sarjana Hartamas Sdn. Bhd. with the approved Coupe Permit No. KGU.01/16 which is valid for 3 years, 24 th February 2016 to 23 rd February The logging method that was approved for Coupe YS 1/06 is Reduce Impact Logging (RIL) system. Land use classification: FMU 15 Forest Zoning Land classification FMP Area (ha) Current (ha) Total Concession Area 57,990 57,670 Production Area a. Natural Forest Management Area Coupe YS 1/06 Area 37,107.20* 2, ,107.20* b. Plantation Forest (ITP) - - Protected Forest & Conservation Areas 20, , Social Community & Agriculture 0 0 Infrastructure, Roads Buildings, etc - - *NFM area (except YS 1/06) is managed by RBJ Coupe YS 1/06 Zoning Land classification Current (ha) Total Coupe Area 2, Production Area 2, Excised Area Riparian Reserve Area Steep Area Ex-Maxland Campsite 3.30 Environmental Context: The project site, YS 1/06 with a total surveyed area of 2, ha is located within the forest management unit (FMU) 15 in Sungai Pinangah Class II Forest Reserve. The elevation and topographic pattern in the project area varies between 152m and 914m above mean sea level. The geomorphology of the area is generally undulating with hills and valleys. It is drained by tributaries of Sungai Pinangah and Sungai Melikop. The forest within the project area consists of mixed dipterocarp forest. Several protected fauna species can be found within the project area which include sambar deer, barking deer, bearded pig, and orang utan. Protected birds found in the project area include the black hornbill, Argus 2
3 pheasant and magpie robin. Fishes found in streams and rivers in the project area include salab, belanak sungai, toruh, terbol, and seluang. Social Context: There are no human settlements within the project site. However, in the state land along the Sungai Pinangah, south of the area exists several villages including Langga, Tudungin, and Inarad. Access to these villagers is the dirt road connecting Keningau/ Sapulut road via junction Mile 63. Scope of Assessment The scope of the evaluation is to verify compliance of Rakyat Berjaya Sdn. Bhd. (Sarjana Hartamas Sdn. Bhd.) with the Sabah Forest Management License Agreement (SFMLA 09/97) for FMU 15. The assessment is in accordance on the terms of the agreement for the Sabah Legality Standard Principles 1-4 dated 01 st January 2015 (FDS-TLAS-002). Site evaluation to verify and report the level of compliance by Rakyat Berjaya Sdn. Bhd. and Sarjana Hartamas Sdn. Bhd. to the standard in respect to each of the criteria within this report. Compliance is defined when the auditee demonstrates that the indicators consist of none or only minor gaps 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 05 June 2017 Mon 06 June 2017 Tue 07 June 2017 Wed 08 June 2017 Thu 09 June 2017 Fri Activity Travel to Keningau and attend the opening meeting at RBJ Keningau Office Field visit to Coupe YS 1/06 Field visit to Coupe YS 1/06 Document review and compile report at RBJ Keningau Attend the closing meeting at RBJ Keningau Office and travel back to Sandakan Highlights of Assessment (Major Gaps = 0; Minor Gap = 1; Observations = 1) Rakyat Berjaya Sdn. Bhd. (Sarjana Hartamas Sdn. Bhd.) has complied with the Sabah Legality Standard (FDS-TLAS-002) as no non-compliance was identified during the assessment done from 5 th to 9 th June Summary of status of operations by Principle: Principle 1. Right to Harvest: The company demonstrated compliance to license requirements, required management planning, and submission of documents or reports such as the Environmental Impact Assessment report to the relevant authorities. Principle 2. Forest Operation: 3
4 Itinerary of Assessment Two (2) minor gaps and one (1) observation were raised under Principle 2 as follows: Gap 001/2017 (Minor) - Checklist 2.1.3: Inconsistent implementation requirements based on Environmental Compliance Reporting by EPD that included: a) Insufficient prevention and containment measures of oil spillage at generator house, lubricant storage unit, diesel kiosk and workshop; b) there were signs of garbage being burned in the open; c) recyclable items such as plastic bottles and tin cans were observed in the garbage disposal pit. An oil filter was also observed in the garbage disposal pit. Gap 002/2017 (Minor) - Checklist : Lack of safety precaution measures observed (firefighting) at the campsite. Observation Checklist 2.3.7: Removal pass sampled did not have Sabah TLAS Compliant stamp. Principle 3. Statutory Charges: The licensee had paid the applicable licensing fees and other charges to the District Forestry Office Sook such as FD machineries registration, occupational permit, Property hammer mark, logs royalties and removal pass fees. Principle 4. Other User Rights: There are no human settlements within the project site. However, RBJ (licensee) maintained records of meeting and consultation between communities for the whole FMU 15. Results: (Compliance = 13; Non-Compliance = 0) Gaps were raised against indicators & criteria during the June 2017 assessment. GAP Type Checklist Description 001/2017 Minor Inconsistent implementation of relevant environmental mitigation measures as stipulated in the approved EIA report. 002/2017 Minor No fire extinguisher was provided at generator house and two fire extinguishers in the campsite were observed with expired validity dates. Status of previous outstanding Gaps. GAP Type Checklist Status Description of Close Out 001/2017 Minor Outstanding 002/2017 Minor Closed 14 th June 2017: The contractor has taken the initiative to rectify several issues such as providing oil trays at the lubricant storage unit, generator station, and the workshop The contractor removed the oil filters from the garbage disposal pit and then closed the pit. 14 th June 2017: The company has provided two fire extinguishers at the generator house and serviced and the two fire extinguishers with expired dates. (Forestry Department of Sabah: Letter reference FD/KGU/17.02/3/VOL.2/08) OBS Checklist Description The transportation permits/documents did not have Sabah TLAS Compliant stamp. According to FD 36/2016, the stamping of Sabah TLAS Compliant on the TLAS-CC verified forest products Removal Pass started on 1 st January 4
5 OBS Checklist Description The FDS is currently in the transition period of preparing the stamp. Highlights of Close Out Visit (if applicable) Dates - Not Applicable Recommendations Rakyat Berjaya Sdn. Bhd. (Sarjana Hartamas Sdn. Bhd.) has demonstrated compliance with the Sabah Legality Standard (FDS-TLAS-002) for licensed area KGU.01/16 (YS 1/06) and is recommended to receive a GFS Audit Statement and STCC from Sabah Forestry Department. Recommendations for improvement: Gap 001/2017 (Minor) - Checklist 2.1.3: Provide a concrete bund and flooring around the generator unit and oil trays under the generator unit as an oil leak containment measure. All mechanical waste (used oil and grease) must be stored in proper containers prior to disposal as scheduled waste. Provide oil trays, drip pans, and proper containers as an oil leak/ spill containment measure wherever necessary. Provide sand or sawdust to be used as absorbent for small oil leaks wherever necessary. Enforce the no open burning policy within the license area. Recyclable items such as plastic bottles and tin cans should be segregated from the organic waste material and should not be dumped in the garbage disposal pit. Make sure no schedule waste items such as oil filters and vehicle batteries are dumped in the garbage disposal pit. The next surveillance audit will be scheduled in June End of Summary Report 5
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