Compliance Checklist / Report - forest.sabah.gov.my · [email protected] Tel: ... The objective of this checklist is to verify compliance to the conditions listed in the Timber

GLOBAL FORESTRY SERVICES (M) SDN. BHD.

Kuala Lumpur : 31-9-1, Bangsar Heights, Jalan Kaloi, 59100 Kuala Lumpur, Malaysia. Tel : +6089 226 857 Fax : +6089 227 857

Sabah Branch : Block B, Ground Floor, Lot No. 6, Phase IIA, Taman Grandview, 90000 Sandakan, Sabah. Tel : +6089 226 857 Fax : +6089 227 857

Email : [email protected] Website : www.gfsinc.biz

SABAH LEGALITY STANDARD

Document Control Doc #: G100-189c Title: Sabah Legality Standard Checklist & Report Issue: 04 Date: 15 Dec 2013

FMU 23 Page 1

Compliance Checklist / Report TLAS SFMLA Sabah

Licensee Details

Company: Rakyat Berjaya Sdn. Bhd. Ref #: G132-048 Date: 25 Jan 2014

Address: Kota Kinabalu Head Office: Wisma Innoprise, Jalan Sulaiman, Teluk Likas, P.O.Box 11622, 8817 Kota Kinabalu, Sabah, Malaysia.

Tawau Office:

5th & 6th Floor, 255C, UMNO Building, Jalan Dunlop, P.O.Box 60793, 91007 Tawau, Sabah, Malaysia.

Contact: Gregory Mosigil

Andrew Garcia

Email: NA

[email protected]

Tel: +6089 772 939 / 775 418 / 771 066 Fax: +6089 763 192

Assessment Details

Scope FMU 23 – Rakyat Berjaya

Statement of Compliance GFS 006 LVS - Expires 28 Feb 2014

Assessment Date 6th – 10th January 2014

GFS Lead Assessor Lai Jia Woei

GFS Assessor(s) John Baxter and Siti Radiah Mohamad

SFD Staff Roslan Junaidi, Subari Suparlan and Hamidah Bujing (FLEGT officers)

SFD Staff Desmond Foo (ADFO PPD Kalabakan)

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

mailto:[email protected]








FMU 23 Page 2








FMU 23 Page 3

Summary Information

Overview of Licensee

Rakyat Berjaya Sdn. Bhd. (RBJ) was incorporated in 1970 to manage FMU 23 which is part of the Yayasan Sabah Concession Area (YSCA) (8 FMUs) located in the district of Kalabakan.

RBJ has license to manage FMU 23 where the operation focuses mainly on harvesting (Natural Forest Management) and planting in Mosaic ITP areas and Agroforestry (oil palm) activities.

Tenure is based on

o The SFMLA 09/1997 agreement which commences on 10th September 1997 for a hundred year period, will expire on 10th September 2097 for all the activities within the concession area.

o A supplementary agreement to reduce the concession area from 799,828ha to 599,828ha was signed on 15th February 1999.

o Tree Plantation and Forest Management Agreement - JP (TKA) 122/96(Co) 24 April 1996 -106,310 ha and Supplemental Agreement upon JP (TKA) 122/96(Co) – 200,000 ha -15 February 1999 for NFM and tree planting area that falls under Benta Wawasan area.

Currently there are two companies that have been awarded to manage and operate the oil palm plantation within FMU 23, and there are; Serijaya Industri Sdn. Bhd. and Benta Wawasan Sdn. Bhd.; while two other companies are awarded as NFM harvesting contractors and there are; Makro Karisma Sdn. Bhd. and Empayar Kejora Sdn. Bhd..

Land classification FMP Area (ha) Current (ha)*

Total FMU Area NA 101,163

NFM (SFMLA)

NFM Heli (SFMLA)

Benta 2A

Benta 2B (BW6/00)

Benta 2B(BW 8/99, BW 8/00-04)**

Benta 1

11,934.61

1,145.47 3,368.97

2,852.89

28,374.00

17,889.37

Plantation Forest

Benta 2A (ITP)

Benta 1 (OPP)

NA

3,689.24

28,942.62

Severely Degraded / Burnt Forest NA 0

Protected Forest & Conservation Areas NA 3,105.83

Social / Community NA 0 *Based on the current land use map for FMU 23 dated 21/08/2011 (refer Appendix 3: FMU 23 Land Use Map). RBJ and Sabah Forestry Department are finalising the total licensed area within FMU 23 in lieu of FMP development by UNDP. *Boundaries and features are not based on ground survey data, the area is generated from GIS boundary delineation. ** Forest Reserve Gunung Rara (Mosaic Planting by Empayar Kejora) -28,000 ha.








FMU 23 Page 4

Environmental context

FMU 23 comprises of Gunung Rara Forest Reserve.

Strips of riparian reserve for wildlife corridor are maintained along the plantation areas for elephant crossing that links to Maliau Basin and Danum Valley.

Wildlife sighted within the FMU areas are: Sumatran rhino, orang utan, proboscis monkey, sun bear, clouded leopard, tembadau, bulwar pheasant, argus pheasant, and others.

RBJ has EIA report for NFM, ITP and OPP (oil palm plantation) operations within FMU 23 plantation forest areas. The main species plan to be planted (asides from NFM area) includes: ITP (acacia) and oil palm plantation under the ITP coupe permit for agro forestry.

RBJ has EIA report for the mosaic planting area (project area) located at Benta 2B BW 8/99 and BW8/00-04. There are 2 main rivers associate to this project area; Sg. Kuamut at block 1,3,4,7,8,12,13,14,18 and Sg. Kasuyan. The project area originally was covered with 67 % classified as “large crown” lowland dipterocarp forest with a gross standing volume ranging from 390-495 m3 /ha. This is based on the map produced from statewide forest inventory carried out in 1969 and 1972, under the Canada Malaysia Colombo Plan Program. The project area was most recently logged between 7-12 years ago, and the current timber stands in the area are considered poor (less than 4 commercial trees >60 cm dbh per hectare). Common dipterocarp species still found in the resiual forests include Drybalanops lanceolata, Shorea parvifolia, S. leprosula, S. mecystopteryx and Parashorea malanonaan. Pioneer species of commercial value are Neolamarckia cadamba (laran) and Octomeles sumatrana (binuang) are found in cluster stands all over the project area.

Social context

There are no communities living inside or adjacent to FMU 23. The nearest village to FMU 24 is Kg. Makandut, which is located by FMU 26 (Luasong).

Scope of Assessment

The scope of the evaluation is to verify compliance of Rakyat Berjaya Sdn. Bhd. (RBJ) to the terms within the Sabah Forest Management License Agreement (SFMLA 09/97) for FMU # 23.

The assessment is in accordance on the terms of the agreement for the “Sabah Independent Auditing of SFMLA” based on the current Sabah Legality Standard (G188c Sabah Legality Standard v04 Dec 2013).

Site evaluation to verify and report the level of compliance by RBJ 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.








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Itinerary of Assessment

Date Activity

6th January 2014 Travel from Sandakan to Tawau and opening meeting (overnight in Tawau).

7th January 2014 Travel to Empayar Kejora: Coupe boundary YT1/12 (1) & (2), C23 B143 and C25 B27 salvage logging, sub-contractors campsites (Zat Istimewa, Dat Sing Timber, Vivadaya, and Aktif Baru), gates. To Serijaya Industri for document review (overnight in Luasong).

8th January 2014 a) Travel to Makro Karisma campsite, C657 (NFM RIL harvesting) and sub-contractors’ campsite (Bidara Bumimas and Danasaba workshop).

b) Travel to Serijaya Industri [Labau and Luasong Estate] and Benta Wawasan [Ramin Estate] (overnight in Tawau).

9th January 2014 Documentation review in RBJ Tawau office (overnight in Tawau).

10th January 2014 Closing Meeting and travel back to Sandakan.

Highlights of Assessment

Rakyat Berjaya Sdn. Bhd. (RBJ) has not complied with the Sabah Legality Standard (G100-188c - Sabah Legality Standard v04 Dec 2013) as one outstanding Major Gap (Gap 005/2013 Major), which was identified again during this assessment in January 2014. Two outstanding minor gaps were closed and there are 3 remaining outstanding minor gaps in this assessment. Current status of operations:

There are four entities operating within FMU 23, that include: Benta Wawasan, Serijaya Industri, Makro Karisma and Empayar Kejora. Benta Wawasan and Serijaya Industri manage the agro-forestry (oil palm plantation) areas; while Makro Karisma conducts RIL harvesting operations in NFM areas and Empayar Kejora is assigned to carry out both RIL harvesting and mosaic planting operations within FMU 23.

The assessment identified one outstanding Major and three outstanding minor gaps in respect to:

a. GAP 002/2013 minor - Criterion 1.3: The existing RBJ’s land use map is incomplete as RBJ and Sabah Forestry Department is currently in the process of mapping all Yayasan Sabah licensed area, in view of the preparation of FMU 23 Forest Management Plan (FMP) in collaboration with UNDP.

b. GAP 004/2013 minor - Criterion 3.2: The FMP is only limited to the management of the 28,000 ha of Gunung Rara Forest Reserves under Empayar Kejora’s mosaic planting area and does not define management systems, sustainable yield and Annual Allowable Cut (AAC) for the entire Forest Management Unit (FMU 23) at present.

c. GAP 005/2013 Major - Criterion 10.1: Certificate of Identity (CI) of contractors’ workers is in the process of renewal. Benta Wawasan Ramin Estate has not applied CI for workers. Two labour quarters at Serijaya Industri do not have proper sanitation facilities. General cleanliness at sub-contractors campsite is very poor as indiscriminate littering was observed strewn around the camp. Evidence of trash burning was observed. First aid kits at all contractors’ campsites are available but require replenishment.

d. GAP 006/2013 minor - Criterion 10.2: Fire extinguishers at sub-contractor camps need to be serviced and replenished. Evidence of oil spillage on the ground at the diesel tank area was observed at Empayar Kejora (Dat Sing Timber), Serijaya Industri (Luasong Estate) and Benta Wawasan (Ramin Estate).








FMU 23 Page 6

Results: The following GAPS were raised against indicators & criteria during the Feb 2013 & again during the January 2014 assessment.

GAP Type Checklist Description

002/2013

Minor

1.3

The existing RBJ’s land use map is incomplete as RBJ and Sabah Forestry Department is currently in the process of mapping all Yayasan Sabah licensed area, in view of the preparation of FMU 23 Forest Management Plan (FMP) in collaboration with UNDP.

004/2013

Minor

3.2

The FMP is only limited to the management of the 28,000 ha of Gunung Rara Forest Reserves under Empayar Kejora’s mosaic planting area and does not define management systems, sustainable yield and Annual Allowable Cut (AAC) for the entire Forest Management Unit (FMU 23) at present.

005/2013

Major

10.1

a. Certificate of Identity (CI) of contractors’ workers is in renewal process. Benta Wawasan Ramin Estate has not applied CI for workers.

b. Two labour quarters at Serijaya Industri (Luasong Estate) do not have proper toilets.

c. General cleanliness at sub-contractors campsite is poor, as litters are observed strewn around the campsite.

d. Evidence of trash burning is very obvious as observed by the assessing team.

e. First aid kits at all contractors’ campsites are available but require replenishment.

006/2013

Minor

10.2

a. Fire extinguishers at sub-contractors’ camps need to be serviced and replenished.

b. Evidence of oil spillage on the ground at diesel tank areas was observed at Empayar Kejora (Dat Sing Timber), Serijaya Industri (Luasong Estate) and Benta Wawasan (Ramin Estate).

Highlights of Close out visit (if applicable) Date

Major Gap 005/2013 must be addressed by 28 Feb 2014

Recommendations

Outstanding Major Gap 005/2013 has been identified during the assessment and must be addressed by 28 Feb 2014. Rakyat Berjaya Sdn. Bhd. (RBJ) can only be recommended for reissuing the Statement of Compliance for FMU 23 based the Sabah Legality Standard (G100-188c - Sabah Legality Standard v04 Dec 2013) requirements.








FMU 23 Page 7

All minor gaps have to be addressed by the next surveillance visit scheduled for January 2015. Actions required to address the gaps identified includes:

a) GAP 002/2013 minor – The land use map need to be updated to include all activities operating within FMU 23.

b) GAP 004/2013 minor – To expedite the FMP preparation of FMU 23 to define a change in the management of the land use policy for FMU 23, as well as to include sustainable yield and Annual Allowable Cut (AAC) for the forest management unit.

c) GAP 005/2013 Major – To expedite the application and renewal of Certificate of Identity (CI) with the forestry department. Proper sanitation and first aid kit should be made available at all working and living areas. The licensee should constantly remind their contractors that they are prohibited from conducting open trash burning of any type of waste within the FMU. Non-biodegradable and biodegradable waste should be segregated based on the material and not to be dump into the landfill area indiscriminately. First aid kits at all contractors’ campsites need replenishment.

d) GAP 006/2013 minor – a) Expired fire extinguishers should be replaced and should adequately be allocated at all strategic working and living areas. b) It is important that all contractors and sub-contractors to construct oil traps at their diesel tank areas such as; genset room, lubricant store and workshops to avoid oil spillage as per the policies stipulated in the EIA.

Besides, six observations are recorded for improvements as follows:

a) Copies of License Agreement JP(TKA)122/96 (CO) and operational documents are to be extended to all estate.

b) To follow up the renewal of Occupation Permits. c) Name of person and its identity, as well as the purpose of entry should be written in detail in the

gate registry book of Empayar Kejora. A proper system to record details of personnel or visitors entering into the area should be implemented.

d) Serijaya Industry was directed by Sabah Forestry Department to carry out silviculture activities in all of its remaining conservation areas above 20o to be included in AWP 2014. It is advised that the company to seek advice from the Sabah Forestry Department for which silvicultural activities are best suit for the area planned.

e) The licensee is suggested to develop one master AWP copy instead of preparing the AWP separately. As for that, contractor can extract their part of activities and developed a sub AWP for their own purpose.

Licensee AWP

Benta Wawasan AWP

Empayar Kejora AWP

Makro Karisma AWP

Serijaya Industri AWP








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f) In order to have a better understanding on each responsible entity operating within the forest management unit, it is pertinent for the licensee to explain the role of their contractors and sub-contractors in order to manage their respective areas in a compact, efficient and systematic manner. As well, all contractors and sub-contractors have to ensure open communication and cooperation with forestry department, since they are the authority and custodian of all forest reserve land area in the state of Sabah.

End of Summary Report








FMU 23 Page 9

Principle 1. Right to Harvest

Criterion 1 : License to Harvest

1.1 The organisation shall provide documented verification of legal use rights to the forest in the form of a SFMLA agreement, current harvesting & occupation permits approved by SFD.

FINDINGS: 1.1.1 Signed License Agreement

- The current FMU 23 boundary delineated on the map was based on natural boundaries set by forestry department. Based on the referred boundary, FMU 23 area covers 2 license agreements: SFMLA 09/97 for the Yayasan Sabah (Tawau region) coupe area (NFM are planting area) and JP(TKA)122/96(Co) for Benta Wawasan area (both NFM and planting area).

Signed SFMLA License Agreement (SFMLA 09/97) dated 10 September 1997 and expires on 9 September 2097.

Signed Tree Plantation and Forest Management Agreement JP(TKA)122/96(Co) for an area of 106,310 ha dated 24 April 1996. The existing Tree Plantation License Agreement presented during the assessment does not have a link to the reference # JP(TKA)122/96(Co). This number is used as reference number to Benta Wawasan license area in the approved coupe permits and land use map. No license number was observed on the tree license agreement, however locality of the designated license area is accurate to the current land use map. The assessment team verified the total area recorded in the Data Resource Accounting kept by Forestry Department in SFD HQ is accurate to the signed license agreement.

A signed Supplemental Agreement upon JP(TKA)122/96(Co) for an area of 200,000 ha dated 15 February 1999.

Benta Wawasan manage the area cater under the tree license agreement JP(TKA)122/96(Co) and the supplemental area. Benta Wawasan is permitted to plant oil palm within the given ITP area for approximately 92,000 ha under slopes 0° - 20° for a period not exceeding 30 years. After 30 years, the area would be with replanted with trees crops (Letter reference #: JPHTN/ PP (5) 100-24/12.1/3/14 dated 17 June 2004).

1.1.2 Coupe Permit # & 1.1.3 Expiry date

- NFM active coupe permits:

No. Coupe Permit # Block # Expiry Area (ha)

1 TWU 12/11 BW 06/04 29/3/2014 1,547

2 TWU 11/11 BW 06/03 29/3/2014 1,639

3 TWU 10/11 BW 6/02 29/3/2014 1,426

4 TWU 12/08 YT 1/08 30/06/2014 5,938

5 TWU 39/07 BW 04/01 27/08/2037 1,769

6 TWU 10/07 BW02/02 10/4/2037 534

7 TWU 06/12* YT 1/12(1) 28/05/2062 9,574.2

Total area 22,427.2

GAP #: (M / m)








FMU 23 Page 10

* Empayar Kejora Mosaic Planting Area

- Valid agro forestry coupe permit (oil palm plantation) that is managed under

License Agreement JP(TKA)122/96 (CO):

No. Coupe Permit # Block Expiry Area (ha)

1 TWU 23/06 BW 14/01 27/08/2036 1,070

2 TWU 36/07 BW 12/01 27/08/2037 1,543

3 TWU 37/07 BW 12/02 27/08/2037 2,883

4 TWU 58/07 BW 6/01 21/02/2038 2,096

5 TWU 19/08 BW 12/03 12/10/2038 2,292

6 TWU 11/09 BW 12/04 28/10/2039 920.03

7 TWU 09/08 BW 10/03 13/05/2038 1,520

8 TWU 17/07 BW 5/02 20/06/2037 1,857

9 TWU 12/09 BW 12/05 28/10/2039 1,382.62

10 TWU 10/07 BW 2/02 10/04/2037 534

11 TWU 20/05 BW 10/00 22/08/2035 495

12 TWU 25/06 BW 10/01 29/08/2036 1,283

13 TWU 24/06 BW 10/02 27/08/2036 1,113

14 TWU 05/06 BW 5/01 02/05/2036 1,799

15 TWU 39/07 BW 4/01 27/08/2037 1,769

Total area 22,556.65

1.1.4 Occupation Permit # & 1.1.3 Expiry date

- Valid Occupation Permit within FMU 23 (SFMLA area):

15 out of 26 OP have expired and in the renewal process (Observation):

No. OP # Purpose Expiry Area (ha)

1 JP (KA) OP 30/2008* MKSB Campsite

16/07/2013 0.90

2 JP (KA) OP 25/2008* MKSB Logging Road

11/06/2013 8.96

3 JP (KA) OP 29/2008* MKSB Landing site

16/07/2013 5.19

4 JP (KA) OP 148/2008 MKSB Logging road

07/05/2014 36.39


16/07/2013 0.51

6 JP (KA) OP 111/2008* MKSB Logging road

23/10/2013 0.71

7 JP (KA) OP 112/2008* MKSB Logging road

23/10/2013 0.39


21/09/2013 0.58


21/09/2013 0.24


21/09/2013 0.59


21/09/2013 0.23








FMU 23 Page 11


21/09/2013 0.10


21/09/2013 0.88


21/09/2013 0.72


21/09/2013 0.26

16 JP (KA) OP 12/2012 EKSB Campsite

31/12/2015 3.79

17 JP (KA) OP 09/2012 EKSB Nursery

31/12/2014 9.14

18 JP (KA) OP 10/2012 EKSB Landing

31/12/2014 18.03

19 JP (KA) OP 23/2012 EKSB Logging Road

31/12/2014 86.648

20 JP (KA) OP 36/2012 EKSB Security Gate

31/12/2014 0.03


31/12/2014 2.40

22 JP (KA) OP 11/2012 EKSB Sawmill Site

31/12/2014 10.02


31/12/2014 3.79

24 JP (T) KA 47/2012 EKSB Campsite

31/12/2014 2.60


31/12/2014 2.10

26 JP (KA) OP 10/2012 EKSB Landing Site

31/12/2015 18.03

* In the process of renewal.

- Valid Occupational Permit within FMU 23 (Agro forestry area):

No. OP # Purpose Expiry Area (ha)

1 JP (KA) OP20/2010 Labour Quarters 07/04/2014 0.57

2 JP (KA) OP06/2010 Labour Quarters 20/02/2014 4.54

3 JP (KA) OP08/2010 Guard House 4.01 30/11/2014 0.045

4 JP (KA) OP12/2010 Access Road (Irish Bridge 1) 17/01/2014 0.16

5 JP (KA) OP10/2010 Temporary Office Maliau 30/11/2014 2.21

6 JP (KA) OP09/2010 Temporary Labour Quarters Maliau

30/11/2014 3.83

7 JP (KA) OP37/2010 Fertilizer Room / Workshop Maliau

24/06/2014 1.05

8 JP (KA) 64/2010 Labour Quarters 05/12/2014 7.83

9 JP (KA) 63/2010 Housing Complex Gunung Rara

05/12/2014 16.13

10 JP/OP/Kalabakan/1/2011(CPO Mill)

Mill Site 30/11/2014 30.00








FMU 23 Page 12

11 JP (KA) 62/2010 Staff Housing Site 29/11/2014 0.58

12 JP (KA) 59/2010 Guard House 29/11/2014 0.005

13 JP (KA) 60/2010 Guard House 29/11/2014 0.003

14 JP (KA) 66/2010 Lokan Housing Complex 05/12/2014 6.38

15 JP (KA) 67/2010 Luasong Central Office 05/12/2014 4.01

16 JP (KA) 65/2010 Guard House 02/01/2014 0.012

17 JP (KA) OP73/2008 Office & Staff Quarters Site 07/02/2014 2.69

18 JP (KA) OP72/2008 Staff Quarters Site 07/02/2014 1.464



21 JP (KA) OP75/2008 Nursery Site 07/02/2014 34.35

22 JP (KA) OP18/2011 Luasong Timber Quarters Site

28/09/2014 1.38

23 JP (KA) OP16/2011 Lokan Labour Quarters 28/09/2014 3.49

24 JP (KA) OP17/2011 Luasong Labour Quarters 28/09/2014 3.07

25 JP (KA) OP60/2012 Access Road Gunung Rara 26/09/2014 0.14

26 JP (KA) OP61/2012 Labau Staff House 26/09/2014 1.30

27 JP (KA) OP62/2012 Labau Office 26/09/2014 0.59

28 JP(KA)OP 21/2010

BWSB Nursery Site (Mucuna)

31/12/2014 0.04

29 JP(KA)OP 22/2010


31/12/2014 0.08

30 JP(KA)OP 23/2010


31/12/2014 0.11

31 JP(KA)OP 24/2010


31/12/2014 0.14

1.1.5 Payment of Fees

- According to SFD all associated fees had been paid.

1.2 Boundaries of the licensed area shall be delineated on maps, marked on the ground and adequately maintained. (part 1 ; 4)

FINDINGS: 1.2.1 Map showing location & boundary of SFMLA area

- RBJ has map showing location & boundary of SFMLA area in coupe level, dated 28 August 2011, at a scale of 1: 150,000.

- Besides, the licensee has the latest draft copy of FMU level map defining part of FMU 23, 24 and 26 (for the Forest Management Plan: UNDP-GEF project) at a scale of 1:300,000. RBJ and Sabah Forestry Department are in the process of synchronizing the licensed area map and its database.

1.2.2 Map of areas occupied within the FMU for base camps, workshops, stumping yards, etc.

- Map of areas occupied within the FMU is available at coupe level, where coupe permits of different land use is issued to different contractors. Empayar Kejora, Makro Karisma, Serijaya Industri and Benta Wawasan have the land use map for infrastructures occupied within the licensed coupe area.

GAP #: (M / m)








FMU 23 Page 13

1.2.3 Map of Coupe Permit / Harvest Licensed area

- Coupe permit maps showing the coupe boundary with the scale of 1:25,000. 1.2.4 Coupe Boundaries identifiable on the ground

- Coupe and compartment boundaries are identifiable on the ground, boundary are marked with signboards and red paint. Below are the samples taken during the field visit:

# Location GPS Coordinate

1 EKSB: Coupe boundary YT1/12 (1) & YT1/12 (2)

N 050 01’ 23.0”; E 1170 19’ 33.0”

2 MKSB: Compartment boundary C657 N 040 55’ 40.2”; E 1170 28’ 14.20”

1.3 Land use map showing the location and boundary of various land use areas within the FMU is available. (part 1 ; 5 & 17)

FINDINGS:

1.3.1 FMU / Land use map (agriculture, community settlement, production, conservation and non-forested areas)

- RBJ has a land use map for FMU 23 that identifies the area into NFM, planting areas and conservation dated 28 August 2011 at the scale of 1:150,000.

- The latest draft land use map (Title: UNDP – GEF Project area, Part of FMU 23, 24 and 26) dated 13 December 2013 does reference various forest activities within FMU 23 – natural forest management, mosaic forest restoration and enrichment. However, the map is incomplete as RBJ and Sabah Forestry Department is currently in the process of synchronizing all the Yayasan Sabah licensed area map in lieu of FMU 23 FMP development by UNDP (GAP 002/2013 minor).

GAP #: (M / m)

GAP 002/2013

minor

1.4 The licensee has systems to protect forest from illegal exploitation. (part 1 ; 19)

FINDINGS: 1.4.1 Company shall have systems for: entry and access control to concession - (e.g. entry gate registry)

- There main access to FMU23 is through Luasong Gate [GPS N 04° 31’ 30.0” E 117° 30’ 12.9”]. Outsiders need to apply gate pass from SFD and RBJ prior to enter RBJ concession area. The validity of the gate pass varies from one week to three months depending on the activities/ purposes.

- Gates assessing to various areas in FMU 23 also established by contractors for security purpose. The assessment team observed 2 gates were maintained by the contractors as below:

# Location GPS reading

1 Gate Empayar Kejora Sdn. Bhd. N 040 55’ 07.4”; E 1170 22’ 15.3”

2 Gate Makro Karisma Sdn. Bhd. N 040 54’ 01.1”; E 1170 12’ 39.9”

- A gate was erected at the entry of Empayar Kejora area. Outsiders and

GAP #: (M / m)








FMU 23 Page 14

company who wishes to enter or pass by the gate shall apply and register with the company. The validity of permit to enter varies based on the purpose. Lists of vehicles of subcontractors are to be submitted to Empayar Kejora and updated monthly. 1 example was taken as follows:

# Contractor Vehicle # Permit #

1 Top Merchant SS7981E; JP KG 1470 Logging truck

EKSB-GP-TWU-RMD-GP-13-1527 dated 29 November 2013

- During the assessment time, it was observed that the detail recorded in the

gate register book was incomplete. Purpose of enter, name and identity of the person were not recorded (Observation).

1.4.2 Forest security and patrolling measures for encroachment, illegal logging and

poaching - (monitoring schedule, personnel, training records) - Forest security and patrolling activity within FMU 23 were carried out monthly

by RBJ. Record of monitoring is maintained. 1.4.3 Identification of illegal activities & reporting to authorities - (security records)

- No illegal activities reported in year 2013.


Criterion 2 : Environmental management

2.1 An Environmental Impact Assessment has been carried out where potential impact and mitigation measures are documented. (part 2 ; 46)

FINDINGS: 2.1.1 Environmental Assessment on FMU and or coupe license areas

- Environmental Impact Assessment has been conducted for active coupes in FMU 23 and subsequently approved by Environment Protection Department (EPD) as follows:

No. Title Approval # and date

Remarks

1 Special Environmental Impact Assessment (SEIA) for The Proposed Sino- Malaysia JV Forest Plantation at Kalabakan and Gunung Rara FR, Tawau District, Sabah, Malaysia

JKAS/PP/21/600-1/01/1/34 Jld 5 (12) 25 April 2003

NFM & ITP (Acacia)

2 Special Environmental Impact Assessment (SEIA) for Proposed Oil Palm (OPP) and Industrial Tree Plantation (ITP) Development at Benta Wawasan IIC, Yayasan Sabah Forest Management Area, Kalabakan and Gunung Rara FR, Tawau District

JPAS/PP/21/600-1/01/1/191(20) 30 August 2005

For ITP areas converted to

oil palm

3 Serijaya Sdn. Bhd – Proposed Oil Palm Plantation (OPP) development a Benta Wawasan 1 by Serijaya (22,061.65 ha -14 coupes)

JPAS/PP/21/600-1/01/1/284 (6) dated 21 Jan 2011

OPP

GAP #: (M / m)








FMU 23 Page 15

4 EIA for Proposed Logging Operation in 7,000ha within Yayasan Sabah Concession in Gunung Rara Fr, Sabah. (Makro Karisma)

JPAS/PP/24/600-1/01/1/254 on 8 July 2008

NFM

5 EIA for Proposed Integrated Mosaic Planting in Block YT1/12 of Yayasan Sabah Concession area in Tawau, Sabah.

JPAS/PP/21/600-1/01/3/47(48) on 26 July 2012.

NFM

2.1.2 Identification & mitigation of impacts

- Identification and mitigation of impacts have been conducted as part of the EIA study submitted to EPD.

2.1.3 Approved by EPD - (EIA # date(s), EPD approval #/ date) - EIA reports have been approved by EPD as above.

2.2 Mitigation measures defined in the approved EIA shall be implemented. (part 2 ; 46)

FINDINGS: 2.2.1 EIA mitigation measures are adequately implemented and reported

- Quarterly EIA compliance reports had been prepared by consultants for Empayar Kejora, Makro Karisma, Benta Wawasan and Serijaya Industri based on the mitigation measures implementation on the ground. Copies of quarterly compliance report are made available upon the document review.

Contractor Title References Report

Empayar Kejora

EIA for Proposed Integrated Mosaic Planting in Block YT1/12 of Yayasan Sabah Concession area in Tawau, Sabah. Consultant: Ekohandal Sdn. Bhd.

JPAS/PP/24/600-1/01/3/47

Dec 2012 – Mac 2013

Apr 2013 – July 2013

Aug 2013 – Nov 2013

Makro Karisma

EIA for Proposed Logging Operation in 7,000ha within Yayasan Sabah Concession in Gunung Rara Fr, Sabah. Consultant: Ekohandal Sdn. Bhd.

JPAS/PP/24/600-1/01/1/254

Dec 2012 – Mac 2013

Apr 2013 – July 2013

Aug 2013 – Nov 2013

Serijaya Industri

Proposed Oil Palm Plantation (OPP) Development at Benta Wawasan 1 by Serijaya Industry Sdn. Bhd., Yayasan Sabah Forest Management Area, Kalabakan and Gunung Rara Forest Reserve, Tawau, Sabah. Consultant: Envsolve Sdn. Bhd.

JPAS/PP/21/600-1/01/1/284(24)

Oct 2012 – Jan 2013

Feb 2013 – May 2013

June 2013 – Sept 2013

GAP #: (M / m)








FMU 23 Page 16

Benta Wawasan

Proposed Oil Palm Plantation Development At Benta Wawasan 1, Yayasan Sabah Foret Management Area, Kalabakan and gunung Rara Forest Reserve, Tawau, Sabah Consultant: Ekohandal Sdn. Bhd.

JPAS/PP/21/600-1/01/1/191 KLT.3

June 2013 – Sept 2013


Criterion 3 : Plan Preparation

3.1 The organisation shall have a Long-term Forest Management Plan approved by the Forestry Department that defines the key elements of the SFMLA and activities over the 10-year FMP period based on sound inventory data. (part 2 ; 44)

FINDINGS: 3.1.1 Forest Management Plan approved by SFD - (date approved)

- Currently, there is no approved FMP for FMU 23. However, RBJ has a letter of approval from the Director of Forestry Department to manage FMU 23 during the preparation and development of its FMP until mid of 2014. RBJ is currently working with the UNDP and several local consultants on Biodiversity Conservation on Multiple Use Forest Landscape, Sabah, which covers the scope of biodiversity, ecotourism and FMP elements for FMU 23, 24 and 26.

- Empayar Kejora has an approved Forest Management Plan for 28,000 ha within FMU 23 at Gunung Rara Forest Reserve with an expiry date 30 April 2022.

GAP #: (M / m)

3.2 The FMP clearly describes the policy, management systems, forest resources, environmental and social elements associated the SFMLA to be revised every 5 years as defined in the agreement. (part 2 : 46-47)

FINDINGS: The FMP is only confine or restricted to the management of the 28,000 ha of Gunung Rara Forest Reserves under Empayar Kejora and does not define management systems for the entire Forest Management Unit (FMU 23) at present (GAP 004/2013 minor). 3.2.1 Policy Statement

- Empayar Kejora aims to ensure the sustainable production of timber from both the cultivation of fast growing trees and the management of existing natural timber stands, in compliance with all existing rules, regulations and prescribed constraints.

GAP #: (M / m)

GAP 004/2013 minor








FMU 23 Page 17

3.2.2 Inventory results defining forest conditions - 16 inventory plots (20m wide and 800m long linear strip) were placed

randomly over the project area. - The results show extremely poor standing timber stock in the project area

where only 4 Dipterocarp trees (60-80cm dbh/ha). Current standards in natural forest management require a minimum of about 9 harvestable trees >60cm DBH/ha.

- Overall stand basal area of trees >10cm dbh is about 18m2/ha. This is considered very low as basal area usually ranges 30-38m2/ha. Pioneer species and other non-commercial species make up about 41% of the total basal area.

- Only 28% of inventory plots in the project area were found to be stocked with PCTs. Almost 50% fall below 20cm DBH.

3.2.3 Zoning of forest area into Production, Conservation; Social; etc - Empayar Kejora has zoned the land use area into Mosaic planting, Natural

Forest Management, Conservation and Research:

Land Use Area (ha)

Mosaic planting 18,288

Natural Forest Management 9,320

Conservation 475

Research 291

Total 28,374

3.2.4 Delineations of compartments

- The project area is divided into 63 compartments ranging in size from 159 to 674 ha. 40 compartments for mosaic planting and 21 compartments for natural forest managements, and 2 compartments are set aside for conservation and research.

3.2.5 Net production area - The net production area is estimated at 26, 364 ha:

Area (ha)

Project Area 28,374

Roads and clearings -230

Streams, ponds, including riparian reserve -1,305

Conservation area & steep area -475

Total 26,364

3.2.6 Sustainable yield & AAC

- There will be approximately 7,315 ha of planted area within Empayar Kejora’s mosaic [planting area. The first harvest of 730 ha will be harvested at the year 10 (in 2022) and is expected to yield 180,000 – 200,000m3 annually.

- Harvesting is not expected in the treated natural forest within the next 15 to 20 years.

- Sustainable yield and AAC are not adequately defined for the entire FMU 23 (GAP 004/2013 minor).

3.2.7 Plans for restoration & ITP - Species chosen for planting are Batai (Paraserianthes falcataria), Laran

GAP 004/2013

minor








FMU 23 Page 18

(Anthochephalus cadamba), Binuang (Octomeles sumatrana), Magas (Duabunga moluccana) and Talisai (Terminalia spp.).

3.2.8 FMP mid-term review prepared and submitted to SFD - Not applicable.

3.3 Annual Work Plan containing maps and description of areas and types of operations to be carried out during the year is available and approved by SFD. (part 2 : 51-58)

FINDINGS: 3.3.1 Annual work plan approved by SFD - (approval date)

- AWP is issued based on FMP. As the FMP for FMU 23 is in preparation, hence there is no AWP developed by RBJ to manage FMU 23. However, RBJ is currently operating based on approved NFM and ITP coupe permits. Not applicable.

- Empayar Kejora is in the midst of developing draft AWP 2014. Not applicable.

3.3.2 Brief list of major activities in approved work plan - AWP is issued based on FMP. As the FMP for FMU 23 is in preparation,

hence there is no AWP developed by RBJ to manage FMU 23. However, RBJ is currently operating based on approved NFM and ITP coupe permits. Not applicable.

- Empayar Kejora is in the midst of developing draft AWP 2014. Not applicable.

GAP #: (M / m)

3.4 The organisation shall provide a Comprehensive Harvest Plan (CHP) that clearly defines total and net production areas; harvesting volumes, diameter, limits, species and protected areas that is formally approved by the SFD. (part 2 : 60-67)

FINDINGS: 3.4.1 SFD approval for each harvest plan prior to harvesting - (approval date)

- Makro Karisma has approved CHPs for Compartment 657 and Compartment 644.

Cpmt #

Total Trees

Total Trees Volume (m3)

Density (m3/ha)

Cutting Limit

Remarks

657 1,304 6,207.28 27.96 60cm to 150cm

JPHTN/FRM700-2/09/4(b)/28 ;

Dated: 5 August 2008

644 485 2,170.21 4.41 60cm to 150cm

JPHTN/FRM700-2/09/4(b)/28 ;

Dated: 5 August 2008

3.4.2 Harvest plan consist a detailed map, identifying harvest trees, main roads,

secondary roads and skid trails, areas for protection such as buffer zones and steep slopes

- The CHPs for Compartment 657 and Compartment 644 has detailed map that identifies harvest trees, skid trails and steep area. The cutting limit for this compartment is between 60 -150 cm dbh (Ref: JPHTN/FRM700-2/09/4(b)/28;

GAP #: (M / m)








FMU 23 Page 19

dated 5th August 2013).

3.5 The organisation shall provide for appropriate planning of silvicultural activities to maintain or enhance forest productivity in conjunction with the annual work plan. (part 2 ; 76)

FINDINGS:

3.5.1 Silvicultural activities are described in the FMP and AWP - (list of areas to be treated)

- Not applicable for the entire FMU 23. - The silviculture activity for mosaic planting area includes tending operations

include circle weeding, vine removal, fertilizer application and pruning are expected to be carried out 3 to 4 years after planting.

- Empayar Kejora’s AWP is under preparation, which is expected to be submitted on 31 January 2014.

- Serijaya Industri was directed by Sabah Forestry Department to carry out silviculture activities in all of its remaining conservation areas above 20o to be included in AWP 2014.

3.5.2 Silvicultural guidelines are available on site - (list guidelines being used) - Empayar Kejora practices silvicultural activities based on experience and best

practice. - Serijaya Industri is not known as to the type of guidelines that they will

implement (Observation).

GAP #: (M / m)

3.6 The organisation shall provide for appropriate planning of enrichment planting activities to restore degraded areas and enhance forest productivity in conjunction with annual work plan. (part 2 ; 77)

FINDINGS: 3.6.1 Enrichment planting plan in the FMP and AWP - (list of areas to be treated)

- Not applicable for FMU 23.

3.6.2 Enrichment guidelines are available on site - (list guidelines being used) - Not applicable for FMU 23.

GAP #: (M / m)

3.7 The organisation shall provide for appropriate planning for development of timber plantations within approved areas as defined in the FMP and under a 10-year development plan. (part 2 ; 78-79)

FINDINGS:

3.7.1 Approved Plantation Development Plan (PDP) - date - Not applicable. No approved PDP for forest plantation as no ITP activities

within FMU 23. Benta Wawasan has an approved Agroforestry Development Plan dated 3 February 2012 for the period commencing 1st January 2010 to 31st December 2019 for oil palm plantation. Serijaya Industri has an approved development plan dated 2nd June 2006. The plan came to effect on 1st January 2006 and the tenure of the plan will end on 31st December 2040. The approved PDP is for the sole purpose of the development of oil palm plantation only.

GAP #: (M / m)








FMU 23 Page 20

3.7.2 Area to be planted

- Not applicable. No approved PDP for forest plantation as no ITP activities within FMU 23. Benta Wawasan has an approved Agroforestry Development Plan dated 3 February 2012 for the period commencing 1st January 2010 to 31st December 2019 for oil palm plantation. Serijaya Industri has an approved development plan dated 2nd June 2006. The plan came to effect on 1st January 2006 and the tenure of the plan will end on 31st December 2040. The approved PDP is for the sole purpose of the development of oil palm plantation only.

3.7.3 Map of ITP (Intensive Tree Plantation) area


3.8 The PDP clearly describes the management system for establishing and maintaining ITP areas that minimize impacts of conversion to the environment and soils.

FINDINGS: 3.8.1 Maps of area for ITP establishment


3.8.2 Forest condition prior to conversion - Not applicable. No approved PDP for forest plantation as no ITP activities


3.8.3 Species to be planted and planned rotation periods - Not applicable. No approved PDP for forest plantation as no ITP activities

within FMU 23. Benta Wawasan has an approved Agroforestry Development Plan dated 3 February 2012 for the period commencing 1st January 2010 to 31st December 2019 for oil palm plantation.

GAP #: (M / m)








FMU 23 Page 21

Serijaya Industri has an approved development plan dated 2nd June 2006. The plan came to effect on 1st January 2006 and the tenure of the plan will end on 31st December 2040. The approved PDP is for the sole purpose of the development of oil palm plantation only.

3.8.4 Identification of steep slopes (maps, marking of slopes over 25 degrees, approval permits)


3.8.5 Identification of buffer zones to protect streams and riparian areas - Not applicable. No approved PDP for forest plantation as no ITP activities


3.8.6 Provision and implementation for the maintenance of natural areas within the ITP area









FMU 23 Page 22

Principle 2. Forest Operation

Criterion 4 : Area Demarcation

4.1 The FMU is zoned into production, conservation, community use, plantation, recreation etc. Land use shall be clearly indentified on maps and marked on the ground as appropriate. (part 2 ; 49-50)

FINDINGS:

4.1.1 The FMU has been zoned into: - RBJ has a map that zone FMU 23 into production, plantation and conservation

and information of the total area represented by each component as follows:

Land Use Area (ha)

Logged Over Forest 65,425.31

Conservation / Protection 3,105.83

Agro Forestry (OPP) 32,631.86

Total 101,163 * The total area of FMU is generated from GIS boundary delineation. As RBJ and Sabah Forestry Department is currently in the process of matching all the Yayasan Sabah licensed area mapping in lieu of FMU 23 FMP development by UNDP, the exact area (ha) will be included into FMP.

- The mosaic planting area (28,000 ha) in FMU 23 is zoned into:

Land Use Area (ha)

Mosaic planting 18,288

Natural Forest Management 9,320

Conservation 475

Research 291

Total 28,374

GAP #: (M / m)

4.2 Areas prohibited from harvesting such as steep slopes and buffer zones are clearly identified and protected. (part 2 : 61, 64)

FINDINGS:

4.2.1 Areas prohibited from harvesting such as riparian zones, buffer zones steep slopes etc, are mapped in the Coupe Permit for NFM areas - (Harvest map / area protected (ha)

- RBJ maintains the reserves and protected boundaries in FMU 23 as below:

Areas prohibited from harvesting such as riparian reserves and steep slopes are mapped in the Coupe Permit for NFM areas.

Conservation areas / riparian zones (wildlife corridor) are marked on the ground and protected for ITP areas.

4.2.2 Conservation areas / riparian zones are marked on the ground and protected for

ITP areas - (protected areas marked) - Table below shows 1 example sampled during field visit:

# Location GPS reading

1 Riparian reserve (YT1/08) N 040 59’ 24.2”; E 1170 15’ 45.2”

GAP #: (M / m)








FMU 23 Page 23


Criterion 5 : Forest Inventory (Annual Allowable Cut-AAC)

5.1 Records shall contain adequate information to verify the volume of trees harvested and resulting volume of logs within the area is in accordance to the CHP and license requirements. (part 2 : 73)

FINDINGS: 5.1.1 Maintains records of all trees felled and extracted that include species,

diameters & volume traceable to the tree - (Compartment felling records) - Makro Karisma has consistently maintained records of all trees felled and

extracted that include species, diameters and volume traceable to the tree

GAP #: (M / m)

4.3 The organisation shall provide adequate detail & maps for ITP areas based on proper inventories and criteria for conversion within the Plantation Development Plan. (part 2 ; 80-85)

FINDINGS: 4.3.1 The site chosen & tree species planted for ITP development is described in the

FMP, PDP and EIA report - No approved PDP for forest plantation within FMU 23. Not applicable.

4.3.2 Detailed mapping and demarcation of areas for clearing & protection within ITP

area (ITP map – ha protected (ITP map – ha protected buffer zones & steep slopes)

- No approved PDP for forest plantation within FMU 23. Not applicable. 4.3.3 Records of timber removed from land clearing – [total volume (m3) extracted &

volume (m3/ha)] - No approved PDP for forest plantation within FMU 23. Not applicable.

GAP #: (M / m)

4.4 The organization shall provide for planning of road access and protection against fire. (part 2 ; 82 & 94)

FINDINGS: 4.4.1 Adequate identification of roads (main, secondary & feeder) network & access

throughout the FMU - (road access maps) - RBJ has a land use map that adequately identifies the main roads and access

throughout FMU 23.

4.4.2 Fire protection system - (operational plans for fire prevention and suppression, records of fires & area)

- RBJ has a Forest Fire Management Plan for FMU 23 and 24 dated 14 June 2012.

- 1 Forest Fire prevention and suppression training has been carried out on 8-12 July 2013 which involves all contractors of RBJ. Records of training and attendance lists are maintained.

GAP #: (M / m)








FMU 23 Page 24

using Daily Felling Record.

Tree# Ground CHP DFR Felling Date

Spp DBH Spp DBH Spp DBH

1076 OT 70 KR 65 KR 65 28/12/2013

1075 KR 65 KR 64 KR 64 28/12/2013

0263 YS 95 YS 82 YS 82 20/12/2013

0262 KR 76 KR 76 KR 76 20/12/2013

0261 KR 75 KR 74 KR 74 20/12/2013

0398 KR 70 KR 70 KR 70 28/12/2013

0260 YS 72 YS 72 YS 72 28/12/2013

0264 SM 72 SM 72 SM 72 20/12/2013

5.1.2 Maintains summary records of logs produced for each compartment &

licensed area - (Monthly summary records) - Below are the log production records of Makro Karisma and Empayar Kejora:

a. Makro Karisma YT1/08 - Year 2013 production record:

Compartment# Logs Volume(m3)

657 1,304 4,253.36

b. Empayar Kejora YT1/12(1) - Monthly production record 2013:

Month No. of logs Volume (m3)

January 4,186 10,806.28

February 3,975 9,504.13

March 11,172 30,132.11

April 12,567 41,937.18

May 9,056 23,356.00

June 9,113 22,485.23

July 8,197 20,041.88

August 5,651 15,238.15

September 12,969 31,923.81

October 9,835 25,765.36

November 7,435 21,311.68

December 12,733 38,588.60

TOTAL 106,889 291,090.41








FMU 23 Page 25


Criterion 6 : Implementation of Annual Work Plan

6.1 The organisation shall demonstrate implementation of elements listed in the Annual Work Plan. (part 2 : 76-77)

FINDINGS:

Empayar Kejora is planning to submit its draft AWP 2014 to Sabah Forestry Department in mid January 2014. Planning of activities within the mosaic planting areas are as follows:

6.1.1 Harvesting areas - Empayar Kejora is planning to carry out activities below in mosaic planting

area YT1/12(1): a. Site preparation of approximately 3,000 ha in mosaic planting area. b. Salvage logging of approximately 5,607 ha [YT1/12(2): Compartment 32 –

33, Compartment 54 – 63] and balance area (logging in process) carried forward to 2014 of about 2,218.24 ha [Compartment 49, Compartment 42, Compartment 41, Compartment 23, Compartment 21].

- RIL harvesting in NFM area YT1/12(1) between 2,209 - 2,422 ha [Compartment 1 – 4, Compartment 29].

- To carry out 4 CHP preparation in Compartment 4 – 7 NFM area. 6.1.2 Silvicultural treatment

- Planted seedlings will be tended and maintained by carrying out circle weeding, vine removal, fertilizer application and pruning. Dead seedlings will be replaced.

6.1.3 Enrichment Planting - Not applicable.

6.1.4 ITP development

- Planting will be conducted in Compartment 23, Compartment 37, Compartment 38 – 41, Compartment 43 and Compartment 49 for approximately 3,000 ha.

6.1.5 Boundary demarcation, infrastructure and maintenance

- Establishment of infrastructure and basic amenities (field operation base), and to continue with the repair and maintenance of the access roads within the project area.

6.1.6 Issuance of Compliance Certificate by SFD - (Date)

- Not applicable.

GAP #: (M / m)








FMU 23 Page 26


Criterion 7 : Tree Marking

7.1 Organization can demonstrate compliance to tree marking regulations on diameter limits, species, slope limits etc. (part 2 : 61-64)

FINDINGS:

7.1.1 Marking of trees 60-120 cm DBH for felling within net production areas - The harvest diameter cutting regime for all species in Compartment 657 (Makro

Karisma) is between 60cm to 150cm DBH as stipulated in the approval letter from SFD (Ref: JPHTN/FRM700-2/09/4(b)/28; Dated: 5 August 2008).

7.1.2 No protected trees marked - No prohibited tree was found marked for felling.

7.1.3 Harvest tree list in CHP

- Harvest trees listed in the CHP tree list i.e. Compartment 657, has includes tree species, tree numbers, diameter, volume, tree quality and tree location.

7.1.4 Species and diameters according to coupe & CHP permit - All harvest trees marked for felling were accordance to the coupe permit

condition.

7.1.5 Trees not marked within areas for protection - No conservation area was identified inside Compartment 657.

GAP #: (M / m)


Criterion 8 : Control of Timber Production

8.1 Reduced Impact Logging methods are documented and implemented. (part 2 : 66-69)

FINDINGS:

8.1.1 RIL guidelines are available on-site - (guideline are found on-site) - Currently, Makro Karisma is implementing RIL within FMU 23 NFM area. - RIL guidelines are available on site.

8.1.2 Sufficient evidence of implementation of RIL according to guidelines -

(Implementation of RIL according to current approved verification standard) - Makro Karisma is implementing RIL in NFM areas and is being monitored by

SFD. The harvesting operation has been audited under RIL audit, which carried out by GFS RIL team monthly.

- Harvest trees were found marked with yellow tags on the ground.

GAP #: (M / m)








FMU 23 Page 27

8.1.3 Equipment used should be appropriate to meet RIL requirements - (cable

extraction, skyline, helicopter logging) - Makro Karisma uses combine harvesting method; tractors and log fishers to

reduce impacts only identification of planned skid trails and estimated tree locations by setting up sample plots.

8.1.4 Contractors are implementing the CHP - (logging according to harvest plan, tree marking, mapping, planned skid trails & stumping)

- Logging operation conducted in Compartment 657 is accordance to the CHP documents. Constructions of additional structure such as landings and platforms were approved by SFD by refer to the SPKP 08 form.

8.1.5 Post harvest activities & Area Closing Report - Currently, no compartment is close as Compartment 657 and Compartment 644

still active for harvesting. Not applicable.

8.2 The organisation shall provide physical identification of logs and registered hammer marks to prove traceability to the licensed harvesting area. (part 2 : 74)

FINDINGS: 8.2.1 Log # identification to reference Compartment / coupe number - (log #, coupe/

compartment, license property hammer mark) - 8 logs sampled at P1 in compartment 657 (Makro Karisma) have log numbers

and can be traced back to their daily felling records.

Tree # CHP DFR

Spp DBH Spp DBH

0291 SB 60 SB 60

0026 SB 86 SB 86

0859 SB 93 SB 93

0834 KR 62 KR 62

0030 SB 80 SB 80

0175 SB 60 SB 60

0179 YS 82 YS 82

0176 GL 63 GL 63

GAP #: (M / m)








FMU 23 Page 28


Criterion 9 : Log transportation

9.1 The organisation shall provide detailed records and measurements of material harvested and transported from the licensed areas within the FMU. (part 3 ; 100-104)

FINDINGS:

9.1.1 Scaling records & 9.1.2 List of TDP and Removal Passes - RBJ and contractors maintain records of Scaling Order, TDP, Removal pass

and royalty receipts. Documents sampled are from November and December 2013 as shown in the table below:

a. Empayar Kejora: TWU06/12 [YT 1/12(1): EK238]

Date 26 November 2013

Scaling Order KA 20131293 P

TDP # 252101 – 252118

Removal Pass A437478

# of Logs 355

Volume 595.76 m3

Royalty Receipt RH 866057

Destination Sinora Plywood Sdn. Bhd.

b. Makro Karisma: TWU12/08 [YT1/08: MK 435A]

Date 25 November 2013

Scaling Order KA 20130442 E

TDP # 211195


# of Logs 4

Volume 12.71 m3

Royalty Receipt Balance credit royalty: Ref. #: JPHTN(KEW):700-2/ I SFMLA 09/97/KLT.2 dated 2 November 2012

Destination Shin Yang Plywood Sdn. Bhd.

9.1.3 List of Logs harvested by compartment - RBJ and contractors maintain records of total logs and volume being extracted

from each block based on species.

9.1.4 Transit Pass (if applicable) - Not applicable.

GAP #: (M / m)








FMU 23 Page 29


Criterion 10 : Worker Safety & Health

10.1 The organization shall demonstrate compliance to labour regulations and provide adequate facilities for staff in respect to health and living conditions. (part 1 ; 33-35)

FINDINGS: 10.1.1 Contractor Registration - (Check registration certificate from SFD)

- Logging contractors in FMU 23 as follows:

# Contractor Name License # Expiry Date

1 Empayar Kejora S/B FD/CON/RIL (51) 2013 03/07/2014

2 Makro Karisma S/B KON(TKA) 031/2008 (KM) FD/CON/RIL (04) 2013

30/01/2014

- Certificate of Identity (CI) (SFMLA Clause 25, 26, 29)

Empayar Kejora, Makro Karisma, Serijaya Industri have the records of COI for its workers but were in the process of renewal.

However, Benta Wawasan have still not obtained Certificate of Identity for all workers working in Ramin Estate since the Feb 2013 assessment (GAP 005/2013 Major).

# Company Workers Name C.O.I# Expiry Date

1 MKSB Winfred Rosales New Worker NIL

2 MKSB Mike Esteban New worker NIL

3 MKSB Crisanto Batiquin New worker NIL

4 MKSB Edgar Foculan 157862 07/12/2013

5 MKSB Rolan S. Lood 157865 07/12/2013

6 EKSB Djuli Isah 144623 25/12/2013

7 EKSB Rafael Magna 144619 25/12/2013

8 EKSB Jhony B. Saudara 144614 25/12/2013

9 EKSB Binikara Nikolaus 144613 25/12/2013

10 EKSB Junaidi B. Nurdin 144607 25/12/2013

11 EKSB Karlos Mikael 144606 25/12/2013

12 EKSB Sultan B. Taming 144608 25/12/2013

13 EKSB Mad Ali 144602 25/12/2013

14 EKSB Johnny Pipa New worker NIL

15 EKSB Mathius Rumby New worker NIL

16 EKSB Rudolph Harto New worker NIL

17 SJI-Luasong Ahmad Shahril bin Putu 157672 30/11/2013

18 SJI-Luasong Rosny Gintoe 157711 30/11/2013

19 SJI-Luasong MDD Edy Efana Darwis 157148 30/11/2013

20 SJI-Luasong Carlos Desiha New worker NIL

21 SJI-Luasong Calsum Ramly New worker NIL

22 BW-Ramin Rahmin Ramasan - -

23 BW-Ramin Udin Kadir - -

24 BW-Ramin Remy Ronald - -

25 BW-Ramin Saban Murshidin - -

GAP #: (M / m)

GAP 005/2013 Major








FMU 23 Page 30

26 BW-Ramin Ronga Masri - -

10.1.2 Campsite Location - (physical location outside of buffer zone, river proximity)

- All campsite visited are located outside of the compartment.

# Contractor GPS reading

1 Serijaya – Labau Estate N 04o 49’ 44.5” E 117o 21’ 17.8”

2 Serijaya- Luasong Estate Zinc houses labour quarters

N 04o 49’ 15.2” E 117o 19’ 05.6”

3 Serijaya- Luasong Estate Wooden houses labour quarters

N 04o 50’ 01.9” E 117o 20’ 36.4”

4 Empayar Kejora S/B (main camp)

N 04o 56’ 07.1” E 117o 13’ 18.2”

5 Makro Karisma S/B (main camp)

N 04o 53’ 42.6” E 117o 23’ 47.7”

6 Danasaba S/B (MKSB transportation camp)

N 04o 55’ 07.9” E 117o 22’ 15.7”

7 Benta Wawasan (Ramin Estate)

N 04o 42’ 06.9” E 117o 23’ 23.0”

10.1.3 Sanitation & waste disposal (Water, Food, Toilets etc) - (river proximity,

general cleanliness, landfill, collection & disposal of hazardous waste) - Table below shows findings of site visit to contractors’ campsites:

Contractor Sub-contractor Findings

Empayar Kejora

Zat Istimewa

- Campsite is clean. - Rubbish were collected and disposed at the central landfill.

Dat Sing Timber

- Rubbish were collected and disposed at the central landfill. - Littering was observed strewn behind the labour lines.

Vivadaya

- Campsite is clean. - Rubbish were collected and disposed at the central landfill.

Aktif Baru - Evidence of trash burning was observed.

Makro Karisma

Bidara Bumimas

- Littering was observed strewn behind the labour lines. - Evidence of trash burning was observed.

Danasabah - Evidence of trash burning was observed.

Serijaya Industri

Labau Estate (Base camp)

- Littering was observed strewn behind the workers’ quarters. - Rubbish was collected once in 2 days. - Littering around waste disposal pit. No signage and fences erected.

Luasong Estate

- Rubbish were observed strewn at the ex campsite of Pembinaan Kekal Kaya. - Littering observed at waste disposal pit area. No signage and fences erected.

(i) Zinc houses

- Rubbish was observed at the ravine of a small stream.








FMU 23 Page 31

labour quarters - Waste disposal pit is located 3m from living area. - Metal scraps, mesh wires and water logged were observed inside the pit. (*The

contractor has segregated non-biodegradable and biodegradable waste on the spot).

- No proper toilets observed. (*New housing

area is expecting to be completed in April14). (ii) Wooden houses labour quarters

- Waste disposal pit is located 3m from living area. - Metal scraps; mesh wires and gallons were observed in the waste disposal pit. - No proper toilet observed. (*New housing

area is expecting to be completed in April14). Benta Wawasan Ramin Estate - Littering is observed at labour quarters.

- There is evidence of trash burning at Makro Karisma (Danasaba) labour lines

and workshop (N 04o 55’ 07.4” E 117o 22’ 15.3”). As stated by the workers, they practically burned the trashes instead of having a proper system for disposal (GAP 005/2013 Major).

10.1.4 Medical Facilities and Emergency First Aid – (medical treatment available, first aid kit, trained personnel)

- Serijaya Industri (Luasong and Labau Estate) office have qualified and registered dressers to carry out first hand medical treatment to workers.

- First aid kits at all contractors’ campsites are available but require replenishment (GAP 005/2013 Major).


Empayar Kejora

Zat Istimewa - First aid kits are complete.

Dat Sing Timber - First aid kits needs to be replenished.

Vivadaya - First aid kits are complete.

Aktif Baru - First aid kits needs to be replenished.

Makro Karisma

Bidara Bumimas - First aid kits needs to be replenished.

Danasabah - No first aid kits available.

Serijaya Industri


- 2 qualified dressers. - First aid kits need to be replenished.

Luasong Estate

- 1 qualified dressers. - First aid kits are complete.

(i) Zinc houses labour quarters

- No first aid kit observed. First hand medical treatment will be available at base camp.

(ii) Wooden houses labour

quarters

- No first aid kit observed. First hand medical treatment will be available at base camp.

Benta Wawasan

Ramin Estate

- Clinic is located at Selagan Batu Estate, which is 30 minutes from Ramin Estate. - First Aid Kits need to be replenished.








FMU 23 Page 32

10.2 The organization shall ensure all contractors comply with the companies procedures and government regulations in respect to safety conditions. (part 1 ; 33-35)

FINDINGS: 10.2.1 Logging Equipment, Workshop and Sawmill Safety – (safety equipment, chain

saw breaks, personal protection equipment (PPE), etc) - Safety equipment and personal protection equipment (PPE) are observed in

workshop and sawmills with adequate equipment in place. - Fire extinguishers availability at campsites visited are as follows (GAP

006/2013 minor):


Empayar Kejora

Base camp 4 out of 13 fire extinguishers were found valid with low pressure. It was replaced on the spot.

Zat Istimewa Adequate fire extinguishers.

Dat Sing Timber 2 out of 11 were expired and low pressure.

Vivadaya Adequate fire extinguishers.

Aktif Baru Adequate fire extinguishers.

Makro Karisma

Base camp 2 out of 8 fire extinguishers were found valid with low pressure.

Bidara Bumimas Adequate fire extinguishers.

Danasabah 1 invalid fire extinguisher.

Serijaya Industri


No fire extinguishers equipped at worker quarters and genset area.

Luasong Estate 5 out of 10 fire extinguishers are out of pressure.

(i) Zinc houses labour quarters

No fire extinguisher equipped for zinc house labour lines.

(ii) Wooden houses labour

quarters

No fire extinguisher equipped for wooden house labour lines.

Benta Wawasan

Ramin Estate

1 fire extinguisher at each quarter (inadequate) observed at workers quarters.

10.2.2 Training records

- RBJ had conducted Forest Fire Training, which involved Yayasan Sabah Group and Empayar Kejora staffs.

Training No. of Participants

Venue/Date Reference

Forest Fire Training

36 Luasong Forestry Center / 8 July – 12 July 2013

FD/TWU(LFC)/5.25/2/4/91; 6 August 2013

Workshop for Development of

35 Luasong Forestry Center /

FD/TWU/19.06/4; 12 Sept 2013

GAP #: (M / m)

GAP 006/2013 minor








FMU 23 Page 33

KKP Management System and Practical Guideline (UCUX) Forestry Sector for Workers and Companies Under PERKESO, 2013

18 Sept – 20 Sept 2013

3rd Borneo Conference & Exhibition on Occupational Safety and Health

3 Magellan Sutera / 17 June – 18 June 2013

FD/KK/19.05/1/Vol.2/7; 3 May 2013

10.2.3 Chemicals, Handling & storage / waste of fuel & oil - (handling & storage of

hazardous waste) - There is no proper handling of diesel oil at Makro Karisma (Danasaba)

campsite. Used diesel oil which being used to wash spare parts are kept in a drum and half of the drum was embedded into the ground. There is no outlet to dispose the diesel oil from the drum (GPS N 04o 55’ 07.4” E 117o 22’ 15.3”) (GAP 006/2013 minor).

- Oil traps are available. However, evidence of oil spillage on the ground at diesel tank areas was observed at Serijaya Industri (Luasong Estate) and Benta Wawasan (Ramin Estate). Oil spillage and no oil trap observed at Empayar Kejora (Dat Sing Timber) diesel tank area (GAP 006/2013 minor).

- No oil trap and oil spillage was observed at Empayar Kejora (Zat Istimewa) genset area due to under serviced generator. However, the contractor has cleaned up the spillage on the spot with soil and the genset was brought to service.

10.2.4 Worker insurance

- Local workers are covered under SOSCO, and foreigner workers are covered under Group Insurance / Workman Compensation.

10.2.5 Records of accidents - No serious injuries were recorded within the past 12 months.

GAP 006/2013 minor








FMU 23 Page 34

Principle 3. Statutory Charges

Criterion 11 : Royalty & Fees

11.1 Critical Criteria: Royalties are paid prior to transport of material in compliance to regulations. (part 3 ; 105)

FINDINGS: 11.1.1 Logs carry SFD Royalty Hammer Mark

- No royalty paid logs are observed during the assessment. Not applicable.

11.1.2 Timber disposal permit - Records of logs numbered, measured and transported are maintained and in

place. Documents sampled are from November to December 2013 as shown table below;

a. Empayar Kejora Sd. Bhd.: TWU06/12 [YT1/12(1): EK268]

Date 30 December 2013

Scaling order KA 20131445 P

TDP # 267851 - 267888

Removal Pass In the process of obtaining removal pass

# of logs 755

Volume 1,928.84 m3

Royalty receipt RH866293

Destination Caslink Sdn. Bhd.

b. Makro Karisma Sdn. Bhd.: TWU12/08 [YT1/08: MK 444]

Date 24 December 2013

Scaling order KA 20130498 P

TDP # 211200


# of logs 15

Volume 53.29 m3

Royalty receipt Balance credit royalty: Ref. #: JPHTN(KEW):700-2/ I SFMLA 09/97/KLT.2 dated 2 November 2012

Destination Shin Yang Plywood Sdn. Bhd.

11.1.3 Removal pass

- Records of logs numbered, measured and transported are maintained and in place.

11.1.4 Payment receipt # - Transportation records such as Scaling Order, Timber Disposal Permit, and

royalty payment receipts were available for inspection. Refer Criteria 9.1.

GAP #: (M / m)








FMU 23 Page 35

Principle 4. Other User Rights

Criterion 12 : Use Rights by Natives

12.1 A social assessment shall be carried out to define potential impacts of forestry operations on local communities

FINDINGS:

12.1.1 Social Baseline assessment - There are no communities living inside or adjacent to FMU 23. The nearest

village to FMU 23 is Kg. Makandut, which is located at FMU 26 (Luasong). Not applicable.

12.1.2 Identification of communities - There are no communities living inside or adjacent to FMU 23. The nearest


12.1.3 Identification of potential impacts - There are no communities living inside or adjacent to FMU 23. The nearest


12.1.4 Mitigation measures - There are no communities living inside or adjacent to FMU 23. The nearest


12.1.5 Assessment report approved by SFD and or EPD

- There are no communities living inside or adjacent to FMU 23. The nearest village to FMU 23 is Kg. Makandut, which is located at FMU 26 (Luasong). Not applicable.

GAP #: (M / m)

12.2 All 3rd party claims are clearly defined and agreement on use rights exist between all parties (part 1 ; 23).

FINDINGS: 12.2.1 Detailed Land Use Rights (3rd party claim land area; records of claims with

villages, discussion with villagers & social NGOs, maps of claimed areas) - There are no communities living inside or adjacent to FMU 23. The nearest


12.2.2 Occupation permit - There are no communities living inside or adjacent to FMU 23. The nearest

GAP #: (M / m)








FMU 23 Page 36


12.2.3 Form II A License - (licence to extract forest produce for own use – if applicable) - There are no communities living inside or adjacent to FMU 23. The nearest


12.3 The organization shall demonstrate identification and respect for native rights and provide for community development and employment. Existence of a formal system of communication and dispute resolution with stakeholders

FINDINGS: 12.3.1 Communication system - (records - formal documented or informal discussions)


12.3.2 Dispute Resolution Process - (formal system, records of disputes) - There are no communities living inside or adjacent to FMU 23. The nearest


12.3.3 Existence of Social Development Program - (records, budget, documentation, discussions with villagers)


GAP #: (M / m)
