confidential

CONFIDENTIAL
1
RSPO MAIN ASSESSMENT REPORT
ASSESSMENT DATE: 17TH – 19TH DECEMBER 2012
FELDA NITAR PALM OIL MILL COMPLEX
CERTIFICATION UNIT
1
FELDA PALM INDUSTRIES SDN BHD, NITAR PALM OIL MILL, FELDA NITAR 2,
86700, MERSING, JOHOR DARUL TAKZIM
2 FELDA NITAR 1, PEJABAT FELDA NITAR 1, 86009, MERSING, JOHOR DARUL
TAKZIM
3 FELDA NITAR 2, PEJABAT FELDA NITAR 2, 86009, MERSING, JOHOR DARUL
TAKZIM
4 FELDA PLANTATION NITAR TIMUR, LADANG FELDA NITAR TIMUR, KM 13, JALAN
MERSING – KLUANG, 86807, MERSING, JOHOR DARUL TAKZIM
FELDA PALM INDUSTRIES SDN BHD
KILANG SAWIT NITAR, FELDA NITAR 2,
86700 MERSING, JOHOR DARUL TAKZIM
MALAYSIA
SIRIM QAS INTERNATIONAL SDN. BHD.
Building 4, SIRIM Complex, No. 1 ,Persiaran Dato’ Menteri, Section 2,
P.O. Box 7035, 40911 Shah Alam, Selangor, Malaysia.
Tel: 603 5544 6448
Fax: 603 5544 6763
Website : www.sirim-qas.com.my
SIRIM QAS INTERNATIONAL SDN. BHD.
Building 4, SIRIM Complex, No. 1 ,Persiaran Dato’
Menteri, Section 2, P.O. Box 7035,
File Reference
EF03060001
40911 Shah Alam, Selangor, Malaysia.
RSPO ASSESSMENT REPORT
CLIENT: FELDA GLOBAL VENTURES PLANTATIONS (MALAYSIA) SDN BHD
ADDRESS
: Tingkat 8, Balai FELDA,
Jalan Gurney 1,
54000 Kuala Lumpur,
Malaysia
PALM OIL MILL: FELDA PALM INDUSTRIES SDN BHD
Nitar Palm Oil Mill
SUPPLY BASE:
1
2
3
4
FELDA Palm Industries Sdn Bhd, Nitar Palm Oil Mill, FELDA Nitar 2,
86700, Mersing, Johor Darul Takzim
FELDA Nitar 1, Pejabat FELDA Nitar 1, 86009, Mersing, Johor Darul
Takzim
FELDA Nitar 2, Pejabat FELDA Nitar 2, 86009, Mersing, Johor Darul
Takzim
FELDA Plantation Nitar Timur, Ladang FELDA Nitar Timur, Km 13, Jalan
Mersing – Kluang, 86807, Mersing, Johor Darul Takzim
ADDRESS OF SITE: FELDA, Nitar Palm Oil Mill Complex Certification Unit
Kilang Sawit Nitar,FELDA Nitar 2,
86700 Mersing, Johor Darul Takzim,
Malaysia
ASSESSMENT DATE:
STAGE 2 : 17TH - 19TH DECEMBER 2012
DURATION : 15 AUDITOR DAYS
STANDARD: ROUNDTABLE ON SUSTAINABLE PALM OIL (RSPO) INCLUDING SMALLHOLDER
MALAYSIA NATIONAL INTERPRETATION WORKING GROUP (MY-NIWG): NOV
2010 AND SUPPLY CHAIN CERTIFICATION SYSTEM REQUIREMENTS, NOV 2011
SCOPE OF CERTIFICATION ASSESSMENT:
PRODUCTION OF CRUDE PALM OIL AND PALM KERNEL USING MASS BALANCE MODEL.
i
TABLE OF CONTENT
Page no
Abbreviation used
iv
1.0
Introduction .......................................................................................................................... 1
1.1
Description of the Certification Unit .................................................................................... 1
1.2
Description of FELDA and its Settlers Scheme ..................................................................... 2
1.3.
Organisation structure in a scheme ..................................................................................... 3
1.3.1
1.3.2
Settler’s Institution.................................................................................................................... 4
Facilities provided in a scheme ................................................................................................. 5
1.4
Workforce composition ....................................................................................................... 5
1.5
Time Bound Plan for Other Management Units and Justification....................................... 5
1.6
Location of Mill and Supply Base ......................................................................................... 6
1.7
Description of the Supply Base............................................................................................. 6
1.8
Other Management System Certification Held .................................................................... 8
1.9
Organizational Information/Contact Person ........................................................................ 8
1.10 Approximate FFB Tonnages Offered for Certification ......................................................... 8
2.0
Assessment Process.............................................................................................................. 9
2.1
Assessment Methodology (Program, Site Visits) ................................................................. 9
2.2
Date of Next Surveillance Visit ............................................................................................. 9
2.3
Assessment Team ................................................................................................................. 9
2.4
Stakeholder Consultations ................................................................................................. 11
3.0
Assessment Findings .......................................................................................................... 12
4.0
Comments from Stakeholder ............................................................................................. 69
5.0
Assessment Recommendation ........................................................................................... 69
6.0
Certified organization’s Acknowledgement of Internal Responsibility and Formal sign-off
of assessment findings ....................................................................................................... 70
List of Tables
Table 1
Total and Composition of Workers in the Certification Unit as of December 2012
Table 2
Coordinates of Nitar CU (Mill and Estates)
Table 3a
Annual (Jan 1st 2012 – 31st December 2012) FFB Contribution by Each Scheme to Nitar
ii
Palm Oil Mill
Table 3b
Table 4
Annual Total CPO and PK Production (Jan 1st 2012 – 31st December 2012) by Nitar
Palm Oil Mill
Year of Establishment of Estates and Area Planted with Oil Palm
Table 5a
Planting Cycle : FELDA Niatr 1
Table 5b
Planting Cycle : FELDA Nitar 2
Table 5c
Planting Cycle : FELDA Nitar Timur
Table 6
Approximate CPO and PK tonnage Claim for Certification in 2013
List of Attachments
Attachment 1a
Time Bound Plan
Attachment 2a
Location map for FELDA Nitar CU in neighbouring context
Attachment 2b
Location map for each schemes
Attachment 3
Assessment programme
Attachment 4
List and Comment from Stakeholders
Attachment 5
Non-Conformity Report and List of Opportunity for Improvements
iii
Abbreviations:
BOD
B.Sc.
CHRA
CoC
COD
CPO
CU
DID
DOE
DOSH
EARA
EB
EFB
EMP
EPF
EQA
ERT
FIC
FFB
GAP
GPS
GPW
GSA
Ha
HCV
HIRARC
IEMA
IPM
ISP
IRCA
JCC
JKKR
M.E
MSDS
MNS
MOA
MPOA
MPOB
MYNI
MYNI – WG
NCR
NGO
OER
OFI
OHD
OSH
OHSAS
Biochemical Oxygen Demand
Bachelor of Science
Chemical Health Risk Assessment
Consolidated Annual Charges
Chemical Oxygen Demand
Crude Palm Oil
Certification Unit
Drainage and Irrigation Department, Malaysia
Department of Environment
Department of Occupational Safety and Health
Environmental Auditors Registration Association
Executive Board
Empty Fruit Bunch
Environmental Management Plan
Employees Provident Fund
Environmental Quality Act
Endangered, Rare and Threatened Species
FELDA Investment Cooperative
Fresh Fruit Bunch
Good Agricultural Practice
Global Positioning System
Gabungan Pembangunan Wanita (Women Development Association)
Group Settlement Act
Hectares
High Conservation Value
Hazard Identification, Risk Assessment and Risk Control
Institute for Environmental Management and Assessment
Integrated Pest Management
Incorporated Society of Planters
International Register of Certificated Auditors
Joint Consultative Committee
Jawatankuasa Kemajuan Rancangan (Scheme Development Committee)
Master of Engineering
Material Safety Data Sheet
Malaysian Nature Society
Memorandum of Alliance or Agreement
Malaysian Palm Oil Association
Malaysia Palm Oil Board
Malaysia National Interpretation
Malaysia National Interpretation – Working Group
Non-Conformity Report
Non Governmental Organisation
Oil Extraction Rate
Opportunity for Improvement
Occupational Health Doctor
Occupational Safety and Health
Occupational Health and Safety Assessment Series
iv
PERKESO
PDRM
Ph.D.
POM
POME
PPE
RSPO
SIA
SS
SOP
USA
USECHH
WTP
WWF
Social Security Organization
Polis Di-Raja Malaysia
Doctor of Philosophy
Palm Oil Mill
Palm Oil Mill Effluent
Personal Protective Equipment
Roundtable on Sustainable Palm Oil
Social Impact Assessment
Suspended Solid
Standard Operating Procedure
United States of America
Use and Standards of Exposure of Chemicals Hazardous to Health
Water Treatment Plant
World Wide Fund for Nature
v
RSPO STAGE 2 ASSESSMENT REPORT
1.0
Introduction
1.1
Description of the Certification Unit
FELDA Global Ventures Plantations (Malaysia) Sdn Bhd – (hereinafter referred to as FGVPM) –
principally an investment holding company was tasked by FELDA Global Ventures Holdings
Berhad to oversee those FELDA-leased land and land belonging to settlers planted with oil palm
obtain certification against the RSPO standard in accordance to the time bound plan set by
FELDA.
This certification unit (CU) of FGVPM Nitar Palm Oil Mill Complex (FGVPM-NCU) was assessed
for certification against the RSPO Principles and Criteria for Sustainable Palm Oil Production,
including smallholder, Malaysia National Interpretation Working Group (RSPO MYNIWG:
November 2010) and RSPO Supply Chain Certification System (SCCS) Requirements
November 2011. The smallholder schemes were assessed against the national guidance for
scheme smallholders.
This certification assessment covered FELDA Nitar Palm Oil Mill and its supply bases, that is,
two smallholders’ schemes land owned by settlers and one estate like manner belonging to
FELDA. It did not include the third party FFB suppliers.
The smallholder schemes two at this CU began development in phases as far back as 1978
through 1980. They are land owned by settlers in accordance with the Group Settlement Act
(GSA) 1960, and, throughout Malaysia they are being administered by the Federal Land
Authority, in short FELDA, a government of Malaysia owned agency. In addition, at this CU
there is one plantation like estate, that is, FELDA Plantation Nitar Timur that was developed in
1988. It belongs to FELDA.
With the exception of some smallholders tending their own farm, the rest of them farm-out their
land to FELDA who arranged it be managed by FELDA Technoplant Sdn Bhd (FTPSB). The
plantation like estate is managed directly by FELDA Plantation Sdn Bhd (FPSB). These
companies (FTPSB and FPSB) are subsidiaries of FELDA Holdings Berhad (FHB).
FTPSB is a service company formed to undertake the individual work that were supposed to be
done by settlers (from planting to harvesting of FFB and maintenance of farm) but now done
collectively in an estate like manner to capitalize on economies of scale to conform to Good
Agricultural Practices.
On the other hand, FPSB is a service company formed to manage areas (that was not given to
settlers) in a commercial manner belonging to FHB.
The difference between settler’s scheme and FELDA Plantation is that each scheme has two
managers. One FELDA Manager is primarily tasked to oversee the socio-economic aspect and
welfare of the settlers whereas on the field operational support he is assisted by one FTPSB
Manager. Unlike the smallholder schemes the estate is solely managed by a Plantation
Manager of FPSB who oversees overall aspect of plantation management and welfare of his
employees.
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There is also another subsidiary company of FHB, FELDA Agriculture Services Sdn Bhd
(FASSB) whose core business is research of palm oil seeds, producing and selling seedlings,
rat baits and the provision of foliar and soil analysis, whom FGV-NCU can call upon to assist on
a need basis.
1.2
Description of FELDA and its Settlers Scheme
FELDA is a government agency established under the Land Development Ordinance on 6th July
1956. Its objectives were:



to provide land for the landless.
to uplift socio-economic status of rural communities; and
to encourage the development of a progressive, productive and disciplined
settlers community.
In the following year FELDA initiated the first land development by planting rubber trees at
Lurah Bilut, Pahang. In 1958, five similar schemes were opened. Subsequently, via Group
Settlement Act 1960 FELDA developed more areas. To date, 853,313 hectares (as of March
2012) of land had been opened for cultivation, infrastructure, settlers’ housing and public
facilities for 112,635 settlers. 811,140 hectares were allocated for agricultural area of which
722,946 hectares or 84.7 % had been planted with oil palm trees. The remaining areas were
planted with rubber, sugar cane, timber, and fruit trees and plot for research and development.
FELDA settlers’ settlement area (village) accounted for 42,173 hectares or 4.9 % of land
developed.
Managed as an estate style (1700 – 2500 ha.), a typical settlers’ settlement range between 400600 settlers per scheme and each settler was given a house and a plot of land to farm.
At FGVPM-NCU each settler was assigned to a particular settlement, and was given 10 acres
(4.0 ha.) of land to cultivate oil palms. All of them planted oil palm trees as their first crop and
continue to do so with replanting. At FPSB Nitar Timur its first crop too was oil palm.
As a scheme participant, all settlers were required to reside at the settlement itself, and were
allotted an additional 0.25 acres (0.10 ha) each in a planned village, where their home - built by
FELDA - is located. About 20 houses made up a block and each block chose its own
representatives who voice their concerns to their Scheme Development Committee (JKKR) and
FELDA Management. All basic infrastructures, such as piped water, electricity, schools, clinics,
and places of worship were provided either by FELDA or through government agencies.
The costs of acquiring, developing and allocating the land were borne by loans made to FELDA
settlers. These loans were to be repaid in monthly installments deducted from the settlers'
income over a 15-year period.
Although settlers were supposed to focus on agricultural activities, they also were encourage by
the government to participate in non-farm activities, such as entrepreneurship in SAWARI
Program (food and craft industry) Agro-based industry, Business, Services and Related
activities, etc, as side income to help alleviate their financial needs.
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1.3.
Organisation structure in a scheme
In a settlers’ scheme, as evident at FGVPM-NCU the management of the scheme was based on the structure as shown in Figure 1.
They comprised of two committees in a scheme, one representing FELDA, referred to as Management Committee and the other
representing the settlers, known as Settler Committee.
Figure 1: Organisation structure in a scheme
The Scheme Manager besides being responsible to coordinate and manage all aspects in a scheme in an estate like manner was
also responsible to the Regional General Manager (RGM), FELDA Segamat, Johor for community development, welfare and well
being of its settlers, their dependant get adequate income, and ultimately FELDA fulfill their social, educational and economic
obligations/needs.
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Attachment 1
The settlers’ obligation was to farm their land in accordance to Good Agricultural Practices
determined by the Scheme Manager. There are two types of settler’s in a scheme, that is,
those who tend their farm on their own and those who farm-out their land (because of
deceased parent (1st generation plot owner), old age and sickness) to FTPSB. The Scheme
Manager together with his Field Supervisors will oversee that the settlers who tend to their own
farm and those run by FTPSB conform to those practices in accordance to FELDA Plantation
standard by making daily field visits. The duties of office staff were to monitor the
implementation of all activities in a scheme and maintain certain records of implementation.
The binding contract between a settler and FELDA is an agreement tying both parties for a
CoC (Consolidated Annual Charges).
1.3.1 Settler’s Institution
Leadership and involvement of settler’s in scheme management is shown in Figure 2 and are
implemented through:





Block Management
Scheme Development Committee (Jawatankuasa Kemajuan dan Keselamatan
Rancangan - JKKR)
JKKR Coalition
Settler's Consultancy Committee (Jawatankuasa Perunding Peneroka - JKPP)
Women Association Movement (Gerakan Perkumpulan Wanita – GPW)
All of these Settler's Bodies play major roles toward Settler's Institution development.
National Level
Regional Level
Scheme Level
Block Level
Block Level
Block Level
Figure 2 : Settler Participation in Management
JKKR Coalition is the supreme council for settlers at the Regional level aimed to unite ideas,
efforts and energy towards improving production, farm development and formation of settler's
family well being. Settler's top involvement and participation in the management and
administration of the scheme is through Settler’s Consultancy Committee, (JKPP).
JKPP is a supreme council where committee members comprised of FELDA's top
management, Heads of Male/Female Settlers and Youth leaders. JKPP becomes the relation
and consultation body between Head of Settlers and FELDA's management. Other roles of
JKPP are to study, check, consider and take resolutions of policies concerning settlers.
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Attachment 1
A land scheme, as mentioned above, normally would involve between 400 – 600 smallholders
and the scheme is divided into blocks. .Each block typically consists of 20 settler families.
They among themselves elect Block Leaders and each block is represented by 2 Block
Leaders. The leaders co-ordinate activities within their group members and voice member’s
concern during the Scheme level meeting.
Collectively, the settlers through their committee can raise issues of concerns to the
Management Committee who via the mandate vested in them would resolve the issues
amicably. If it cannot be resolved at the Scheme Level, it can be escalated to the Regional and
National Level as described above under Settler’s Institution.
There are also local stakeholders in a scheme. Local stakeholders are organizations / groups
involved with the settler community / management such as Gerakan Perkumpulan Wanita
(Women Movement) and Majlis Belia (Youth Council).
In the FELDA schemes assessed, besides the Scheme Manager there usually is between 8 -15
other staff comprising of Field Supervisors, office clerks and driver.
1.3.2
Facilities provided in a scheme
Through site visits, the assessors witnessed the presence of the following infrastructure in all
schemes assessed. It included mosque, primary school, religious school, staff quarters, shops,
cooperative garage and motor vehicle workshop, scheme/plantation administration office,
fertilizer store and community hall.
1.4
Workforce composition
The total and composition of the workforce at the FGVPM-NCU assessed is as shown in Table
1.
Table 1: Total and Composition of Workers in the Certification Unit as of Dec 2012
Operating Unit
Local
Foreign
Sub-Total
Nitar POM
70
-
70
FELDA Nitar 1
12
65
77
FELDA Nitar 2
9
57
66
FELDA Plantations Nitar Timur
64
126
190
155
248
403
Grand Total
Foreign workers account for about 62% of the CU’s total field/plantation workforce whereas at
the mill the composition of workforce is 100% local.
1.5
Time Bound Plan for Other Management Units and Justification
Being a member of RSPO, FELDA is committed to full compliance with the RSPO's Principles
and Criteria (P&C) in all its operations in Malaysia. As of to date, FELDA had attained RSPO
certification in
 one Smallholder Group Certification Unit, and
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Attachment 1
 sixteen mill complexes in Pahang and Johor.
In year 2012, eight CU were being assessed.
It also had established a challenging and realistic time bound plan, as shown in Attachment 1,
to certify all of its estates and mills by the year ending 2017. FELDA have been on schedule
with the time bound plan for the certification of all the CUs. This FGVPM-NCU is among the
latest one to be assessed for certification.
1.6
Location of Mill and Supply Base
There are four (4) types of FFB supplier to FELDA Palm Industries Sdn. Bhd. (FPISB), Nitar
Palm Oil Mill. It consists of the following:
1
FELDA settlers, whom choose to be independent. They carry out replanting and
manage their estates by themselves and sell the FFB to FELDA mills.
2 FELDA land schemes, which is made up of smallholder schemes with dependents
(settlers) whom due to inevitable reason (death of breadwinner, age, etc) had opted to
let FTPSB to manage on their behalf replanting and ongoing management of plots.
3 FPSB consisting of FELDA’s owned commercial oil palm plantation.
4 Other estates: Commercial oil palm plantations belonging to independent outgrowers
.
The FGVPM-NCU covers one palm oil mill and three oil palm schemes, all in the state of Johor.
The locations of the mill and schemes are shown in Table 2.
Table 2: Coordinates of Nitar CU (Mill and Estates)
Mill / Scheme
Post Code, District,
State
*Latitude
*Longitude
FELDA Palm Industries,
Nitar Palm Oil Mill,
86800 Mersing, Johor
2° 40.5' 04" N
103° 65' 15" E
FELDA Nitar 1
86800 Mersing, Johor
2° 23' 04" N
103° 42' 34" E
FELDA Nitar 2
86800 Mersing, Johor
2° 23' 33" N
103˚ 40’ 30’’E
FELDA Plantations Nitar Timur
86800 Mersing, Johor
2˚ 22’ 38’’N
103˚ 46’ 09’’ E
* Coordinate readings were taken at the respective scheme administrative office
The location map of the CU is shown as in Attachment 2.
1.7
Description of the Supply Base
All the above FELDA land schemes had been supplying FFBs to the Nitar POM. Apart from
these estates, there were four outside crop suppliers which had been regularly sending their
FFB to the FELDA Nitar POM. These four FFB suppliers are FFB traders.
Data on FFB supply information as well as CPO and PK production is as per the tables below.
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Attachment 1
Table 3a: Annual (Jan 1st 2012 – 31st December 2012) FFB Contribution by Each
Scheme to Nitar Palm Oil Mill
FFB Production
Tonnes
Percentage
Land Scheme
FELDA Nitar 1
9,837
5.36
FELDA Nitar 2
4,650
2.53
FELDA Nitar Timur
25,052
13.65
Outgrowers crop
144,029
78.46
Total
183,568
100.00
Table 3b: Annual Total CPO and PK Production (Jan 1st 2012 – 31st December 2012)
by Nitar Palm Oil Mill
OER, %
CPO Production (MT)
KER, %
PK Production (MT)
19.02
29233.74
5.88
9037.56
FELDA follows a 25-year replanting cycle. Table 4 shows the details of the year of
establishment of the estates, year switched to oil palm and their respective total land and area
planted with oil palm, while Tables 5a to 5h show the percentage of planted area in each
estate by year of planting and the planting cycle.
Table 4: Year of Establishment of Estates and Area Planted with Oil Palm
Operating Unit
Year of
Establishment
FELDA Nitar 1
1979/1980
FELDA Nitar 2
1978/1979
FELDA Nitar Timur
1988/1989
Year started/
switched to
oil palm
Started with Oil
Palm
Started with Oil
Palm
Started with Oil
Palm
Total
Total Area
(ha)
Planted Area
(ha)
2444.74
2290.03
2294.96
2078.97
2592.61
2097.36
7332.31
6466.36
Table 5a: FELDA Nitar 1
Plot
Year of
Planting
Planting Cycle
Planted Area (ha)
Percentage of
Planted Area
01
2008
2nd generation
978.65
42.73
02
2008
2nd generation
1311.38
57.27
2290.03
100.00
Total
Table 5b: FELDA Nitar 2
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Attachment 1
Plot
Year of
Planting
Planting Cycle
Planted Area (ha)
Percentage of
Planted Area
01
2008
2nd generation
1090.13
52.44
02
2009
2nd generation
988.84
47.56
2,078.97
100.00
Total
Table 5c: FELDA Nitar Timur
Plot
Year of
Planting
Planting Cycle
Planted Area (ha)
Percentage of
Planted Area
PM98B
88/89
1st generation
1714.73
83.08
PM00C
91/92
1st generation
60.04
2.87
PM08D
08/09
1st generation
295.59
14.10
2097.36
100.00
Total
1.8
Other Management System Certification Held
All the three FELDA land schemes assessed except for the FELDA Palm Industries Nitar Palm
Oil Mill do not hold any form of third-party certification to any of the internationally recognized
management systems. The mill is certified to ISO 9001:2008, ISO 14001:2004 and OHSAS
18001:2007 and had completed the annual surveillance audit. Its certificates are valid.
1.9
Organizational Information/Contact Person
Name
Designation
Address
Telephone
Fax
e-mail
1.10
:.Norazam Abdul Hameed
: Head, Plantations Sustainability & Quality Management
: FGV Plantations Malaysia Sdn Bhd
Tingkat 8, Balai FELDA,
Jalan Gurney 1,
54000 Kuala Lumpur, Malaysia.
: +03-2698 7772
: +03-2691 1378
: norazam.h@feldaglobal.com
Approximate FFB Tonnages Offered for Certification
The approximate tonnage of CPO and PK produced per year, as well as the tonnage claimed
for certification, are as shown in Table 6 as follows:
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Attachment 1
Table 6: Approximate CPO and PK tonnage Claimed for Certification in 2013
Tonnage Claimed for Certification (MT)
Certification Unit
FELDA Nitar Palm Oil Mill Complex
Certification Unit
CPO
PK
14440
4430
2.0
Assessment Process
2.1
Assessment Methodology (Program, Site Visits)
The assessment for certification was carried out in conformity with the procedures as laid down
in SIRIM QAS Procedure Manual. During the assessment qualified SIRIM QAS assessors
used the RSPO:MYNI November 2010 standard and RSPO Supply Chain Certification System
(SCCS) Requirements November 2011.and recorded their findings.
There was no Stage 1 assessment conducted to determine the adequacy of the established
documentation in addressing the requirements of the RSPO MYNI P&C and RSPO SCCS. The
company instead relied on using the experience of main assessment from its other past CU
RSPO assessments to ensure that this management unit conformed to the RSPO MY P&C and
SCCS Requirements.
The RSPO Stage 2 assessment was conducted from 17th-19th December 2012. The main
objective of the assessment was to verify the CU’s conformance to the requirements of
certification standard, the RSPO MYNI (including smallholder November 2010) and RSPO
Supply Chain Certification System (SCCS) Requirements November 2011. The planning for
the Stage 2 assessment was guided according to the RSPO Certification Systems Document.
After studying the document given to us, it was decided that the sampling formula of 0.8√y to
determine the number of schemes to be audited would be used. Besides the Nitar Palm Oil
Mill, one FELDA smallholder scheme and one FPSB were assessed.
The assessment was conducted by visiting the fields, mill and settlers’ houses to verify
implementation. Interviews were held with the CU’s management, settlers, employees,
contractors and other relevant stakeholders. Related records and other documentation audit
were conducted at all estates and mill visited.
Details of the actual assessment programme are given in Attachment 3.
2.2
Date of Next Surveillance Visit
The first surveillance audit will be conducted around twelve months from the date of issuance of
the certificate.
2.3
Assessment Team
Member of the Role/area of RSPO Qualifications
Assessment Team requirements
Lead Assessor /
 Collected over 400 days of auditing
Mahzan Munap
Occupational Health
experience in OHSAS 18001 and MS
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Attachment 1
and
Safety,
Environment
&
related legal issues
Khairul Najwan
Ahmad Jahari
Overall Team Leader
Assessor / ecology
and
environmental
issues/
HCV
/
Forestry
1722 OHSMS (72 days for palm oil
milling & 8 days for oil palm plantation)
and 60 days of RSPO.
 CIMAH
Competent
Person
with
Malaysian Department of Occupational
Safety and Health (DOSH) since 1997.
 Occupational Safety and Health Trainer
at INSTEP Petronas
 Successfully completed RSPO Lead
Assessor Course – 2008.
 Successfully completed Lead Assessor
Course for OHSAS 18001- 2000.
 Successfully completed IRCA accredited
Lead Assessor training for ISO 90012006
 Successfully
completed
RABQSA
accredited Lead Assessor training for
ISO 14001- 2008
 MBA, Ohio University.
a. B.Sc. Petroleum Engineering, University
of Missouri, USA.
 Collected 70 auditor days in auditing
Forest Management Certification (FMC
– MC&I 2002 and MC&I Natural Forest)
 Collected 38 auditor days in auditing
RSPO
 11 years working experience related to
forest
management,
inventory,
surveying, HCVF and logging operation.
 Successfully completed accredited Lead
Assessor training for ISO 14001: 2004,
ISO 9001:2008 and OHS 18001:2000
 Successfully completed RSPO Lead
Assessor Course – 2011.
 B. Sc of Forestry (Forest Management)



Selvasingam TK
Assessor / Good
Agricultural Practices
(GAP)
and 
environmental issues
8 days experience as Technical
Adviser to RSPO Audits.
14 days of auditing experience in
RSPO.
B. Sc. (Hons) Agriculture – University
of Agricultural Sciences, Hebbal,
Banglore, India (1969-1973)
A Planter with Kumpulan Guthrie
Berhad (1995-2002 – retired)
Inclusive of One year in Liberia and
2 years in Estate Department in
Guthrie head quarters
Experience in Managing:
 Nursery : Rubber and Cocoa
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Attachment 1


Dr.Zahid Emby
2.4
Immature Area : Cocoa Replant,
Rubber Replant, Oil Palm Replant &
Oil Palm New Clearing
Mature Area: Cocoa, Rubber & Oil
Palm.
 Collected 45 auditor days in auditing
Forest Management Certification (FMC
– MC&I 2002) and 13 auditor days in
auditing FSC P&C.
 Collected 45 audit days in auditing
RSPO
 Peer reviewer for FSC Forest
Management certification reports
 B.A. Hons (Social Anthropology /
Sociology)
 M.A. (Social Anthropology)
 Ph.D. (Major: Cultural Anthropology;
Minors: Southeast Asian Studies
International Agriculture and Rural
Development
Assessor / workers&  1977- 1992 – Lecturer, Department of
community
issues
Social
Sciences,
Faculty
of
and related legal
Educational
Services,
Universiti
issues
Pertanian Malaysia
 Head,
August
1992
–
1994,
Department of Social Development
Studies, Universiti Pertanian Malaysia
 August 1, 1998 -2001. Reappointed as
Head of the renamed Department of
Social and Development Science for a
three year term
 Head, Department of Music from
October 2003 until his retirement on
December 17, 2006
 Spent some time as a visiting scholar at
University of Hull, U.K. and Victoria
University of Wellington, New Zealand.
 Freelance consultant on social issues
Stakeholder Consultations
SIRIM QAS International Sdn Bhd (SIRIM QAS International) initiated the stakeholder
consultation by announcing the invitation in the RSPO and SIRIM QAS International’s websites
on 9th November 2012. In addition, SIRIM QAS International had also sent invitations through
letters to the relevant stakeholders, including government agencies and Non-Governmental
Organizations (NGOs) on 9th November 2012. This was followed-up by telephone calls.
Whenever necessary, meetings with the relevant stakeholders were arranged during the on-site
assessment.
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Attachment 1
The consultation with the government agencies had involved meetings and discussions with the
relevant departments mainly to solicit information as well as verification on the CU’s compliance
with the applicable laws and regulations related to its operations.
The consultations with the NGOs were held to seek their comments mainly on the CU’s
compliance with those criteria related to the social and environmental issues.
The method of consultation with the settlers, contractors and FELDA staff were through random
sampling from each group in each of the FFB supplying unit and oil mill (e.g. mill operators,
harvesters, general workers and sprayers) visited. The consultations which were conducted at
the CU’s office had included solicitation of comments on issues relevant to principles 1 to 8 of
the RPSO MYNI. (including smallholders) November 2010 and RSPO Supply Chain
Certification System (SCCS) Requirements November 2011.
The consultations by assessors with the local communities were held at two different venues,
that is at FELDA office and the other was by visiting the settler’s home/village during the times
that were convenient to them. The intention was to solicit their views on the impact of the
FGVPM-NCU’s operations on their economics and socio-cultural lives.
Outcome from the stakeholders being consulted is as in Attachment 4.
3.0
Assessment Findings
The findings of the assessment were highlighted and discussed during the on-site assessment.
A total of twelve nonconformity reports (NCR) were raised on the FGVPM-NCU against the
requirements of the RSPO MYNI, November 2010 and one against RSPO Supply Chain
Certification System (SCCS) Requirements November 2011. Eight were categorized as Major
and four as Minor non-conformities. Details of the non-conformities raised and corrective
actions taken by the CU are as in Attachment 5. Evidences of the actions taken had been
submitted to the assessment team. In addition to the NCR, eleven observations or opportunities
for improvement were identified for the CU to improve in meeting with the requirements of the
RSPO MYNI (see Attachment 5).
The detailed findings of the assessment on the CU’s compliance with the requirements of the
RPSO MYNI and RSPO Supply Chain Certification System (SCCS) are as follows:
PRINCIPLE 1: COMMITMENT TO TRANSPARENCY
Criterion 1.1
Oil palm growers and millers provide adequate information to other stakeholders on environmental, social and legal
issues relevant to RSPO Criteria, in appropriate languages and forms to allow for effective participation in decision
making
Indicators:
1.1.1
Records of requests and responses must be maintained.
Major compliance
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme managers should assist in ensuring compliance by their organized smallholders in providing adequate
information.
Scheme managers must ensure that participant are given copies of:
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Attachment 1
-chemical use (4.6)
-to-date records of debts and repayments, charges and fees (6.10)
- Health and safety plan (4.7).
- Plans and impact assessments relating to environmental and social impacts
(5.1, 6.1, 7.1, 7.3).
- Pollution prevention plans (5.6).
- Details of complaints and grievances (6.3).
- Negotiation procedures (6.4).
- Procedure for calculating prices, and for grading, FFB (6.10)
- Continuous improvement plan (8.1) confidential
Findings:
There was available procedure of communication as evidenced in FELDA Palm Industries Sdn
Bhd (FPISB) document: FPI/L2/QOHSE-6.0 entitlted Manual Prosedur, Komunikasi,
Penglibatan dan Rungdingan (Communication, Participation and Consultation). It included
internal and external consultation.
Additionally, FELDA has a website www.feldaglobal.com for promotion of its products. The
website contained brief information about the company’s profile, vision and key objectives,
corporate structure, business operations, investor relations, financial, sustainability and
corporate social responsibility.
FELDA had dedicated substantial resources to ensuring that every aspect of its business
emulates the eight principles as laid out under RSPO Principles and Criteria for Sustainable
Palm Oil which was accepted as the most complete document defining sustainable palm oil
production, and faithfully follow the requirements of Module E: CPO Mill Mass Balance of the
RSPO Supply Chain Certification System.
With respect to RSPO requirements, FELDA had provided adequate information on issues
relevant to interested stakeholders including publishing on its website inviting all stakeholders
to take part to make a positive contribution to the RSPO certification decision. FELDA had
asked all stakeholders to raise any issues, both positive and negative, in written form (by mail,
fax or e-mail) or by attending an open stakeholder meeting at Hotel Seri Malaysia, Mersing. It
also had written to all stakeholders informing them on the availability of documents for public
review.
A management official at the operating unit level had been assigned to be in charge on
communication and consultation with stakeholders.
During the assessment, it was observed that FGVPM-NCU had compiled a list of 32 local
stakeholders that may be relevant to its operation. The letters to stakeholders and the records
of request were examined in the scheme inspected.
A briefing for and discussion with stakeholders was held on 14th September 2012 at Hotel Seri
Malaysia, Mersing as evidenced by the signed list of attendance. Only 8 stakeholders turned
up. From the above records, it was evident that the company had committed to be transparent
in its dealings with internal and external stakeholders. Please see Attachment 4 for List and
comments from stakeholders.
In addition to the above, it was also seen there were regular communications (almost monthly)
with Wildlife Department Johor, the latest being on 10th December 2012 as sighted in “Buku
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Attachment 1
Rekod Serangan Gajah (PM98B)” and with the Johor State Forest Department by FP Nitar
Timur on 6th November 2012.
There was also evidence that Scheme Managers had assisted in ensuring compliance to
RSPO P&C by providing adequate information to their scheme smallholders (settlers). The
participants were given copies of contract between FELDA and them, up-to-date records of
debts and repayments, charges and fees. Others include demonstration training on the safe
use of agro-chemical, information on integrated pest management, health and safety plans,
social and environmental impact / aspect assessments and plans, pollution prevention
programs, procedure for complaints and grievances and procedure for calculating FFB prices,
and for FFB grading.
Criterion 1.2
Management documents are publicly available, except where this is prevented by commercial confidentiality or
where disclosure of information would result in negative environmental or social outcomes. This concerns
management documents relating to environmental, social and legal issues that are relevant to compliance with
RSPO Criteria. Documents that must be publicly available include, but are not necessarily limited to:1.2.1
1.2.2
1.2.3
1.2.4
1.2.5
1.2.6
1.2.7
Land titles / user rights (C 2.2)
Safety and health plan (C 4.7)
Plans and impact assessments relating to environmental and social impacts (C 5.1, 6.1, 7.1, 7.3)
Pollution prevention plans (C 5.6)
Details of complaints and grievances (C 6.3)
Negotiation procedures (C 6.4)
Continuous improvement plan (C 8.1)
Guidance:
Examples of commercially confidential information include financial data such as costs and income, and details
relating to customers and/or suppliers. Data that affects personal privacy should also be confidential.
Examples of information where disclosure could result in potential negative environmental or social outcomes
include information on sites of rare species where disclosure could increase the risk of hunting or capture for trade,
or sacred sites, which a community wishes to maintain as private.
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme managers should ensure that appropriate systems are in place for their organized smallholders to comply
with the above. This may include providing information that covers.
-use rights; (certificate)
the smallholders’ organisation.
Findings:
FGVPM-NCU had made publicly available the related management document as required by
this Criterion through a letter sent to stakeholders dated 7th September 2012. Each scheme
had maintained record of requests made by stakeholders and this record was presented during
the assessment.
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Attachment 1
Photograph 1 and 2 (L - R) : Publicly available documents at FELDA Nitar Timur and Nitar 2
office
Each offices of Nitar CU visited had a dedicated office space for keeping RSPO documentation
and records. There is a Document Controller in-charge of the document to ensure its
distribution is current and retrieve obsolete document.
Filing of documents was orderly arranged such that any required document for referral is
readily accessible, for instance, as shown in Photograph 1 and 2 at the FELDA Nitar Timur and
FELDA Nitar 2 office:
In addition, all the policies of the company had been clearly displayed on notice boards (see
At the scheme level, the Scheme Managers had ensured appropriate RSPO documentation
system were available and can be accessed by their participating members. Review of
documents revealed that it had included the following information:




Evidence of legal ownership of the land or land-use rights; (photocopy of certificate for
those still owing FELDA)
SEIA document and related monitoring reports
Documented evidence of organizational and social activities.
Appropriate Management Plans
PRINCIPLE 2: COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS
Criterion 2.1
There is compliance with all applicable local, national and ratified international laws and regulations
Indicators:
2.1.1
Evidence of compliance with legal requirements.
Major compliance
2.1.2
A documented system, which includes written information on legal requirements.
Minor compliance
2.1.3
A mechanism for ensuring that they are implemented.
Minor compliance
2.1.4
A system for tracking any changes in the law.
Minor compliance
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Attachment 1
Guidance:
1. Lists down all applicable laws including international laws and conventions ratified by the Malaysian government.
2. Identify the person(s) responsible to monitor this compliance.
3. Display applicable licenses and permits.
4. Unit responsible to monitor these will also be responsible to track and update changes.
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme managers should ensure that their organized smallholders are aware of and comply with relevant legal
requirements.
These would require provision of information regarding relevant legal requirements to the participants or their
appointed representatives.
Findings:
Each scheme of the FGVPM-NCU visited followed the established procedure for documenting,
checking, assessing of legal compliance and tracking of changes with applicable laws. They
include international laws and conventions ratified by the Malaysian Government that are
relevant to its operations.
Scheme and Mill Manager had been identified to be responsible for communicating changes in
laws and regulations whereas the unit responsible for tracking, monitoring and updating the
changes of applicable laws and regulations was based at FELDA Headquarters, Kuala Lumpur.
All changes had been cascaded down to the settler’s land schemes, plantation and mill
management.
List of laws/regulations and their summaries related to RSPO were available in a legal register.
The applicable laws identified and recorded in the legal register included Pesticides Act 1974
and Regulations, Environmental Quality Act and Regulations, 1974, Factories and Machinery
Act and Regulations, 1967, Occupational Safety and Health Act 1994, Employment Act 1955,.
The acts and its regulations were evaluated for compliance annually.
The Mill Manager and Scheme Managers interviewed showed understanding on the applicable
legal requirements. Likewise, staff and smallholders interviewed showed their awareness, the
need of them to comply with relevant legal requirements and the consequence for noncompliance.
Generally, FGVPM-NCU were in compliance with all applicable local, national and ratified
international laws and regulations, for example, all foreign workers have valid Visit Pass
(Temporary Employment) issued by the Department of Immigration, Malaysia; environmental
license issued by DOE with its compliance schedule had been adhered to, machineries
requiring Certificate of Fitness were up-to-date and Competent Persons were available at the
mill except for lapses as highlighted in NCR MM1 These lapses were:
1. Pesticides at store belonging to Azmi Usaha Jaya Enterprise (contractor) were stored
along with gas cylinders, barb wires, tires, spraying pumps, empty fertilizer bags, car
wheel rims, etc. and not in accordance to the Occupational Health and Safety Health
Act 1994 and Pesticides Act 1974.
2. CHRA had not been conducted for contractor workers (extended employees) of Ladang
Jaya and Wira Bina Perdana at Nitar 2, Pkt 2 and workers of Azmi Usaha Jaya
Enterprise at Pkt 01 as required by USECHH Regulations 2000
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Attachment 1
3. Except at Nitar POM, functions and responsibility of OSH Committee were not made
known to Committee members at FELDA Nitar 1 and FELDA Nitar Timur and workplace
inspections were not carried out by the Committee members.
Photographic evidence to show that the store had been cleaned-up, materials rearranged,
segregated and labelled had been sighted and found acceptable. CHRA had for individual
contractor company and its employees as well as field personnel of FELDA Technoplant had
been conducted. The functions and responsibility as per OSHA (Safety and Health Committee)
Regulations 1996 had been made known although not comprehensive but can be improved.
The Action Plan together with supporting documents submitted were considered acceptable
and the status of this NCR MM1 is closed.
Criterion 2.2
The right to use the land can be demonstrated, and is not legitimately contested by local communities with
demonstrable rights.
Indicators:
2.2.1
Evidence of legal ownership of the land including history of land tenure.
Major compliance
2.2.2
Growers must show that they comply with the terms of the land title.
[This indicator is to be read with Guidance 2]
Major compliance
2.2.3
Evidence that boundary stones along the perimeter adjacent to state land and other reserves are being
located and visibly maintained.
Minor compliance
Specific Guidance:
Growers should attempt to comply with the above indicator within 15 months from date of announcement of first
audit. Refer to State Land Office for examples of other reserves.
2.2.4
Where there are, or have been, disputes, proof of resolution or progress towards resolution by conflict
resolution processes acceptable to all parties are implemented. Cross ref. to 2.3.3, 6.4.1 and 6.4.2.
Minor compliance
Guidance:
1. For any conflict or dispute over the land, the extent of the disputed area should be mapped out in a participatory
way.
2. Where there is a conflict to the condition of land use as per land title, growers must show evidence that
necessary action has been taken to resolve the conflict with the relevant authorities.
3. Ensure a mechanism to solve the dispute (Refer to C 6.3 and C6.4)
4. Evidence must be demonstrated that the dispute has been resolved.
5. All operations shall cease on land planted beyond the legal boundary.
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme Managers should ensure that:


The members are able to show legal ownership of their land or land use rights.
Is such title are yet to be issued the scheme management should show evidence of legal legitimacy of land
allocated.
The management should facilitate in processing / procuring land ownership for those participants.
Findings:
The right to use the land can be demonstrated and not disputed as the land developed by
FELDA was authorized under Section 4 of the Land (Group Settlement Area, in short GSA) Act
1960. Scheme management had showed evidence of legal legitimacy of land allocated via
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Attachment 1
plantation map and copies of land title that correspond to each other. (See photograph 6 and
7). More details of the land including ownership, transfer, land title, history of land tenure, etc,
were available on the centralized FELDA SAP Software “Sistem Komputer Bersepadu” (SKB)
under Modul Peneroka.
The Assessor sighted that there were clear land ownership documents for FP Nitar Timur and
the smallholders at FELDA Nitar 2. Details are as follows:

FELDA Nitar Timur is owned by FP Sdn Bhd. Nitar Timur had three blocks of which 2
blocks had 3 valid titles as shown in Table 1 while the 3rd block (Peringkat (level) 3,
PR08D) about 295 ha was found without document of legal ownership. A Major NCR#
NAJ-1 was issued. The 3 titles were lease hold land valid for 99 years until 5th Jan
2103.

Each smallholder is given 2 separate grants with attached terms and conditions, one for
oil palm cultivation and the other for housing. There were a total of 434 and 450
smallholder’s grants at FELDA Nitar 1 and FELDA Nitar 2 respectively. All 450 settlers
at FELDA Nitar 2 have been given the individual land title, sample, as shown in Table 1.
Records sighted showed that the land titles for settlers at FELDA Nitar 2 were
presented to them by the Johor Menteri Besar on 17th May 2012.
Photograph 3 and 4 (L - R): Land title file, records of land rights, tenure and stated terms and
conditions of use at FELDA Nitar 2
Table 1: samples of grant sighted at FP Nitar Timur and FELDA Smallholders Nitar 2
Estate
Grant
No.
Lot
Hectarage
Status
Date
Owner
registered
FELDA
Timur
Nitar 4229
PTD
15215
887.4 Ha
Oil Palm 6.1.2004 – Lembaga Kemajuan
5.1.2103
Tanah Persekutuan
FELDA
Timur
Nitar 4230
PTD
15216
951.7 Ha
Oil Palm 6.1.2004 – Lembaga Kemajuan
5.1.2103
Tanah Persekutuan
FELDA
Timur
Nitar 4231
PTD
17213
93.75 Ha
Oil Palm 6.1.2004 – Lembaga Kemajuan
5.1.2103
Tanah Persekutuan
FELDA Nitar 2 2437
Lot 6839 1637m2
Housing 4.8.20113.8.2110
Mahat bin Siraj
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Attachment 1
FELDA Nitar 2 2137
(peringkat 2)
Lot 2137 3.948 ha
Oil Palm 4.8.20113.8.2110
Mahat bin Siraj
FELDA Nitar 2 2145
(peringkat 1)
Lot 2145 3.94 ha
Oil Palm 4.8.20113.8.2110
Mohamad bin Kamat
FELDA Nitar 2 147
(peringkat 2)
Lot 2150 3.94 ha
Oil Palm 10.8.2011 - Abd Rahman
9.8.2110
Atan
bin
During the site review, all boundary stones at FP Nitar Timur and FELDA Nitar 2 belonging to
smallholders and those adjacent to state land and forest reserves had been sighted visibly
maintained. (See Photograph 5-9). The boundary map also had been maintained in PA Map #
7804A dated on 10th November 2001.
Photograph 5: Boundary stone at FELDA Plantation Nitar Timur adjacent to FELCRA
Melikai
Photograph 6 and 7 (L-R): Boundary stone at FELDA Nitar Timur adjacent to Mersing
Forest Reserve and Gunung Arong Forest Reserve
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Attachment 1
Photograph 8 and 9: Boundary stone at FELDA Nitar 2 adjacent with smallholder
(Palani) and YPJ Plantation
The settlers and FP Nitar Timur plantation management complied with the terms of the land
titles including conditions for agricultural cultivation as stated in Form 5EK of Kanun Tanah
Negara. This was verified during field tour.
There had been no conflict over the land occupied by the scheme settlers and FP Nitar Timur
and therefore there was no land claim from local communities on the FELDA smallholdings and
plantation assessed.
The status of NCR NAJ-1 is closed as FELDA had submitted to the Assessor the legal land
title on February 4th 2014. The legal ownership for FELDA Plantation Nitar Timur (Peringkat 3)
and terms of land title was sighted. The map in the legal ownership matched with the plantation
map provided.
Criterion 2.3
Use of the land for oil palm does not diminish the legal rights, or customary rights, of other users, without their free,
prior and informed consent.
Indicators:
2.3.1
Where lands are encumbered by customary rights, participatory mapping should be conducted to
construct maps that show the extent of these rights.
Major compliance
2.3.2
Map of appropriate scale showing extent of claims under dispute.
Major compliance
2.3.3
Copies of negotiated agreements detailing process of consent (C2.2, 7.5 and 7.6).
Minor compliance
Guidance:
Where lands are encumbered by legal or customary rights, the grower must demonstrate that these rights are
understood and are not being threatened or reduced. This criterion should be considered in conjunction with Criteria
6.4, 7.5 and 7.6.
Where customary rights areas are unclear these are best established through participatory mapping exercises
involving affected and neighbouring communities.
This criterion allows for sales and negotiated agreements to compensate other users for lost benefits and/or
relinquished rights. Negotiated agreements should be non-coercive and entered into voluntarily, carried out prior to
new investments or operations and based on an open sharing of all relevant information in appropriate forms and
languages, including assessments of impacts, proposed benefit sharing and legal arrangements.
Communities must be permitted to seek legal counsel if they so choose. Communities must be represented through
institutions or representatives of their own choosing, operating transparently and in open communication with other
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Attachment 1
community members.
Adequate time must be given for customary decision-making and iterative negotiations allowed for, where
requested. Negotiated agreements should be binding on all parties and enforceable in the courts. Establishing
certainty in land negotiations is of long-term benefit for all parties.
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme managers can show that lands acquired for participants do not diminish legal or customary rights. Where
other customary lands have been taken-over, there is documentary proof of transfer of rights (eg sale) or payment
of agreed compensation.
Findings:
As mentioned earlier, through Land (General Settlement Area) Act 1960, the schemes’
smallholders and plantation management had been given the legal right to all the land for
cultivation through the title provided by the State Department of Lands and Surveys. The
smallholdings and plantation were established long time ago (started in 1978 and 1988
respectively) and they did not diminish the legal rights, or customary rights, of other users in the
vicinity at the time of planting.
The assessor had sighted evidences of clear land ownership (cross refer to section 2.2)
documents for the smallholders and plantation at the respective FELDA Nitar office. It was also
noted from records examined, as well as through interviews with small holders and FP Nitar
Timur management, that there were no disputes on land rights in the CU.
PRINCIPLE 3: COMMITMENT TO LONG-TERM ECONOMIC AND FINANCIAL VIABILITY
Criterion 3.1
There is an implemented management plan that aims to achieve long-term economic and financial viability.
Indicators:
3.1.1
Annual budget with a minimum 2 years of projection
Major compliance
Specific Guidance:
Annual budget may include FFB yield/ha, OER, CPO yield/ha and cost of production that is not required to be
publicly available.
3.1.2
Annual replanting programme projected for a minimum of 5 years with yearly review.
Minor compliance
Guidance:
Individual organization is to define its own management unit i.e. mill, estate or group as per definition on unit of
certification explained in Item 4.2.3 and 4.2.4 in the RSPO Certification Systems document located at:
http://www.rspo.org/RSPO_Certification_Systems.aspx
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme Managers have a documented management plan (minimum 2 years) which is shared with them or their
selected representatives.
Findings:
The budget for financial year 2012 was available with projections for 2013 for FELDA Nitar 2,
Nitar Timur and projections up to 2015 for Nitar POM. An OFI was raised against FELDA Nitar
2, FTPSB Nitar 2 and FP Nitar Timur for annual budget with only one (1) year projection. The
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Attachment 1
budgets included capital and operating expenditures with attention given to crop projection,
FFB yield trends, mill extraction rates, cost of production, and cost per tonne and per hectare of
FFB or CPO to monitor the performance of each operating unit. The cost of production was
reviewed and compared against expenditure each year with projections in place for future
years.
Nitar Timur had a replanting programme planned for 2015.
Others included the provision of allocation for mill and estate operations and maintenance
covering upkeep of Plant & Machineries, Housing, Buildings & Amenities, Office Equipment,
Land & Infrastructure, Agriculture Equipment & Vehicle. Budget for continuous improvement
projects had been addressed, for examples, training, occupational safety and health,
environmental upkeep (reduced, reuse and recycle) and for welfare and social activities for
settlers.
PRINCIPLE 4: USE OF APPROPRIATE BEST PRACTICES BY GROWERS AND MILLERS
Criterion 4.1
Operating procedures are appropriately documented and consistently implemented and monitored.
Indicators:
4.1.1
Documented Standard Operating Procedures (SOP) for estates and mills
Major compliance
4.1.2
Records of monitoring and the actions taken are maintained and kept for a minimum of 12 months.
Minor compliance
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Working practices should be consistent with documented procedures that are adopted. Such documents should be
explained to the participants and made available for reference.
For smallholders, working practices will have to be consistent with documented procedures provided by customers
or related government agencies and organizations.
Findings
It was evident at all FGVPM-NCU visited that the use of appropriate best practices are
implemented based on the documented manuals and procedures accordingly. The
implemented procedural documents as well as records were well kept appropriately in
designated files.
Manuals and procedures referred to were those developed at the group level that include the
standard operation procedures and sustainability procedures covering both estates and mill
operations. It covered all plantation activities, from seedling to the transportation of FFB to the
mill, and mill operations such as FFB receipt and grading, machineries and equipment start-up,
process operations and monitoring, shutdown and maintenance activities.
At the sites assessed, they (FELDA Technoplant and FELDA Smallholder Scheme) used the
following generic document:
1. FELDA Operations Manual for Sustainable Oil Palm Plantations (Manual Operasi
Ladang Sawit Lestari) updated on October 2007;
2. Sustainable Manual 1A (Manual Lestari 1A) dated March 2012;
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3. Occupational Safety, Health and Environmental Manual and SOP (Manual
Keselamatan, Kesihatan Pekerjaan dan Alam Sekitar dan Tataccara Kerja Selamat)
updated on 2009;
4. Procedures on riparian buffer zone (Polisi Perlindungan Tanah Curam dan Rezab
Sungai), in the document ML-1A /L2-PO3 (0) dated March 2012
On the other hand, the Nitar POM use its applicable generic document, such as:
1. Quality Procedure Manual;
2. EMS Operation Manual;
3. Laboratory Operation Manual;
4. Quality Occupational Safety, Health and Environmental Manual (Manual Kualiti,
Kesihatan, Keselamatan Pekerjaan and Alam Sekitar);
5. SOP – Occupational Safety, Health and Environmental Management Manual (Manual
Tatacara Kerja Selamat – Keselamatan, Kesihatan dan Alam Sekitar); and
6. Mill Operations Manual
The manual and procedures were available to all levels of Executives in the plantations and
mill.
Photograph 10,11 and 12 (L-R) : Among manual used by scheme/plantation - FELDA
Operations Manual for Sustainable Oil Palm Plantation, Sustainable Manual (Compliance to
RSPO P&C) and Safety, Health and Environmental Manual
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Photograph13, 14 and 15 (L-R) : Among manual used by Nitar POM – FPISB SOP - Safety,
Health and Environmental Management Manual and Mill Operations Manual and QMS
Procedure Manual
Irrespective of the land whether it belongs to settlers or those land managed by FTPSB the
requirement to use the three established generic plantation manuals mentioned above had
been applied by the Scheme Management. The Scheme Management had explained the need
for the settlers to comply and the benefits to be gained in adopting the FELDA Good
Agricultural Practices. This document had been made available for the participants to refer.
Interview with settlers tending their own land revealed that they had occasionally consulted and
were given helpful and relevant advice by their Scheme Management on Good Agricultural
Practice.
Implementation of the manuals and SOP was verified. Through random interviews held with
the staff, workers and self-tending farmers, the outcome revealed that they generally
understood the requirements of these documents and their level of understanding on the
contents of the manual and SOP was found acceptable. One of the many examples was in
field interviews in which ripeness standard and chemicals usage had been properly understood
by the field workers. The checking on crop quality was done by the Quality Supervisor.
Herbicides spraying, slashing, FFB harvesting and frond arrangements were the field activities
performed by these self-farming smallholders whereas manuring were at their choice, that is,
either undertaken by themselves or through FTPSB. Each Block Leader (see above at Section
1.3.2. Human Capital at FELDA) gathered information from members on agrochemicals used
and those FFB harvested. The information was then reported, recorded and kept at their
respective FELDA scheme office.
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Photograph 16 : Over pruned palm at FELDA
Nitar 2
Photograph 17 : Over pruned palm at FELDA
Nitar Timur
In spite of the implementation of best practice a Major non conformance was raised under NCR
STK 01 for the following lapses:
1. At both FELDA Nitar 2 PKT1 and in Nitar Timur fronds were sighted over pruned
(Photograph 16 & 17) in young palms. No frond was left below the lowest bunch, thus,
against the requirements of their SOP and Manual Operasi Ladang Sawit Lestari.
2. At Nitar Timur, during harvesting in tall palm areas, hanging fronds (partially cut and not
brought down) were a common sight (Photograph 18). This practice is counter to the
requirements of item 4.6.2 – ii of the Manual Operasi Ladang Sawit Lestari (page 174).
3. Also at Nitar Timur, cut fronds, in many places in tall palms blocks, were not stacked
and some were even left in circles (Photograph19), while in the young palm areas,
where scout harvesting was carried cut fronds were not stacked as required by Manual
Operasi Ladang Sawit Lestari (page 146).
4. At block 3, Nitar Timur, although Division of Labour (DOL) system of harvesting was
practiced (Photograph 20). [wherein a separate group (gang) of workers specializing
just to collect loose fruits] a large number of loose fruits were still seen left uncollected
in palm circles and harvesting paths (Photograph 21). The activity of not collecting all
fresh loose fruits will lead to adverse OER output, thus, a loss in revenue. This failure
was supported through evident from large number of Voluntary Oil Palm (VOP)
seedlings sighted (Photograph 22).
The status of this NCR is closed as photographic evidence of training on Good Agricultural
Practices inclusive of pruning of both tall and short palms, Harvesting, frond stacking and
attendance list had been submitted to the assessor and they were sighted acceptable.
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Photograph 18 : Hanging Fronds
Photograph 20 : Loose Fruit Picker
Photograph 19 : Fronds not stacked
Photograph 21: Uncollected loose fruits and VOP
Photograph 22: VOPs in Nitar Timur
In addition to the NCR raised, an OFI had also been issued to Nitar Timur. While spraying had
been done occasional patched had been missed out. These patches along with rain-washed
areas could be re-sprayed.
At the mill, records of mill operations and maintenance including monitoring such as PPE
issuance, Permit to Work issued, QOSHE Committee meeting, Chemical Health Risk
Assessment (CHRA), Accident Investigation, Non-conformity, Corrective Action and Preventive
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Action, Health Surveillance, Audiometric test, DOSH Log book, Stack environmental air
monitoring (based on the mill’s DOE license and compliance schedule), equipment history and
others, were maintained as per QOSHE Manual, specifically to the requirement of element
Control of records to ensure its implementation and practicality.
Generally, monitoring reports and actions taken at estates and mill were well kept and
maintained for a minimum of 12 months while others as per legal requirement, some up to thirty
years.
Criterion 4.2
Practices maintain soil fertility at, or where possible improve soil fertility to, a level that ensures optimal and
sustained yield.
MY-NIWG recommends that the indicators in criterion 4.2 and 4.3 are linked
4.2.1
Monitoring Monitoring of fertilizer inputs through annual fertilizer recommendations.
Minor compliance
4.2.2
Evidence of periodic tissue and soil sampling to monitor changes in nutrient status.
Minor compliance
4.2.3
Monitor the area on which EFB, POME and zero-burn replanting is applied.
Minor compliance
Guidance:
Long-term fertility depends on maintaining the structure, organic matter content, nutrient status and microbiological
health of the soil. Managers should ensure that best agricultural practice is followed. Nutrient efficiency must take
account of the age of plantations and soil conditions.
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme Managers are able to demonstrate that the participants have an understanding of the techniques required
to maintain soil fertility and that they are being implemented.
Evidence of implementation can be in the form of:
1. Records of fertilizer application
2. Records of EFB or POME application (if practiced)
Findings:
The company practices the maintenance of long-term soil fertility by annual application of
fertilizers based on periodic foliar and soil analysis, biomass retention (pruned fronds left to
decompose in the fields) and EFB application. Soil map of each plantation was presented to the
assessment team.
An annual agronomic foliar analysis undertaken by FASSB had been conducted in the
plantation visited and the results formed the basis to ascertain soil fertility and recommendation
for the application of fertilizer. All fertilizer regimes were relatively well planned; implemented
and recorded. The assessor had sighted records on the movement of fertilizer and confirmed
that they had been kept current.
The Scheme Manager at FELDA Nitar 2 was able to demonstrate that its participants have an
understanding of the techniques required to maintain soil fertility and that they are being
implemented. They (smallholders who tend their own farm) too had applied manuring their plot.
Besides chemical fertilizers, 150 tonnes of Empty Fruit Bunches (EFBs) were applied over a 90
ha area at FELDA Block 49 in 2012. In Nitar Timur no EFB application was done in 2012. But in
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2011 4592.79 tons at a rate of 35 tonnes per hectare was applied through contractor Avati
Enterprise and a map for it was sighted.
Criterion 4.3
Practices minimise and control erosion and degradation of soils.
Indicators:
4.3.1
Documented evidence of practices minimizing soil erosion and degradation (including maps).
Minor compliance
Specific Guidance:
Replanting on sloping land must be in compliance with MSGAP Part 2: OP (4.4.2.2)
For Sarawak, steep slopes are considered high risk erosion areas and cannot undergo replanting unless specified in
the EIA report and approved by the Natural Resources and Environment Board (NREB).
For Sabah, slopes 25 degree and steeper are considered high risk erosion areas and cannot undergo replanting
unless specified in the EIA report [Environment Protection (Prescribed Activities)(Environment Impact Assessment)
Order 2005] and approved by the Environmental Protection Department (EPD).
Slope determination methodology (slope analysis) should be based on average slope using topographic maps or
topographical surveys.
4.3.2
Avoid or minimize bare or exposed soil within estates.
Minor compliance
Specific Guidance:
Appropriate conservation practices should be adopted.
4.3.3
Presence of road maintenance programme.
Minor compliance
4.3.4
Subsidence of peat soils should be minimised through an effective and documented water
management programme.
Minor compliance
Specific Guidance:
Maintaining water table at a mean of 60 cm (within a range of 50-75cm) below ground surface through a network of
weirs, sandbags, etc. in fields and watergates at the discharge points of main drains.
4.3.5
Best management practices should be in place for other fragile and problem soils (e.g. sandy, low organic
matter and acid sulphate soils).
Minor compliance
Guidance:
Techniques that minimise soil erosion are well-known and should be adopted, wherever appropriate. These may
include practices such as:
1.
2.
3.
4.
5.
6.
Expediting establishment of ground cover upon completion of land preparation for new replant.
Maximizing palm biomass retention/ recycling.
Maintaining good non-competitive ground covers in mature areas.
Encouraging the establishment/regeneration of non-competitive vegetation to avoid bare ground.
Construction of conservation terraces for slopes >15o
Advocating proper frond heap stacking such as contour/L-shaped stacking. for straight line planting and stacking
along the terrace edges for terrace planting.
7. Appropriate road design and regular maintenance.
8. Diversion of water runoff from the field roads into terraces or silt pits.
9. Construction of stop bunds to retain water within the terrace.
10. Maintaining and restoring riparian areas in order to minimize erosion of stream and river banks.
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme managers should be able to demonstrate that their participants have an understanding of the techniques
adopted to manage their soils and that they are being implemented.
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Findings:
During the field visit no bare grounds was sighted at FGVPM-NCU. All blocks visited had good
establishment of ground cover. Other practices to minimize or avoid bare or exposed soil
include:
 terracing in the older palms areas;
 well maintained roads, resurfaced with laterite. No rain washed-out roads sighted;
 presence of road side drains and proper grading.
Despite good ground cover, there was sparse documented evidence of practices minimizing
soil erosion and degradation other than protection by natural vegetation.
With the availability of gravel (Laterite) in FGVPM-CU, the roads were seen well resurfaced
with it. There was no rain washed roads sighted. In addition to the availability of laterite, the
presence of road side drains and proper grading are factors that contributed to the well
maintained roads. During the visit a Case digger was sighted doing road maintenance work.
Scheme participants had been informed on the good techniques to manage their soils and that
they had been seen implementing and emulating those practices as done by their counterpart
managed by FTPSB.
There was no peat soil and other fragile soil area seen in the FGVPM-NCU and this was
confirmed by the Schemes and Plantation Managers involved. Therefore, Indicators 4.3.4 and
4.3.5 are not applicable.
Criterion 4.4
Practices maintain the quality and availability of surface and ground water.
Indicators:
4.4.1
Protection of water courses and wetlands, including maintaining and restoring appropriate riparian buffer
zones at or before replanting along all natural waterways within the estate.
Major compliance
Specific Guidance:
Riparian buffer zones: Reference to be made to relevant national regulations or guidelines from state authorities e.g.
Department of Irrigation and Drainage (DID), whichever is more stringent.
4.4.2
No construction of bunds/weirs/dams across the main rivers or waterways passing through an estate.
Major compliance
4.4.3
Outgoing water into main natural waterways should be monitored at a frequency that reflects the estates
and mills current activities which may have negative impacts (Cross reference to C 5.1 and 8.1).
Major compliance
4.4.4
Monitoring rainfall data for proper water management.
Minor compliance
4.4.5
Monitoring of water usage in mills (tonnage water use/tonne FFB processed).
Minor compliance
Specific Guidance:
Data trended where possible over 3 years to look into resource utilization
4.4.6
Water drainage into protected areas is avoided wherever possible.
Appropriate mitigating measures will be implemented following consultation with relevant stakeholders.
Minor compliance
4.4.7
Evidence of water management plans.
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Minor compliance
Specific National Guidance for Scheme Smallholders
Scheme Smallholder
Scheme Managers should provide appropriate training for their participants on the importance of maintaining the
quality and availability of surface and ground water.
Findings:
In the field assessed, there were proof of implementation on the practices to maintain the
quality and availability of surface and ground waters. Scheme participants had demonstrated
their understanding on the importance of maintaining the quality and availability of surface and
ground water.
There was no natural water ways sighted at FP Nitar Timur and FELDA Nitar 2. In addition,
there was no bunds/weirs/dams seen across any field drains. Although no rivers or streams
passes through the FELDA properties (the nearest river being 100m to 500m away from the
boundary) buffer zone boundary was however identified with signboard posted (Photograph 23
and 24 below).
Photograph 23 and 24 (L-R): Buffer zone signs at FP Nitar Timur and FELDA Nitar 2
Those rivers identified closest to FP Nitar Timur are Sg Mayang and Sg Mersing while FELDA
Nitar 2 they are Sg Tambang and Sg. Lenggor. These rivers as told by the Nitar Timur and
Nitar 2 Managers are being monitored by the Drainage and Irrigation Department (DID).
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Photograph 25 and 26 (L-R): Sg. Mersing at FP Nitar Timur (left) and Sg.
Tambang at FELDA Nitar 2, 100 – 500m outside plantation boundary
In Nitar 2, silt pits have been constructed in fields to contain and preserve surface run off
waters.
The Nitar POM had been conducting water sampling for monitoring on each inlet and outlet of
Sg. Lenggor as required in the written approval by DOE. Sg. Lenggor is about 4 km away from
the mill. The results of the inlet water analysis showed that the tested parameters were within
the acceptable level quality index of class III category, Interim National Water Quality Standard
2006 (INWQS).
The sources of outgoing water identified at the mill were run-offs and discharges from the
effluent treatment plant (ETP) and monsoon drain. Mill effluent were treated by anaerobic
digestion in ponds and analyzed prior to discharge into watercourse to comply with EQA
(Prescribed Premises) (Crude Palm Oil) Regulations 1977. Parameters such as pH, BOD,
COD, Total Solids, Suspended Solid, Oil and Grease, Ammoniacal Nitrogen and Total Nitrogen
were analysed. The monitoring of these discharges and the water quality of down streams was
conducted monthly. Results of the analysis showed that Nitar POM had generally met the
requirements (except for 4 months in 2012) as stated in the DOE Written Approval Permit.
Daily rainfall data was recorded by the mill in a monthly report. Likewise, all estates visited had
been monitoring the rainfall data as required by RSPO P&C. Rainfall data was available from
the year 2007 to the current month.
At the estates, the rainfall data was used in the water management plan that ranged from
construction of drains, silt pits and water diverts to prevent flooding in the field. Records of
works carried out were maintained. Additionally, the rainfall data was used as a guide when to
apply fertilizers, that is, during non-rainy days month.
The mill had been monitoring water consumption and been reporting monthly usage against the
FFB processed. Their records include daily water usage monitoring at boiler and oil room.
Current water usage stood at 1.02 kl/mt FFB processed.
There was good practice of water management plan which include raw water treatment for
operational and potable use by Nitar POM. The mill planned to tap into the treated public water
supply mains (Syarikat Air Johor) in early 2013 for use by office and canteen.
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Scheme Managers had provided appropriate training for their smallholders on the importance
of maintaining the quality and availability of surface and ground water. A water management
plan was being established with improvement being made to include all sources of water.
Criterion 4.5
Pests, diseases, weeds and invasive introduced species are effectively managed using appropriate Integrated Pest
Management (IPM) techniques.
Indicators:
4.5.1
Documented IPM system.
Minor compliance
4.5.2
Monitoring extent of IPM implementation for major pests.
Minor compliance
Specific Guidance:
Major pests include leaf eating caterpillars, rhinoceros beetle and rats.
4.5.3
Recording areas where pesticides have been used.
Minor compliance
4.5.4
Monitoring of pesticide usage units per hectare or per ton crop e.g. total quantity of active ingredient (a.i.)
used/ tonne of oil.
Minor compliance
Guidance:
Growers should apply recognised IPM techniques, incorporating cultural, biological, mechanical or physical methods
to minimise use of chemicals. Native species should be used in biological control wherever possible.
Specific National Guidance for Scheme Smallholders
Scheme Managers
Scheme Managers should provide training for their organized smallholders in IPM techniques and provide
appropriate assistance on agrochemical application.
Findings:
The assessed FELDA estates had implemented the Integrated Pest Management (IPM) in
conformance to their Agriculture Manual & Standard Operating Procedure for Oil Palm. Among
the recognized techniques applied were establishing barn owl boxes, rat baiting and growing
beneficial plants along road sides (Photograph 27).
In Nitar 2 contract to plant Tunera plants was sighted and records showed that 30 barn owl
boxes were established in 2011.
Rat damage FFB and bag worm damaged palms (Photograph 28) at both FELDA Nitar 2 and
FP Nitar Timur were sighted. At Nitar 2 bag worm attack in Zone C was treated in April/May
2012. The spraying against the bag worms was carried out on contract and the number of
mandays used and hectares sprayed were recorded in the progress report but there was no
record of amount of pesticide used. An OFI was raised against Indicator 4.5.4.
In spite of having recent bag worm attack at FELDA Nitar 2 (managed by FTPSB) there was no
census carried out to monitor extent of pest damage. A Minor NCR STK 02 was raised against
Indicator 4.5.2. The corrective action had been taken and sighted. In 2013 bagworm census
had been programmed to be carried out bimonthly and treatment would be carried out when
attack is above threshold levels. Records of census carried out on 20 January 2013 at Nitar
Timur and on 5 February 2013 at Nitar 2 and program for census for the whole of 2013
received by assessor. This NCR STK 02 is considered closed.
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There was no prophylactic application of pesticides made in the schemes.
Photograph 27: Tunera in the Field
Photograph 28 : Bag worms damaged palm
Through records sighting, the Scheme Managers had provided training for their smallholders
and workers in IPM techniques and the appropriate agrochemical application. For example, rat
baits campaign and agrochemicals handling and spraying demonstration training had been
carried out.
Criterion 4.6
Agrochemicals are used in a way that does not endanger health or the environment. There is no prophylactic use of
pesticides, except in specific situations identified in national Best Practice guidelines. Where agrochemicals are used
that are categorised as World Health Organisation Type 1A or 1B, or are listed by the Stockholm or Rotterdam
Conventions, growers are actively seeking to identify alternatives, and this is documented.
Indicators:
4.6.1
Written justification in Standard Operating Procedures (SOP) of all agrochemicals use.
Major compliance
4.6.2
Pesticides selected for use are those officially registered under the Pesticides Act 1974 (Act 149) and the
relevant provision (Section 53A); and in accordance with USECHH Regulations (2000).
Major compliance
Specific Guidance:
Reference shall also be made to CHRA (Chemical Health Risk Assessment)
4.6.3
Pesticides shall be stored in accordance to the Occupational Safety and Health Act 1994 (Act 514) and
Regulations and Orders and Pesticides Act 1974 (Act 149) and Regulations.
Major compliance
Specific guidance:
Unless participating in established recycling programmes or with expressed permission from the authorities, triple
rinsed containers shall be pierced to prevent misuse. Disposal or destruction of containers shall be in accordance
with the Pesticide Act 1974 (Act 149) and Environmental Quality Act 1974 (Scheduled Wastes) Regulations 2005.
4.6.4
All information regarding the chemicals and its usage, hazards, trade and generic names must be available
in language understood by workers or explained carefully to them by a plantation management official at
operating unit level.
Major compliance
4.6.5
Annual medical surveillance as per CHRA for plantation pesticide operators.
Major compliance
4.6.6
No work with pesticides for confirmed pregnant and breast-feeding women.
Major compliance
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4.6.7
Documentary evidence that use of chemicals categorised as World Health Organisation Type 1A or 1B, or
listed by the Stockholm or Rotterdam Conventions and paraquat, is reduced and/or eliminated. Adoption of
suitable economic alternative to paraquat as suggested by the EB pending outcome of the RSPO study on
IWM.
Minor compliance
4.6.8
Documented justification of any aerial application of agrochemicals. No aerial spraying unless approved by
relevant authorities.
Major compliance
4.6.9
Evidence of chemical residues in CPO testing, as requested and conducted by the buyers.
Minor compliance
4.6.10
Records of pesticide use (including active ingredients used, area treated, amount applied per ha and
number of applications) are maintained for either a minimum of 5 years or starting November 2007.
Minor compliance
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme Managers should provide regular training to their organized smallholders on agrochemical use.
The training should include but not necessary limited to
1. Type of chemicals allowed to be used and precautions attached to their use
2. Methods of application, safety usage and appropriate PPE to be used.
3. Storage of chemicals and safe disposal of the empty containers.
4. No chemical handling and spraying by pregnant woman
5. Chemicals should only be applied following the product label.
The scheme managers should maintain necessary records on agrochemicals provided to their participants and to
monitor their use so as proper measures are adhered to minimize risk and impacts.
Under consideration for 4.6.7
Evidence of registered and permitted agrochemicals use as regulated by the Minister of Agriculture
Findings:
At FGVPM-NCU agrochemicals were used in a way that does not endanger the health of
employees or the environment. There was no prophylactic use of the agrochemicals. All
estates had provided written justifications for all agrochemicals it was using as found in the
Agriculture Manual and SOP. Safety and health precautions as recommended in the
respective chemical Material Safety Data Sheet (MSDS) had been referred to.
All agrochemicals used were based on the ‘need-to-do basis’ to enhance field operations.
Except for FELDA Nitar 2, (please see NCR MM01 under Indicator 2.1.1), pesticides selected
for use and storage at FP Nitar Timur were in accordance with Pesticides Act 1974 (Act 149)
and the relevant provision (Section 53A), Classification, Packaging and Labelling of Hazardous
Chemical Regulation 1997 and USECHH Regulations 2000, of the Occupational Safety &
Health Act 1994.
Records of the purchase, storage and use of agrochemicals had been properly documented in
the Stock Statement Return. Records had been maintained more than 5 years.
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Photograph 29: Pesticides Store in Nitar
Timur
Photograph 30: Pesticides store of Azmi
Usaha Jaya Enterprise.
A new concrete chemical store was in the final stages of completion at FELDA Nitar Timur. In
the mean pesticides were well stored on wooden pallets in wooden store (Photograph 29). Only
authorized personnel (storekeeper) was allowed to enter the chemical store and issue out the
chemicals. Respective chemical MSDS was made available and kept in the store. The
storekeeper interviewed had shown understanding of the hazards involved and the required
control measures that need to be adhered to.
The Agricultural Manual had included all information regarding the chemicals and its storage,
usage, hazards, trade and generic names available both in Malay and/or English language.
Empty chemical containers were triple rinsed and excess stored for further use. The used
containers, if not required, will be disposed off by piercing holes at the bottom of the container
rendering it unusable.
The use of these agrochemicals had also made references to Chemical Health Risk
Assessment (CHRA) USECHH Regulations (2000) of the OSHA 1994 Act. Personnel who
handled and were exposed to these agrochemicals had been assessed of the risks created by
the chemical to the health of the employee. At FP Nitar Timur the medical surveillance of its
pesticide operators (sprayers) was done in 2011.
Except for Paraquat and Monocrotophos no other Class I & II chemicals had been used. At FP
Nitar Timur Monocrotophos was used in 2011. Although the use of Paraquat was controlled
and selective at Nitar Timur its usage had not been reduced. In fact it had increased by 13%
from 1530 litres in 2011 to 2320 litres in 2012, thus, in contravention to requirement of Indicator
4.6.7. A Minor NCR STK 03 was thus issued.
This NCR is now considered closed as the corrective action is to manually remove the wild oil
palm seedlings or VOP and at the same time targeting to reduce paraquat dependent to 1300
and 1040 liters in 2013 and 2014 respectively.
At Nitar 2 pesticides application was contracted to Azmi Usaha Jaya Enterprise. The pesticides
used were purchased and stored by the contractor himself. The assessors sighted the
pesticides storage were not in accordance to the Occupational Health and Safety Act 1994 and
Pesticides Act 1974. The store was not secured (locked) and was accessible to all.
Furthermore, pesticides were stored along with cooking gas cylinders, barb wires, motor
vehicle tyres and wheel rim, etc (Photograph 30). A Major NCR MM01 (cross reference 2.1.1)
was issued.
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For those smallholders who tend their own farm, training on the safe handling of agrochemicals
had been given. Interviews with them confirmed that they understood the type of chemicals
allowed to be used, precautions attached to their use, dosage rate, mixing, methods of
application, appropriate PPE required, storage of chemicals, the requirements for triple rinsing
of used container and safe disposal of the empty containers. The training was sighted
recorded.
The operators (sprayers) involved in agrochemical handling were all male workers. This was
confirmed during field visits and there were no women sprayers employed in the FELDA
managed plantations.
There wasn’t any aerial spraying being conducted in all the plantations.and this was confirmed
by the Scheme and Plantation Managers.
There was no request by buyers on chemical residues testing in CPO and thus, this indicator
4.6.9 is not applicable.
Records of total quantity of some pesticides used and areas (field/block) applied for years 2011
and 2012 were available in progress reports. These records could be improved to show areas
applied, unit per hectare and a.i. per hectare all in one sheet. An OFI was issued against
Indicator 4.6.10.
Criterion 4.7
An occupational health and safety plan is documented, effectively communicated and implemented
Indicator
4.7.1 : Evidence of documented Occupational Safety Health (OSH) plan which is in compliance with OSH Act
1994 and Factory and Machinery Act 1967(Act139)
Major compliance
The safety and health (OSH) plan shall cover the following:
a. A safety and health policy, which is communicated and implemented.
b. All operations have been risk assessed and documented.
c. An awareness and training programme which includes the following specifics for pesticides:
i.
To ensure all workers involved have been adequately trained in a safe working practices ( See also C4.8)
ii.
All precautions attached to products should be properly observed and applied to the workers.
d. The appropriate personal protective equipment (PPE) are used for each risk assessed operation.
i.
Companies to provide the appropriate PPE at the place of work to cover all potentially hazardous
operations such as pesticide application, land preparation, harvesting and if used, burning.
e. The responsible person (s) should be identified.
f. There are records of regular meetings between the responsible person(s) and workers where concerns of workers
about health and safety are discussed.
g. Accident and emergency procedures should exist and instructions should be clearly understood by all workers.
h. Workers trained in First Aid should be present in both field and mill operations.
i. First Aid equipment should be available at worksites.
Indicator
4.7.2: Records should be kept of all accidents and periodically reviewed at quarterly intervals.
Major compliance
Specific Guidance: Record of safety performance is monitored through Lost Time Accident (LTA) rate.
Indicator
4.7.3: Workers should be covered by accident insurance.
Major compliance
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme and Group Managers should implement a health and safety plan for their organized smallholders that
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include agrochemical use and fire drills.
The management should keep records of all accident and review them periodically. If records are not easily
available, the management has to show evidence of measures adopted to seek such records.
Findings:
The Nitar CU had adopted the FGVPM’s Occupational Safety And Health Policy..
Correspondingly, FPISB, FPSB and FTPSB had published its subsidiary OSH policy. See
Photograph 31 for FPISB QOSHE Policy. All these policies were in line with the Group OSH
policy. The policy had been communicated to all employees through briefings and it was also
displayed on the schemes’ office notice boards.
A safety management plan for each operating unit of FGVPM-NCU had been established. The
OSH management plan had addressed, among others, issues related to hazards and risks,
compliance with regulations such as Occupational Safety and Health Policy, Occupational
Safety and Health (Safety Committee) Regulation, Occupational Safety and Health (Use of
Standard Exposure of Chemicals Hazardous to Health) Regulation, Occupational Safety and
Health (Notification of Accident, Dangerous Occurrence, Occupational Poisoning and
Occupational Disease) Regulation, response to Occupational Safety & Health and
Environmental emergencies, treatment of illness/injury during the job.
Although CHRA as required under USECHH Regulations (2000) had been performed by the
mill, a lapse was seen at FELDA Nitar 2 where contractor workers handling chemicals had not
undergone Chemical Health Risk Assessment. As mentioned earlier a Major NCR MM1 was
thus raised. (Cross reference Indicator 2.1.1)
Photograph 31: (L-R) FPISB QOSHE Policy in English and Malay Language
The hazard identification, risk assessment and risk control (HIRARC) carried out covered the
activities in both the estates and mill. They had been documented into a HIRARC Register.
Among the activities identified in the plantation were FFB evacuation and transportation to mill,
chemical mixing and spraying, chemical storage and harvesting. As for the mill, the identified
activities had include laboratory work and taking of samples, boiler operations, FFB
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sterilization, kernel extraction, oil extraction and clarification, machine maintenance and
working in confined space. .Appropriate risk control measures had been made available to
control the risks identified.
Although OSH Plan had been established, a Major NCR MM02 against them had been
assigned as follows:


No record of HIRARC had been conducted nor registered in the HIRARC Register for
activity related to application of fertilizer by contract workers of Ladang Jaya. They
were sighted standing on moving tractor at FELDA Nitar 2, Pkt2, Block 5B.
FELDA Nitar 2 and Nitar Timur had not conducted any emergency response drill to
date.
The status of this NCR MM02 is closed as evidence of revised HIRADC dated 2 January 2013
had been sighted assessed for the application of fertilizer on moving vehicle. Also emergency
response drill was conducted on 4 February 2013. Photograph and report of drill had been
submitted to assessor and found acceptable.
In addition to the above, OFIs had also been issued as follows:


The HIRARC register to be reviewed in view of understanding hazard and risk
terminology thus leading to confusion in filling hazard and risk column.
OSH yearly plan for estate can be further improved by conducting the legal compliance
evaluation program.
Photograph 32: ROPS fitted to tractor.
Photograph 33: PPE requirements at Nitar
POM
Evidence of implementation on the control measures was observed during the field and mill
assessments. For example, ROPS (Roll-over Protection Structure) fitted to tractor (Photograph
32), mill machineries which have moving parts (pulleys and beltings such as in portable air
compressor, screw conveyor) had been well guarded, clearly summarized and displayed SOP
at laboratory, Water Treatment Plant and critical equipment operations (e.g. boiler, sterilizer,
etc), Permit To Work enforced, and fire fighting facilities installed at strategic locations.
Employees of both mill and estates visited were provided with and were seen to be using the
appropriate PPE. The FGVPM-NCU had made available free of charge appropriate and
adequate PPE to its workers. PPE for contractor’s employees were provided by their
respective employer. The PPE that had been commonly given were safety boots, helmets,
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goggles, ear plugs, aprons, nitrile rubber and cotton gloves. Records on PPE distribution to
workers had been maintained and sighted.
During mill assessment, it was observed that signage – Photograph 33 - (to remind workers to
wear appropriate PPE) were posted at appropriate places. Workers interviewed understood the
reasons and importance why they were required to wear the PPE.
In spite of providing PPE, an OFI had been raised wherein adherence to the FELDA Pekeliling
Pelaksanaan OSHA Bil. 1/2009 could be enhanced with respect to the required PPE to be used
by workers for each activity undertaken.
The awareness and training program specific to agrochemicals had been held for workers and
smallholders. This related to safe chemical handling and spraying, use and maintenance of
PPE, its MSDS in particular precautions attached to the pesticides and the need to observe
requirements of CHRA (except for lapses raised in NCR MM01), including undergoing health
surveillance.
Persons-in-charge of health and safety were identified as evidenced in appointment letter of
OSH Committee at the mill and at FTPSB Nitar 2 and FP Nitar Timur. Although they had been
appointed (with the exception of Nitar POM) their functions and responsibility were not made
known and NCR MM01 had been raised (cross reference 2.1.1). This finding was supported
from interviews with Committee members who were not fully aware of their responsibilities and
evidently workplace inspections were not carried out by them. Ultimate responsibility for safety,
health and environment rested with Mill Manager or Estate Manager, the top most officer who
had overall control and influence at site.
The assessment team had verified the minutes of meeting of the OSH committee which was
held quarterly to discuss issues pertaining to workers’ safety and health at work place. It was
chaired by their respective Mill or Estate Manager and discussed issues pertaining to workers’
safety and health at workplace including accident cases, if any, and results of workplace
inspections. Issues requiring immediate attention were further discussed at working level via
Tool Box meetings.
During the Nitar POM visit, the auditor observed the work activities thus the following OFI had
been issued:



Some oxy-acetylene gas cylinders were not fitted with flash back arrestor.
The housekeeping at work area carried out by YKT (contractor also a related company
of FELDA) to be improved.
Direct Safety Supervision by YKT is desired in view of project duration undertaken
exceeded 6 weeks and it is the prime responsibility of YKT to provide one and not
relying and burden on Mill personnel.
Minutes had been kept of all meetings and had been distributed to OHS Committee members
and attendees for follow-up as a result of the meeting stating the actions required, Person
responsible and expected timeline for completion.
Accident cases had been monitored and reported to the FGVPM-NCU respective Mill or
Scheme Manager, who in turn, report to FGV PSQM Department at Head office, Kuala Lumpur
and state DOSH office as required by the NADOPOOD Regulation. Annual accident summary
cases had been captured in JKKP 8 form and submitted to DOSH headquarters, Putrajaya.
Each site Safety Performance had been displayed either on Safety Performance Scoreboard
(Photograph 34) or on the notice board of their office. Accident records had been kept and
reviewed quarterly at the OSH Committee meeting.
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Photograph 34: Safety Performance scoreboard at Nitar POM
All workers were covered by Workman Compensation. The mill and schemes visited had their
workers insured against accident; the local workers insured against SOCSO and the foreign
workers via accident insurance through underwriter Takaful Malaysia.
Emergency procedure existed and their instructions to response were clearly understood by the
employees of the mill as they had been practicing it annually. It had been carried out meeting
the procedure requirement of at least once a year, as sighted in the records. The post-mortem
report following emergency response drill could be improved to detail out time of events against
outcome. Thus, an OFI had been raised.
Assembly point, emergency telephone contact numbers of essential FELDA personnel and
Government Emergency Service Providers, emergency evacuation route and emergency
response procedure were made available and published for everyone’s information.
First aid box was seen provided to the field supervisor and also made available at several
strategic locations at the office and mill. When inspected the contents of the first aid box at the
field were found lacking and some items missing. Also Uphamol (paracetamol) was in the first
aid box at Nitar 2 and Nitar Timur. An OFI had been allocated.
Interviews with First Aiders were found to be conversant with rendering first aid practices for
minor injuries.
Criteria 4.8
All staff, workers, smallholders and contractors are appropriately trained.
Indicator
4.8.1: A training programme (appropriate to the scale of the organization) that includes regular assessment of
training needs and documentation, including records of training for employees are kept.
Major compliance
Guidance:
Appropriate training should be given to all staff, workers and contractors by growers and millers to enable them to fulfill
their jobs and responsibilities in accordance with documented procedures. All Estate Hospital Assistants (EHA) are
trained on the chemicals used and related laws.
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Specific National Guidance for Scheme Smallholders
Scheme Smallholders
The participants and registered workers on participants’ plots are provided adequate training and skills and this is
documented. The trainings can be achieved through extension activities of growers, FFB dealers or mills that
purchase fruit from them, or through collaboration with relevant government agencies.
Findings:
The training programs and records for FGVPM-NCU were inspected. Training programs are in
place to improve and increase staff skills when seen required by management. The records
included information on the title of the training, name and signature of the attendees, name of
the trainer, time and venue.
Among of the training programs conducted were:
1.
2.
3.
4.
5.
6.
7.
Safety Awareness for staff and workers and first aid.
Chemical Handling and usage of PPE.
Pesticide application and pesticide mixing
Harvesting techniques
RSPO Awareness to employees
First Aid Training
Scheduled Waste handling at mill for waste store operator, and
and many other topics associated with field and mill related work.
The level of understanding on safety, health and environment and RSPO varies between
estates and was better at the mill primarily due to the mill had been emulating the
internationally recognized management system standards: ISO 9001, ISO 14001 and OHSAS
18001 a long time. Following are examples noted at the plantations:

Interview with the workers (tractor driver, 2 FFB loaders, field Supervisor) at FP Nitar
Timur showed they were aware of RSPO certification in their plantation (Photograph
35). In their words, their awareness on using PPE and usage of First Aid Box had
improved as a result of the RSPO certification.

On the other hand, from interview with works on safety procedures and standards when
it had been told and reminded during muster in the morning were not understood by all.
Some were found aware of the procedures and standards while the harvesters and
pruners showed otherwise.

For the smallholders awareness training on the importance of maintaining the quality
and availability of surface and ground water, IPM techniques and use of agrochemicals
were given. Most of them just followed the advice but could reason out why the need to
do so.
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Photograph 35: Interview with workers at FP
Nitar Timur. Note, the lady present is SIRIM
staff (Observer).
Photograph 36: Verification of First Aid Kit at
FP Nitar Timur
For most of the mill operation, task-oriented trainings had been conducted periodically. Most of
the referred training materials are the standard operation procedures itself.
In addition to the above, specialized training courses had also been conducted. They include
competent persons training related to operation of boiler, confine space, fire fighting and first
aid.
Despite various training courses had been given, a Major NCR MM2 had been assigned
against Indicator 4.8.1, that is,

The mill personnel had not been trained on the RSPO Supply Chain Certification Standard.

Training on Environmental aspect and impact identification / assessment, Hazard
Identification, Risk Assessment and Determining Control and Legal Awareness and
Compliance not being fully implemented for operational staff at FP Nitar Timur, FTPSB Nitar
2 and settlers of FELDA Nitar 2.

RSPO Awareness training given was not fully understood by staff of FELDA Proper, FTPSB
and FP Nitar Timur as staff interviewed were struggling to identify and bring out the required
document. Most of the RSPO files brought to the auditors were without records in them.

RSPO training had not been given to contractors (Ladang Jaya, Mohtar Z Enterprise, Azmi
Usaha Jaya Enterprise) as evident in the training records. Interview with these contractor
workers confirmed their lapses in understanding RSPO.
The status of this NCR is closed as evidence of training conducted including photographs,
attendance list of participants and sample of training materials had been submitted to the
assessor.
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PRINCIPLE 5: ENVIRONMENTAL RESPONSIBILITY AND CONSERVATION OF NATURAL
RESOURCES AND BIODIVERSITY
Criterion 5.1
Aspects of plantation and mill management, including replanting, that have environmental impacts are identified, and
plans to mitigate the negative impacts and promote the positive ones are made, implemented and monitored, to
demonstrate continuous improvement.
Indicators
5.1.1
Documented aspects and impacts risk assessment that is periodically reviewed and updated.
Major compliance
5.1.2
Environmental improvement plan to mitigate the negative impacts and promote the positive ones, is
developed, implemented and monitored.
Minor compliance
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme Managers should undertake and document aspects and impacts risk assessment, developed with the
participation of the representatives of organized smallholders that sets out appropriate management planning and
operational procedures for each impact identified. For significant impact time bound action plans and operational
procedures should be drawn to mitigate the negative impacts.
The impact assessment should cover:




Building and maintenance of roads to service smallholdings and provide access to mills
Putting in drainage or irrigation systems.
Replanting or expansion of smallholdings.
Clearing of remaining natural vegetation and the need to avoid the use of fire (see 5.5)
Findings:
The FGVPM-NCU had developed its environmental aspects/impacts register associated with
their activities. The assessor found that most of the activities were identified and evaluated
accordingly and recorded in file RSPO – P5/C.5.1/5.1.1 and RSPO 2011 (Kriteria 5.1/5.3/5.6).
At the estate and mill they include activities at estate, workshop, chemical mixing and waste
stores, laboratory, effluent and water treatment plants.
Photograph 37: Environmental Aspect and Impact file at FELDA Nitar 2
The FGVPM-NCU had established environmental improvement plans (Photograph 37). It was
based on the identified significant aspects. Among the improvement plan (to mitigate the
identified negative impacts) at the estates included the construction of chemical store, diesel
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tank bunding (Photograph 38), marked buffer zones (Photograph 39), erection of no hunting
sign (Photograph 40), waste recycling activities (Photograph 41) and the planting of beneficial
plant (Photograph 42).
Photograph 38: Diesel Tank bunding-at
FELDA Nitar Timur
Photograph 39: Marked riparian zone at
FELDA Nitar Timur
Photograph 40: No hunting sign at FELDA
Nitar Timur
Photograph 41: 3R Bins at FELDA Nitar 2
office
Photograph 42: Planting of Tunera at FELDA
Nitar Timur
Photograph 43: Diesel Tank bunding (Left)
and oil trap No. 5 (Right foreground) at
FELDA Nitar POM
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While the environmental improvement plan impplemented at Nitar POM, among others, include:
boiler smoke emission, bunding of diesel storage tank and provision of oil trap (Photograph 43),
construction of scheduled waste store (Photograph 44), segregation and temporary storage of
recyclable wastes containers for disposal (Photograph 45).
Photograph 44: Locked scheduled waste store
Photograph 45: Store for temporary storage of
used chemical containers
Criterion 5.2
The status of rare, threatened or endangered species (ERTs) and high conservation value habitats, if any, that exists
in the plantation or that could be affected by plantation or mill management, shall be identified and their conservation
taken into account in management plans and operations.
Indicator
5.2.1
Identification and assessment of HCV habitats and protected areas within landholdings; and attempt
assessments of HCV habitats and protected areas surrounding landholdings.
Major compliance
5.2.2
Management plan for HCV habitats (including ERTs) and their conservation.
Major compliance
5.2.3
Evidence of a commitment to discourage any illegal or inappropriate hunting fishing or collecting activities,
and developing responsible measures to resolve human-wildlife conflicts.
Minor compliance
Specific Guidance:
Identify ERTs and establish their conservation status based on national and state conservation schedules; and
should provide evidence of attempts to do likewise for immediate adjacent areas.
In the event that the conservation status of a species has not been assessed locally, the IUCN list should be used to
determine and report conservation status. Management plans to include areas for improvement.
Where appropriate, the above activities to be conducted involving relevant stakeholders
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme Managers should compile information about the status of these aspects for their organized smallholders, as
well as the associated mill and directly managed estate (if any). If ERTs or HCV habitats are present or potentially
affected by the small holdings, appropriate measures should be employed to maintain or enhance them depending
on the size of the scheme.
Findings:
The Sustainability Department, FGVPM had compiled information into a report entitled “HCV
Assessment & Management Plan of FELDA Nitar Complex Certification Unit, FELDA Wilayah
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Segamat” dated 26th September 2012, about the status of High Conservation Value (HCV)
within and adjacent to the FGVPM-NCU land schemes.
There was evident of stakeholders’ communications in preparing the HCV Assessment Report.
Notification on the presence of the ERTs with Forestry Department (including 3 district forest
office; Johor Timur at Mersing, Johor Tengah at Kluang and Johor Selatan at Johor Bharu) and
Wildlife Department was conducted on 3rd October 2012 and 20th September 2012 respectively.
Also, there were more regular (almost monthly) communication with Wildlife department during
monitoring on wildlife activities, the latest being 10th December 2012 informing the
encroachment of elephant along the forest border, as mentioned in indicator 1.1.1.
The HCV assessment had identified the endangered, rare and threatened (ERTs) species at
FP Nitar Timur and FELDA Nitar 2, including the management and action plan.
During the records review and confirmation against site visit, FP Nitar Timur and FELDA Nitar 2
had identified and maintained the presence of significant external HCV that are common to
them, that is, HCV1 and HCV4:


HCV1, Gunung Arong Forest Reserve (Photograph 46) that is adjacent to both FP Nitar
Timur and FELDA Nitar 2, and Mersing Forest Reserve that borders FELDA Nitar 2.,
HCV4, watershed protection which is to control and maintain the river buffer zone as
well as erosion control near Sg. Mayang and Sg. Mersing at FP Nitar Timur and near
Sg. Tambang and Sg. Lenggor at FELDA Nitar 2, although all these natural waterways
are outside and far from the plantation boundary (Cross reference Indicator 4.4.1).
There is also HCV6, Kg. Orang Asli Sg. Tuba that had been identified at south, outside and
away from FELDA Nitar 2.
Photograph 46: Gunung Arong Forest Reserve adjacent with FP Nitar Timur identified as HCV1
The results of the HCV assessment showed that there were evidence of freely roaming ERTs
between plantations, near border of the Forest Reserves, for example, Pangolin (Manis
javanica), Elephant (Elephas maximus) and Malayan Tiger (Panthera tigris). Pangolin,
elephant and Malayan tiger were listed as Totally Protected in Wildlife Conservation Act 2010
and listed as Endangered species under IUCN Red List.
From the assessment findings including consultations with related stakeholders a Management
Plan and Action Plan had been developed. The action plan, represented in tabular format,
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contained general descriptions of HCV, action steps and monitoring activities done on quarterly
basis.
Among them is FELDA Nitar CU Complex’s commitment to the conservation of the wildlife
habitat. Action was to erect signages prohibiting illegal hunting of wildlife within the plantations
as shown in Photograph 47 and 48 below.
Photograph 47 and 48 (L-R): Sign board erected to discourage hunting at FELDA Nitar Timur
(left) and FELDA Nitar 2
Although FGVPM-NCU had identified the ERTs and HCV areas within and adjacent to their
land holdings, the quality of the HCV assessment report could be improve as noted below.
Therefore, OFI 5.2.1 had been raised.
1. The map for “Peringkat 3” in the assessment report did not tally with the map displayed
at FP Nitar Timur office.
2. Interview with the staff and workers at FP Nitar Timur revealed that elephants were
commonly sighted encroaching into the plantation. This information was not highlighted
in the assessment report.
3. Site review at FP Nitar Timur and FELDA Nitar 2 found many patches of swampy areas.
Oil Palm trees had been found planted in the swamps but growth was limited and not
encouraging. The site management plan to convert these areas as buffer (defense)
zone. Its objective is to attract the elephants to the stunted and unproductive oil palm
trees and thus limit/minimize elephant encroachment to the plantation. In other words, it
is to prevent them from rampaging and damaging healthy trees. However this
information was also not highlighted in the assessment report.
Criterion 5.3
Waste is reduced, recycled, re-used and disposed off in an environmentally and socially responsible manner.
Indicators
5.3.1
Documented identification of all waste products and sources of pollution.
Major compliance
5.3.2
Having identified wastes and pollutants, an operational plan should be developed and implemented, to avoid
or reduce pollution.
Minor compliance
Specific Guidance : Schedule wastes to be disposed as per EQA 1974 (Scheduled Wastes) Regulations, 2005.
Reference to be made to the national programme on recycling of used HDPE pesticide containers.
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Municipal waste disposal as per local authority or district council in accordance to the Ministry of Health guidelines
(i.e. specifications on landfills, licensed contractors, etc) or Workers’ Minimum Standards of Housing and Amenities
Act 1990 (Act 446).
Indicator
5.3.3
Evidence that crop residues / biomass are recycled (Cross ref. C4.2).
Minor compliance
Specific Guidance:
POME should be discharged in compliance with the Environmental Quality Act 1974 (Act 127) and Regulations.
For Sabah and Sarawak, POME should be discharged according to the respective state policies.
Specific National Guidance for Scheme Smallholders
Scheme Smallholders
Scheme managers should develop and implement an appropriate plan for the management and disposal of waste
from smallholdings including the safe disposal of pesticide containers (e.g. National Programme on recycling of used
HDPE pesticide containers). Scheme managers should encourage/ educate participants to use resources efficiently
and apply reduce, reuse, recycle methods wherever feasible/possible.
Findings:
FGVPM-NCU had identified and documented wastes generated from their operations during
the Environmental Aspect / Impact Assessment. Among the wastes identified at the mill were
general waste, scheduled waste, scrap metal, used lubricants, batteries, crop residue/biomass
- fibre, shell, For the plantations, they include empty containers, empty fertilizer bags, used
office’s stationeries and those from settlers’ housing include domestic wastes.
The operational plan for disposing the identified wastes had been sighted and the wastes were
being disposed in an environmentally and socially responsible manner. Plans to avoid or
reduce pollution were also in place.
At the mill, general wastes were disposed off in land fill, scrap metal sold to recycler, scheduled
waste disposed off through DOE approved contractor and EFB and decanter cake sent to the
oil palm fields for mulching while crop residue/biomass i.e. fibre and shell were used as fuel in
the boiler. Palm oil mill effluent (POME) was treated in the effluent treatment plant and finally
discharged into the waterways.
Photograph 49: The plastic containers were mixed up with other domestic waste in the
dumpsite at FELDA Plantation Nitar Timur.
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On the other hand plastic containers/bags from manuring and spraying activities were
collected, washed, triple rinsed and reused. Chemical containers that could no longer be
reused were disposed in accordance with legal requirement.
Similar to the POM, the general / domestic wastes from plantation and line site were also
appropriately managed by disposing them at designated disposal area within the plantation.
However, site review at FP Nitar Timur (Photograph 49) found the solid waste (plastic bottle,
plastic basin) were mixed up in the landfill. Therefore OFI 5.3.2 had been raised.
Implementation of recycling program varied. The palm oil mill had started quite sometimes ago
and was successful whereas the line sites had just embarked on it. There was a program to
encourage recycling of solid. Recycle bins, (as in Photograph 41) had been provided at mill,
worker’s housing areas and offices for separation of solid waste - paper, glass and plastic
The assessment team had visited the scrap metal and scheduled waste storage area. The
scheduled waste store was well built, with appropriate containment, and controlled access. The
wastes had been segregated, labelled, stored, inventoried and disposed in full compliance to
EQA (Scheduled Wastes) Regulations 2005.
At the smallholder’s level, interviews showed that they had been reminded during the JKKR
meeting of the need for proper disposal and recycle of waste including the safe disposal of
pesticide containers. Their campaign to increase awareness for recycling was ongoing.
Criterion 5.4
Efficiency of energy use and use of renewable energy is maximized.
Indicators
5.4.1
Monitoring of renewable energy use per tonne of CPO or palm product in the mill.
Major compliance
5.4.2
Monitoring of direct fossil fuel use per tonne of CPO or kW per tonne palm product in the mill (or FFB where
the grower has no mill).
Minor compliance
Guidance:
To establish baseline values and observe trends within appropriate time-frame. Growers and millers should assess
the energy use including fuel and electricity, and energy efficiency of their operations. The feasibility of collecting and
using biogas, biodiesel and biofuels should be studied if possible.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Managers
Mill managers should be encouraged to develop appropriate action plan for improving the efficiency of energy use in
their schemes and land holdings.
Findings:
All energy used in the mill had been monitored. There was also commitment by the mill to use
renewable energy. Thus, fibre and nutshell had been used as boiler fuel to generate steam for
the mill operations. The usage of fibre and nut shell had been monitored and records
maintained.
Fossil fuel and biomass fuel usage per ton CPO from January to December 2012 were
tabulated as follows:
Year
2012
FFB
processed,
mt
CPO
production,
mt
Biomass Energy
used , use
mt
(Turbine
Biomass
consumed
(mt)/mt
Fossil fuel
usage
kwh/mt
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Genset)
kwh
CPO
CPO
January
17050
3159.74
260
271400
0.08
85.89
February
15300
2892.17
284.66
353390
0.10
122.19
March
15200
2824.9
349.6
0.12
106.95
April
17320
3257.65
375.8
302120
322270
0.12
98.93
May
18000
3491.16
298.18
355390
0.09
101.80
June
18130
3569.14
306.5
350690
0.09
98.26
0.10
103.86
July
19620
3633.74
372.77
377400
August
16550
3205.60
279.06
346760
0.09
108.17
September
19340
3712.49
429.75
0.12
93.42
October
18330
3713.38
346.25
346830
360790
0.09
97.16
November
17630
3401.77
279.3
342910
0.08
100.80
December
16810
3153.95
460.5
280440
0.15
88.92
TOTAL
209280
40015
4042.3
4010390
0.10
100.22
The usage of renewable energy (fiber and nut shell) showed a slight monthly improvement over
the preceding year per tonne of CPO produced.
Criterion 5.5
Use of fire for waste disposal and for preparing land for replanting is avoided except in specific situations, as
identified in the ASEAN Guidance or other regional best practice.
Indicators:
5.5.1
No evidence of open burning. Where controlled burning occurs, it is as prescribed by the Environmental
Quality (Declared Activities) (Open Burning) Order 2003.
Major compliance
5.5.2
Previous crop should be felled/mowed down, chipped/shredded, windrowed or pulverized/ ploughed and
mulched.
Minor compliance
Specific Guidance:
A special dispensation from the relevant authorities should be sought in areas where the previous crop or stand is
highly diseased and there is a significant risk of disease spread or continuation into the next crop.
5.5.3
No evidence of burning waste (including domestic waste).
Minor compliance
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme and Group Managers should carry out training and provide extension support to their participants to avoid
using fire for land preparation or open burning is not used except in accordance with ASEAN guidelines or other
regional best practice.
Findings:
Through site visits, interviews conducted and records sighted it was verified that no open
burning had been carried out and this is in line with the FGVPM-NCU’s policy on zero burning.
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Fire was not used in all estate operations and at waste disposal. No burn marks or ashes
spotted.There were no replanting activities in the estates visited. Site review at CU showed the
line site garbage collection contractors came to collect the domestic waste and the domestic
waste was buried in landfills.
Criterion 5.6
Plans to reduce pollution and emissions, including greenhouse gases, are developed, implemented and monitored.
Indicators:
5.6.1
Documented plans to mitigate all polluting activities (Cross ref to C 5.1).
Major compliance
5.6.2
Plans are reviewed annually.
Minor compliance
Specific Guidance:
Pollutants and emissions are identified and plans to reduce them are developed in conformance to national
regulations and guidance.
5.6.3
Monitor and reduce peat subsidence rate through water table management. (Within ranges specified in C
4.3).
Minor compliance
Specific National Guidance for Scheme and Independent Smallholders
Scheme Managers
Scheme Managers should include an assessment of all polluting activities by their participants and develop
abatement plan.
Findings:
The mill and estates had identified the sources of pollution and emissions from the
Environmental Aspect/Impact assessment carried out under Indicator 5.1.1. Various and
regular measurements of the emissions and pollutants had been taken and the data had been
used to develop mitigating plans and strategies for improvement. The assessor had verified the
plans and among the planned actions were those discussed under Indicator 5.2.3, for example,
the construction of oil traps, bunded diesel storage tank, POME being treated in a series of
ponds and the final discharge parameters regularly monitored. The action plans had also been
reviewed during regular operations meetings.
There was no peat soil area in the FGVPM-NCU. Therefore, Indicator 5.6.3 is not applicable.
PRINCIPLE 6: RESPONSIBLE CONSIDERATION OF EMPLOYEES AND OF INDIVIDUALS
AND COMMUNITIES AFFECTED BY GROWERS AND MILLS
Criterion 6.1
Aspects of plantation and mill management, including replanting, that have social impacts are identified in a
participatory way, and plans to mitigate the negative impacts and promote the positive ones are made, implemented
and monitored, to demonstrate continuous improvement.
Indicators:
6.1.1
A documented social impact assessment including records of meetings.
Major compliance
Specific Guidance:
Non-restrictive format incorporating elements spelt out in this criterion and raised through stakeholder consultation
including local expertise.
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6.1.2
Evidence that the assessment has been done with the participation of affected parties.
Minor compliance
Specific Guidance:
Participation in this context means that affected parties or their official representatives or freely chosen
spokespersons are able to express their views during the identification of impacts, reviewing findings and plans for
mitigation, and monitoring the success of implemented plans.
6.1.3
A timetable with responsibilities for mitigation and monitoring is reviewed and updated as necessary.
Minor compliance
Guidance:
Identification of social impacts may be carried out by the grower in consultation with other affected parties, including
women and migrant workers as appropriate to the situation. The involvement of independent experts should be
sought where this is considered necessary to ensure that all impacts (both positive and negative) are identified.
Particular attention should be paid to the impacts of outgrower schemes (where the plantation includes such a
scheme).
Plantation and mill management may have social impacts on factors such as:
1. Access and use rights.
2. Economic livelihoods (e.g. paid employment) and working conditions.
3. Subsistence activities.
4. Cultural and religious values.
5. Health and education facilities.
6. Other community values, resulting from changes such as improved transport /communication or arrival of
substantial migrant labour force.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Management aspects that can result in social impact should be identified with the consultation of their participants or
representatives. If it warrants, a documented SIA should be conducted with the participation of the affected parties.
A time bound mitigation plan with responsibilities should be drawn and implemented (with review and update if
necessary).
Findings:
In reference to 6.1.1 and 6.1.3, there was a documented SIA which included a timetable with
responsibilities for mitigation and monitoring of impacts for Nitar Complex. The SIA was
conducted based on a questionnaire formulated by FELDA HQ. They covered impacts of
plantation and oil mill activities on internal (scheme participants, workers/employees) and
external (neighbouring) community infrastructures, livelihood, cultural/religious values and other
community values.
In reference to 6.1.2, there were records that the assessment was carried out with the
participation, of affected parties which include the scheme participants, workers/employees,
suppliers/contractors and neighbouring community members. The respondents were informed
prior to the conduct of the survey in the form of notices sent out to them
However, a number of weaknesses were noticed, for example the percentage of respondents
interviewed were not highlighted, views of external stakeholders were collected through a
meeting not through the questionnaire, the analysis succeeded in demonstrating the positive
and negative views of the respondents rather than the impacts on the community resulting from
plantation and mill activities and the items in the questionnaire were not fully elaborated in the
report. Thus an OFI had been raised against this criterion.
Criterion 6.2
There are open and transparent methods for communication and consultation between growers and/or millers, local
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communities and other affected or interested parties.
Indicators:
6.2.1
Documented consultation and communication procedures.
Major compliance
6.2.2
A nominated plantation management official at the operating unit responsible for these issues.
Minor compliance
6.2.3
Maintenance of a list of stakeholders, records of all communication and records of actions taken in
response to input from stakeholders.
Minor compliance
Specific Guidance:
Decisions that the growers or mills are planning to make should be made clear, so that local communities and other
interested parties understand the purpose of the communication and/or consultation.
Communication and consultation mechanisms should be designed in collaboration with local communities and other
affected or interested parties. These should consider the use of existing local mechanisms and languages.
Consideration should be given to the existence/ formation of a multi-stakeholder forum.
Communications should take into account differential access to information of women as compared to men, village
leaders as compared to day workers, new versus established community groups, and different ethnic groups.
Consideration should be given to involving third parties, such as disinterested community groups, NGOs, or
government (or a combination of these), to facilitate smallholder schemes and communities, and others as
appropriate, in these communications.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme Managers should provide the necessary mechanism and designate an officer for consultation and
communication with participants/representatives and other stakeholders and this should be documented.
Findings:
There was a documented consultation and communication procedures produced by the CU
entitled “Manual Prosedur Komunikasi, Penglibatan dan Rundingan” (Manual for
Communication, Participation and Consultation Procedures). It was used in communications
and consultations with its stakeholders namely the scheme participants, workers/employees,
suppliers/contractors and neighbouring community members. Records of meetings and
discussions with Scheme Development and Safety Committee (JKKR) involving the operating
unit’s management and community leaders were available.
A management official at each operating unit level had been nominated to be responsible on
issues related to consultations and communication between growers and/or millers and internal
(scheme participants, workers/employees) and external (neighbouring communities,
suppliers/contractors) stakeholders.
In reference to 6.2.3, there was a list of stakeholders, internal and external, produced by the
CU, and there were records of meetings with stakeholders. Meetings involving the CU’s
management and scheme participant leaders were held regularly. Participants’ involvement
and participation were encouraged. All issues raised were given due attention and actions had
been taken to resolve the issues raised.
There were documents, produced by the mill and schemes to show the existence of
documented consultations and communication, for example, Minit Mesyuarat Jawatankuasa
Wanita (minutes of Gender Committee meetings) and Minit Mesyuarat JKKR (minutes of the
Scheme Development and Safety Committee meetings).
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Other forms of management communication with workers/staff and scheme participants include
the following:
 Assembly/Roll calls
 Suggestion boxes
 Internal circulars/memos
 Staff/worker representatives
 Notice boards
 Written complaints
Consultations were held with randomly selected workers/staff, scheme participants and
suppliers/contractors of the schemes audited. These auditor-stakeholder interviews confirmed
that communications and relationships between the scheme management and stakeholders
were good.
However, it was suggested that the list of external stakeholders be updated to include
immediate neighbors who were missed out in the present list. Thus an OFI had been raised
against Indicator 6.2.3.
Criterion 6.3
There is a mutually agreed and documented system for dealing with complaints and grievances, which is
implemented and accepted by all parties.
Indicators:
6.3.1
Documentation of the process by which a dispute was resolved and the outcome.
Major compliance
Specific Guidance:
Records are to be kept for 3 years.
6.3.2
The system resolves disputes in an effective, timely and appropriate manner.
Minor compliance
6.3.3
The system is open to any affected parties.
Minor compliance
Guidance:
Dispute resolution mechanisms should be established through open and consensual agreements with relevant
affected parties.
Complaints may be dealt with by mechanisms such as Joint Consultative Committees (JCC) with gender
representation. Grievances may be internal (employees) or external.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme and Group Managers should provide the necessary mechanism to deal with complaints and grievances by
their participants and other stakeholders and the outcome is open to affected parties. The management should
actively seek to resolve the complaint and grievances within a reasonable period.
Findings:
A manual entitled Rungutan, Keingkaran, Siasatan Insiden dan Tindakan Pembetulan
(Complaints, Rule Breakings, Incident Investigations and Corrective Actions) was sighted. It
described procedures for handling complaints and grievances. Staff/workers, scheme
participants and suppliers/contractors were aware and understood the procedures. This was
confirmed through consultations with them.
Borang Aduan (Complaint Form), Kotak Cadangan (Suggestion Boxes) and Buku Aduan
(Complaints Book) were available at the scheme offices for any interested party to register their
complaints. The aggrieved party could fill in the Borang Aduan or write a letter and deposit it in
the Kotak Cadangan or submit the complaint verbally to anyone in the main office or to the
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official responsible for handling social issues or to the worker;s representatives or gender
representatives or record the complaint in the Buku Aduan.
Since the procedure and system has been put in place only recently there were hardly any
complaints recorded through the channels stated above. Nonetheless, the few complaints
recorded were dealt with in a timely manner as the records in the Complaint Book
demonstrated.
The system was open to everyone, external as well as internal (scheme participants,
workers/employees) communities. There was no evidence indicating the system was limited to
certain parties (e.g. workers/employees and scheme participants only).
Besides the above channels, indeed, the scheme participants have an additional channel to
submit their complaints, that is, the JKKR meeting. The complaints and suggestions were
minuted and actions taken reported in the following meeting).
Criterion 6.4
Any negotiations concerning compensation for loss of legal or customary rights are dealt with through a documented
system that enables indigenous peoples, local communities and other stakeholders to express their views through
their own representative institutions.
Indicators:
6.4.1
Establishment of a procedure for identifying legal and customary rights and a procedure for identifying
people entitled to compensation.
Major compliance
6.4.2
A procedure for calculating and distributing fair compensation (monetary or otherwise) is established and
implemented. This takes into account gender differences in the power to claim rights, ownership and access
to land; and long-established communities; differences in ethnic groups’ proof of legal versus communal
ownership of land.
Minor compliance
6.4.3
The process and outcome of any compensation claims is documented and made publicly available.
Minor compliance
Specific Guidance:
This criterion should be considered in conjunction with Criterion 2.3.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme and Group Managers should be able to show that they have acquired and/or allocated land for their
organized smallholdings in compliance with this criterion. If any land acquisition requires fair compensation, it should
be dealt with documented system that includes respective parties involved and settlement details, if such provision is
not available judicially.
Findings:
A procedure for identifying legal and customary rights and a procedure for identifying people
entitled to compensation and the accompanying procedure for calculating and distributing fair
compensation (monetary or otherwise) had not been developed at FELDA Nitar Timur, Nitar 2
and Nitar POM. Hence, an NCR ZE04 had been raised against all three indicators (6.4.1, 6.4.2,
6.4.3) under this criterion.
The referenced procedure for Indicator 6.4.1 and 6.4.2 and records required for Indicator 6.4.3
had been submitted to the assessor by FELDA Nitar 2, FP Nitar Timur and Nitar POM and
found acceptable. The status of this NCR ZE04 is closed.
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Criterion 6.5
Pay and conditions for employees and for employees of contractors always meet at least legal or industry minimum
standards and are sufficient to provide decent living wages.
Indicators:
6.5.1
Documentation of pay and conditions.
Major compliance
6.5.2
Labour laws, union agreements or direct contracts of employment detailing payments and conditions of
employment (e.g. working hours, deductions, overtime, sickness, holiday entitlement, maternity leave,
reasons for dismissal, period of notice, etc) are available in the language understood by the workers or
explained carefully to them by a plantation management official in the operating unit.
Minor compliance
6.5.3
Growers and millers provide adequate housing, water supplies, medical, educational and welfare amenities
in accordance with Workers’ Minimum Standard of Housing and Amenities Act 1990 (Act 446) or above,
where no such public facilities are available or accessible (not applicable to smallholders).
Minor compliance
Guidance:
Where temporary or migrant workers are employed, a special labour policy should be established. This labour policy
would state the non discriminatory practices; no contract substitution of original contract, post arrival orientation
program to focus especially on language, safety, labour laws, cultural practices etc; decent living conditions to be
provided. Migrant workers are legalised, and a separate employment agreement should be drawn up to meet
immigration requirements for foreign workers, and international standards, if ratified.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Where temporary or migrant workers are employed, a special labour policy should be established. This labour policy
would state the non discriminatory practices; no contract substitution of original contract, post arrival orientation
program to focus especially on language, safety, labour laws, cultural practices etc; decent living conditions to be
provided. Migrant workers are legalised, and a separate employment agreement should be drawn up to meet
immigration requirements for foreign workers, and international standards, if ratified.
The Managers should educate the participants on legal obligations in employing workers on their plot/land.
Findings:
A contract of employment detailing payments and conditions of employment for local workers
were available at FELDA Nitar Timur, Nitar 2 and Nitar POM but no records of contract of
employment for foreign workers were sighted at FELDA Nitar Timur and Nitar 2. Hence a Major
NCR ZE 04 was raised against Indicators 6.5.1 and a Minor NCR ZE 05 was issued against
6.5.2 for Nitar Timur and Nitar 2.
The status of NCR ZE 04 and NCR ZE 05 are considered closed. The required contract of
employment for foreign workers had been sighted and found acceptable.
Free housing, subsidized and adequate water and power supply and free garbage collection
were provided by FELDA for its local and foreign employees. However, some foreign workers
at FELDA Nitar Timur were housed in cabins while two hostel blocks were being constructed
for them. This did not meet the Malaysian Workers’ Minimum Standard of Housing and
Amenities Act 1990 (Act 446). There was no evidence that the temporary use of the cabins had
been approved by the Department of Labour. Thus a Minor NCR ZE08 was raised against
Indicator 6.5.3.
The status NCR ZE 08 is still closed as the CU had submitted photographs showing evidence
that the hostel were under construction. It was found acceptable. The status of NCR ZE08 is
closed
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Scheme participants who worked their own lot/land used family labour only. No hired workers
were used. This was confirmed through interviews with Scheme Managers and the scheme
participants themselves.
Criterion 6.6
The employer respects the right of all personnel to form and join trade unions of their choice and to bargain
collectively. Where the right to freedom of association and collective bargaining are restricted under law, the employer
facilitates parallel means of independent and free association and bargaining for all such personnel.
Indicators:
6.6.1
Documented minutes of meetings with main trade unions or workers representatives.
Major compliance
6.6.2
A published statement in local languages recognizing freedom of association.
Minor compliance
Guidance:
The right of employees and contractors to form associations and bargain collectively with their employer should be
respected. Documented company policy recognizing freedom of association.
Labour laws and union agreements or in their absence, direct contracts of employment detailing payments and other
conditions are available in the languages understood by the workers or explained carefully to them by a plantation
management official in the operating unit.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme managers must respect the right of participants to form and represent themselves through their own
representative associations and / or trades unions and accept them as parties to participatory processes,
consultations, communications and negotiations in the management of the scheme.
Findings:
FELDA in general supported the freedom and rights of its employees to form and join
associations to bargain collectively for their benefits. As required by Indicator 6.6.2 an officially
published statement entitled “Polisi Kebebasan Menganggotai Kesatuan Sekerja / Khidmat
Sukarela” (Freedom of Association Policy) in the Malay language recognizing freedom of
association was made available and explained to all workers and the policy exhibited in public
places. However, foreign workers out of their own choice were not members of any trade union.
Meetings between scheme/mill management and union representatives were held and minutes
recorded and filed. The minutes were sighted during the audit.
With regards to the establishment of associations among the scheme participants, a committee,
the JKKR (mentioned earlier) had been established in every scheme to represent the interests
of the participants. The JKKR met the management regularly and all their meetings were
minuted.
Criterion 6.7
Children are not employed or exploited. Work by children is acceptable on family farms, under adult supervision, and
when not interfering with education programmes. Children are not exposed to hazardous working conditions.
Indicator: 31
6.7.1
Documented evidence that minimum age requirement is met.
Major compliance
Guidance:
Growers and millers should clearly define the minimum working age, together with working hours. Only workers 16
years and older may be employed, with the stated exception of family farms. Smallholders should allow work by
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children only if permitted by national regulations.
The minimum age of workers should be not less than 16 years, or the minimum school leaving age, or the minimum
age permitted under national regulations, where higher.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Children should only be allowed work in schemes and individual land holdings if permitted by national regulations and
not interfering with education programmes. Under such situation, children should only work under adult supervision.
Findings:
FELDA has a written policy statement entitled “Polisi Pekerja-Pekerja Kanak-Kanak” (Child
Labour Policy) prohibiting employment of children below 18 years old. The statement was
sighted in the RSPO’s file on Principle 6 as well seen displayed on office notice boards.
The policy was implemented as there was no record of persons under the age of eighteen, the
minimum working age under Malaysian Labor Laws (Act A1238) hired by the CU. This was
verified through an examination of the employment cards and copies of passports of foreign
workers and confirmed also by interviewing randomly selected workers by the auditors.
In the case of participants who used family labour to work their lot/land, child labour was not
used. This was confirmed through interviews with the participants as well as the Scheme
Manager.
Criterion 6.8
Any form of discrimination based on race, caste, national origin, religion, disability, gender, sexual orientation, union
membership, political affiliation, or age, is prohibited.
Indicators:
6.8.1
A publicly available equal opportunities policy.
Major compliance
6.8.2
Evidence that employees and groups including migrant workers have not been discriminated against.
Minor compliance
Guidance:
The grievance procedures detailed in 6.3 apply. Positive discrimination to provide employment and benefits to
specific communities is acceptable as part of negotiated agreements.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme managers must ensure that women, indigenous peoples and minorities participate in negotiating processes.
Positive discrimination to provide employment and benefits to specific communities is acceptable as part of
negotiated agreements. All stakeholders should participate in the negotiating processes.
Findings:
There was clear evidence of conformance to this criterion. There was a publicly available equal
opportunities policy entitled “Polisi Kesetaraan Peluang” (Equal Opportunity Policy) in the
Malay language, established, written and signed by the FELDA Managing Director. It was
sighted in the RSPO file on Principle 6 and displayed at all offices visited. The policy stated
clearly the equal rights assigned to all employees irrespective of race, caste, nationality,
religion, gender, union membership, political affiliation and disability. It was also explained to
foreign workers and found understood by them.
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There was no evidence of discrimination. All employees (local or migrant, male or female) were
hired based on their qualification not their socio-cultural background or political leanings. They
were covered by the same pay and conditions of employment associated with the jobs they
were hired for. This was confirmed by local and foreign employees interviewed during the
assessment.
Poor and the landless Malaysians, regardless of their socio-cultural, religious or political
affiliation, were eligible to join the scheme, and as scheme participants they were allowed to
participate in negotiations related to their interests.
Criterion 6.9
A policy to prevent sexual harassment and all other forms of violence against women and to protect their
reproductive rights is developed and applied.
Indicator:
6.9.1
A policy on sexual harassment and violence and records of implementation.
Major compliance
6.9.2
A specific grievance mechanism is established.
Major compliance
Guidance:
There should be a clear policy developed in consultation with employees, contractors and other relevant
stakeholders, which should be publicly available. The policy is applicable within the boundaries of the plantation/mills
or while on duty outside the premises. Progress in implementing the policy should be regularly monitored and the
results of monitoring activities should be recorded.
A committee specifically to address concerns of women may be required to comply with the criterion. This committee
will consider matters such as; training on women’s rights, counselling for women affected by violence and child care
facilities to be provided by the growers and millers. The activities of the committee should be documented.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
For Scheme Managers, there should be a clear policy made publicly.
Findings:
There was a well displayed and clear policy on sexual harassment and violence entitled “Polisi
Gangguan Seksual” (Sexual Harassment Policy). The policy in Bahasa Malaysia, was made
available and explained to all female employees. The sexual harassment and violence policy
had been implemented.
A specific grievance mechanism to handle issues related to sexual harassment and violence
had been established. A Jawatankuasa Wanita (Gender Committee) whose responsibility
among others was to look into gender issues (especially matters related to sexual harassment)
had also been established. The existence of this policy and its implementation through the
establishment of the sexual harassment grievance mechanism and the Gender Committee was
confirmed by female employees interviewed during the assessment who also understood the
meaning of sexual harassment and the appropriate complaint procedure.
The scheme participants were also aware of this policy and the associated grievance
mechanism. This was confirmed through interviews of randomly selected participants.
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Criterion 6.10
Growers and mills deal fairly and transparently with smallholders and other local businesses.
Indicators:
6.10.1 Pricing mechanisms for FFB and inputs/services shall be documented.
Major compliance
6.10.2
Current and past prices paid for FFB shall be publicly available.
Minor compliance
6.10.3
Evidence that all parties understand the contractual agreements they enter into, and that contracts are fair,
legal and transparent.
Minor compliance
6.10.4
Agreed payments shall be made in a timely manner.
Minor compliance
Guidance:
Transactions with smallholders should consider issues such as the role of middlemen, transport and storage of FFB,
quality and grading.
Smallholders must have access to the grievance procedure under Criterion 6.3, if they consider that they are not
receiving a fair price for FFB, whether or not middlemen are involved.
The need for a fair and transparent pricing mechanism is particularly important for outgrowers, who are contractually
obliged to sell all FFB to a particular mill. If mills require smallholders to change practices to meet the RSPO criteria,
consideration must be given to the costs of such changes, and the possibility of advance payments for FFB could be
considered.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme Managers are responsible for fair and transparent deal with participants and other local business. This will
include:
and transparent pricing mechanisms must be established
mill or plantation).
greements they enter into, and that contracts are
fair, legal and transparent and all costs, fees and levies are explained and agreed in advance.
olders pay relevant service fee, road must be maintained and transportation provided in a timely
manner.
Findings:
Relevant files related to FFB pricing mechanisms and inputs/service were sighted; and current
and past prices paid for FFB were posted for public perusal, thus making it freely available to
the scheme participants, local business as well the general public.
Consultations with contractors and suppliers as well as scheme participants pertaining to 6.10.3
and 6.10.4, showed that they understood the contractual agreements they entered into, and
that contracts were fair, legal and transparent and that all payments were made in a timely
manner.
Criterion 6.11
Growers and millers contribute to local sustainable development wherever appropriate.
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Indicator:
6.11.1 Demonstrable contributions to local development that are based on the results of consultation with local
communities.
Minor compliance
Guidance:
Contributions to local development should be based on the results of consultation with local communities. See also
Criterion 6.2. Such consultation should be based on the principles of transparency, openness and participation and
should encourage communities to identify their own priorities and needs, including the different needs of men and
women.
Where candidates for employment are of equal merit, preference should always be given to members of local
communities in accordance to national policy. Positive discrimination should not be recognized as conflicting with
Criterion 6.8.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme Managers are encouraged to contribute to local development based on consultation with local communities.
Findings:
Various programmes developed jointly by the scheme management and participants had been
implemented in the schemes involving the participation of all scheme participants. The
emphasis was on education, health, religion and the family. Documents related to this were
sighted during the audit.
With regards to contribution to neighbouring external communities, FELDA Nitar Timur, Nitar 2
and Nitar POM had contributed to local development through ad hoc contributions. However,
these contributions were not based on results of consultation with internal and external
stakeholders as required by this indicator. Thus, it could be enhanced whereby FELDA Nitar
Timur, Nitar 2 and Nitar POM develop a more comprehensive plan for local development by
basing it on results of consultation with local stakeholders. Hence an OFI was raised against
Indicator 6.11.1.
PRINCIPLE 7: RESPONSIBLE DEVELOPMENT OF NEW PLANTINGS
Criterion 7.1
A comprehensive and participatory independent social and environmental impact assessment is undertaken prior to
establishing new plantings or operations, or expanding existing ones, and the results incorporated into planning,
management and operations.
Indicators:
7.1.1
An independent and participatory social and environmental impact assessment (SEIA) to be conducted and
documented (Cross ref. to C 7.2, 7.3, 7.4, 7.5, 7.6).
Major compliance
Specific Guidance:
SEIAs to include previous land use / history and involve independent consultation as per national and state
regulations, via participatory methodology which includes external stakeholders.
For Sabah, slopes 25 degrees and above are considered high risk erosion areas and cannot undergo replanting
unless specified in the EIA report [Environment Impact Assessment (Order 2005)] and approved by the
Environmental Protection Department (EPD).
For Sarawak, steep slopes are considered high risk erosion areas and cannot undergo replanting unless specified in
the EIA report [Natural Resources and Environment (Prescribed Activities) Order 1994] and approved by the Natural
Resources and Environment Board (NREB).
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7.1.2
The results of the SEIA to be incorporated into an appropriate management plan and operational
procedures developed, implemented, monitored and reviewed.
Minor compliance
7.1.3
Where the development includes smallholder schemes of above 500ha in total, the impacts and
implications of how it is managed should be documented and a plan to manage the impacts produced.
Minor compliance
Guidance:
The terms of reference should be defined and impact assessment should be carried out by accredited independent
experts, in order to ensure an objective process. Both should not be done by the same body. See also C 5.1 and C
6.1.
This indicator is not applicable to development of smallholder schemes below 500ha.
For Sabah, new planting or replanting of area 500ha or more requires EIA. For areas below 500ha but above 100ha,
proposal for mitigation measures (PMM) is required. For Sarawak, only new planting of area 500ha and above
requires EIA. Onus is on the company to report back to the DOE on the mitigation efforts being put in place arising
out of the EIA.
Assessment of above and below ground carbon storage is important but beyond the scope of an EIA. Note: This
aspect will be considered by an RSPO Greenhouse Gas Working Group.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
This criterion applies to scheme smallholders of land holdings of above 500ha. The terms of reference should be
defined by Federal/state authority and impact assessment should be carried out by accredited independent experts,
in order to ensure an objective process.
For Sabah, new planting or replanting of area 500ha or more requires EIA. For areas below 500ha but above 100ha,
proposal for mitigation measures (PMM) is required.
SEIAs to include previous land use / history and involve independent consultation as per national and state
regulations, via participatory methodology which includes external stakeholders.
For Sabah, slopes 25 degrees and above are considered high risk erosion areas and cannot undergo replanting
unless specified in the EIA report [Environment Impact Assessment (Order 2005)] and approved by the
Environmental Protection Department (EPD).
For Sarawak, steep slopes are considered high risk erosion areas and cannot undergo replanting unless specified in
the EIA report [Natural Resources and Environment (Prescribed Activities) Order 1994] and approved by the Natural
Resources and Environment Board (NREB).
Independent Smallholders
land users and ensure that proposed new plantings take into consideration relevant RSPO P&C.
assistance in the
analysis of impacts.
Findings:
The assessment team has verified that Principle 7 is not applicable to FGVPM-NCU.
Criterion 7.2
Soil surveys and topographic information are used for site planning in the establishment of new plantings, and the
results are incorporated into plans and operations.
Indicators:
7.2.1
Soil suitability maps or soil surveys adequate to establish the long-term suitability of land for oil palm
cultivation should be available.
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Major compliance
7.2.2
Topographic information adequate to guide the planning of drainage and irrigation systems, roads and other
infrastructure should be available.
Minor compliance
Guidance:
These activities may be linked to the SEIA (C7.1) but need not be done by independent experts.
Soil surveys should be adequate to establish the long-term suitability of land for oil palm cultivation. Soil suitability
maps or soil surveys should be appropriate to the scale of operation and should include information on soil types,
topography, soil depth, moisture availability, stoniness, fertility and long-term soil sustainability. Soils unsuitable for
planting or those requiring special treatment should be identified.
This information should be used to plan planting programmes, etc. Measures should be planned to minimise erosion
through appropriate use of heavy machinery, terracing on slopes, appropriate road construction, rapid establishment
of cover, protection of riverbanks, etc.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
For scheme managers, the soil surveys should be adequate to establish the long-term suitability of land for oil palm
cultivation. Soil suitability maps or soil surveys should be appropriate to the scale of operation.
Information on soils may be collected and provided by scheme management or the mill that purchases the scheme’s
FFB.
Soils unsuitable for planting or those requiring special treatment should be identified.
Scheme managers must ensure that they apply the same procedures required for mills and new estates to all
schemes. These activities may be linked to the SEIA (7.1) but need not be done by independent experts.
Independent Smallholders
Where groups plan to expand their aggregate holdings by more than 500 ha. in any one year, group managers must
ensure that these requirements are applied to all group members planning to expand their holdings or acquire new
ones. National interpretations should include detail on peat depth.
Where groups plan to expand their aggregate holdings by less than 500 ha. in any one year only a simplified soil
survey is required (see 71.)
Findings:
The assessment team had verified that Principle 7 was not applicable to FGVPM-NCU.
Criterion 7.3
New plantings since November 2005, have not replaced primary forest or any area required to maintain or enhance
one or more High Conservation Values.
Indicators:
7.3.1
A HCV assessment, including stakeholder consultation, is conducted prior to any conversion.
Major compliance
Guidance:
HCV assessments to be documented and included as part of the SEIA (C7.1). Reference should be made to EIA to
indicate the extent of the HCV areas as determined by relevant experts, with priority given to the locals.
This criterion applies to forests and other vegetation types. This applies irrespective of any changes in land
ownership or farm management that have taken place after this date. High Conservation Values (HCVs) may be
identified in restricted areas of a landholding, and in such cases new plantings can be planned to allow the HCVs to
be maintained or enhanced.
Specific Guidance to the above indicator are listed below:
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Attachment 1
1.
2.
3.
4.
New plantings within Nov 05 and Nov 07 must be in compliance with existing regulatory requirements that
relate to social and environmental impacts assessment i.e. SEIA (ref.C7.1) and also comply with the
legalized land spatial planning.
Where it can be proven that the land did not contain HCV after Nov 2005, the land can enter the RSPO
certification programme.
Where the HCV status of the land is unknown and/or disputed, the land will be excluded from the RSPO
certification programme, until an acceptable solution for HCV compensation has been developed.
Companies owning such land can enter other estates in the programme.
This arrangement is valid only for land development between Nov 05 and Nov 07 which was the RSPO P&C initial
pilot implementation period.
7.3.2
No conversion of Environmentally Sensitive Areas (ESAs) to oil palm as per Peninsular Malaysia’s National
Physical Plan (NPP) and Sabah Forest Management Unit under the Sabah Forest Management License
Agreement.
Major compliance
Specific Guidance:
ESA rankings and management criteria as per the NPP are listed in Appendix 3.
7.3.3
No new plantings on floodplains (reference to be made to State DID).
Major compliance
7.3.4
Dates of land preparation and commencement are recorded.
Minor compliance
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme Managers must ensure that this criterion is applied to scheme smallholdings.
Independent Smallholders
Group managers must ensure that this criterion is applied to group smallholdings.
This criterion also applies to independent smallholders who later seek to become members of smallholder groups
seeking certification.
Findings:
The assessment team had verified that Principle 7 was not applicable to FGVPM-NCU.
Criterion 7.4
Extensive planting (to be determined by SEIA) on steep terrain, and/or on marginal and fragile soils, is avoided.
Indicators:
7.4.1
All new plantings should not be cultivated on land more than 300m above sea level and on land more than
25 degrees slope unless specified by local legislation (Ref: MSGAP Part 2: OP 4.4.1.3 & 4.4.1.4)
Major compliance
7.4.2
Where planting on fragile and marginal soils is proposed, plans shall be developed and implemented to
protect them without incurring adverse impacts (e.g. hydrological) or significantly increased risks (e.g. fire
risk) in areas outside the plantation.
Minor compliance
Guidance:
This activity should be subjected to a comprehensive EIA as required by C 7.1.
Marginal and fragile soils, including excessive gradients and peat soils, should be identified prior to conversion to
plantation.
Specific National Guidance for Scheme and Independent Smallholders
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Scheme Smallholders
Scheme Managers should avoid establishing new plantings on steep terrain and/or on marginal and fragile soils. If
it’s the only source of livelihood, it should be developed with the use of appropriate conservation measures.
Furthermore, its planting must be fully justified and should not to push people into poverty, and must be done in
accordance with the indicators.
Independent Smallholders
Where groups plan to expand their aggregate holdings by more than 500 ha. in any one year, group managers must
ensure that no new lands are acquired by existing group members on steep terrain and/or on marginal and fragile
soils.
Findings:
The assessment team had verified that Principle 7 was not applicable to FGVPM-NCU.
Criterion 7.5
No new plantings are established on local peoples’ land without their free, prior and informed consent, dealt with
through a documented system that enables indigenous peoples, local communities and other stakeholders to
express their views through their own representative institutions.
Indicator:
7.5.1
This activity should be integrated with SEIA required by C 7.1
Major compliance
Guidance:
Where new plantings are considered to be acceptable, management plans and operations should maintain sacred
sites. Agreements with local communities should be made without coercion or other undue influence (see guidance
for C 2.3)
Relevant stakeholders include those affected by or concerned with the new plantings. Refer also to C 2.2, 2.3, 6.2,
6.4 and 7.6 for indicators of compliance.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme Managers can show that lands acquired for their organized smallholders do not diminish legal or customary
rights. Where others’ customary or legally owned lands have been taken-over, there is documentary proof of transfer
of rights (e.g. sale) and of payment or provision of agreed compensation.
To verify that, the Scheme managers must provide:-
Independent Smallholders
Group Managers engages with indigenous people and local communities prior to the development of new oil palm
plantings, and where the lands are encumbered by local or customary rights, these must be negotiated to reach
settlement agreed by both parties. All negotiated agreement must be well documented for a long-term benefit for all
parties.
Findings:
The assessment team had verified that Principle 7 was not applicable to FGVPM-NCU
Criterion 7.6
Local people are compensated for any agreed land acquisitions and relinquishment of rights, subject to their free,
prior and informed consent and negotiated agreement.
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Indicators:
7.6.1
Documented identification and assessment of legal and customary rights.
Major compliance
Specific Guidance:
Auditors to be aware of land acquisition in relation to native customary land.
7.6.2
Establishment of a system for identifying people entitled to compensation.
Major compliance
7.6.3
This activity should be integrated with the SEIA required by C 7.1.
Major compliance
7.6.4
Establishment of a system for calculating and distributing fair compensation (monetary or otherwise).
Major compliance
7.6.5
The process and outcome of any compensation claims should be documented and made publicly available.
Major compliance
7.6.6
Communities that have lost access and rights to land for plantation expansion are given opportunities to
benefit from plantation development.
Minor compliance
Guidance:
Refer also to C 2.2, 2.3 and 6.4 and associated guidance. This requirement includes indigenous peoples.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
For Scheme and Group Managers, evidence may be in the form of letter of agreement from indigenous people and
local communities, which is acknowledged or approved by the head of indigenous people/ village head or in
accordance with local regulations. The area of relinquished rights should be mapped.
Independent Smallholders
For Independent smallholders and smallgrowers, evidence may be in the form of letter of agreement from indigenous
people and local communities, which is acknowledged or approved by the head of indigenous people/village head or
in accordance with local regulations. See C7.5 above.
Findings:
The assessment team had verified that Principle 7 was not applicable to FGVPM-NCU.
Criterion 7.7
Use of fire in the preparation of new plantings is avoided other than in specific cases as identified in the ASEAN
Guidance or other regional best practice.
Indicators:
7.7.1
No evidence of clearing by burning. This activity should be integrated with the SEIA required by C 7.1
Major compliance
7.7.2
Evidence of approval for controlled burning, as per Environmental Quality (Declared Activities) (Open
Burning) Order 2003.
Major compliance
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme Managers should ensure that no open burning is being used to establish new plantings. Fire should be used
only where an assessment has demonstrated that it is the most effective and least environmentally damaging option
for minimising the risk of severe pest and disease outbreaks during the preparation of new plantings, and with
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evidence that fire-use is carefully controlled. Where such use of fire may be acceptable for example through
reference to ‘Guidelines for the implementation of the ASEAN policy on zero burning’, or comparable guidelines in
other locations.
Independent Smallholders
Group managers must ensure that no fire is used to establish new plantings.
Fire should be used only where an assessment has demonstrated that it is the most effective and least
environmentally damaging option for minimising the risk of severe pest and disease outbreaks during the preparation
of new plantings, and with evidence that fire-use is carefully controlled
National interpretation should identify any specific situations where such use of fire may be acceptable, for example
through reference to ‘Guidelines for the implementation of the ASEAN policy on zero burning’, or comparable
guidelines in other locations
Findings:
The assessment team had verified that Principle 7 was not applicable to FGVPM-NCU.
PRINCIPLE 8: COMMITMENT TO CONTINUOUS IMPROVEMENT IN KEY AREAS OF
ACTIVITY
Criterion 8.1
Growers and millers regularly monitor and review their activities and develop and implement action plans that allow
demonstrable continuous improvement in key operations.
MY NIWG commits to demonstrate progressive improvement to the following but not limited to:
8.1.1
Minimise use of certain pesticides (C4.6)
Major compliance
8.1.2
Environmental impacts (C5.1)
Major compliance
8.1.3
Maximizing recycling and minimizing waste or by-products generation.
Major compliance
Specific Guidance:
To work towards zero-waste (C5.3)
8.1.4
Pollution prevention plans (C5.6)
Major compliance
8.1.5
Social impacts (C6.1)
Major compliance
8.1.6
A mechanism to capture the performance and expenditure in social and environmental aspects.
Minor compliance
Guidance:
Specific minimum performance thresholds for key indicators should be established. (See also C 4.2, 4.3, 4.4, and
4.5).
Growers should have a system to improve practices in line with new information and techniques and a mechanism
for disseminating this information throughout the workforce.
For smallholders, there should be systematic guidance and training for continuous improvement.
Specific National Guidance for Scheme and Independent Smallholders
Scheme Smallholders
Scheme Managers should develop an action plan for continual improvement in a participatory manner with their
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organized smallholder representatives, based on consideration of the main social and environmental impacts and
opportunities for improvement.
Independent Smallholders
Group managers must develop an action plan for continual improvement, developed in a participatory manner with
group smallholders, based on a consideration of the main social and environmental impacts and opportunities of the
smallholdings, and should include a range of indicators covered by these principles and criteria.
Findings:
Generally, FGVPM-NCU had established a system to regularly monitor and review their key
activities at the estates and mill, and then initiate action plans for continuous improvement.
Although agrochemicals are still use, other IPM methods like planting of beneficial plants and
establishment of barn owls are supplemented gearing towards reducing dependent on
pesticides.
The mill and estates had continued to reduce environmental impacts as well as maximizing
recycling and minimizing waste or by-products generation, as described under Criterion 5.1 and
5.3. In fact, the Nitar POM as part of its Environmental Management System conforming to ISO
14001 requirements had documented environmental objectives which are reviewed annually.
Achievement of objectives is monitored by respective personnel and reviewed during monthly
meetings.
The swampy areas at FELDA Nitar Timur bordering Forest Reserve planted with oil palms are
being planned to be classified as buffer areas to act as concentration zone for elephant
encroachment. The palms growth was not encouraging. They are stunted, yellowish and not
productive and thus plan to become sacrificial trees to limit the elephants from charging into
plantation and damaging healthy and productive trees.
Other improvement plans include efforts to assess the social impacts and actions have been
taken to minimize adverse impacts as well as to increase the awareness of workers on 3R’s
initiatives (i.e. reduce, reuse, recycle) as part of their work and living culture.
At the individual land scheme level, records maintained includes expenditure for social and
environmental aspects, such as., allocations for JKKR and GPW allowances, donation fund for
smallholders children, and Hari Raya incentives.
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Attachment 1
RSPO Supply Chain Supply Standard 25 November 2011
5. General Chain of Custody System Requirements for the Supply Chain
5.2. Documented procedures
5.2.1. The facility shall have written procedures and/or work instructions to ensure the implementation of all the
elements specified. This shall include at minimum the following:
- Complete and up to date procedures covering the implementation of all the elements in these requirements.
- Complete and up to date records and reports that demonstrate compliance with these requirements.
- The name of the person having overall responsibility for and authority over the implementation of these
requirements and compliance with all applicable requirements. This person shall be able to demonstrate
awareness of the facility’s procedures for the implementation of this standard.
Findings:
At the time of assessment, the Nitar Palm Oil Mill had not established the required documented
procedures and/or work instructions to ensure implementation of all the elements specified for
Module E – CPO Mill: Mass Balance. No such procedures and/or work instructions exist.
Thus, a Major NCR MM3 was raised.
Corrective Action to create the required procedure for Module E – CPO Mill Mass Balance had
been taken. The assessor had sighted the newly established procedure and found acceptable.
Status of NCR is closed.
4.0
Comments from Stakeholder
Stakeholder consultations were conducted as part of the Stage 2 assessment. The summary of
the comments from stakeholders is given in Attachment 5.
5.0
Assessment Recommendation
Based on the evidence gathered during the on-site visits it can be concluded that FELDA Nitar
Certification Unit has conformed to the requirements of the RSPO Principles and Criteria for
Sustainable Palm Oil Production, including smallholder, Malaysia National Interpretation
Working Group (MYNIWG) November 2010.
Therefore, the assessment team recommends FELDA Nitar Certification Unit to be certified
against RSPO Principles and Criteria for Sustainable Palm Oil Production, including
smallholder, Malaysia National Interpretation Working Group (MYNIWG) November 2010.
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Attachment 1
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Attachment 1
Time Bound Plan for Certification Units
Mill complexes to be certified in the respective years
No
2009
2010
2011
1
K.Gelanggi
Jengka 21
Adela
2
L. Utara 6
Jengka 3
Lok Heng
Triang
3
Jengka 8
Semencu
Belitong
Kembara
Sakti
4
L. Utara 4
Waha
Bukit Besar
5
Jengka 18
B. Kepayang
6
Padang Piol
7
Segamat GC
8
2012
2013
2014
2015
2016
2017
M. Puspita
Selancar 2A
Chalok
Sampadi
Embara Budi N. Permata
Selancar 2B
J. Barat
Aring A
Tersang
Pasoh
J. Baru
Aring B
L. Kemudi
Besout
Serting
Kertih
Ciku
Kahang
Bukit Sagu
Sg Tengi
Serting Hilir
F. Harapan
Kechau A
Bukit Mendi
Kulai
Lepar Hilir
Trolak
Kerau
H.Badai
Kechau B
Kemasul
Nitar
Neram
Keratong 2
Mempaga
J.Bistari
Kemahang
Tementi
Penggeli
Pancing
Keratong 3
Maokil
Kalabakan
Cini 2
Keratong 9
Selendang
Umas
Cini 3
9
9
Palong Timor Baiduri Ayu
9
10
Tenggaroh
11
T.Timor
Total
Complexes
2
7
8
8
8
9
11
To date, FELDA has been on schedule with the time bound plan for the certification of all the CUs. SIRIM QAS International Sdn. Bhd. (SIRIM
QAS International) is now involved with the certification of FELDA Kahang CU.
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Attachment 2a
Nitar Complex
Certification
Unit
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Attachment 2c
Location Map of Nitar Complex, Mersing, Johor
FELDA Nitar
Complex
Certification
Unit
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Attachment 2c
FELDA Nitar Timur
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Attachment 2c
FELDA Nitar 1
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Attachment 2e
FELDA Nitar 2
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Attachment 4
ASSESSMENT PROGRAMME – NITAR PALM OIL MILL COMPLEX CERTIFICATION UNIT (17-19 Dec 2012)
Day One: 17 December 2012 (Monday)
Time
8.00 am
– 8.30
am
8.30 am
– 9.30
am
9.30 am
– 10.00
am
Activities / areas to be visited
Auditee
Opening Meeting, - FELDA Nitar Certification Unit at Dewan JKKR Nitar 2. Audit team introduction and briefing on assessment
objective, scope, methodology, criteria and programmes by SIRIM QAS Audit Team Leader
Briefing on the organization background and implementation of RSPO at FELDA Nitar Palm Oil Mill Complex Certification Unit
by the respective FELDA Management Representative, e.g.,
 Significant changes on organization activities, machinery, supply bases capacity, etc.
 Issue raised from interested party or stakeholder
 Areas of HCV interest and replanting program
 No. of settlers and area that are Koperasi/FTP managed vs. Self-farming
Managem
ent
Represent
ative
Travel to FELDA Nitar 1, FELDA Nitar Timur and FELDA Kahang Palm Oil Mill. Overview of current activities at these sites by
the respective site Manager.
Mahzan
Selvasingam
Khairul Najwan
Dr Zahid
Site visit and assessment
at FELDA Nitar 2, Pkt 02
Site visit and assessment
at FELDA Nitar 2, Pkt 01
Site visit and assessment
at FELDA Nitar Timur
Site visit and assessment
at, FELDA Nitar Timur
Coverage of assessment:
P1, P2,(C2.1), P3, P4 (C4.1,
C4.7, C4.8), P5(C5.1, C5.3C5.6), P8
Coverage of assessment:
P2 (C2.2.2), P3, P4 (C4.1 C4.6, C4.8), P5 (C5.1), ,P7
(C7.2, C7.4, C7.7), P7, P8
Pn. Fauziah observe
Najwan
Coverage of assessment:
P1(C1.2), P2(C2.1- C2.3), P3,
P6 (C6.1 – C6.11), P7 (C7.1,
C7.4, C7.5, C7.6), P8
View documentation and
records relating to OSHE
Management System
View documentation and
records relating to estate
management
Coverage of assessment:
P2 (C2.1, I2.2.3), P3, P4
(C4.1, C4.3, C4.4, C4.8),
P5(C5.1,C5.2-C5.6), P7
(C7.2 - C7.4, C7.7), P8
Plantation
/ Mill
Manager
Guide for
each
Assessor
View documentation and
records relating to workers
and local community issues
such as EIA, SIA and
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Attachment 4
10.00 am
– 1.00
pm
 Witness activities &
 Witness activities &
assessment at site i.e.
assessment at site
(weeding/ spraying/
(weeding/ harvesting/
harvesting/ other
other maintenance
maintenance activities)
activities)
 Interviews with selected
 Interviews with selected
staff/workers such as
staff/workers such as
sprayers, general workers,
sprayers, general workers,
chemical mixing and
chemical mixing etc,
dependents (related to
 Chemical storage and
Safety and Health,
container disposal –
Environment)
settler and Technoplant
 Emergency preparedness
 Good Agricultural Practice
and response,
 IPM implementation

Site visit and assess
 Training and safe use of
water sampling point,
agro-chemicals to settlers
water treatment plant,
 EFB mulching
chemical / fertilizer store
 Riparian Zone
 Waste Management at
 River system including
estate, line site and dump
POME discharge
site
 Site visit and assess water

Recycling activities
sampling point,
 Facilities at workplace
 Plantation on hilly/swampy
(laboratory, water
area
treatment plant, gensets,
 Waste management at
chemical store, fertilizer
field and line site and
store, etc)
dump site
 Workshop
 Recycling activities
 Recycling activities
 Fertilizer store.
 Workshop
1.00 –
2.00pm
View documentation and
records relating to estates
boundary, Environmental,
HCV and management plan
 Aspects/impacts of
plantation management
 Conservation area
management
 Area of more than 25o
 Inspection of protected
sites with HCV attributes
 Plantation Boundary and
land use by neighbour
 Forested area
 Riparian Zone
 Water bodies and source
of water supply

Site visit and assess
water sampling point,
water treatment plant,
chemical / fertilizer store
 River system including
POME discharge
 Plantation on hilly/swampy
area
 Interview with stakeholders
and relevant government
agencies, if applicable
BREAK FOR LUNCH
management plans
 Commitment to
transparency
 Complaints and
grievances
 Land titles user rights
 Negotiations and dispute
resolution
 Consultation with relevant
government agencies, if
applicable
 Commitment to long-term
economic and financial
viability transparency
 Laws and regulations
 Equal Opportunity, Sexual
harassment and violence
at workplace
implementation.
 Local sustainable
development
 Interviews with
Administration staff and
interested parties
 Facilities at workplace
(surau, clinic, rest area,
sports facilities, etc)
 Training
All
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Attachment 4
2.00 –
5.30 pm
Continue with unfinished
elements
Continue with unfinished
elements
Continue with unfinished
elements
Continue with unfinished
elements
 Commitment to
transparency
 Laws and regulations
 Commitment to long-term
economic and financial
viability
 Documented OSH plan
 Risk assessment
 Aspects/impacts of
plantation management
 Interview OSH Committee
 Training
 Continuous Improvement
Plan
 Commitment to
transparency
 Laws and regulations
 Commitment to long-term
economic and financial
viability
 Use of appropriate best
practices by growers
 Training
 Continuous Improvement
Plan
 Facilities at workplace
(water treatment plant,
workshop, gensets,
chemical store, scheduled
waste store, etc)
 Commitment to
transparency
 Laws and regulations
 Recycling activities
 Training
 Continuous Improvement
Plan
 Visit line site and
interviews with selected
workers such as sprayers,
general workers, chemical
mixing, Ketua Block etc,
 Visit and discussion with
Community Leaders of
FELCRA Melikai (CSR,
community affairs), issues
on SEIA and management
plan.
 Continuous Improvement
Plan
Other areas identified during
the assessment
Other areas identified during
the assessment
Other areas identified during
the assessment
Assessment Team Discussion and verification on any outstanding issues
Note: Auditor to inform auditee on the required document / record
8.30 p.m
-9.30 p.m
Guide for
each
Assessor
All
Auditors
Observer
Day Two: 18 December 2012 (Tuesday)
Time
7.45 am
– 8.30
am
Activities / areas to be visited
Auditee
Travel to FELDA Plantation Nitar Timur, FELDA Nitar 2 and FELDA Nitar Palm Oil Mill Overview of current activities at
respective site visited by Plantation / Mill Manager.
Mahzan
Selvasingam
Khairul Najwan
Plantation
/ Mill
Manager
Dr Zahid
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Attachment 4
8.30 am
– 1.00
pm
Site visit and assessment
at FELDA Nitar Palm Oil
Site visit and assessment
at FELDA Nitar Timur
Site visit and assessment
at FELDA Nitar 2, Pkt 01
Site visit and assessment
at, FELDA Nitar 2
Coverage of assessment:
P1, P2,(C2.1), P3, P4 (C4.1,
C4.7, C4.8), P5(C5.1, C5.3C5.6), P8
Pn. Fauziah observe Selva
Coverage of assessment:
P2 (C2.1, I2.2.3), P3, P4
(C4.1, C4.3, C4.4, C4.8),
P5(C5.1,C5.2-C5.6), P7
(C7.2 - C7.4, C7.7), P8
Coverage of assessment:
P1(C1.2), P2(C2.1- C2.3), P3,
P6 (C6.1 – C6.11), P7 (C7.1,
C7.4, C7.5, C7.6), P8
View documentation and
records relating to OSHE
Management System
 Witness activities &
assessment at factory.
 Use of appropriate best
practices by millers
 Facilities at workplace
(laboratory, water intake
and discharge points,
water treatment plant,
ETP, boiler, chimney,
gensets, chemical store,
scheduled waste store,
etc)
 Emergency preparedness
and response,
 Waste Management

Recycling activities
 Facilities at workplace
(laboratory, water
treatment plant, clinic,
gensets, chemical store,
fertilizer store, etc)
 Workshop
Coverage of assessment:
P2 (C2.2.2), P3, P4 (C4.1 C4.6, C4.8), P5 (C5.1), ,P7
(C7.2, C7.4, C7.7), P7, P8
View documentation and
records relating to Estate
management
 Witness activities &
assessment at site
(weeding/ harvesting/
other maintenance
activities)
 Use of appropriate best
practices by growers
 Interviews with selected
staff/workers such as
sprayers, general workers,
chemical mixing etc,
 Good Agricultural Practice
 IPM implementation
 EFB mulching
 Riparian Zone
 River system including
POME discharge
 Site visit and assess water
sampling point,
 Plantation on hilly/swampy
View documentation and
records relating to estates
boundary, Environmental,
HCV and management plan











Aspects/impacts of
plantation management
Conservation area
management
Area of more than 25o
Inspection of protected
sites with HCV attributes
Plantation Boundary and
land use by neighbour
Forested area
Riparian Zone
Water bodies and source
of water supply
Site visit and assess
water sampling point,
water treatment plant,
chemical / fertilizer store
River system including
POME discharge
Plantation on hilly/swampy
Guide for
each
Assessor
View documentation and
records relating to workers
and local community issues
such as EIA, SIA and
management plans
 Commitment to
transparency
 Complaints and
grievances

Land titles user rights
 Negotiations and dispute
resolution
 Consultation with relevant
government agencies, if
applicable
 Commitment to long-term
economic and financial
viability transparency
 Laws and regulations
 Equal Opportunity, Sexual
harassment and violence
at workplace
implementation.
 Local sustainable
development
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Attachment 4
 Recycling activities
 Commitment to
transparency
 Laws and regulations
1.00 –
2.00pm
2.00 –
5.30 pm
area
area
 Waste management at
 Visit to line site – Interview
field and line site and
EIA, chemical storage,
dump site
recycling activities, etc.
 Chemical store – settler
 Interview with stakeholders
and Technoplant / fertilizer
and relevant government
agencies, if applicable
 Workshop
 Interviews with Pengurus
Rancangan,
Administration staff, GPW,
JKKR, Belia, Chairman
Koperasi FELDA and
interested parties
 Facilities at workplace
(clinic, surau, rest area,
sports facilities, etc)
 Training
BREAK FOR LUNCH
All
Continue with unfinished
elements
Continue with unfinished
elements
Continue with unfinished
elements
Pn. Fauziah observe Dr,
Zahid
 Commitment to long-term
economic and financial
viability
 Documented OSH plan
 Risk assessment
 Aspects/impacts of
plantation management
 Interview OSH Committee
 Training
 Continuous Improvement
Plan
 RSPO Supply Chain
 Commitment to
transparency
 Laws and regulations
 Commitment to long-term
economic and financial
viability
 Training
 Continuous Improvement
Plan
 Commitment to
transparency
 Laws and regulations
 Training
 Continuous Improvement
Plan
 Visit line site and
interviews with selected
workers such as sprayers,
general workers, chemical
mixing etc,
Other areas identified during
the assessment
Other areas identified during
the assessment
Other areas identified during
the assessment.
Guide for
each
Assessor
 Visit and discussion
Auditor and Pengurus
Komuniti with Settlers,
Community Leaders, & Kg
Orang Asli Sg. Tuba
(CSR, community affairs),
issues on SEIA and
management plan.
 Continuous Improvement
Plan
Other areas identified during
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Attachment 4
the assessment
Assessment Team Discussion and verification on any outstanding issues
Note: Auditor to inform auditee on the required document / record
8.30 p.m
-9.30 p.m
All
Auditors
Observer
Day Three: 19 December 2012 (Wednesday)
Time
7.45 am
– 8.30
am
Activities / areas to be visited
Travel to FELDA Plantation Nitar Timur, FELDA Nitar 2 and FELDA Nitar Palm Oil Mill Overview of current activities at
respective site visited by Plantation / Mill Manager.
Mahzan
8.30a.m to
10.30 a.m
Auditee
Selvasingam
Khairul Najwan
Dr Zahid
Site visit and assessment
at FELDA Nitar Timur
Site visit and assessment
at FELDA Nitar Palm Oil
Site visit and assessment
at FELDA Nitar Palm Oil
Site visit and assessment
at FELDA Nitar Palm Oil
Pn. Fauziah observe
Mahzan
Continue with unfinished
elements
Continue with unfinished
elements
Coverage of assessment:
P1(C1.2), P2(C2.1- C2.3),
P3, P6 (C6.1 – C6.11), P7
(C7.1, C7.4, C7.5, C7.6), P8
Coverage of assessment:
P2,(C2.1), P4 (C4.1, C4.7,
C4.8), P5(C5.1, C5.3-C5.6),
P8
View documentation and
records relating to OSH
Management System
 Facilities at workplace
Plantation /
Mill Manager
View documentation and
records relating to workers
and local community issues
such as SEI and
management plans
 Equal Opportunity,
Sexual harassment and
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Attachment 4






(clinic, water treatment
plant, gensets, chemical
store, fertilizer store,
workshop etc)
Legal and other
requirements
Documented OSH plan
Risk assessment
including CHRA
Emergency preparedness
and response,
Incident Management
Interviews with selected
staff, OSHE Committee.
11.00 a.m
11.00 a.m.
– 1.00 p.m.





violence at workplace
implementation.
Local sustainable
development
Interviews with Mill
Manager Administration
staff, FFB Suppliers and
contractors.
Facilities at workplace
(clinic, surau, rest area,
sports facilities, etc)
Training
Local sustainable
development
ALL AUDITORS AND OBSERVER TO REGROUP AT FELDA NITAR PALM OIL MILL
Verification on outstanding issues. Assessor to inform auditee on the required document / records.
Audit Team discussion and preparation of assessment findings.
1.00 p.m. –
2.00 p.m
LUNCH BREAK
All
2.00 p.m. –
4.30 p.m.
Report writing
All Auditors
4.30 pm –
5.00 pm
Closing meeting - presentation of FELDA Nitar Palm Oil Mill Certification Unit assessment findings
All
5.00 pm
End of assessment
All
MSC/RSPO/DOC/06-02
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Attachment 4
LIST AND COMMENTS FROM STAKEHOLDER
List of Stakeholders
Comment highlighted*
Verification
A : Government Agencies/Service Provider
The District and Land Office, District of Mersing
No issue
None
No coment
None
No comment
None
The Forestry Department, District of Mersing
No issue
None
The Information Office, District of Mersing
No issue
None
The Education Office, District of Mersing
No issue
None
The Health Office, District of Mersing
No issue
None
The Office of Youth and Sports, District of Mersing
No issue
None
The Department of Agricultural, District of Mersing
No issue
None
The Volunteer Corps, District of Mersng
No issue
None
The Office of Social Welfare, District of Mersing
No issue
None
The Fisheries Office, District of Mersing
No issue
None
The (Rubber Industry Smallholders Development Authority) RISDA Office,
Mersing Station
No issue
None
The Fire and Rescue Station, District of Mersing
No issue
None
The Office of Civil Defense, District of Mersing
No issue
None
No comment
None
The Office of Islamic Religion, District of Mersing
No issue
None
The Office of Aboriginal Affairs, District of Mersing
No issue
None
The The Department of Irrigation and Drainage, District of Mersing
No issue
None
The Police Headquarters, District of Mersing
The Public Works Department, District of Mersing
The Office of National Anti-Drugs Agency, District of Mersing
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Attachment 4
Sekolah Kebangsaan (LKTP) FELDA Nitar 01
No issue
None
Sekolah Menengah Kebangsaan (LKTP) FELDA Nitar 01
No comment
None
Sekolah Agama (LKTP) FELDA Nitar 01
No comment
None
No issue
None
Ladang YPJ Payamanis, Jalan Kluang-Mersng, Mersing
No issue
None
Mados Corp Holdings, Ladang Mados, Mersing
No issue
None
Ketua Kebun, Nitar Cooli
No issue
None
D’Mart FELDA Nitar 02
No issue
None
No issue
None
No issue
None
Manager, FELDA Nitar 1, Mersing
No comment
None
Manager FELDA Nitar 2, Mersing
No comment
None
Manager, FELDA Nitar Timur, Mersing
No comment
None
KEMAS / TABIKA FELDA Nitar 02, Mersing
B. External Stakeholders
C. Internal Stakeholders
*
No issues means that no response received to the letters sent. Upon and following up, there was still no response
*
No comment means that no response received during attendance of stakeholders’ consultation meeting or no response received
to the letters sent. Upon following up, the stakeholder informed that they did not have any comment.
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Attachment 4
The Details on the NCR (including corrective actions taken) and OFIs Raised during Stage 2 Audit
NCR:
P&C
Indicato
r
Indicator
2.1.1
(MM01)
Indicator
2.2.1
(NAJ-1)
Specificatio
n
Detail Non-conformances
Major/Mino
r/OFI
Major
1. Pesticides were not stored in
accordance to the Occupational
Health and Safety Health Act 1994
and Pesticides Act 1974 as sighted at
store belonging to Azmi Usaha Jaya
Enterprise
2. CHRA had not been conducted for
contractor workers (extended
employees) of Ladang Jaya and Wira
Bina Perdana at Nitar 2, Pkt 2and
workers of Azmi Usaha Jaya
Enterprise at Pkt 01as required by
Use and Standards of Exposure of
Chemicals Hazardous to Health
Regulations 2000
3. Except at Nitar POM, functions
and responsibility of OSH Committee
were not made known to Committee
members of the FP NitarTImur and
FELDA Nitar 2.
Major
Area/Locatio
n:
The legal ownership of the land
including history of land tenure was
not available at Felda Plantation Nitar
Timur (Peringkat 3)
Corrective Action Taken
1. The store had been cleaned-up,
materials segregated, rearranged
and labeled accordingly. Training
had also been conducted.
2. A CHRA was undertaken for
FELDA Technoplant but not
contractor.
3. Action plan to explain function
and responsibility of OSH
Committee had been submitted.
Follow-up by FELDA Plantation Nitar
Timur to FELDA HQ has been
conducted on 11th January 2013, 4th
February 2013, 21 February 2013
and 25 February 2013. However the
Verification by Assessor
1. Training records including
photographic evidence of store
layout, labeling and segregation
of materials were sighted. It was
found acceptable and considered
close.
2. CHRA for the Contractor
Company and its employees had
been carried out.
3. The functions and responsibility
as per OSHA (Safety and Health
Committee) Regulations 1996 had
been made known although not
comprehensive but can be
improved. The Action Plan
together with supporting
documents submitted for all the
three issues were considered
acceptable and thus. Overall, the
status of this NCR MM1 is
closed.
The commitment to close the NCR
was continuously conducted. The
evidence such a letter and email was
sent to auditor.
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Attachment 4
Felda
Plantation
Nitar Timur
(Peringkat
3)
Indicator
4.1.1
(STK01)
Indicator
4.5.2
(STK02)
Major
Minor
legal ownership was not found.
FELDA Plantation Nitar Timur has
contacted the Mersing Land
Department. However it was informed
the progress was still in preparation of
map for ownership. A letter dated 15
March 2013 from Mersing Land
Department was evident.
Operating procedures not consistently
implemented and monitored.
1. Palms were over pruned.
2. Oil Palm Loose fruits not
collected.
3. Cut fronds not stacked.
4. Cut fronds not fully cut down
There were no records of pest census
available for year 2012 even though
there were Bagworm attacks.
Training was carried out on GAP
inclusive of
1. Pruning on 3 Jan. 2013 for Nitar 2
harvesters and on 17th January for
Nitar Timur harvesters.
2. Loose fruit picking on 17th January
for Nitar Timur. Addition 10
workers were allocated in Block 3
to collect all loose fruits.
3. Stacking of fronds on 17th January
for Nitar Timur harvesters. Circle
raking was carried out at Blok
PM98B and PM08D to have the
palm circles clear of fronds and
debris.
The legal ownership for Felda
Plantation Nitar Timur (Peringkat 3)
and terms of land title were sighted.
The map in the legal ownership
document matched with the plantation
map provided.
The evidence was sufficient to close
the NCR.
Photographs of training on GAP
inclusive of Pruning of both Tall and
Short palms, Harvesting, Frond
Stacking and attendance list were
sighted.
Status of NCR: Closed
In 2013 Bagworm census had been
carried out and programmed to carry
out bi monthly census. Treatment
would be carried if Bagworm attack is
above threshold levels.
Records of Bagworm census carried
out on 20/01/2013 in Nitar Timur and
on 5/02/2013 in Nitar 2 and program
for census for the whole of 2013
received..
Program to plant Beneficial Plants
from Jan 2013 will be implemented.
Status of NCR: Closed.
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Attachment 4
Indicator
4.6.7
(STK03)
Indicator
4.7.1
(MM02)
Indicator
4.8.1
(MM03)
Minor
Major
Major
Records, in Nitar Timur, indicate
paraquart dichloride 13% used in
2011 was 1530 litres and in 2012
usage had increase by 51.63% to
2320 litres.
Wild Oil Palm Seedling or VOPs will
be manually removed thus reducing
amount of Paraquat to be used. Nitar
timur has targeted to use only 1300
litres and 1040 litres in 2013 & 2014
respectively.
FELDA is to monitor the usage of
Paraquat and to be followed up in the
next audit.
1. The application of fertilizer by
contract workers of Ladang Jaya
standing on moving tractor at FELDA
Nitar 2 Pkt2, Block 5B was not risk
assessed.
2. The FELDA Nitar 2 and Nitar
Timur had not conducted any
emergency response drill to date
To conduct HIRADC and assessed
the risk. Also informed workers of the
risk assessed.
The updated HIRARC Register dated
2 January 2013 that include
assessment for manual manuring by
workers on moving vehicle and
records of Emergency Drill Training
including photographs had been
sighted by assessor and found
acceptable. Status of NCR is closed.
1. The mill personnel had not been
trained on the RSPO Supply Chain
Certification Standard
2. Training of Environmental aspect
and impact identification /
assessment, Hazard Identification,
Risk Assessment and Determining
Control and Legal Awareness and
Compliance not being fully
implemented for operational staff and
settlers at the estates and FGV
Plantation Nitar Timur..
3. RSPO Awareness training given
was not fully understood by staff of
FELDA (Proper, FTP and FGV
Plantation)
4. RSPO Awareness training not
To conduct the named training raised
in the NCR.
To conduct Emergency drill and
report the conduct of drill.
Status of NCR: Closed.
Records of training including
photographs, participants’ attendance
list and training materials were
submitted to assessor. They were
found acceptable and the status of
this NCR is closed.
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Attachment 4
given to contractors.
SCCS
Indicator
5.2
(MM04)
Indicator
6.4.1
(ZE )
Major
Major
The Nitar Palm Oil Mill has not
established the required written
procedures and/or work instructions
for Module E – CPO Mill: Mass
Balance
To established the required
procedure for Module E – CPO Mill
Mass Balance.
The procedure was not sighted in
NitarTimur, Nitar 2 and KKS Nitar.
The required procedure had been
developed by HQ.
The assessor had sighted the newly
established procedure and found
acceptable.
Status of NCR: Closed
The said procedure was submitted to
the auditors by Nitar Timur, Nitar 2
and KKS Nitar and found acceptable.
Status of NCR: Closed.
Indicator
6.4.2
(ZE )
Minor
The procedure was not sighted in
NitarTimur, Nitar 2 and KKS Nitar.
The required procedure had been
developed HQ.
The said procedure was submitted to
the auditors by Nitar Timur, Nitar 2
and KKS Nitar and found acceptable.
Status of NCR: Closed.
Indicator
6.4.3
(ZE )
Minor
Records of the process and outcome
of compensation claims were not
available in Nitar Timur, Nitar 2 and
KKS Nitar.
The process and outcome of any
compensation claims had been
documented.
A copy of the content of the file was
submitted to the auditor by Nitar
Timur, Nitar 2 and KKS Nitar and
found acceptable.. There were no
claims made.
Status of NCR is Closed
Indicator
6.5.1
(ZE )
Major
Letter of job offer detailing payments
and conditions of employment for
local workers are available at FELDA
Nitar Timur, Nitar 2 and KKS Nitar but
no records of contract of employment
for foreign workers are sighted in
Nitar Timur and Nitar 2 to obtain
records of employment for foreign
workers.
Copies of the records were submitted
to the auditors.
Status of NCR: Closed
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Attachment 4
FELDA Nitar Timur and Nitar 2.
Indicator
6.5.2
(ZE )
Indicator
6.5.3
(ZE )
Minor
Minor
Letter of job offer for local workers are
available at FELDA Nitar Timur , Nitar
2 and KKS Nitar but no records of
contract of employment for foreign
workers are sighted in FELDA Nitar
Timur and Nitar 2.
Nitar Timur and Nitar 2 to obtain
records of employment for foreign
workers. In the meantime, plans had
been made to construct workers’
housing that meet the Workers’
Minimum Standard of Housing and
Amenities Act 1990 (Act 446).
Copies of the records were submitted
to the auditors.
All local workers and most foreign
workers in Nitar Timur are provided
with houses and hostels, however
some foreign workers are housed in
two cabins while two hostel blocks
are being built for them.
A letter had been sent to the Labour
Department regarding the temporary
use of the cabins.
The photographs showing indicating
evidence that the hostel were under
construction received in March 2013
was found acceptable.
Status of NCR is Closed
Status of NCR: Closed
OFIs:
Indicator
C3.1
Detail of OFI
Commitment to long-term economic and financial viability.

4.1.1
The budget for both Administration and Plantation at FELDA Proper, FTP and FGV Plantation could be improved with
projections to a minimum of two years.
Documented Standard Operating Procedures (SOP) for estates and mills.

In Nitar Timur, while spraying Noxious weeds, occasional patches had been missed out. These patches along with rain
washed areas could be re-sprayed.
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Attachment 4
4.5.4
Monitoring of pesticide usage units per hectare or per ton crop e.g. total quantity of active ingredient (a.i.) used / tonne
of oil.

4.6.1
Written justification in Standard Operating Procedures (SOP) of all agrochemicals used.

4.6.10
Written justification was available for some agrochemicals. Justification for more chemicals could be added to the list.
Records of pesticides use (including active ingredients used, area treated, amount applied per ha and number of
applications) are maintained for either a minimum of 5 years or starting November 2007.

4.7.1
Record on total quantity of pesticide, areas used (in hectares) was available. This record could be improved to have quantity,
hectares applied, unit per hectare and a.i. per hectare all in one.
Records of total quantity of pesticide, areas applied (in hectares) for years 2011 and 2012 were available. These records
could be improved to have quantity, hectares applied, unit per hectare and a.i. per hectare all in one.
All operations have been risk assessed and documented

Although HIRADC register had been established, confusion in filling hazard and risk column exist and revision to it is in order.

OSH yearly plan for estate can be further improved by conducting the legal compliance evaluation program

The post-mortem report following emergency response drill at mill could be improved to detail out time of events against
outcome.

While some Oxy-acetylene gas cylinders are fitted with flashback arrestors the balance were not.

The First aid box content to be updated as some items were found missing. Uphamol was in First Aid kit at Nitar 2 and Nitar
Timur.

Pekeliling Pelaksanaan OSHA Bil. 1/2009 to be consistently adhered to with respect to the required PPE to be used by
workers for each activity.

The housekeeping at the work carried out by YKT to be improved.
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Attachment 4

5.2.1
5.3.2
Identification and assessment of HCV habitats and protected areas within landholding; and attempt assessment of HCV
habitats and protected areas surrounding landholdings
The High Conservation Value Assessment Report has been conducted for Kompleks FELDA Nitar. However the map for
“Peringkat 3” in the assessment report was not tally with the map in the FELDA Plantation Nitar Timur office.

During the interview with the staff and workers at FELDA Plantation Nitar Timur, it was noted the elephant were commonly
sighted and encroaching into the estate. Site review at FELDA Plantation Nitar Timur and FELDA Nitar 2 also found large
number of swampy areas. However this was not highlighted in the assessment report.

Generally the quality of the HCV Assessment report need to be improved.
Site review at FELDA Plantation Nitar Timur found the solid wastes (plastic container) were mixed up with domestic waste at
dump site area.
A documented social impact assessment including records of meetings.

6.2.3

Having identified wastes and pollutants, an operational plan should be developed and implemented, to avoid or reduce
pollution.

6.1
Supervision by YKT at Mill is desired in view of project exceeding 6 weeks and it is the responsibility of YKT to provide one
and not relying on the Mill personnel.
There is a SIA for Nitar Complex CU. However there are certain items in the survey questionnaire which are not discussed in
the report. It is suggested that the report be modified to coincide with the items in the questionnaire, the social impacts
identified to coincide with the mitigation and enhancement measures.
Maintenance of a list of stakeholders, records of all communication\ and records of actions taken in response to input
from stakeholders.

There is a list of stakeholders, internal and external. However it is suggested that the list of external stakeholders be updated
to include immediate neighbours who were missed out when preparing the present list.
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Attachment 4
6.11.1
Demonstrable contributions to local development that are based on the results of consultation with local communities.

NitarTimur and Nitar POM contributed to local development through ad hoc contributions not based on results of consultation
with internal and external stakeholders. It is suggested that NitarTimur and Nitar POM develop a more comprehensive plan for
local development by basing it on results of consultation with local stakeholders.
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