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Compliance Checklist / Report

Sabah Legality Standard Principles 1-4

Contractor Empayar Kejora Sdn. Bhd. Reference # G161-068

Contact

Person Awang Zaidun

Date of Report Date of close out

17 January 2016 -

Licensee Address

Rakyat Berjaya Sdn. Bhd.

Kota Kinabalu Head Office:

Wisma Innoprise, Jalan Sulaiman, Teluk Likas, P.O. Box 11622, 88817 Kota Kinabalu, Sabah, Malaysia.

Tawau Office:

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

Telephone +6089 772 939 /

775 418 / 771 066

Contractor Address

Empayar Kejora Sdn. Bhd.

TB 14483, 1st Floor, Dataran Saujana, Batu 3.5, Jalan Hot Spring,

91000 Tawau, Sabah, Malaysia.

Fax +6089 763 192

Email [email protected] Approved By Dr. Kevin T. Grace

Statements

GFS Audit Statement # GFS 060 LVS

Issuance Date 1 February 2016 Expiration Date 31 January 2017

Assessment Details

Assessment Dates 11 - 15 January 2016

Scope of Assessment TLAS Principles 1 - 4: RIL & ITP Development; Empayar Kejora Species Oil Palm

GFS Lead Assessor Johari Abd. Latif

GFS Assessor(s) Siti Radiah Mohamad, Dayang Hanisah Maidin, Salapan Amat, Walter Marcus FDS Staff Adrian Rawlenes (DFO Kalabakan), Suriansa Bin Abd. Kadir (ADFO

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OBJECTIVES:

• The objective of this checklist is to verify compliance to the Criteria listed in the Sabah Legality Standard as

defined by Principles 1-4 for Sabah dated 13 Nov 2013.

• Compliance is defined when all applicable criteria are observed to be compliant. A Minor Gap to any

indicator does not constitute non-compliance to a criterion. A Major Gap to any applicable indicator does reflect non-compliance to a criterion. Compliance for a criterion where multiple minor gaps are identified in indicators under the criterion may reflect non-compliance to the criterion.

• All issues identified under this standard shall be considered appropriate to the scale and degree of forestry

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Overview of Licensee

• This area is owned by the Sabah State Government and licensed to the Yayasan Sabah Group

through its subsidiary Rakyat Berjaya Sdn. Bhd. (RBJ).

• Empayar Kejora Sdn. Bhd. is the responsible contractor to carry out the residual timber extraction

and develop mosaic planting within the license area vide letter FD/KK/4.4/16/1 dated 6 December 2011.

• The mosaic tree planting is implemented to ensure sustainable production of timber through

planting of fast growing indigenous species for the production of high volume timber.

• Land use classification:

Land classification FMP Area (ha) Area (ha)

NFM

• RIL Harvesting YT1/12(2) • Non RIL Harvesting YT1/12(2)A

9,320.00

9,481.50 5,202.50 ITP

• Mosaic Planting 1st Phase Block YT1/12(1) • Mosaic Planting 2nd Phase Block YT1/12(3)

18,288.00

9,574.20 9,054.97 Conservation Area (steep area & riparian reserve) 475.00 490.73

Research 291.00 291.00

Environmental context

• This area is classified as Commercial Forest Reserve (Class II) which known as Gunung Rara

Forest Reserve, FMU 23 and dominated with secondary forest of logged over forest.

• The common tree species existed is Seraya, Keruing, Selangan Batu, Kapur, Melapi, Pangiran,

Menggaris, Laran, Binuang and Sedaman.

• According to the Agreement of Environmental Conditions vide reference

JPAS/PP/21/600-1/01/1/191(20) dated 20 August 2005, the riparian reserve for Sungai Kuamut was set at 5,000m on the horizontal distance from the river bank as required for industrial tree plantation (ITP) development.

• Site survey is conducted to identify the existence of flora and fauna within the license area. This

area is known to be a natural habitat for various species of mammals such as pygmy elephant, sambar deer, wild boar as well as other species of birds and reptiles.

Social context

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Scope of Assessment

• The scope of the evaluation is to verify compliance of Empayar Kejora Sdn. Bhd. with the Sabah

Forest Management License Agreement (SFMLA 09/97) for FMU # 23. .

• The assessment is in accordance on the terms of the agreement for the “Sabah Legality Standard

Principles 1-4 dated 13 Nov 2013.

• Site evaluation to verify and report the level of compliance by Empayar Kejora Sdn. Bhd. and its

appointed contractors to the standard in respect to each of the criteria within this report.

• Compliance is defined when the auditee demonstrates that the indicators consist of none or only

minor gaps against any applicable criteria of the standard. Non-compliance to the Sabah Legality Standard occurs when the auditee does not demonstrate adequate compliance to a criterion.

Itinerary of Assessment

Date Activity

11 Jan 2016 Travel from Sandakan to Tawau, opening meeting at RBJ Tawau, and overnight at Luasong

12 Jan 2016 Field visits to C16, C24, C26, C33, Wong Transport campsite, Zat Istimewa campsite & Vivadaya campsite.

13 Jan 2016 Documentation at Empayar Kejora Main Office

14 Jan 2016 Documentation at RBJ Tawau Office and closing meeting 15 Jan 2016 Return travel to Sandakan.

Highlights of Assessment

(Major Gaps = 0; Minor Gaps = 1; Observations = 2)

Empayar Kejora Sdn. Bhd. (EKSB) has complied with the Sabah Legality Standard (Principles 1-4 v01 13 Nov 2013) as no non-compliant was identified during the assessment on 11 - 15 January 2016.

Current status of operations: EKSB concentrates on the RIL harvesting at Compartment 11 and site preparations for the development of mosaic planting.

The assessment highlighted one minor gaps and one observation regarding:

GAP 001/2016 Minor (Checklist 2.6.1): 4 out 10 sampled workers were not covered with insurance policy and valid Certificate of Identity.

Observation (Checklist 2.1.3): Inadequate implementation was observed of relevant environmental mitigation measures as stipulated in the approved EIA report. The contractor had taken immediate action to rectify the related matters.

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Observation (Checklist 2.6.2): There are six type of medicines (paracetamol, ampicilin, pontalon, dhamotil,

carbimin and hyomide) issued to the workers at Zat Istimewa campsite in case of emergency. However,

trained medical assistant was not available to prescribe the medicine.

Results:

One minor GAP was raised against indicators & criteria during the January 2016 assessment.

GAP

Type Checklist

Description

001/2016 Minor 2.6.1 4 out 10 sampled workers were not covered with insurance policy and valid Certificate of Identity.

Status of the previous outstanding GAP.

GAP

Type Checklist

Status

Description of close out

Highlights of Close out visit (if applicable) Dates

Recommendations

Empayar Kejora Sdn. Bhd. has demonstrated compliance with the Sabah Legality Standard (Principles 1-4 v01 dated 13 Nov 2014) for its designated area and is recommended to receive a GFS Audit Statement and STCC from FDS.

Several actions required to address the gaps & observations identified include:

GAP 001/2016 Minor (Checklist 2.6.1): Ensure all workers are covered with insurance policy and valid Certificate of Identity.

Observations

(Checklist 2.1.3): Ensure adequate implementation of relevant environmental mitigation measures as stipulated in the approved EIA report.

(Checklist 2.6.2): There are six type of medicines (paracetamol, ampicilin, pontalon, dhamotil, carbimin

and hyomide) issued to the workers at Zat Istimewa campsite in case of emergency. However, trained

medical assistant was not available to prescribe the medicine.

The minor gap shall be addressed before the next surveillance audit (January 2017).

References

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