management system certification - sgs...travel from shah alam overnight in triang 09/10/19 7:00 a.m...

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Management System Certification

MSPO Audit Summary Report Stage 2

Organization: Amazing Estate Sdn Bhd

Address: 1) Location Address

Lot 23313-23330, 23333-23339,

Mukim Triang,

28300 Bera,

Pahang Darul Makmur

Malaysia

2) HQ / Postal Address:

2-19-03, Worldwide @7,

Jalan Lazuardi 7/29 , Seksyen 7,

40000 Shah Alam, Selangor Darul Ehsan.

Standard(s): MS2530-3:2013 Part 3: Oil Palm Plantations & organised Smallholders

Accreditation Body(s): STANDARDS MALAYSIA

Representative: 1. Ms Low Mei Chern, Accounts

2. Mr Lim Aik Hean, Business Support

3. Tee Keen Hau, Support

Site(s) audited: 1 Date(s) of audit(s): 09th -10th Oct 2019

Visit Type: Main Assessment

Lead auditor: James S H Ong Additional team member(s):

Daryl Tan (DT), Trainee Auditor Principle 1,2,4

Email : [email protected]

Mobile: +60 17 399 6543

This report is confidential and distribution is limited to the audit team, client representative and the SGS office.

Name of Unit Location Address GPS coordinates MPOB Licence

Certificate Number

AMAZING ESTATE SDN BHD

Lot 23313-23330, 23333-23339,

Mukim Triang,

28300 Bera,

Pahang Darul Makmur

Malaysia

N 3.1598611, E102.4113889

81845002000

( valid till 29/2/2020) Menjual dan mengalih

Not applicable as this is main assessment

mailto:[email protected]

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1. Audit objectives

The objectives of this audit were:

▪ to confirm that the management system conforms with all the requirements of the audit standard;

▪ to confirm that the organization has effectively implemented the planned management system;

▪ to confirm that the management system is capable of achieving the organization’s policy objectives.

2. Scope of certification

Scope

Plantation / Estate Production of Sustainable Fresh Fruit Bunches from

151.67 ha total oil palm planted area

151.75 ha total certified area

Validation of processes for production and service provision

Has this scope been amended as a result of this audit? Yes

No

This is a multi-site audit and an Appendix listing all relevant sites and/or remote locations has been established (attached) and agreed with the client

Yes

No

3. Current audit findings and conclusions

The audit team conducted a process-based audit focusing on significant aspects/risks/objectives required by the standard(s). The audit methods used were interviews, observation of activities and review of documentation and records.

The structure of the audit was in accordance with the audit plan and audit planning matrix included as annexes to this summary report.

The audit team concludes that the organization has has not established and maintained its

management system in line with the requirements of the standard and demonstrated the ability of the system to systematically achieve agreed requirements for products or services within the scope and the organization’s policy and objectives.

Number of nonconformities identified:

MS2530-3:2013 Part 3

Major

03

Minor

09

Therefore, the audit team recommends that, based on the results of this audit and the system’s demonstrated state of development and maturity, management system certification be:

Granted / Continued / Withheld / Suspended until satisfactory corrective action is completed.

4. Previous Audit Results

Not applicable as this is a Main Assessment

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The results of the last audit of this system have been reviewed, in particular to assure appropriate correction and corrective action has been implemented to address any nonconformity identified. This review has concluded that:

Any nonconformity identified during previous audits has been corrected and the corrective action continues to be effective.

The management system has not adequately addressed nonconformity identified during previous audit activities and the specific issue has been re-defined in the nonconformity section of this report.

5. Audit Findings

The audit team conducted a process-based audit focusing on significant aspects/risks/objectives. The audit methods used were interviews, observation of activities and review of documentation and records.

The management system documentation demonstrated conformity with the requirements of the audit standard and provided sufficient structure to support implementation and maintenance of the management system.

Yes

No

The organization has demonstrated effective implementation and maintenance / improvement of its management system.

Yes No

The organization has demonstrated the establishment and tracking of appropriate key performance objectives and targets and monitored progress towards their achievement.

Yes No

The internal audit program has been fully implemented and demonstrates effectiveness as a tool for maintaining and improving the management system.

Yes No

The management review process demonstrated capability to ensure the continuing suitability, adequacy and effectiveness of the management system.

Yes No

Throughout the audit process, the management system demonstrated overall conformance with the requirements of the audit standard.

Yes No

Certification claims are accurate and in accordance with SGS guidance N/A Yes No

6. Significant Audit Trails Followed

The specific processes, activities, and functions reviewed are detailed in the Audit Planning Matrix ( see Appendix 3 ) and the Audit Plan. In performing the audit, various audit trails and linkages were developed, including the following primary audit trails, followed throughout:

Type of report MSPO STAGE 02

Organization: AMAZING ESTATE SDN BHD

MPOB Licence No: 581845002000

Menjual dan mengalih FFB

Address: Lot 23313-23330, 23333-23339,

Mukim Triang,

28300 Bera,

Pahang Darul Makmur

Malaysia

Lat,Long: : N3° 09’ 35.6”, E 102° 24’ 41.0”

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N3.15989, E102.41145

Contact person:

1)Ms Joey Yap, EUROWIDE CONSTRUCTION SDN BHD & Accounts Dept , Amazing Estate


Mobile: +6 012-288 9217

2) Ms Low Mei Chern , EUROWIDE CONSTRUCTION SDN BHD


Mobile: +60 12 555 1673

Visit Number: MSPO Stage 2

Actual Visit Date: 9th-10th October 2019

Visit Due by Date: - For auditor information only

Lead Auditor

James S H Ong , SGS (Malaysia) Sdn Bhd Principle 2,5,6

Mobile: +6 012 3736605

email : [email protected]

Team Member(s): Mr Daryl Tan , SGS ( Malaysia ) Sdn Bhd , MSPO Trainee auditor , Principle 1,3,4

Phone: +6 014 600 4311

Email: [email protected]

Additional Attendees and Roles

Standard(s): MS2530-3:2013 Part 3: Oil Palm Plantations & organised Smallholders

Scope Estate

Audit Language: English , Bahasa Melayu, Mandarin and chinese dialects

Audit Scope: Production of Sustainable Fresh Fruit Bunches from

___151.67__ha total oil palm planted area

__151.75 ___ha total certified area

Date Time Auditor Organisational and Functional Units/ Processes and Activities

Key Contact

08/10/19

3:00 - 6:00 pm

Travel from shah alam

Overnight in Triang

09/10/19 7:00 a.m Breakfast ,

Meet up with Ms Low/ Estate Supervisors

8:00 a.m Travel and arrival at Amazing Estate Sdn Bhd

8:30 a.m Opening Meeting by Amazing Estate & SGS ( Malaysia ) Sdn Bhd and audit briefing

9:00 – 12:30

MS 2530-3:2013 (Part 3)

Document review , Review of possible closure of Findings from Stage 1





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Pre-evaluation info:

Maps of estate, Records of FFB,

Records of production report, fertiliser and chemical usage . Payment slip, Safety , health plan, contractors contract and list of workers & contractor workers , passports,

Site visit –

- Field operation , IPM & interview neighbouring Estate workers & contractors workers

- Environmental – waste , water , soil management , biodiversity

- Linesite/ Housing and facilities

- Boundary

- Contractor Storage , chemical Handling

- PPE / Safety

• Principle 1 Management commitment and responsibility

• Principle 2: Compliance to legal

• Principle 3: Transparency

• Principle 4: Social responsibility, health, safety and employment condition

• Principle 5: Environment, natural resources, biodiversity and ecosystem services

• Principle 6: Best practices

Any new plantings : No new plantings

• Principle 7

12:30 – 1:30

Lunch

1:30 – 3:00

Document review , interview with relevant workers , representative

Preliminary Day 1 findings ( On-site )

3:00 – 5:00 Travel out to do document review in Triang town ( if estate still do not have stable electrical connection)

5:00 Preliminary Day 1 findings

5:30 p.m End of Day 1

6:00 Travel back to accommodation in Triang Town

7:00 Dinner

10/10/19 7:30 a.m Breakfast

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8:00 a.m Document review in Triang Town ( if estate still do not have stable electrical connection)

12:00 Lunch

1:00 Finalising report

3:30 p.m Travel to Estate Office

Closing Meeting presentation

Findings and recommendation

Question and discussion

4:30 p.m End of audit

Auditors travel back for next assignment

Location and Maps

Background

Amazing Estate Sdn. Bhd. was incorporated in Malaysia and was established in

2010. The company is engaged in the business of plantation industries. Amazing

Estate Sdn. Bhd is located near to the town of Triang , in the district of Bera, in the

State of Pahang Darul Makmur. Based on the MPOB licence , currently Amazing

Estate Sdn Bhd has an area of 151.75 ha.

The GPS location of the [ Amazing Estate Sdn. Bhd ] is shown in Table 1.

Table 1: Estate GPS Location

Name of Unit Location Address GPS coordinates Latitude, Longitude

AMAZING ESTATE SDN BHD

Lot 23313-23330, 23333-23339,

Mukim Triang,

28300 Bera,

Pahang Darul Makmur

Malaysia

N 3.1598611, E102.4113889

The location of the estate is presented in Figure 1 ( with reference to the district of Bera, Pahang)

and Figure 2, 3 and 4 for the estate and its blocking system.

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Figure 1 Overall location of the estate in the district of Bera , Pahang

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Figure 2 : Map of the estate

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Figure 3 : Location of the Estate and its Blocks

Figure 4 : Location of the Blocks

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Description of Supply Base

The FFB are sent to the neighbouring mill , Cheekah-Kemayan Palm Oil Mill for processing

The previous year , 2018 and the 2019 estimated crop yield for the estate is presented in

Table 2 below.

Table 2: FFB Production

Estate

*FFB Production (MT)

Period: JAN - DEC

Previous FFB ( 2018 ) Estimate / Projection

2019

Amazing Estate Sdn Bhd

3,540.58 3700

( actual till Nov 2019 : 3816.30 MT )

TOTAL FFB SENT TO

PALM OIL MILL 3,540.58 3816.30 ( till Nov 2019 )

Area of Plantation

The areas of supplying estates for this operating unit that are to be MSPO certified are listed

in Table 3. Details of production area (mature/immature) are also listed.

Table 3: Area Statement of the Supplying Estates

Area Statement (Ha)

Supplying Estate Titled Area (Ha)

(Certified Area)

Planted (Ha)

*Conservation

(Ha)

HCV/ High biodiversity value (ha)

**Others (Ha)

Immature Area (Ha)

Mature Area (Ha)

Planted 2010

Amazing Estate Sdn Bhd

151.75 - 151.67 Pond (block 21)

0.08 ha

n.a Office (block 4)

TOTAL 151.75 0 151.67 0.08 n.a n.a

* Please describe if information available

* e.g Conservation area : riparian reserve, waterways , forest buffer zone etc

** Others : Housing , TNB power lines , roads office etc

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Stakeholder Consultation and List of Stakeholders Contacted

A public announcement was made 30 days prior to the audit ,

https://www.sgs.com/en/certified-clients-and-products/fcm/malaysia/amazing-estate-sdn-

bhd

Stakeholder consultation took place in the form of meetings and interviews. As this was a

main assessment, meetings with workers were held in their respective premises within and

near the estate. In all the interviews and meetings/telephone conversation , the purpose of

the audit was clarified at the outset followed by an evaluation of the relationship between

the stakeholder and the company before discussions proceeded in accordance with

relevant MSPO principles, criteria and indicators.

As till the date of audit, no comments were receive by the certification body.

See Appendix 2 for stakeholder’s details and comments.

Comment on MS2530-3 Compliance Status:

Comment on Principle 1 Policy on Implementation of MSPO –

As reported in 4.1.1.1, MSPO Policy was found to be available. The policy is endorsed by company Director on 01 Jan 2019. The policy is currently only in English language.

The policy contains the following principles:

1. Management commitment and responsibility

2. Transparency

3. Compliance to legal requirements

4. Social responsibility, health, safety and employment conditions

5. Environment, natural resources, biodiversity, and ecosystem services

6. Best practices

7. Development of new planting

Policy was communicated to the employees at site. Training records dated 15/04/2019 was sighted.

Internal Audit –

As reported in 4.1.2.2, Internal Audit Procedure (AE/P02 01/01/2019 Rev0) was sighted. The procedures established requirement for appointment of internal auditors, audit duration (once in every 12 months), audit methodology, corrective action and verification.

https://www.sgs.com/en/certified-clients-and-products/fcm/malaysia/amazing-estate-sdn-bhd

https://www.sgs.com/en/certified-clients-and-products/fcm/malaysia/amazing-estate-sdn-bhd

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The internal audit for 2019 was performed on 04/05/2019 and 05/05/2019 by Tey Su Yin. The internal audit identified a total of 0 non-conformance and 11 observations. The observations are documented in the Internal Audit Findings Log.

Management Review –

As reported in 4.1.3.2, management review is performed based on procedure AE/P03 01/01/2019 Rev0. The meeting is scheduled to be conducted once in every 12 months.

Management review meeting minutes for 2019 was sighted. The management review was performed on 06/06/2019 at the estate office.

Continual Improvement -

As reported in 4.1.4.1, the procedure for continual improvement AE/P04 01/01/2019 rev0 was sighted. Continual improvement is performed based on requirements of MSPO and other policies, audit results, management review and improvement plans.

Continuous improvement year 2019 is listed in the management program for the year.

The site obtains new information and techniques based on newsletters and journals. Sighted the newsletter from MPOB titled “Panduan Pembajaan Sawit Untuk Pekebun Kecil”. Site visit confirmed that here is area in the estate office which displays information and good practices which include:

1. Sustainable Palm Oil Practices

2. Recycling of pesticide containers

3. Tips to inspect barn owl nest

Comment on Principle 2 Transparency of documents relevant to MSPO requirements –

The Estate arranged their stakeholder meeting for communication and the information requested by the relevant stakeholders and was recorded in their ‘Training attendance Record ‘ under the topic MSPO Briefing ( Grievance , Process , Policy , EHS ) Ref. Doc: AE/P16/F03 Rev 0 Suppliers, government authorities , and internal stakeholder listed were not present/invited for the estate stakeholder meeting on 9/9/19. The estate assumed that since they were sampled during the social assessment conducted on 7/4/19 by the consultant , such as Government bodies such as Balai Polis Mengkuang and Klinik Sentosa, there was no requirement to do so again.

Obs N°1 of 7 of 4.2.1.1

Transparent method of communication and consultation –

List of stakeholder available: 1) Employee (9) 2) Shareholder (1) 3) Govt ( 5) 4) Contractor / suppliers ( 3) 5) Customer (1)

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Consultation and communication and records of action taken in response to input from the recent stakeholders meeting date 09/09/19 were available as reported 4.2.1.1. In 4.2.2.3 , however the 6 contractor workers were listed as employee are the contractor workers and the neighbouring estate , Sierra Development was not included in the list

Minor N°1 of 12 was raised for 4.2.2.3

Traceability –

The management has implemented a system to trace from the FFB from field to the mill and back to the estate, and established, a standard operating procedure to comply with the requirements for traceability of the relevant product in the document : Traceability : Fresh Fruit Bunches ( FFB ) that shows the responsibility of the Estate , Customer and the Estate Officer. The tabulated table shows the requirement for the following: 1) Location 2) Activity 3) Photo 4) Procedure Description 5) Documentation For traceability from the field to the mill and its allocation back to the field was inspected .

1) Record in individual FFB ‘card ‘ e.g B9 2) Then loaded on the contractor lorry and weighed on the

Amazing Estate WB ticket : : 5340 kg 3) Date: 30/6/19 4) Deliver to Mill , Cheekah POM 5) Mill will generate a Mill WB ticket e.g 0309179 ( 30/6/19 ) : 3550

MT 6) Amazing Estate supervisor will record it into the “FFB Delivery

for the month e.g June ‘ 7) Amazing Estate Sdn Bhd will summarized and watsapp the

whole month’s tonnage to the harvesting contractor

8) The contractor BC Yong will invoice the amount to Amazing Estate for payment as per contract

Comment on Principle 3 Regulatory requirements –

The list applicable laws are recorded in a legal requirement register. The legal register was reviewed and contains the following legal requirements:

1. Employment Act 1955

2. Children and Young Persons (Employment) Act 1966

3. Occupational Safety and Health Act 1994

4. Environmental Quality Act 1974

5. Factories and Machinery Act 1967

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6. Pesticide Act 1974

7. National Wages Consultative Council Act 2011

8. Minimum Wages Order (Amendment) 2018

9. Malaysian Palm Oil Board Act 1998

10. Fire Services Act 1988

However, the list does not include the following legal requirement which was already practiced by the site.

1. Weights and Measures Act 1972

Obs N°2 of 7- raised - 4.3.1.2

Under 4.3.1.3, legal and legal rights Procedure AE/P07 dated 01/01/2019 was sighted. According to the procedure the site will carry out a review of compliance when there are:

1. New process or equipment or new version is introduced

2. Process, equipment or machinery changes

3. Applicable legal requirements change

4. Other interested party requirements change

5. At least once annually.

There was no evidence of new regulations, for example, Occupational Safety and Health (Noise Exposure) Regulation 2019, being updated to the legal requirements register as required by the procedure under “applicable legal requirement change”.

Major N°2 of 12 raised - 4.3.1.3

Under 4.3.1.4 , The roles and responsibilities of the legal officer should include the identification of other legal requirements and not only that for occupational health and safety.

Obs N°3 of 7 raised- 4.3.1.4

Legal land use rights –

As reported in 4.3.2.1, Interview with stakeholder from Sierra (neighbouring estate) confirmed that there are no incidents where the estate encroach into their land.

As reported in 4.3.2.2, Memorandum of Payment dated 28 Feb 2019 for Cukai Tanah (Land Tax) for year 2019 is sighted. The sum of the cheque (PB000564) was RM12,200.00. The payment is received on 15 March 2019 by Mr. Azie (Pentadbir Tanah Bera, Pahang).

Customary rights –

As reported under 4.3.3.1, There have been no disputes regarding the customary rights of the land. There is also no customary rights area which is surrounding the site. The estate is surrounded by neighbouring estates.

Comment on Principle 4 Social Impact Assessment –

As reported under 4.4.1.1, Social Impact Assessment for the site was sighted. SIA was performed on 07/04/2019 by Nur Aida Ab Ghani

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and Nazurah Binti Idin. Among the stakeholders consulted for the SIA are Mengkuang Police Station, Neighbouring Estates, Cheekah Kemayan Mill, Klinik Sentosa & internal workers. Based on the SIA, some of the issues highlighted include, for example, the following: Good practices:

1. Workers in estate provided with housing quarters 2. Management provides free water supply 3. PPE provided to workers according to their job requirements

Issues:

1. No employment contracts and documentation were provided to workers hence they are not aware of the content on their employment contract. (Pg12)

2. Absence of legal working permit by contracted workers. 3. PPE (helmet) has yet to be distributed to the workers.

Complaints:

1. Not available Suggestions:

1. Management to hold a safety briefing for PPE, first aid and fire drill.

Interview with workers confirmed that they are currently living in the Sierra Estate worker accommodation effective 01/10/2019. However, there was no assessment done on the social impact towards the neighbouring estate from this change in accommodation. Action plan for the mitigating the negative impact and promoting the positive impact was not available for review at the time of audit.

Minor N°3 of 12 raised - 4.4.1.1

Complaints and grievances –

Reported in 4.4.2.1, Grievance procedure for the site is established and documented. The procedure was sighted (AE/P08 01/01/2019 Rev0).

Interview with workers confirmed that they understood the method of raising a complaint or grievance if there is an issue.

Commitment to contribute to local sustainable developments –

4.4.3.1, The site contributes to local development through donation to

local communities. Sighted the following payments made:

To Amount Dated

Persatuan Penganut Agama Tao Yan Gong

RM 5000 29/01/2018

Receipt of payment was sighted, serial no 1339 by Persatuan Penganut Agama Tao Yan Gong for RM5000.

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Employees health and safety –

Under 4.4.4.2, The existing risk control for the HIRARC documents that PPE as one of the control measures. However, the actual PPE required (e.g.: helmet, glove, boots) is not documented in the existing risk control. However, details of the required PPE can be referenced from other documents, for example, work procedure and chemical registers.

a) The training attendance for MSPO briefing which covers the use of pesticides, safe work procedures and PPE requirements was sighted. The training was done on 15/04/2019 for 0.5 days. Training was performed by Joey Chia and attended by workers, for example:

Sobuz Mia Manuring & Pesticide

Shamsul Manuring & Pesticide

Md Faruk Ali Harvesting

Asadul Harvesting

b) Sighted the procedure for issuance, use, storage and maintenance of personal protective equipment (AE/P09 01/01/2019 Rev 0). Site visit at Block 24 confirmed that the workers were provided with gloves, helmet and boots. PPE issuance record was sighted. The records show the issuance of PPE:

Date Item

08/09/2019 Chemical Goggles

08/09/2019 Respirator

08/09/2019 Helmet

c) Chemical Register was sighted, and consist of a register of 10

chemicals, which are, for example: a. Ammonium Sulphate b. Potassium Chloride c. Rock Phospate d. Warfarin e. Monocrotophos f. Metsulfuron-methyl g. Isopropylamine salt of N-(phosphonomethyl) glycine

The chemical register details out the chemical name, usage, quantity used, storage location, hazard identification, PPE requirement and supplier details. SDS for the chemicals are sampled, for example:

Chem Date rev Language

Ebor Baits (Warfarin)

Oct 2015 Eng/BM

Site visit identified that the SDS was placed at the store which the chemicals were stored. SDS sighted at the site include Ammonium Sulphate and Monocrotopos.

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Chemical stores were found to be adequate labelled with the required warning signages such as “No smoking”, “Toxic Chemicals” and “Flammable Chemicals”. The site has yet to perform a CHRA. CHRA is planned to be performed on December 2019 based on the Management Program sighted. Quotation dated 02/10/2019 for the assessment of 10 Chemicals was sighted. The site currently uses pesticides, which require medical surveillance. However, there was no evidence of medical surveillance being performed by the site.

d) Tan Tze Ming was appointed as Environment, Safety and Health Officer. Sighted appointment letter dated 1 Jan 2019 appointed by Director Yap Hong Choon and acknowledged by Tan Tze Ming. The details of the responsibilities are documented in Appendix I MSPO Steering Committee Responsibilities. Among the responsibilities include, for example:

a. Conduct hazard identification, and risk assessment and environmental aspect and impact

b. Prepare control action plan for medium and high risk activities

c. Periodically review the adequacy and effectiveness of action plan

d. Ensure sufficient and availability of first aid supply as per statutory requirements.

e) EHS committee minutes was established on the site to facilitate the two-way communication of issues relating to environment, health and safety. Latest minutes of meeting dated 27/09/2019 was sighted. The meeting wasa attended by the following personnel:

Name Position

Tee Kean Han Estate Supervisor

Chew Chun Yong Estate Supervisor

Tan Tze Meng Estate Supervisor

Shamsul Worker

Naruzzaman Worker

Items discussed in the meeting include:

a) Review of the previous meeting minutes – discussed on the status of CHRA

b) Comments from employees and committee members c) Review on EHS system d) Review on Workplace and Housing Inspection –

workplace inspection carried out once in 3 months and weekly for housing inspection, no worker staying in estate quarters starting 01/10/2019 and no housing inspection required.

e) Environmental issues f) OSH issues – CHRA update, first aid kit purchased for

workers g) Incident and corrective action h) Review of contract workers i) Other issues

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j) Recommendation for improvement

f) Sighted flow chart for Emergency Fire Response Plan (AE/P14 Appendix 2 Rev 0), Flow chart of Chemical/Scheduled Waste Response Plan (AE/P14 Appendix 4 Rev 0) and Flow chart of Medical Response Plan (AE/P14 Appendix 3 Rev 0) at the office. The flow chart was placed at the estate office, in both the local language and English. Assembly point signage was sighted during site tour. Sighted procedure for emergency preparedness and response AE/P14 01/01/2019 Rev0, the procedure establish requirement for emergency drill to be carried out at least once a year at office area and sites, with reports including post-mortem/photographic evidence. Fire Drill was performed on as a test of emergency preparedness. Fire drill report was sighted, the fire drill was performed on 27/09/2019 at 2:00PM. Based on the report, the emergency response plan was deemed to be effective. Fire extinguisher EE062018Z156903 was sighted at the office, expiry on 03/05/2020. Spill kit was found at the chemical store. Chemical stored in the genset room was found to be stored on secondary containment pallets.

g) First aid procedure (AE/P10 01/01/2019 Rev0) was sighted. According to the procedure, the contents of the first aid kit include scissor, triangular bandage, bandage with size, cotton wool, plaster, axe oil, Dettol, dressing strip, three legs yellow, stone bite oil, antiseptic cream bacidin, herbal medicated oil, plastic dressing, eye wash solution, disposal glove, gauge swab and record book. Site tour confirmed that the first aid kit is available in the hostel and at the estate operation area (Block 24 – Harvesting) However, there was no trained first aider at the field operations, and the first aid kit for estate operations contain paracetamol, which is an edible medication.

h) Accident Investigation procedure AE/P13 01/01/2019 Rev0 was sighted. The procedure establishes requirement to investigate accidents within 24 hours and propose preventive actions within two weeks. Since there is no accident on site, there is no accident report available for review. JKKP8 for year 2018 was not submitted to DOSH before 31/01/2019.


Employment conditions –

4.4.5.1, Social Policy is established on 01/10/2019, and is endorsed by

the director. Social policy contains the following: 1. Prohibition of children and young person

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2. Freedom of engagement 3. Equality of Opportunity 4. Grievance and consultation 5. Compensation and benefits 6. Occupational Safety and Health 7. Sexual Harassment and Violence 8. Community involvement 9. Regulatory compliance and business ethics

The policy is published in the site office. Policy was communicated to the employees at site. Training records dated 15/04/2019 was sighted

However under 4.4.5,6 Work contract for the sampled workers (Shamsul & Asadul) was sighted. The contracts were agreed between the contractor (BC Yong Enterprise) and the employees (Shamsul & Asadul respectively). The summary of the terms of the contract include:

1. Time of work 2. Minimum wage – according to the local minimum wage 3. Payslips and pay period – within 7 days after pay period 4. Housing – water and electricity to be provided for free to the

workers. 5. Transportation – free transportation to and back from work 6. Off days – one off day per week 7. Annual leave - <2 years 8 days, 2-5 years 12 days, >5 years 16

days 8. Holidays – 11 days holiday 9. Sick leave - <2 years 14 days, 2-5 years 18 days, >5 years 22

days However, it was sighted that there were some terms in the contract which were not “fair” to the workers. Examples include the following:

1. Dengan menandatangani kontrak ini, lain-lain kontrak yang ditandatangani sama ada di Malaysia ataupun di negara sumber adalah terbatal.

2. Pekerja dikehendaki membayar ganti rugi kepada majikan sekiranya berlaku kerosakan atau kehilangan perkakasan dan peralatan kerja disebabkan kecuaian atau kelalaian

Interview with worker confirmed that they are requested to pay for damaged equipment such as gloves. There was no mechanism in place to determine the cause of the damage to the equipment used by the workers.


Training and competency –

4.4.6.1, The training plan for 2019 was established by the site. The

following trainings were planned for the year.

Title Month

MSPO Training March

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MSPO Documentation Training

March/April

First Aid Training April

MSPO Internal Audit Training

April

MSPO Briefing April

Pesticide/ Chemical Training

December

Estate Operation Training

June

In 4.4.6.2, Training needs analysis was performed by the site on

01/01/2019 and approved by the Director. The TNA assess the training needs for the following employees:

1. Jenny Chong 2. Chew Chun Yong 3. Tee Kean Han 4. Tan Tze Meng 5. Sobuz Mia 6. Shamsul 7. Md Faruk Ali 8. Mohd Masud Rana 9. Nuruzzaman 10. Asadul

Comment on Principle 5 Environmental management programme –

As stated in 4.5.1.1., an environmental policy has been established and documented in the ‘Environmental policy’ signed by Mr Yap Hong Choon , Director , dated 1/1/19 that state under point (2) out of 6 that the estate is committed to …comply with all current applicable legal and other requirements …

In 4.5.1.3, however the consultant who provided them with the EAI missed out the contractor’s role in the disposal of empty chemical container as the mitigation measure ( G-Planter and approved collector ) is not applicable to Amazing Estate operation

Obs N°4 of 7 was raised for 4.5.1.3

As reported in 4.5.1.4, although the estate has the procedure: continual Improvement Doc Ref: AE/P04/01/01/2019 Rev0 and the Environmental Impact Aspect Report was available however a programme to promote the positive impacts was not sighted in the continual improvement plan.

Obs N°5 of 7 raised for 4.5.1.4

In 4.5.1.5 , the training plan 2019 , although they have training such as MSPO Training e.g 09/09/19 , a ‘Pendidikan Alam Sekitar ‘ was conducted to the 6 contractor workers to ensure that all employees understand aspects of environment are working towards achieving the objectives.

MY 7008 of 18

However the policy and objectives of the environmental management and improvement plans were not included in the training.

Minor N°6 raised for 12 of 4.5.1.5

Efficiency of energy use and use of renewal energy –

As reported in 4.5.2.1 , the estate has the following document to ensure consumption of non-renewable energy is monitored.

Records of consumption monthly petrol usage is presented in a bar chart graph however the usage of diesel was estimated to ensure monitored by establishing baseline values and trends can be observed within an appropriate timeframe and a plan to assess the usage of non-renewable energy including fossil fuel, electricity and energy efficiency in the operations over the base period can be established

As for the use of RE, in 4.5.2.3 , the estate has 3 panel of solar generating about 12 kW for the housing lighting and mini fans used in the office/weighbridge as well as in housing site

Waste management and disposal –

As reported in 4.5.3.1, document Waste Management Procedure ( Doc Ref: AE/ P17 01/01/2019 Rev 0 ) was referred however the document did not identify all waste products (e.g. scheduled waste, domestic waste, recyclable waste , clinical waste) and sources of pollution as it only identify Scheduled Waste.

However the domestic waste and recyclable waste was included in the Waste Management plan.

Minor N°7 of 12 was raised on 4.5.3.1

4.5.3.2 reported domestic waste were now thrown into bins provided and later dumped in the dumpsite.

Although the waste management plan reported the presence of recyclable collection bin, however bins for recyclable waste still not sighted.

Obs N°6 of 7 of 4.5.3.2

As reported under 4.5.3.4, At present all chemicals application , operation and its disposal are handled by the contractor B C Yong Enterprise and their workers.

The contractor, B C Yong Enterprise has signed the contract appointment with Amazing Estate Sdn Bhd Ref No: AESB/PBB/FD/22/JAN/2019 dated 1/1/19 .

Under the Terms and condition Section 4 ( c ) fourth bulletpoint state … dispose or recycle all fertilizer bags and chemical waste out of the estate in proper manner without polluting the environment …

MY 7008 of 18

However in the field 5 empty non-label chemical containers used for premix were left in the field instead of collecting it back to their contractor storage site in Sierra Development Sdn Bhd estate.

Minor N°8 of 12 was raised - 4.5.3.4

Reduction of pollution and emission –

Under 4.5.4.2, although the Doc. Ref Performance Monitoring and Measurement ( Doc Ref : AE/P20 01/01 /2019 Rev 0) and the Environmental Impact Aspect Report were referred, no action plan to reduce identified significant pollutants and emissions established and implemented


Natural water resources –

The management has establish a ‘Final Draft water management plan ( ver1.0) – 25 May 2019 ’ to maintain the quality and availability of natural water resources.

The plan include the following contents:

Executive Summary

1) Description of Management Area

1.1 Site Description

2) Findings of Water usage and Conservation

2.1 Findings

2.2 Rainwater Harvesting usage and Water Recycling

2.3 contingency plan for water shortages and flooding

3) Water Management plan

The man-made pond in Block 22 was visited. However, there were spraying of the weeds around the pond and no buffer zone marking

There was also a forest tree nearby where the Baya weaver has made nests.


Status of rare threatened or endangered species and high biodiversity value area –

As reported under 4.5.6.2 , recommendations by the consultant were:

1) Placement of signboards

2) Stricter enforcement on poaching activities

Displaying of appropriate signage on prohibiting, hunting and fishing sighted at the entrance to the estate as well as within the estate where accessible

However with the presence of Baya weaver ( LC-least concern ) nesting place at the man-made pond in Block 22, the estate should include signages to discourage collecting / trapping activities and in future developing responsible measures to resolve human-wildlife conflicts.

MY 7008 of 18

Obs N°7 of 7 of 4.5.6.2

Zero burning practices -

As reported under 4.5.7.1, there are no preparing land for oil palm cultivation or replanting as the palms are planted in 2010+

‘No open burning’ signage placed at the line site and no open burning sighted

Comment on Principle 6 Implementation of standard best practices/ Site management –

The Estate still does not have any ‘Standard Operation Procedures ; for the operations e.g spraying, Manuring , Harvesting , rat control , bagworm control etc in the estates.

No practice of IPM ( Integrated Pest Management ) for bagworm although they have IPM for rat control by the presence of reported 14 barn owl boxes

Visit show that the estate had some bagworm incidences ( looks like Metisa plana ) and according to supervisor they have done one application of truck injection of Bullet 55 ( a.i ) monocrotophos ) in February and was reported to have been controlled

The number of application depends on the number of live bags worms census and these procedures were not available to ensure that the estate is doing the operation correctly to ensure control.

In addition the estate has not planted any beneficial plants like Turner asp, Cassia or Antigonon sp. that attracts predators of these bagworm larvae.

Similarly for rat damage , they have started to apply rat baits, Butik S , however their application is based on experience of the supervisor. There was no SOP for IPM rat control e.g

1) what criteria to start baiting ( e.g mill report, field census)

2) interval of application on 1st generation or 2nd generation bait

3) where to place bait

4) when to stop e.g % replacement


Economic and financial viability plan –

Reported in 4.6.2.1, The estate has presented a report Amazing Estate :

Business Management Plan that shows information like : 1. Production, 2. Sales of FFB , 3. its Expenditure charges ( casual wages, , fertiliser , upkeep, etc

) 4. and its profit for the period 2019 – 2021

to demonstrate attention to economic and financial viability through long-term management planning. Daily the crop production is reported back to the office and monthly cost invoice from the contractor and wages progress report that is submitted to the HQ.

Transparent and fair pricing dealing –

MY 7008 of 18

Reported in 4.6.3.1, The pricing mechanism between the estate and

palm oil mill is available in the HQ . It is based on MPOB for the month . The FFB Computation for the month of Sept 2019 was presented based on the MPOB Peninsular av price less CPO transport and less MPOB cess The formula / pricing mechanism was presented . The invoice for the month of May 2018 was presented with the different OER , a different price per tonne is presented. The FFB statement present : Mill : Cheekah-Kemayan Plantations Sdn Bhd Invoice no: 00002/09/19 Date: 30/9/19

1) Quantity FFB weight : 360.85 MT 2) Extraction rate CPO ( 19.35%) and PK ( 5.25%) 3) PORLA av Price ( CPO ): RM 2,046.00 4) PORLA av price ( PK ) : RM 1,162.00 5) Process Cost : RM53 6) Holding cost : Subsidy 7) Price / MT: 403.91

Subcontractor –

Reported in 4.6.4.1, The contractor, B C Yong Enterprise has signed

the contract appointment with Amazing Estate Sdn Bhd Ref No: AESB/PBB/FD/22/JAN/2019 dated 1/1/19 . In section 4 under Terms and Condition of Appointment ‘ the contract …it is stated …subsection d state that amazing Estate …expect the contractor to comply with MSPO requirement that include the following:

• Amazing Estate Policy like OHS policy

• DO acknowledge by Oil mill to be returned to amazing Estate

• Use of complaint and Grievance Form

• PPE for workers

• Comply to speed limit

• Comply to hazard and warning signs in estate

• Evacuation as per Evacuation Map

• Workers salary and working condition to comply with Malaysian law and regulations

• No child labour below 15 years old

• To prevent pollution in carrying out the job / works aware by the estate management. However the following legal non-conformance was identified during the site visit and the review of documentation. Interview with worker at site confirmed that damaged PPE have to be purchased by them. This is against section 26 of Occupational Safety and Health Act where No employer shall levy or permit to be levied on any employee of his any charge in respect of anything done or provided in pursuance of this Act or any regulation made thereunder. Interview with worker at site confirmed that there has been deduction for water, electricity and petrol (used for work). This is against section 24 (1) of the Employment Act were no deduction shall be made by an employer

MY 7008 of 18

from the wages of an employee otherwise than in accordance with this act. There was however no evidence on any deduction performed based on the payslips of the workers sampled. This is against regulation 9 of the Employment Regulations where every employer shall furnish to every employee employed by him in a separate statement or card the particulars relating to details of wages and other allowances earned during each wage period as specified in paragraph (c) of regulation 5 on or before the date of payment of wages. Interview with workers confirmed that the passports were kept by the contractor management. This is against section 12A of the Passport Act where Any person who with intent to obtain for any other person a passport, internal travel document, or an endorsement or visa on a passport, knowingly makes any false statement or produces any document which to his knowledge is false in any particular shall be guilty of an offence and shall, on conviction, be liable to a fine of not less than ten thousand ringgit but not more than fifty thousand ringgit and imprisonment for a term of not less than one year but not more than five years.

Interview with contractor workers confirmed that there is deduction for petrol for motorcycle, water and electricity. However, the pay deductions were not recorded in the payslip.

There was however no evidence on any deduction performed based on the payslips of the workers sampled. This is against regulation 9 of the Employment Regulations where every employer shall furnish to every employee employed by him in a separate statement or card the particulars relating to details of wages and other allowances earned during each wage period as specified in paragraph (c) of regulation 5 on or before the date of payment of wages.


Comment on Principle 7 Note: the whole Principle 7 is not applicable for this audit as there is no new planting in the plantations area.

High biodiversity value –

Peatland –

Social and environmental impact assessment –

Soil survey –

Planting on steep terrain and/or on marginal and fragile soils –

Customary land -

MY 7008 of 18

7. Nonconformities

MS2530-3:2013 Part 3

NonConformity N°1 of 12 Major Minor

Department / Function:

Management Standard Ref.:

Indicator

4.2.2.3

Document Ref.: MS2530-4:2013 Issue / Rev.

Status:

Open

Normative

Reference and

Requirement

List of stakeholders, records of all consultation and communication and

records of action taken in response to input from stakeholders should

be properly maintained.

Details of

Nonconformity

Incomplete listing

Evidence List of stakeholder available:

1) Employee (9)

2) Shareholder (1)

3) Govt ( 5)

4) Contractor / suppliers ( 3)

5) Customer (1)

Consultation and communication and records of action taken in

response to input from the recent stakeholders meeting date 09/09/19

were available as reported 4.2.1.1.

However the 6 contractor workers were listed as employee are the

contractor workers and the neighbouring estate , Sierra Development

was not included in the list

Close-out

evidence:

Amazing Estate Sdn Bhd has submitted the corrective actions and evidence on 26 & 28 /11/19 which are deemed to be satisfactory and they will be followed up /reviewed again during the next scheduled visit/ surveillance for its closure

MY 7008 of 18


Department /

Function: Legal Standard

Ref.:

Indicator

4.3.1.3


Status:

Closed

Normative

Reference and

Requirement

The legal requirements register shall be updated as and when there are any new amendments or any new regulations coming into force.

Details of

Nonconformity

Latest legal requirement coming into force in 2019 was not updated

into the legal requirements register.

Evidence Legal requirements register was reviewed. The list does not include all

legal requirements coming into force in 2019, for example,

Occupational Safety and Health (Noise Exposure) Regulation 2019.

Close-out evidence:

Amazing Estate Sdn Bhd has submitted the corrective actions and evidence on 26/11/19 and was reviewed and accepted for its closure. Root caused: Not updated Corrective action : Updated the legal requirements register as of 15/10/19. To read and understand, and follow the legal requirements updated as there is an equipment generating noise at the site Major N°2 of 12 Closed

MY 7008 of 18


Department /

Function:

Standard

Ref.:

Indicator

4.4.1.1


Status:

Open

Normative

Reference and

Requirement

Social impact should be identified and plans are implemented to mitigate the negative impacts and promote the positive ones.

Details of

Nonconformity

The SIA was not adequately performed and there was no evidence of

plans implemented to mitigate the negative impacts and promote

positive impacts.

Evidence Interview with workers confirmed that they are currently living in the

Sierra Estate worker accommodation effective 01/10/2019. However,

there was no assessment done on the social impact towards the

neighbouring estate from this change in accommodation.

SIA performed on 07/04/2019 was sighted. Based on the SIA some

issues and good practices were highlighted. However, action plan for

the mitigating the negative impact and promoting the positive impact was not available for review at the time of audit.

Close-out

evidence:


MY 7008 of 18


Department /

Function:

Safety Standard

Ref.:

4.4.4.2

Indicator


Status:

Open

Normative

Reference and

Requirement

The occupational safety and health plan shall cover the requirements

of (a) to (j)

Details of Nonconformity

The occupational safety and health plan did not adequately cover the requirements of (a) to (j)

Evidence The existing risk control for the HIRARC documents that PPE as one of the control measures. However, the actual PPE required (e.g.: helmet, glove, boots) is not documented in the existing risk control. However details of the required PPE can be referenced from other documents, for example, work procedure and chemical registers.

The site has yet to perform a CHRA. CHRA is planned to be performed on December 2019 based on the Management Program sighted. Quotation dated 02/10/2019 for the assessment of 10 Chemicals was sighted.

The first aid kit for estate operations contain paracetamol, which is an edible medication.

The site currently uses pesticides, which require medical surveillance. However, there was no evidence of medical surveillance being performed by the site. There was no trained first aider at the field operations.

Close-out

evidence:


MY 7008 of 18


Department /

Function:

Legal Standard Ref.:

Indicator

4.4.5.6


Status:

Open

Normative

Reference and

Requirement

All employees shall be provided with fair contracts that have been

signed by both employee and employer. A copy of employment

contract is available for each and every employee indicated in the

employment records.

Details of

Nonconformity

The contracts to the contractor workers were sighted with

Evidence It was sighted that there were some terms in the contract which were

not “fair” to the contractor workers. Examples include the following: 1. Dengan menandatangani kontrak ini, lain-lain kontrak yang

ditandatangani sama ada di Malaysia ataupun di negara sumber adalah terbatal.

2. Pekerja dikehendaki membayar ganti rugi kepada majikan sekiranya

berlaku kerosakan atau kehilangan perkakas dan peralatan kerja

disebabkan kecuaian atau kelalaian

Interview with worker confirmed that they are requested to pay for

damaged equipment such as gloves. There was no mechanism in

place to determine the cause of the damage to the equipment used by

the workers.

Close-out

evidence:


MY 7008 of 18


Department /

Function:

Training Environmental Standard Ref.:

Indicator

4.5.1.5


Status:

Open

Normative

Reference and

Requirement

An awareness and training programme shall be established and

implemented to ensure that all employees understand the policy and

objectives of the environmental management and improvement plans

and are working towards achieving the objectives.

Details of

Nonconformity

Understand the policy and objectives of the environmental

management and improvement plans lacking

Evidence In the training plan 2019 , although they have training such as MSPO

Training .

On 09/09/19 , a ‘Pendidikan Alam Sekitar ‘ was conducted to the 6

contractor workers to ensure that all employees understand aspects of

environment are working towards achieving the objectives.

However the policy and objectives of the environmental management

and improvement plans were not included in the training.

Close-out

evidence:


MY 7008 of 18



Environment Standard Ref.:

Indicator

4.5.3.1


Status:

Open

Normative

Reference and

Requirement

All waste products and sources of pollution shall be identified and

documented.

Details of

Nonconformity the document did not identify all waste products

Evidence Document Waste Management Procedure ( Doc Ref: AE/ P17

01/01/2019 Rev 0 ) was referred however the document did not

identify all waste products (e.g. scheduled waste, domestic waste,

recyclable waste , clinical waste) and sources of pollution as it only

identify Scheduled Waste.

However the domestic waste and recyclable waste was included in the Waste Management plan.

Close-out

evidence:


MY 7008 of 18


Department /

Function:

Contractor responsibility Standard

Ref.:

Indicator

4.5.3.4


Status: Open

Normative Reference and

Requirement

Empty pesticide containers shall be punctured and disposed in

an environmentally and socially responsible way, such that there is no

risk of contamination of water sources or to human health. The

disposal instructions on manufacturer’s labels should be adhered to.

Reference should be made to the national programme on recycling of

used HDPE pesticide containers.

Details of

Nonconformity

Empty pesticide containers found in the field

Evidence At present all chemicals application , operation and its disposal are

handled by the contractor B C Yong Enterprise and their workers.

The contractor, B C Yong Enterprise has signed the contract

appointment with Amazing Estate Sdn Bhd Ref No:

AESB/PBB/FD/22/JAN/2019 dated 1/1/19 .

Under the Terms and condition Section 4 ( c ) fourth bulletpoint state

… dispose or recycle all fertilizer bags and chemical waste out of the

estate in proper manner without polluting the environment …

However in the field 5 empty non-label chemical containers used for premix were left in the field instead of collecting it back to their

contractor storage site in Sierra Development Sdn Bhd estate

Close-out

evidence:


MY 7008 of 18


Department /

Function:

Environment Standard

Ref.:

Indicator

4.5.4.2


Status:

Normative

Reference and

Requirement

An action plan to reduce identified significant pollutants and emissions

shall be established and implemented.

Details of

Nonconformity

No action plan

Evidence Although the Doc. Ref Performance Monitoring and Measurement (

Doc Ref : AE/P20 01/01 /2019 Rev 0) and the Environmental Impact

Aspect Report were referred, no action plan to reduce identified

significant pollutants and emissions established and implemented

Close-out

evidence:


MY 7008 of 18


Department /

Function:

Water Management Standard

Ref.:

Indicator

4.5.5.1


Status:

Open

Normative

Reference and

Requirement

The management shall establish a water management plan to maintain

the quality and availability of natural water resources (surface and

ground water). The water management plan may include:

a) Assessment of water usage and sources of supply.

b) Monitoring of outgoing water which may have negative

impacts into the natural waterways at a frequency that reflects the

estate’s current activities.

c) Ways to optimize water and nutrient usage to reduce wastage (e.g. having in place systems for re-use, night application, maintenance of

equipment to reduce leakage, collection of rainwater, etc.).

d) Protection of water courses and wetlands, including maintaining and

restoring appropriate riparian buffer zones at or before planting or

replanting, along all natural waterways within the estate.

e) Where natural vegetation in riparian areas has been removed, a

plan with a timetable for restoration shall be established and

implemented.

f) Where bore well is being use for water supply, the level of the

ground water table should be measured at least annually.


Weed spraying around man-made pond

MY 7008 of 18

Evidence The management has establish a ‘Final Draft water management plan

( ver1.0) – 25 May 2019 ’ to maintain the quality and availability of

natural water resources.

The plan include the following contents:

Executive Summary 1) Description of Management Area

1.1 Site Description

2) Findings of Water usage and Conservation

2.1 Findings

2.2 Rainwater Harvesting usage and Water Recycling

2.3 contingency plan for water shortages and flooding

3) Water Management plan

There are no significant water bodies or natural watercourses within

the estate with the exception of a previously dug water pond .

Within the estate along the estate roads , pits of water sighted . These

pits were previously dug for its lateritic material for road patching .

MY 7008 Page 11 of 18

The domestic water is metered and piped from the State authorities for domestic use.

For spray operation , the contractor uses its own water source

premixed with chemical .

No monitoring of water required as there are no natural water flowing

within the estate.

Recommendation from the report was the implementation of rain - harvesting at line-site

Rainfall is monitored daily , monthly and yearly

Year Total ( mm) raindays

2017 2208 127

2018 2901 124

2019 ( till Sept ) 1394 70

Domestic water usage records were available for the period May – Aug

2019 . The estate estimated 30m3 per month.

The man-made pond in Block 22 was visited. However, there were

spraying of the weeds around the pond and no buffer zone marking

There was also a forest tree nearby where the Baya weaver have made

nests.

Close-out

evidence:


MY 7008 Page 12 of 18


Department /

Function:

SOP on agriculture operation Standard Ref.:

Indicator

4.6.1.1


Status:

Closed

Normative

Reference and

Requirement

Standard operating procedures shall be appropriately documented and

consistently implemented and monitored.


No documented SOP on IPM for bagworm and rat control

Evidence The Estate still does not have any ‘Standard Operation Procedures ; for the

operations e.g spraying, Manuring , Harvesting , rat control , bagworm control

etc in the estates.

No practice of IPM ( Integrated Pest Management ) for bagworm although they

have IPM for rat control by the presence of reported 14 barn owl boxes

Visit show that the estate had some bagworm incidences ( looks like Metisa

plana ) and according to supervisor they have done one application of truck

injection of Bullet 55 ( a.i ) monocrotophos ) in February and was reported to

have been controlled

The number of application depends on the number of live bags worms census

and these procedures were not available to ensure that the estate is doing the

operation correctly to ensure control.

In addition the estate has not planted any beneficial plants like Turner asp, Cassia

or Antigonon sp. that attracts predators of these bagworm larvae.

Similarly for rat damage , they have started to apply rat baits, Butik S , however

their application is based on experience of the supervisor.

There was no SOP for IPM rat control e.g

1) what criteria to start baiting ( e.g mill report, field census)

2) interval of application on 1st generation or 2nd generation bait

3) where to place bait

4) when to stop e.g % replacement

Close-out evidence: Amazing Estate Sdn Bhd has submitted the work instructions for the necessary procedures for the operations as the corrective actions and evidence on 26/11/19 which are deemed to be and accepted for its closure of the NC raised . Work Instruction for Oil Plam Plantation

1. Rat Control in Amazing Estate

2. Insect Pest Control in Amazing Estate

3. Weed Control in Amazing Estate

4. Manuring/Fertiliser Application in Amazing Estate

5. Harvesting & Pruning in Amazing Estate

MY 7008 Page 13 of 18

6. Weighing and Transport in Amazing Estate

Major N°11 of 12 Closed

MY 7008 Page 14 of 18


Department /

Function:

Legal / Contractor Standard

Ref.:

Indicator

4.6.4.1


Status:

Closed

Normative

Reference and

Requirement

Where contractors are engaged, they shall understand the MSPO

requirements and shall provide the required documentation and

information.

Details of

Nonconformity

Legal regulations

MY 7008 Page 15 of 18

Evidence In section 4 under Terms and Condition of Appointment ‘ the contract

…it is stated …subsection d state that amazing Estate …expect the

contractor to comply with MSPO requirement that include the following:

• Amazing Estate Policy like OHS policy

• DO acknowledge by Oil mill to be returned to amazing Estate

• Use of complaint and Grievance Form

• PPE for workers

• Comply to speed limit

• Comply to hazard and warning signs in estate

• Evacuation as per Evacuation Map

• Workers salary and working condition to comply with Malaysian

law and regulations

• No child labour below 15 years old

• To prevent pollution

in carrying out the job / works aware by the estate management.

However the following legal non-conformance was identified during the

site visit and the review of documentation.

Interview with worker at site confirmed that damaged PPE have to be

purchased by them. This is against section 26 of Occupational Safety

and Health Act where No employer shall levy or permit to be levied on

any employee of his any charge in respect of anything done or

provided in pursuance of this Act or any regulation made thereunder.

Interview with worker at site confirmed that there has been deduction

for water, electricity and petrol (used for work). This is against section

24 (1) of the Employment Act were no deduction shall be made by an

employer from the wages of an employee otherwise than in

accordance with this act.

There was however no evidence on any deduction performed based

on the payslips of the workers sampled. This is against regulation 9 of

the Employment Regulations where every employer shall furnish to

every employee employed by him in a separate statement or card the

particulars relating to details of wages and other allowances earned

during each wage period as specified in paragraph (c) of regulation 5

on or before the date of payment of wages.

Interview with workers confirmed that the passports were kept by the

contractor management. This is against section 12A of the Passport

Act where Any person who with intent to obtain for any other person a

passport, internal travel document, or an endorsement or visa on a passport, knowingly makes any false statement or produces any

MY 7008 Page 13 of 18

document which to his knowledge is false in any particular shall be

guilty of an offence and shall, on conviction, be liable to a fine of not

less than ten thousand ringgit but not more than fifty thousand ringgit

and imprisonment for a term of not less than one year but not more

than five years.

Close-out

evidence:

Amazing Estate Sdn Bhd has submitted the corrective actions and evidence on 26,28/11/19 and on 23/12/19 and was reviewed and accepted for its closure. Root caused: No salary deduction mentioned above. Confirmed after clarification from the contractor (by phone call). Workers might have misunderstood the question, if any, it is the cost of purchase of daily necessities. Contractor usually buys items for workers (if there are any request from them) when he leaves for town. Corrective action: the client has attached a MOU between workers and their employer on keeping of their legal documents at their employer’s office. Workers signed MOU out of their own will and understood their rights to retrieve their documents should they required those documents. On whether the Bangladesh workers understood the letter of authorization in Bahasa Melayu on the passport to be held by the employer for safekeeping , Amazing Estate replied that the letter was explained prior to signing and understood the contents. Major N°12 of 12 Closed

MY 7008 Page 14 of 18

OBSERVATIONS : MS2530-3:2013 Part 3

Observations N°1 of 7

Department /

Function: Management Standard

Ref.:

Indicator

4.2.1.1

Document Ref.: MS2530-3:2013 Part 3 Issue / Rev.

Status:

Details The management shall communicate the information requested by the

relevant stakeholders in the appropriate languages and forms, except those

limited by commercial confidentiality or disclosure that could result in negative

environmental or social outcomes.

Details of

Observation:

Suppliers, government authorities , and internal stakeholder listed were not

present/invited for the estate stakeholder meeting on 9/9/19.

The estate assumed that since they were sampled during the social

assessment conducted on 7/4/19 by the consultant , such as Government bodies

such as Balai Polis Mengkuang and Klinik Sentosa, there was no requirement

to do so again.

Close-out

evidence:

Amazing Estate Sdn Bhd has submitted the corrective actions and evidence

on 26 & 28 /11/19 which are deemed to be satisfactory and they will be

followed up /reviewed again during the next scheduled visit/ surveillance for its

closure

MY 7008 Page 15 of 18


Department /

Function: Legal Standard

Ref.: 4.3.1.2

Indicator


Status:

Open

Normative

Reference and

Requirement

The management shall list all laws applicable to their operations in a legal requirements register.


Not all legal requirements were listed in the legal requirements register.

Evidence Legal requirements register was reviewed. The list does not include all legal requirements, for example, Weights and Measures Act 1972.

Close-out evidence:


MY 7008 Page 16 of 18


Department /

Function:

Management Standard

Ref.:

Indicator

4.3.1.4


Status:

Normative

Reference and

Requirement

The management should assign a person responsible to monitor

compliance and to track and update the changes in regulatory

requirements

Details of

Observation:

Details of the roles and responsibilities are documented in Appendix I MSPO Steering Committee Responsibilities. Among the responsibilities are:

1. To identify all legal and other requirements which are directly applicable to the occupational health and safety aspect of the organization’s activities, products and services

2. To evaluate compliance to all applicable legal and other requirements

3. To be aware of any changes or amendments in the legal and other requirements and to communicate the matter to the relevant interested parties

4. To ensure register of legal and other requirements is up to date for any changes or amendments in the regulation.

The roles and responsibilities of the legal officer should include the

identification of other legal requirements and not only that for

occupational health and safety.

Close-out

evidence:


MY 7008 Page 17 of 18


Department /

Function:

Aspect Impact Standard

Ref.:

Indicator

4.5.1.3


Status:

Details An environmental improvement plan to mitigate the negative impacts and to promote

the positive ones, shall be developed, effectively implemented and monitored.

Details of

Observation:

However the consultant who provided them with the EAI missed out the

contractor’s role in the disposal of empty chemical container as the mitigation

measure ( G- Planter and approved collector ) is not applicable to Amazing

Estate operation

Close-out

evidence:

Amazing Estate Sdn Bhd has submitted the corrective actions and evidence on

26 & 28 /11/19 which are deemed to be satisfactory and they will be followed

up /reviewed again during the next scheduled visit/ surveillance for its closure

MY 7008 Page 18 of 18



Management Standard Ref.:

Indicator

4.5.1.4


Status:

Details A programme to promote the positive impacts should be included in the

continual improvement plan.

Details of

Observation:

Although the estate has the procedure: continual Improvement Doc

Ref: AE/P04/01/01/2019 Rev0 and the Environmental Impact Aspect

Report was available however a programme to promote the positive

impacts was not sighted in the continual improvement plan.

Close-out

evidence:

In progress

Job n°: MY 05475 Report date: 24/12/19 Visit Type: MA Visit n°: 1

CONFIDENTIAL Document: GS0304 Issue n°: 10 Page n°: 19 of 56


Department /

Function: Waste Management Standard

Ref.:

Indicator

4.5.3.2


Status:

Details A waste management plan to avoid or reduce pollution shall be developed and

implemented. The waste management plan should include measures for:

Identifying and monitoring sources of waste and pollution

Improving the efficiency of resource utilization and recycling of potential

wastes as nutrients or converting them into value-added by-products

Details of

Observation: Although the waste management plan reported the presence of recyclable

collection bin, however bins for recyclable waste still not sighted.

Close-out

evidence: Amazing Estate Sdn Bhd has submitted the corrective actions and

evidence on 26 & 28 /11/19 which are deemed to be satisfactory and

they will be followed up /reviewed again during the next scheduled visit/

surveillance for its closure




Department /

Function:

Biodiversity Standard

Ref.:

Indicator

4.5.6.2


Status:

Details If rare, threatened or endangered species, or high biodiversity value, are

present, appropriate measures for management planning and operations should

include:

a) Ensuring that any legal requirements relating to the protection of the species are

met.

b) Discouraging any illegal or inappropriate hunting, fishing or collecting activities;

and developing responsible measures to resolve human-wildlife conflicts.

Details of

Observation:

Displaying of appropriate signage on prohibiting, hunting and fishing sighted at the

entrance to the estate as well as within the estate where accessible

However with the presence of Baya weaver ( LC-least concern ) nesting place at the

man-made pond in Block 22, the estate should include signages to discourage

collecting / trapping activities and in future developing responsible measures to

resolve human-wildlife conflicts.

Close-out

evidence:

Amazing Estate Sdn Bhd has submitted the corrective actions and

evidence on 26 & 28 /11/19 which are deemed to be satisfactory and

they will be followed up /reviewed again during the next scheduled visit/

surveillance for its closure



Nonconformities detailed here shall be addressed through the organization’s corrective action process, in accordance with the relevant corrective action requirements of the audit standard, including actions to analyse the cause of the nonconformity and prevent recurrence, and complete records maintained.

Corrective actions to address identified major nonconformities shall be carried out immediately and SGS notified of the actions taken within 30 days. An SGS auditor will perform a follow up visit within 90 days to confirm the actions taken, evaluate their effectiveness, and determine whether certification can be granted or continued.

Corrective actions to address identified major nonconformities shall be carried out immediately and records with supporting evidence sent to the SGS auditor for close-out within 60 days.

Corrective Actions to address identified minor nonconformities shall be documented on an action plan and sent by the client to the auditor within 90 days for review. If the actions are deemed to be satisfactory they will be followed up at the next scheduled visit

Corrective Actions to address identified minor non-conformities have been detailed on an action plan and the intended action reviewed by the Auditor, deemed to be satisfactory and will be followed up at the next scheduled visit.

Appropriate immediate action taken in response to each non-conformance as required

Note:- Initial, Re-certification and Extension audits – recommendation for certification cannot be made unless check box 4 is completed. For re-certification audits the time scales indicated may need to be reduced in order to ensure re-certification prior to expiry of current certification.

Note: At the next scheduled audit visit, the SGS audit team will follow up on all identified nonconformities to confirm the effectiveness of the corrective actions taken.

8. General Observations & Opportunities for Improvement

Positive Observations:

• Amazing Estate has implemented the Findings raised during Stage 1 and the office staff are aware of the procedure and documents and are have now implemented significant effort to ensure the company is committed towards MSPO certification and its objectives of sustainability

Important Observations and Opportunities for Improvements:

• Require a suitable office or a site for the audit documentation to to be conducted.

• Better ventilation and netting in office as during audit , there were numerous flies.

• To monitor the leaf-eating and to plant the beneficial plants

• To monitor the contract workers deduction if any by the contractor

Appendix 1: Multi –Site Address List

No Multisite



Site name / Address Audit Dates Activities at this site

Appendix 2: List of Stakeholders Contacted

Stakeholder Type of

Stakeholder

Issues raised Comments/Action

Taken

Contractor

BS Yong

External No issues. Payment

timely manner.

PPE provided to

workers

Minimum wage

monitored

-

Contractor workers External Housing – prefer to stay

with their friends in

neibouring estate

Pay more than minimum

, PPE provided

Deduction and passport

withholding

Amazing reported

contractor said ‘ No

salary deduction

mentioned above.

Confirmed after

clarification from the

contractor (by phone call).

Workers might have

misunderstood the

question, if any, it is the

cost of purchase of daily

necessities. Contractor

usually buys items for

workers (if there are any

request from them) when

he leaves for town.

MOU between workers

and their employer on

keeping of their legal

documents at their

employer’s office.



Workers signed MOU out

of their own will and

understood their rights to

retrieve their documents

should they required

those documents

Sierra Development Estate Manager, Mr Lim Chuee aik

0103993893

External

_Neighbouring

estate

No issues of Contractor

workers staying at their

site. Provide area for

the contractor to store

their empty pre-mix

containers, no issue

with boundary. No issue

to allow access to

estate

-

MPOB Temerloh Exteranl – Govt

Authorities

Met at hotel in Triang.

No negative report

received for estate

-



Appendix 3: Audit Planning Matrix

Visits: MA ASA01 ASA02 ASA03

Dates: 09-10/10/19

Area / Department / Process / Function

ASPECTS, RISKS, OBJECTIVES,

Auditor(s): James S H Ong, Daryl Tan

Principles

MS2530-3:2013: Part 3 MA

ASA01 ASA02 ASA03

Principle 1: Management commitment and responsibility

-

Principle 2: Transparency

Obs N°1 of 7 of 4.2.1.1

Minor N°1 of 12 : 4.2.2.3

Principle 3: Compliance to legal requirements

Obs N°2 of 7 4.3.1.2

Major N°2 of 12 4.3.1.3

Obs N°3 of 7 of 4.3.1.4

Principle 4: Social responsibility, health, safety and employment condition

Minor N°3 of 12 of 4.4.1.1

Minor N°4 of 12 of 4.4.4.2

Minor N°5 of 12 of 4.4.5.6



Principle 5: Environment, natural resources, biodiversity and

ecosystem services

Obs N°4 of 7 of 4.5.1.3

Obs N°5 of 7 of 4.5.1.4

Minor N°6 of 12 of 4.5.1.5

Minor N°7 of 12 of 4.5.3.1

Obs N°6 of 7 of 4.5.3.2

Minor N°8 of 12 of 4.5.3.4

Minor N°9 of 12 of 4.5.4.2

Minor N°10 of 12 of 4.5.5.1

Obs N°7 of 7 of 4.5.6.2

Principle 6: Best practices

Major N°11 of 12 of 4.6.1.1

Major N°12 of 12 of 4.6.4.1

Principle 7: Development of New

Plantings

n.a -



Appendix 4: Acknowledgement of Internal Responsibility and Formal Sign-off Assessment Findings

SGS ( Malaysia ) Sdn Bhd and client acknowledge and confirms acceptance of the Report contents and including the assessment

findings. SGS (Malaysia) Sdn Bhd and client accept the responsibility for addressing the opportunities of improvement detailed in this

report.

Signed on behalf of Amazing Estate

Sdn Bhd

Signed on behalf of SGS (Malaysia) Sdn

Bhd

Name

Position:

Date:

Name: James S H Ong

Position: Lead Auditor

Date : 24/12/19

management system certification - sgs...travel from shah alam overnight in triang 09/10/19 7:00 a.m...

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