Sabah TLAS Audit Report
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1 Sabah TLAS Audit Report Sabah Legality Standard Principles 1 4 Licensee Satria Eramaju Sdn. Bhd. Reference # G a Contact Person Office Address M. Balakrishnan (Manager) Lot 73, Block 6, 1 st Floor, Prima Square, Phase 1 Batu 4, Jalan Utara, Sandakan, Sabah. Date of Report Date of close out 25/06/ /08/2017 Telephone Fax gabungan.estate@gmail.com Approved By Dr. Kevin T. Grace Statements Audit Statement GFS 105 LVS Issuance Date 01 September 2017 Expiration Date 25 June 2018 Assessment Dates June 2017 Assessment Details Scope of Assessment Species Lead Assessor Assessor(s) FDS Staff TLAS Principles 1-4: Oil palm plantation, JP (SBN) 02/2011 (CO) Salvage logging operation: Drybalanops spp. (Kapur), Dipterocarpus spp. (Keruing), Shorea inappendiculata (Selangan batu), Koompassia malaccensis (Impas), Parashorea spp. (White seraya), Shorea spp. (Red seraya, Yellow seraya, Melapi), Scaphium spp. (Kembang semangkuk), Sapotaceae spp. (Nyatoh), Annonaceae spp. (Karai), Eugenia spp. (Obah), Lauraceace (Medang), Planchonia valida (Putat), Lithocarpus & Quercus (Mempening), Myristicaceae (Darah-darah), Cotylelobium spp. (Resak batu), Pentacme spp. (Takalis), Parartocarpus or Artocarpus (Terap), Dyera spp. (Jelutong), Dialium indum (Keranji), Annonaceae (Pisang-pisang), Durio spp. (Durian), Anisoptera spp. (Pengiran), Gluta/ Semecarpus/ Melanochyla & Swintonia (Rengas) and Assam Charlene Billy Bernd Hahn-Schilling, Walter Marcus Petin Kilou (DFO Beluran), Badih Unai (ADFO Beluran), Binin Gallion (ADFO Beluran), Ahmad Bin Jimadi (KPPM Bonggaya), Mohamad Saini Kiju (PPM Bonggaya), Maulana Maul (PPM Bonggaya) OBJECTIVES: The objective of this checklist is to verify compliance to the Criteria listed in the Sabah Legality Standard as defined by Principles 1-4 for Sabah dated 01 st January 2015 (FDS-TLAS-002). Compliance is defined when all applicable criteria are observed to be compliant. A Minor Gap to any indicator does not constitute non-compliance to a criterion. A Major Gap to any applicable indicator does reflect non-compliance to a criterion. Compliance for a criterion where multiple minor gaps are identified in indicators under the criterion may reflect non-compliance to the criterion. All issues identified under this standard shall be considered appropriate to the scale and degree of forestry operations undertaken by the parties under the agreement. 1
2 Summary Information Overview of Licensee Satria Eramaju Sdn. Bhd. (SESB) was granted a Licensed Area of approximately 4,000 ha in Bonggaya Forest Reserve by the State Government under the Agro-Forestry Management License Agreement No. JP (SBN) 02/2011 (CO). SESB is permitted to plant, establish and harvest forest products and agro-forestry crops under the principles of sustainable forest management and conservation for economic, environmental and social purposes commencing 27 th January 2011 until 31 st December Land use classification: Land classification Conservation (Riparian reserves, Freshwater Swamp Forest, Kerangas Forest, Peat Swamp Forest and Mangrove Forest) Gross Area (ha) Agroforestry Plantation 3,093.9 Total Area 4,000.0 Environmental context The Licensed Area was initially covered by six forest types, namely, Lowland Mixed Dipterocarp and Kerangas Forest, Lowland Kerangas Forest, Lowland Freshwater Swamp Forest, Lowland Mixed Dipterocarp Forest, Lowland Peat Swamp Forest and Mangrove Forest. Nearly all the natural vegetation within the project area has been severely disturbed by repeated logging activities. Therefore, the highly-disturbed areas consist of a young, establishing forest of various stages with a small number of interspersed, mature individuals. There are four main rivers identified in the Licensed Area,namely, Sg. Bongaya, Sg. Pagata, Sg. Tangga-Tangga and Sg. Makopoko. At least 15 species of mammals have been detected present in the Licensed Area including the long-tailed macaque (Macaca fasicularis), Pig-tailed macaque (Macaca nemestrina), Bornean gibbon (Hylobates mulleri), Giant squirrel (Sundascu temuis), Wild boar (Sus barbatus), Sambar deer (Cervus unicolor), Red muntjak (Muntiacus muntjak), Mouse deer (Traganus sp.), Sun bear (Helarctos malayanus), Civet (Viverra tangalunga), Leopard (Prionailurus planiceps), Marble cat (Felis marmorata), Short nose fruit bat (Cynopterus brachotis) and Long-tongued nectar bat (Macroglossus minimus).most common mammals sighted are wilboar, deer, and civet. Birds of various species are also found such as White crown shama (Copsychus stricklandi), Yellow rumped flowerpacker (Prionochillus xnthopygius), Black troated Barbet (Megalaima eaeximia) and White fronted falconet (Microhierrax latifrons). Three species of hornbills that were observed are Rhinoceros, Bushy and Wreathed Hornbills. Other than the species mentioned above, crocodiles are also commonly sighted in Makopako and Tungud Rivers. Social context No communities or villages have been identified within the Licensed Area. 2
3 Scope of Assessment The scope of the evaluation is to verify compliance of Satria Eramaju Sdn. Bhd. with the concession License Agreement JP (SBN) 02/2011 (CO). The assessment is in accordance on the terms of the agreement for the Sabah Legality Standard Principles 1-4 dated 01 st January 2015 (FDS-TLAS-002). Site evaluation to verify and report the level of compliance by Satria Eramaju Sdn. Bhd to the standard in respect to each of the criteria within this report. Compliance is defined when the auditee demonstrates that the indicators consist of none or only minor gaps against any applicable criteria of the standard. Non-compliance to the Sabah Legality Standard occurs when the auditee does not demonstrate adequate compliance to a criterion. Itinerary of Assessment Date 19 June 2017 Monday 20 June 2017 Tuesday 21 June 2017 Wednesday 22 June 2017 Thursday 23 June 2017 Friday Activity Travelling to PPD Beluran and opening meeting Field visit to Satria Eramaju (Base camp, Workers quarters, Chemical store, Workshop, Genset house, Diesel depot, Lubricant store) Field visit to Satria Eramaju (Nursery, Waste disposal pit, Concession boundary, Steep area, Riparian reserve, Stumping, new planting area Phase 4) Document review at Pamol Estate Document review and closing meeting at Pamol Estate. Travelling back to Sandakan (Charlene Billy, Walter Marcus). Travel to Telupid (Bernd Hahn-Schilling) Travel from Telupid to Kota Kinabalu (Bernd Hahn-Schilling) (Major Gap = 1; Minor Gap = 0; Observation = 0) Highlights of Assessment 25 th August 2017 (Major Gap = 0; Minor Gap = 0; Observation = 0) Satria Eramaju Sdn. Bhd. has complied with the Sabah Legality Standard (FDS-TLAS-002) as noncompliance identified for Principle 2 / Criterion 01 during the assessment carried out from June 2017 has been addressed on 25 th August Summary of status of operations by Principle: Principle 1. Right to Harvest Satria Eramaju Sdn. Bhd. holds an Agro-forestry Management License Agreement No. JP (SBN) 02/2011 (CO), signed on 27 th January 2011 that granted permission to the licensee to plant, rehabilitate and harvest forests and agro-forestry crops. Principle 2. Forest Operation Inadequate implementation of relevant environmental mitigation measures was observed regarding waste management system, scheduled wastes labelling, spillage control measures, usage of chemicals and soil protection as stipulated in the coupe permit conditions, FDS circular 07/2013 and Environmental Monitoring Report (GAP 001/2017 Major). Status on 25 th August 2017: Gap 001/2017 (Major) - Closed During the field verification by RH. Ahmad Bin Jimadi on 10 th August 2017, it was found that the licensee had taken all necessary action to close the Gap as reported in JPHTN/BN/MBT:800-1/7/8/8 dated 11 th August 2017 and DFO s report JPHTN/BN900-1/7/8/8 dated 21 st August 2017, reference # JPHTN/SFM(FLEGT)800-1/7/7/48(16) dated 25 th August. 3
4 Highlights of Assessment Principle 3. Statutory Charges Records of royalty payment and removal pass fees were available and maintained by the licensee. Principle 4. Other User Rights Not applicable. Results: (Compliance = 12; Non-Compliance = 1) One Major Gap was raised against indicators & criteria during the June 2017 assessment. GAP Type Checklist Description 001/2017 Major Inadequate implementation of relevant environmental mitigation measures was observed regarding waste management system, scheduled wastes labelling, spillage control measures, usage of chemicals and soil protection as stipulated in the coupe permit conditions, FDS circular 07/2013 and Environmental Monitoring Report. Status of previous outstanding Gaps. GAP Type Checklist Status Description of Close Out 001/2017 Major Closed 25 th June 2017: Inadequate implementation of relevant environmental mitigation measures was observed regarding waste management system, scheduled wastes labelling, spillage control measures, usage of chemicals and soil protection as stipulated in the coupe permit conditions, FDS circular 07/2013 and Environmental Monitoring Report. 25 th August 2017: During the field verification by RH. Ahmad Bin Jimadi on 10 th August 2017, it was found that the licensee had taken all necessary action to close the Gap as reported in JPHTN/BN/MBT:800-1/7/8/8 dated 11 th August 2017 and DFO s report JPHTN/BN900-1/7/8/8 dated 21 st August 2017, Reference # JPHTN/SFM(FLEGT)800-1/7/7/48(16) dated 25 th August Highlights of Close Out Visit (if applicable) Dates 25 th August 2017 During the field verification by RH. Ahmad Bin Jimadi on 10 th August 2017, it was found that the licensee had taken all necessary action to close the Gap as reported in JPHTN/BN/MBT:800-1/7/8/8 dated 11 th August 2017 and DFO s report JPHTN/BN900-1/7/8/8 dated 21 st August 2017, Reference # JPHTN/SFM(FLEGT)800-1/7/7/48(16) dated on 25 th August Recommendations Satria Eramaju Sdn. Bhd. has now demonstrated compliance with the Sabah Legality Standard (FDS- TLAS-002) for its designated license area and recommended to receive a GFS Audit Statement and STCC from FDS. 4
5 The next surveillance audit will be scheduled in June End of Summary Report 5
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