SPOC Q16 – Sibu/Kanowit
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MSPO CERTIFICATION SUMMARY REPORT SPOC Q16 – Sibu/Kanowit Project No: 50451555 MPOB Cawangan Sibu, No 5, Tingkat 1, Lorong 11, Jalan Kampung Datu. 96000 Sibu, Sarawak. Date: 14/11/2018 DQS Certification (M) Sdn Bhd (689316-X) Suite 43-4 Setia Avenue, Jalan Setia Prima S U13/S, Setia Alam Seksyen U13, 40170 Shah Alam, Selangor, Malaysia. Tel: +603-3342 3259 (Hunting Line) Fax: +603-3358 3299 TABLE OF CONTENT Table of Contents 1. Executive Summary ____________________________________________________ 3 2. Introduction ___________________________________________________________ 5 2.1 Objective _________________________________________________________________ 5 2.2 Scope ___________________________________________________________________ 5 2.3 Certification Team __________________________________________________________ 5 3. Methodology __________________________________________________________ 6 3.1 Stage 1 __________________________________________________________________ 6 3.2 Stage 2 Audit ______________________________________________________________ 6 4. Organization Information _________________________________________________ 7 4.1 Company Information _______________________________________________________ 7 4.2 Production Information: Estate ________________________________________________ 7 5 Certification Assessment _________________________________________________ 8 5.1 Stage 1 Audit ______________________________________________________________ 8 5.2 Stage 2 Audit _____________________________________________________________ 8 5.3 Stakeholder’s Consultation ___________________________________________________ 8 6 Nonconformity Raised ___________________________________________________ 9 7 Conclusion / Recommendation ___________________________________________ 10 7.1 Opportunity For Improvement ________________________________________________ 10 7.2 Concern Area for Next Year Audit _____________________________________________ 11 7.3 Certification Recommendation _______________________________________________ 11 8 References ____________________________________________________________ 13 8.1 Contact Information ___________________________________________________________ 13 Management Representative at site _______________________________________________ 13 Audit team ___________________________________________________________________ 13 Contact person at DQS _________________________________________________________ 13 8.2 Audit Information _____________________________________________________________ 13 8.3 Audit Data __________________________________________________________________ 14 8.4 Next Step __________________________________________________________________ 19 Page 1 of 23 4-AUDIT REPORT SPOC Q16 SIBU All aspects of the audit are considered confidential TABLE OF CONTENT Activity of the customer _________________________________________________________ 19 Activity of DQS _______________________________________________________________ 19 8.6 Attached Documents __________________________________________________________ 20 8.7 Appendix 1: Group Certification Member __________________________________________ 21 8.8 Appendix 2: Audit Report Manager _______________________________________________ 23 Page 2 of 23 4-AUDIT REPORT SPOC Q16 SIBU All aspects of the audit are considered confidential 1. Executive Summary Date(s) of Audit: 12 Nov 2018 to 14 Nov 2018 Company Name: SPOC Q16 – Sibu/Kanowit Certification No: 50451555 Operational Unit: SPOC Q16 Sibu Contact No: 084-325126/014-8912733 Certified Site Address: MPOB Cawangan Sibu, No 5, Tingkat 1, Lorong 11, Jalan Kampung Datu. 96000 Sibu, Sarawak. MSPO Standard: MS 2530-2:2013 GENERAL PRINCIPLES FOR INDEPENDENT SMALLHOLDERS Lead Auditor: Che Wahab bin Che Mat (WHB) Auditors(s): 1. Mohd Shauki Mohd Ghazali (Co-Auditor) 2. 3. SPOC Q16 – Sibu/Kanowit is the registered entity managing SPOC Q16 Sibu based in MPOB Cawangan Sibu, No 5, Tingkat 1, Lorong 11, Jalan Kampung Datu. 96000 Sibu, Sarawak. SPOC Q16 Sibu is responsible to assist and advise the group of smallholders to manage their land planted with palm oil effectively. SPOC Q16 Sibu has selected a qualified number of smallholders to participate in these scheme They require MS2530-2 certification to align with the headquarter office commitment to attain the recognized Malaysia sustainability standard for palm oil, Malaysian Sustainable Palm Oil (MSPO). Management systems that implemented, generally met intend of MS2350-2 requirement, but need further improvement as per our action plans addressed in section 6 and 7 of this document. Audit Results Non-conformities raised: Major: 0 Minor: 2 Opportunity for Improvement(s): 4 1 Indicator 4.5.3.1 Principle: P5 Environment, natural resources, biodiversity and Minor Non-conformity ecosystem services P5C3I2 Waste management and disposal Clause 4.5.3.1. Group managers shall ensure that waste from the smallholdings is disposed of appropriately. Smallholders shall adopt local and national legislation to dispose of hazardous chemicals and their containers. It was sighted during the site visit the empty chemical containers left in field without appropriate disposed: 1) Nalu Ak Medang – NO IC 351124135092 2) Betong Ak Radin – NO IC 580224135507 3) Saripah Ak Suling – NO IC 820225136106 2 Indicator 4.6.1.1. Principle: P6 Best practices Minor Non-conformity P6C1I1 Site Managment Clause 4.6.1.1. Group managers & relevant government agencies should encourage all independent smallholders’ to implement best Page 3 of 23 4-AUDIT REPORT SPOC Q16 SIBU All aspects of the audit are considered confidential (Rev 01) practices such as the MPOB Codes of Practice, Malaysian Standards and the Kod Amalan Baik (GAP) Pekebun Kecil. Refer - Perusahaan Sawit Di Malaysia - Satu Panduan. Sighted few supporting relevance documents for oil Palm operation: 1. Manual Prosedur Kerja. (MPK). 2. Panduan Pembajaan Sawit Pekebun Kecil. 3. Panduan Pengeredan Buah Sawit Pekebun Kecil 4. Amalan Pertanian Baik (MPOB GAP). The above documents are used as SOP for GAP in Smallholder’s field activities. However, it was noted that in SOP that Harvesting rounds (Pusingan penuaian di antara 10 -14 hari - MPOB GAP) was not implemented as per sample: 1) Madang Ak Bail - NO IC 760521136029 2) Temaga Ak Mengga - NO IC 670316135933 3) Sumbang Ak Maleh - NO IC 560313135447 Stakeholders’ Consultation ☒ Yes ☐ No raised any issues regards to the management. Remarks: During interview with Mr. Sayong Anak Ambor (FFB Collecting Station) Issues: 1. Low price of FFB. Conclusion Certification Recommendation: This report details the audit results including strengths, opportunities, and weaknesses. These results were presented to your management at the closing meeting of the audit. You can use these results to improve the effectiveness of your management system. We look forward to continuing our partnership towards sustainable business success. In reference to MSPO Standard, MS 2530-2:2013 GENERAL PRINCIPLES FOR INDEPENDENT SMALLHOLDERS the audit team recommends to DQS: ☐ Issuance of the certificate. ☒ Issuance of the certificate as soon as implementation of corrective actions has been demonstrated. ☐ Maintenance of the certificate. ☐ Maintenance of the certificate as soon as implementation of corrective actions has been demonstrated. ☐ Not applicable, due to extraordinary type of report. Page 4 of 23 4-AUDIT REPORT SPOC Q16 SIBU All aspects of the audit are considered confidential (Rev 01) 2. Introduction This report was prepared by DQS Certification (M) Sdn. Bhd. in conjunction to the intent of SPOC Q16 – Sibu/Kanowit and its group members to be certified by Malaysian Sustainable Palm Oil in accordance to the MS 2530-2:2013, Malaysian Sustainable Palm Oil (MSPO) Part 2: General principles for independent smallholders (MS2530-2:2013) 2.1 Objective The objectives of Surveillance Audit are as follows; Stage 2 Audit (SA) i. Evaluate the implementation, including effectiveness of the management system ii. Information and evidence about conformity to all MSPO requirements iii. Performance monitoring, measuring, reporting iv. Performance as regards legal compliance and stakeholders expectation v. Operational control of the client's processes and respect to sustainability elements vi. Internal auditing, management review and continual improvement vii. Links between the normative requirements, policy, performance objectives and targets viii. Competence of personnel ix. Evaluate the implementation, including effectiveness of the management system x. Information and evidence about conformity to all MSPO requirements 2.2 Scope The report deploys the input captured from the DQS MSPO checklist from audit conducted on 12th to 14th Oct. 2018. Analysis has been justified prior recommendation of certification issuance can be made. It has been referred to MS 2530-2:2013, Malaysian Sustainable Palm Oil (MSPO) Part 2: General principles for independent smallholders or MS2350-2:2013 to evaluate the effectiveness of system implementation in fulfillment of sustainability aspects in their operations. For the purposes of this assignment, the focus will be on the compliance of clients towards MSPO principles and criteria (P&C), applicable statutory and regulatory requirement and established procedures/SOPs. The outcomes have been described from 939-D1-MSPO Guidance - Part 2 (smallholder) Checklist of audited sample of independent smallholders. Finally, it may convince to audit team to make justification of SPOC Q16 Sibu management system is effective and fulfills