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Sabah TLAS Audit Report Sabah Legality Standard Principles 1 – 4

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Sabah TLAS Audit Report Sabah Legality Standard Principles 1 – 4 FDS-TLAS-006 Sabah TLAS Audit Report Sabah Legality Standard Principles 1 – 4 Licensee: Rakyat Berjaya Sdn. Bhd. (009867-W) Licensee Reference # GFSSBH 003-056 Contractor: RT Plantations Sdn. Bhd. (1033974-D) David Yong (RBJ Tawau OIC) Mohd. Farid G. (RT Plantations Estate Contact Date of Report 15/11/2019 Manager) Person Date of close out - Ramlah Sakil (RT Plantations Sustainability Asst.) Rakyat Berjaya Sdn. Bhd. Telephone +6089 771 066 2nd Floor, TB14943 & TB14944, Jalan Abaca, +6089 912 020 Office 91000 Tawau, Sabah, Malaysia. Address RT Plantations Sdn. Bhd. +6089 761 744 Bangunan TSH, TB 9, Km. 7, Apas Road, Fax +6089 916 770 91000 Tawau, Sabah, Malaysia. [email protected] Email [email protected] Approved By Dr. Kevin T. Grace [email protected] Statements Audit Statement GFS 052 LVS Issuance Date 01 December 2019 Expiration Date 30 November 2020 Assessment Details Assessment Dates 11th – 15th November 2019 Scope of Assessment TLAS Principles 1 - 4: Oil Palm Plantation JP (TKA) 122/96(CO): TWU 01/13, TWU 01/14, TWU 04/15 & TWU 02/16 Species Oil Palm (Elaeis guineensis) Lead Assessor Lai Jia Woei Assessor(s) Siti Radiah Mohamad, Walter Marcus, Franklin Emang FDS Staff Mohd. Azmi Yazid (ADFO Kalabakan), RH David Shagum (KPPM Kalabakan), PH Suhezron Salim (PPM Kalabakan), PH Feledie Jalane (PPM Kalabakan) 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 01st 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 FDS-TLAS-006 Summary Information Overview of Licensee: • Tree Plantation and Forestry Management Agreement dated 24th April 1996 and a Tree Plantation and Forestry Management (Supplemental) agreement, JP (TKA) 122/96(CO) dated 15th February 1999 was made between Benta Wawasan Sdn. Bhd. and State of Sabah, where a portion of the licensed area measuring approximately 29,557 ha shall be assigned to Rakyat Berjaya Sdn. Bhd. for oil palm development (Agro-forestry). • Rakyat Berjaya Sdn. Bhd. (Rakyat Berjaya) entered into a Joint Ventured Agreement with RT Plantations Sdn. Bhd. (RT Plantations), formerly known as Rinukut Plantation Sdn. Bhd., allowing RT Plantations manages an area 5,000 ha which is located within partly Gunung Rara Forest Reserve (FMU 24) and partly Kalabakan Forest Reserve (FMU 26). The said agreement was signed on 27th May 2015. • Prior to the commencement of the project, Rakyat Berjaya prepared an Agro-forestry Development Plan (ADP) as requested by the Sabah Forestry Department (FDS). • On 15th June 2017, Rinukut Plantation Sdn. Bhd. has changed their name into RT Plantations Sdn. Bhd. (1033974-D). • RT Plantations engages only one subcontractor – THK Development Sdn. Bhd. for road repair and maintenance. • The previous assessment was conducted in November 2018 that resulted in 2 gap(s) and 0 observation(s) (report #: G161-291). • Land use classification: FMP Area Current Status Land classification (ha) (ha) Total Concession Area 5,000 4,122.63 Production Area - Natural Forest Management - Agroforestry (Oil Palm) 1,735 (Planted area to date at couped 3,936.46 area) Un-coupe area: 1,520.63 ha - Restoration / Planting Protected Forest & Conservation • Class 1 Forest; Sungai Tiagau Forest Reserve (Excised from licensed 0 877.37 area) (Ref. #: JPHTN/FRM 700-2/1/15/91/KLT.2/11 dated 5th January 2017) • Unplantable area (Steep slope, above 600m 1,063.54 119 elevation, hill lock, riparian, buffer zone, stoney) Social Community & Agriculture Infrastructure, Roads Buildings, 213 etc. Environmental Context: • FMU 24 comprises of Gunung Rara Forest Reserve and Kalabakan Forest Reserve (Class II Commercial Forest Reserves), VJR Batu Timbang, VJR Ulu Sg. Napagon and VJR Nurod Urod (Class VI Virgin Jungle Reserves). • Gunung Rara Forest Reserve is identified as a natural wildlife corridor and also known as an important habitat for a few totally protected fauna species (e.g. Banteng, Orang Utan and 2 FDS-TLAS-006 Borneon Elephant). Sighted wildlife in the area includes the Rhinoceros, Orang Utan, Clouded Leopard, Proboscis Monkey, Wild Buffalo (Tembadau) and Asian Elephant. • Maliau Basin Conservation Area (55,840 ha) is a part of FMU 24, which has a separate management plan. Imbak Canyon Conservation Area (16,750 ha) is adjacent to the northern part of FMU24. • The areas in between Maliau Basin Conservation Area and FMU 24 production area are designated as buffer zones - Maliau Buffer Zone Area 1 and Maliau Buffer Zone 2. Maliau Buffer Zone Area 1, only allowed to be harvested once, whereas Maliau Buffer Zone 2 is allowed to be harvested as long as RIL technique is applied. • The buffer zone areas are also dominated with Mixed Dipterocarp Forest, which has not been logged before, thus the area contains high value of merchantable timber resources. The principal commercial tree families are Dipterocarpaceae, Fagaceae, Apocynaceae, Europhorbiaceae and Lauraceae. • Rakyat Berjaya coupes, which fall within Maliau Buffer Zone Area 2 are part of YL1/03; part of YL2/03; YT1/09; part of YT1/03; part of YT2/08; YT3/05(1); YT3/05(2); YT3/04; and YT4/08. • Two places in FMU 24 are identified as Project Area under Conservation Environment Management Division (CEMD) - RIL 2 Project Area and SUAS Project Area; and 4 areas as conservation area - VJR Batu Timbang, VJR Ulu Sg. Napagon, VJR Nurod Urod and water catchment area (2.160 ha); as well as 2 areas identified for tourism - Tourism Area under CEMD (250 ha) and Wellness/Eco - Tourism Project Area (1,200 ha). • The EIA report for 5,000 ha of the licensed area was approved on 24th April 2014. Social Context: • There are no communities living inside or adjacent to FMU 24. The nearest village to FMU 24 is Kg. Kemandut, which is located by FMU 26 (Luasong). Scope of Assessment • The scope of the evaluation is to verify compliance of Rakyat Berjaya Sdn. Bhd. (RT Plantations Sdn. Bhd.) with the Tree Plantation and Forestry Management Agreement, JP (TKA) 122/96(CO). • The assessment is in accordance on the terms of the agreement for the “Sabah Legality Standard Principles 1 - 4 dated 01st January 2015 (FDS-TLAS-002). • Site evaluation to verify and report the level of compliance by Rakyat Berjaya Sdn. Bhd. (RT Plantations Sdn. Bhd.) and contractors to the standard in respect to each of the criteria within this report. • Compliance is defined when the auditee demonstrates that the indicators consist of none or only minor gaps against any applicable criteria of the standard. Non-compliance to the Sabah Legality Standard occurs when the auditee does not demonstrate adequate compliance to a criterion. Itinerary & Mandays: FMU 24 & 26 / Rakyat Berjaya Sdn. Bhd. (RT Plantations Sdn. Bhd.) / Kalabakan District / 11th – 15th November 2019 (Total Mandays = 19) Date Activity GFS Staff Mandays 11 November 2019 Lai Jia Woei, Siti Radiah Travelling to Tawau 3 Monday Mohamad, Walter Marcus Opening meeting. Field visit to coupe boundary TWU 01/14, Lai Jia Woei, 12 November 2019 riparian reserve of Sg. Kuamut 1, steep Siti Radiah Mohamad, 3 Tuesday slope, contractor THK Development Sdn. Walter Marcus Bhd. camp site and RT Plantations base camp. 13 November 2019 Document review at Kalabakan District Lai Jia Woei, Siti Radiah 3 Wednesday Forestry Office. Mohamad, Walter Marcus Lai Jia Woei, Siti Radiah 14 November 2019 Document review at Rakyat Berjaya Mohamad, Walter 4 Thursday Tawau Office. Marcus, Franklin Emang 3 FDS-TLAS-006 Closing meeting. Lai Jia Woei, Siti Radiah 15 November 2019 Travel to home base Sandakan / Kota Mohamad, Walter 4 Friday Kinabalu. Marcus, Franklin Emang 16-17 November Dr. Kevin T. Grace Reporting GFSSBH 003-056 2 2019 Lai Jia Woei Total 19 Highlights of Assessment (Major Gap = 0; Minor Gap = 0; Observation = 2) Rakyat Berjaya Sdn. Bhd. (RT Plantations Sdn. Bhd.) has complied with the Sabah Legality Standard (FDS-TLAS-002) as no non-compliance was identified during the assessment on 11th – 15th November 2019. Summary of status of operations by Principle: Principle 1. Rakyat Berjaya Sdn. Bhd. entered into a Joint Ventured Agreement with RT Plantations Sdn. Bhd. which was signed on 27th May 2015, allowing RT Plantations to manage an area 5,000 ha which is located within partly Gunung Rara Forest Reserve (FMU 24) and partly Kalabakan Forest Reserve (FMU 26). RT Plantations was granted 4 coupe permits by the FDS for Agro-forestry (Oil Palm Plantation). An EIA was prepared in 2014. RT Plantations is only required to develop Agro-Forestry Development Plan (ADP) for the establishment of Oil Palm Plantation. The term of this plan is valid for 10 years, commencing on 1st January 2013 to 31st December 2022. The ADP approved on 15th April 2013 by the Chief Conservator of Forests. The ADP, is scheduled to be reviewed in 2017 (ADP page 43). A reminder on ADP revision was forwarded to Rakyat Berjaya (RT Plantations) by Kalabakan District Forestry Office (Ref.#: JPHTN/KA 700-2/1/2/68/3/51 dated 22nd May 2018). November 2019: Observation 001-2019 – Checklist 1.6.1 The ADP, is scheduled to be reviewed in 2017 (ADP page 43). No action taken for ADP (2013 - 2022) mid-term review. To date, a total of 1,735 ha was planted with oil palm (TWU 01/13, TWU 01/14, TWU 04/15) except for partly coupe TWU 02/16.
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