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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 003-043 Contractor: Golden Borneo Palm Sdn. Bhd. (1133717-V) Contact David Yong (RBJ Office In Charge) Date of Report 30 August 2019 Person Mr. Atan Wasli (Manager) Date of close out - Rakyat Berjaya Sdn. Bhd. +6089 916 060 5th & 6th Floor, 255C, UMNO Building, Telephone +6089 916 161 Jalan Dunlop, P.O. Box 60793, 91007 +6089 916 262 Tawau, Sabah, Malaysia. +6089 916 868 Office Address Golden Borneo Palm Sdn. Bhd. TB 8283, Lot 20C, Perdana Square Fax +6089 911 313 Commercial Centre, 91000 Tawau, Sabah, Malaysia. [email protected] Email Approved By Dr. Kevin Grace [email protected] Statements Audit Statement NA: Non-Conformance - Criteria 1.1.1, 1.2.2, 3.1.1 Issuance Date NA Expiration Date NA Assessment Details Assessment Dates 26 - 30 August 2019 Scope of Assessment TLAS Principles 1- 4: Oil Palm Plantation (JP(TKA)122/96(CO): TWU 06/15, TWU 05/16, TWU 10/17 and TWU 04/12 Species Oil Palm (Elaeis guineensis) Rehabilitation planted Species/ road buffer enrichment planting: Khaya ivorenses (Mahogany), Falcataria moluccana (Batai), Neolamarkia cadamba (Laran), Terminalia copelandii (Talisai) Lead Assessor Siti Radiah Mohamad Assessor(s) Lai Jia Woei, Mohd. Akram Mansur FDS Staff Suriansa Abd Kadir (ADFO Kalabakan), David Shagun (FDS Kalabakan), Suhezron (FDS Kalabakan), Feledie Jalane (FDS 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: • Benta Wawasan Sdn. Bhd. (Benta Wawasan) signed the Agroforestry Management Licensed Agreement JP(TKA)122/96(CO) allowing Rakyat Berjaya Sdn. Bhd. (Rakyat Berjaya) to manage an area of 26,764 ha located in part of Kalabakan Forest Reserve from 1st January 2016 to 31st December 2025. • One of the objectives of the project is to develop the project area into an oil palm plantation to support the State Government of Sabah in its policy on agroforestry development and to increase economic growth for Rakyat Berjaya Sdn. Bhd., as well as the State Government. The development of the oil palm areas is staggered over a 6-year period (2016 - 2021) and shall reach the peak crop yield on the 7th year. • Under separated contractual agreement, Rakyat Berjaya Sdn. Bhd. decided to appoint Golden Borneo Palm Sdn. Bhd. (Golden Borneo Palm) as the oil palm developer for the project area. Golden Borneo Palm Sdn. Bhd is directly related to Usahawan Borneo Plantation Sdn. Bhd. (Usahawan Borneo Plantation - sister company) to hire workers and support the project. • Golden Borneo Palm was then assigned Timjadi Sdn. Bhd. (Timjadi) as the sub-contractor that responsible on the timber harvesting prior to the development of oil palm plantation. • The project area is zoned into two land-uses which is conservation and production. The production area is further divided into industrial tree plantation (ITP) and oil palm development. • The previous assessment was conducted in September 2018 that resulted in 2 Major gap(s), 1 minor gap(s), and 2 observation(s) (report #: G161-279). • Land use classification: Land use classification Area (ha) Current Status (ha) Total Concession Area 26,794.00 26,794.00 Conservation Area 6,198.72* 6,198.72* Industrial Tree Plantation 149.28** 149.28** Oil Palm Development Area 20,446.00 Planted: 5,817.34 Estate Coupe Block Merbok TWU 05/16 BW 11/02 2,089.48 1,712.00 (81.9% planted) Rajawali TWU 10/17 BW 9/99 5,178.65 1,489.95 (28.8% planted) Cenderawasih TWU 04/12 BW 9/00 2,118.58 266.49 (12.6% planted) Kenari NA BW 11/01 1,781.54 1,295.00 (72.7% planted) GBP NA BW 09/02 88.90 88.90 (100% planted) Merpati NA BW 09/01 1,994.13 965.00 (48.4% planted) Area managed by Timjadi for Kenyalang NA BW09/03 2,306 salvage logging Total Estates 15,557.28 Planted: 5,817.34 Note: *Buffer Zones: a) Riparian buffers: • Kalabakan, Tiagau and Anjeranjermut Rivers = 100m on each side of the river • Other rivers = 30m on each side of the river b) Road buffer (to be kept under natural forest) • Kalabakan – Sapulut highway = 30m on each side of the road c) Buffer with Protection FRs – Class I (i.e. Sg. Sumagas FR, Sg. Tiagau FR, Sg. Anjeranjermu FR and Silimpopon FR) – to be kept under natural forest = 100m d) Parcel “A” (wildlife corridor) = 307.64 ha **Planting of fast growing species along the Kalabakan – Sapulut main road = 60m on each side of the main road except where the main road falls within the riparian buffer. 2 FDS-TLAS-006 Environmental Context: • The original vegetation cover in the area is mainly tropical lowland evergreen rainforest or Mixed Dipterocarp Forest (MDF) which extends from sea level to 750 m. Mixed Dipterocarp Forest can be classified according to the altitude, that is, Lowland Dipterocarp Forest (LDF) up to 300 m above the sea level and Hill Dipterocarp Forest (HDF) found in elevation of between 300 m and 750 m above the sea level. • The terrain in the project area is moderate hills with an elevation of 60 – 150 m above the sea level. Therefore, the original vegetation cover or forest in the project area falls under the Lowland Dipterocarp Forest which is characterised by a high diversity of dipterocarps, primarily in the light- demanding Red Seraya (Shorea spp.) sections and by Parashora spp. Belian (Eusideroxylon zwageri) and Koompassia excelsa are also common members of this forest type. The forest of the project area, however, is highly disturbed due to the previous logging activity. Most of the forest in the project area had been logged except in an inaccessible area, which is mostly on steep slope area. • Protected areas can provide good wildlife habitat especially to the north and east where the terrain is quite gentle. Some of the major species that have been confirmed present in the project area include orang-utan (Pongo pygmaeus), pygmy elephant (Elaphas maximus borneensis), long tailed macaque (Macaca fascicularis), pig tailed macaque (Macaca nemestrina), Borneon gibbon (Hylobates mulleri), giant squirrel (Ratufa affinis), plaintain squirrel (Callosciurus notatus), slender squirrel (Sundascu temuis), wild boar (Sus barbatus), Sambar deer (Cervus unicolor), red muntjac (Muntiacus muntjac), mouse deer (Traganus spp.), sun bear (Helarctos malayanus), Malayan civet (Viverra tangalunga), clouded leopard (Neofelis nebolusa), marble cat (Felis marmorata), short nose fruit bat (Cynopterus brachotis), and tounged nectar bat (Macroglosus minimus). • Birds of various species were also reported that include white crown shama (Copsychus stricklandi), yellow rumped flower pecker (Prionochilus xanthopygius), black-throated barbet (Megalaima eaeximia) and white fronted falconet (Microhierrax latifrons), rhinoceros hornbill (Buceros rhinoceros), bushy hornbill (Anorrhinus galeritus), and wreathed hornbill (Rhyticeros undulatus). • The EIA report for conservation within a proposed development of oil palm on 25,753 hectares titled “Proposed Oil Palm Plantation (OPP) Development At Benta Wawasan IIC, Yayasan Sabah Forest Management Area, Kalabakan and Gunung Rara Forest Reserve, Tawau District Sabah was conducted by an appointed environmental consultant firm; Envsolve Sdn. Bhd and submitted to the Environmental Protection Department in 2011. Supplementary revisions for the protection of over 6,100 ha were added to the EIA report by Kiwiheng Environmental Consultants Sdn. Bhd. and submitted to the Environmental Protection Department in March and April 2016. Social Context: • According to the EIA report, there is no existing human settlement within the project area. Scope of Assessment • The scope of the evaluation is to verify compliance of Rakyat Berjaya Sdn. Bhd. (Golden Borneo Palm Sdn. Bhd.) with the Sabah Forest Management License Agreement (JP(TKA)122/96 (CO)) for FMU 26. • 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. and contractors to the standard in respect to each of the criteria within this report. • Compliance is defined when the company 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 company does not demonstrate adequate compliance to a criterion. 3 FDS-TLAS-006 Itinerary & Mandays: FMU 26 / Rakyat Berjaya Sdn. Bhd. (Golden Borneo Palm Sdn. Bhd.) / Kalabakan District / 26 - 30 August 2019 (Total Mandays = 17) Date Activity GFS Staff Mandays Siti Radiah Mohamad, 26 August 2019 Travelling to Tawau and opening meeting at Lai Jia Woei, 3 Monday RBJ Tawau. Mohd Akram Mansur Field visit to: Coupe Boundary (BW9/99), 2 units of FFB loading ramps, riparian reserve Sg. Sumagas, ITP enrichment planting (BW9/99), Sg. Siti Radiah Mohamad, 27 August 2019 Sumangas Forest Reserve (Class 1 Forest), Lai Jia Woei, 3 Tuesday OPP planting area (BW11/02) and base camp Mohd Akram Mansur (diesel depot, chemical and fertilizer store, workshop, oil and lubricant storage, scheduled waste storage and workers quarters.
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