SGS QUALIFOR Doc. Number: AD 36-A-06
(Associated Document) Doc. Version date: 20 Mar. 08 Page: 1 of 50
FOREST MANAGEMENT CERTIFICATION REPORT
SECTION A: PUBLIC SUMMARY
Project Nr: 7833-ZA
Client: HM Timber Limited – Matiwane Forests
Web Page: www.hansmerensky.co.za
Address: HM Timber Limited – Matiwane Forests , PO Box 20, WEZA, 4685, South Africa.
Country: South Africa
Certificate Nr. SGS-FM/CoC-001503 Certificate Type: Forest Management
Date of Issue 08 Sept 2008 Date of expiry: 07 Sept 2013 SGS Forest Management Standard (AD33) adapted for South Africa version 04 of 29 Evaluation Standard March 2010
Forest Zone: Temperate
Total Certified Area 23 630 ha
Scope: Forest management of plantations in the Eastern Cape Province of South Africa; the production and sale of softwood and hardwood sawn timber products at Langeni Sawmill.
New Scope The forest management of HM Timber Limited’s Matiwane FSC Pure hardwood and FSC Pure softwood plantations in the Eastern Cape Province of South Africa, for the production of timber for 26/8/2009 sale to clients; and supply to Langeni sawmill for the production of Sawn Timber and sawmill by- products for sale on the Chain of Custody Transfer system. Location of the FMUs Eastern Cape Province of South Africa, in the vicinity of Mthatha included in the scope
Company Contact Bernard Bakker Person:
Address: HM Timber Limited: Matiwane Forests, PO Box 20, WEZA, 4685, Rep. of South Africa.
Tel: (039) 553 0401
Fax (039) 553 0425
Email: [email protected]
Evaluation dates:
Main Evaluation 21st – 23rd of July 2008
Surveillance 1 24th – 26th /8/2009
SGS services are rendered in accordance with the applicable SGS General Conditions of Service accessible at http://www.sgs.com/terms_and_conditions.htm
SGS South Africa (Qualifor Programme) 58 Melville Road, Booysens - PO Box 82582, Southdale 2185 - South Africa Systems and Services Certification Division Contact Programme Director at t. +27 11 681-2500 forestry@sgs.com www.sgs.com/forestry AD 36-A-06 Page 2 of 50
Surveillance 2 26 – 28 / 10 / 2010
Surveillance 3
Surveillance 4
Copyright: © 2010 SGS South Africa (Pty) Ltd All rights reserved
TABLE OF CONTENTS
1. SCOPE OF CERTIFICATE ...... 5 2. COMPANY BACKGROUND ...... 7 2.1 Ownership ...... 7 2.2 Company Key Objectives ...... 9 2.3 Company History ...... 9 2.4 Organisational Structure ...... 9 2.5 Ownership and Use Rights ...... 9 2.6 Other Land Uses ...... 9 2.7 Non-certified Forests ...... 9 All the land leased under this contract is certified...... 9 3. FOREST MANAGEMENT SYSTEM ...... 10 3.1 History of use ...... 10 3.2 Planning process ...... 10 3.3 Harvesting and regeneration ...... 11 3.4 Monitoring processes ...... 11 4. SOCIO-ECONOMIC AND ENVIRONMENTAL CONTEXT...... 11 4.1 Social aspects ...... 11 4.2 Environmental aspects ...... 12 4.2.1 Bio-geographical considerations...... 12 4.2.2 Sites of Special Interest & Natural Heritage Sites...... 12 4.2.3 Management for biodiversity ...... 13 4.3 Administration, Legislation and Guidelines ...... 14 5. CHANGES IN MANAGEMENT, HARVESTING, SILVICULTURE AND MONITORING ...... 17 6. PREPARATION FOR THE EVALUATION ...... 17 6.1 Schedule ...... 17 6.2 Team ...... 18 6.3 Checklist Preparation ...... 18 6.4 Stakeholder notification ...... 18 7. THE EVALUATION ...... 18 7.1 Opening meeting ...... 18 7.2 Document review ...... 18 7.3 Sampling and Evaluation Approach ...... 19 AD 36-A-06 Page 3 of 50
7.4 Field assessments ...... 19 7.5 Stakeholder interviews ...... 19 7.6 Summing up and closing meeting ...... 19 8. EVALUATION RESULTS ...... 20 8.1 Findings related to the general QUALIFOR Programme ...... 20 PRINCIPLE 1: Compliance with law and FSC Principles ...... 20 PRINCIPLE 2: Tenure and use rights and responsibilities ...... 21 PRINCIPLE 3: Indigenous peoples’ rights ...... 21 PRINCIPLE 4: Community relations and workers rights ...... 22 PRINCIPLE 5: Benefits from the forest ...... 23 PRINCIPLE 6: Environmental impact ...... 24 PRINCIPLE 7: Management plan ...... 27 PRINCIPLE 8: Monitoring and evaluation ...... 28 PRINCIPLE 9: High Conservation Value Forests...... 29 PRINCIPLE 10: Plantations ...... 30 9. CERTIFICATION DECISION ...... 31 10. MAINTENANCE OF CERTIFICATION ...... 32 11. RECORD OF CORRECTIVE ACTION REQUESTS (CARs) ...... 34 12. RECORD OF OBSERVATIONS ...... 41 13. RECORD OF STAKEHOLDER COMMENTS AND INTERVIEWS ...... 45 14. RECORD OF COMPLAINTS ...... 50
ASSOCIATED DOCUMENTS (not part of the Public Summary)
AD 20: Evaluation Itinerary AD 21: Attendance Record AD 26: Corrective Action Requests AD 36-B: Evaluation - Observations and Information on Logistics AD 38: Peer Review Report AD 40: Stakeholder Reports Evaluation team CV’s List of stakeholders contacted
Complaints and Disputes AD 36-A-06 Page 4 of 50
Procedures for submitting complaints, appeals and disputes, and the SGS processing of such are published on www.forestry.sgs.com. This information is also available on request – refer contact details on the first page.
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INTRODUCTION
The purpose of the evaluation was to evaluate the operations of HM Timber Limited – Matiwane Forests against the requirements of the QUALIFOR Programme, the SGS Group’s forest certification programme accredited by Forest Stewardship Council.
1. SCOPE OF CERTIFICATE The scope of the certificate falls within the Temperate Forest Zone and includes one Forest Management Unit (FMU) as described below.
Description of FMUs: Description Ownership Area (ha) Longitude E/W Latitude N/S Matiwane SA Government 23630 28°31’ - 14°’ E 31°27’ -42° S
Size of FMUs: Nr of FMUs Area (ha) Less than 100ha 100 to 1000 ha in area 1001 to 10000 ha in area 4 23,630 More than 10000 ha in area Total
Total Area in the Scope of the Certificate that is: Area (ha) Privately managed 23636 State Managed Community Managed
Composition of the Certified Forest(s) Area (ha) Area of forest protected from commercial harvesting of timber and managed primarily for 6449 conservation objectives Area of forest protected from commercial harvesting of timber and managed primarily for production of NTFPs or services Area of forest classified as “high conservation value forest” Total area of production forest (i.e. forest from which timber may be harvested) Area of production forest classified as “plantation” 17181 Area of production forest regenerated primarily by replanting 17181 Area of production forest regenerate primarily by natural regeneration N/A
List of High Conservation Values AD 36-A-06 Page 6 of 50
Description Notes Forest areas containing globally, regionally or nationally significant Afromontane Forest Patches - Mistbelt concentrations of biodiversity values or Podocarpus forests consisting of various rare, threatened & endangered species.
List of Timber Product Categories
Product Class Product Type Trade Name Category Species Wood in the Logs of coniferous Conifer Pinus species rough wood Pine Saw Timber Wood in the Logs of coniferous Pine Veneer Conifer Pinus species rough wood
Pine pulp Conifer Pinus species Wood in the Logs of coniferous rough wood
Logs of non-coniferous Eucalyptus Deciduous Eucalyptus Species Wood in the wood poles (Hardwood) rough Wood in the Logs of non- Deciduous Eucalyptus species rough coniferous wood Eucalyptus pulp (Hardwood)
Annual Timber Production Species (botanical name) Species (common name) Area (ha) Maximum Annual Sustainable Yield (m3)
Projected Actual Pinus patula 9,778 136,152 Pinus spp 5,286 60,241 Eucalyptus grandis 1,412 19,701 Eucalyptus spp 94 1,277 Other spp 244 Totals 16,814
Approximate Annual Commercial Production of Non-Timber-Forest-Products Product Species Unit of measure Total units Botanical Name Common Name) Mushrooms Boletus edulis Boletus ton 1.59
Lists of Pesticides Product Name Quantity Used Area of application AD 36-A-06 Page 7 of 50
Lists of Pesticides Product Name Quantity Used Area of application MA SA1 SA2 SA3 SA4 MA SA1 SA2 SA3 SA4 Garlon Tryclopyr 105 334 Starane Fluroxipur 100 800 Chopper Imazapyr 47 260 Gramoxone (Paraquat) 80 92 Kilo 500 5300 1981 Volcano (Glyphosate) 1583 1561
2. COMPANY BACKGROUND 2.1 Ownership Singisi Forest Products, a subsidiary of HM Timber Limited, is a joint venture amongst the following: • Hans Merensky Holdings (51%) • Eastern Cape Development Corporation (14%) • Singilanga Directorate Trust (10%) • National Empowerment Fund (9%) • Staff Share Trust (9%) • South African Forestry Company Limited (7%)
Figure 1 shows a graphical representation of the shareholding of Singisi Forest Products (Pty) Ltd.
Shareholding of Singisi Forest Products (Pty) Ltd
Hans Merensky Holdings
7% Eastern Cape Development 9% Corporation
Singilanga Directorate Trust 9%
51% National Empowerment Fund 10%
Staff Share Trust 14% South African Forestry Company Limited
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2.2 Company Key Objectives
Objective Notes Commercial The primary management objective is the optimum sustainable production of high quality pine sawtimber. Social To make a positive contribution to the socio-economic development of our employees and neighbours Environmental To minimise the impact of our forestry operations on the environment
2.3 Company History Singisi Forest Products (SFP) was born out of the successful bid made by Hans Merensky (HM) Holdings in 2000 for the government owned plantations contained in the “Eastern Cape North” package. The package comprised approximately 60,000ha of plantation, 19,800ha of Indigenous Forest and open areas, and the Weza Sawmill; to which was added the HM sawmills of Langeni and Singisi. More recently, in order to streamline and functionalise management, SFP, Northern Timbers and Vuka-Ramanas were amalgamated into one management structure with a MD, and functional GM’s. 2.4 Organisational Structure The management of the HM plantations is carried out by a team of professionally qualified foresters. The company structure also includes the other FMUs that are managed under different certificates. The company’s forest management structure comprises a General Manager – Forest Management and a Forestry Engineer, who report to the company MD; a Forest Manager for each of the FMUs and a Forest Manager – Technical Services. There is also an Environmental Forester who reports to the Technical Services Manager. HM Timber also owns the Tweefontein, Weza, Singisi and Langeni sawmills as well as Northern Timbers, Eastern Cape Veneer and is co-owner of HM Plywood. This certificate only covers the Matiwane FMU. 2.5 Ownership and Use Rights The plantations are leased from the State on a 35-year lease with an option to renew the lease for a further 35 years (35 year notice period). HM has the right to practice forestry on the leased State Forest land while conforming to a number of key requirements: • Sustainable forest management • Forest Stewardship Council certification • Socio-economic development.
2.6 Other Land Uses No other land use is taken place on the FMU. 2.7 Non-certified Forests All the land leased under this contract is certified. AD 36-A-06 Page 10 of 50
3. FOREST MANAGEMENT SYSTEM Matiwane Forests is situated about 40 km west of Mthatha on the southern slope and foothills of the Matiwane range. A number of indigenous forest patches lie beneath the escarpment and extends down to the foothills along the valleys and riparian zones. The altitude ranges from 812 to 1675 meter above sea level, with the northern section of the plantation being the steepest area. The estate covers the northern half of the T20A quaternary subcatchment draining into the Mtata River; this subcatchment is the main source of water for the Mtata dam and has a mean annual runoff of 200 – 500 mm. From the T11G quaternary subcatchment, the western part of Baziya drains into the Nqancule River that joins the Bashee River. The annual rainfall is 1239,8mm, most of it occurs from October to March with a peak in January. Warm, dry berg winds occur in winter and early spring and the wind speed increases from May to October with a peak in August/September. The geology of the area consists mainly of rocks from the Beaufort Group, with some Ecca sediments in the northeast. (Basic / Mafic lavas). The erodibility index of the T20A subcatchment is rated at a medium (14) [scale of 1 to 20, with 1 high and 20 low], and the sediment yield is estimated at 89 000 t/a. Veld type is classified as Moist Upland Grassland – Type (42) [Low & Rebelo]; also known as Highland Sourveld and Dohne Sourveld - Acocks classification (A44a and A44b). This veld type is interspersed with Afromontane Forest patches dominated by Podocarpus spp. and Valley Thicket dominated by Acacia karroo. Fauna associated with grasslands, forest, thickets and plantations are found (Bushbuck; Common, Red and Blue duiker, raptors and Cape Parrot, associated reptiles and amphibians as well as endemic grass- and epiphytic orchids). Outside the plantation boundaries, the steep northern parts are covered with grasslands while the southern area’s undulating grasslands are overgrazed, settlements are noted along the southern and western boundaries and maize fields to the east. Soils in the north and western part of Baziya are moderate to deep clayey loams while the eastern part is dominated by moderate to deep sandy loam soils. The erodibility is fairly high in some parts and the soils may be leached due to the high rainfall. A comprehensive soil survey was completed in 2003 by AFRIGIS.
3.1 History of use This area in which these FMUs are situated has a long history of forestry and was managed as State Forest in the past. Political changes in the past have led to this area being changed a few times. The plantations are in the Eastern Cape region. Other land uses includes pasture management.
3.2 Planning process Planning follows a traditional 3-tiered approach, with the following levels:
• Strategic – Planning is carried out by the senior forest management team and includes business planning and yield regulation (30 year plan) to ensure sustainability.
• Tactical – Planning is carried out by individual management unit teams and includes the Annual Plan of Operations (APO), silviculture and fire break schedules, harvesting, and conservation plans
• Operational – Planning undertaken by foresters, supervisors and contractors responsible for particular operations. These plans include compartment level planning for silviculture, harvesting and the maintenance of conservation areas. In addition, each Management Unit is required to maintain an up-to-date Fire Protection Plan, Roads Plan and EMP. These are 5-year plans that are updated annually. The Planning Forester, is responsible for the maintenance of the GIS maps and plantation stock database and makes use of ArcView and Microforest. Microforest is a computer programme that incorporates a database (linked to GIS), a compartment inventory system and stand growth models that are used to prepare the Working Plans. The Working Plans are prepared by the Planning Forester in collaboration with Forest Managers. The Working Plans indicate the detailed yield regulation that forms the basis for the selection of compartments for harvesting, and include management AD 36-A-06 Page 11 of 50
prescriptions per Working Circle. The Working Plans feed upwards and provide the input for the 30- Year Yield Regulation Plan. Operational training is planned on an annual basis by means of a needs analysis, and takes place either in-field, or in the training centres. Training is performed by in-house trainers where possible, or it is contracted out.
3.3 Harvesting and regeneration The prime objective is the production of high quality pine sawtimber on a 25-30 year rotation. Planning is carried out on a strategic level through the use of MicroForest with growth formulae which are used for volume prediction and the determination of silvicultural regimes (see below). From this strategic plan, a 5 -year plan (tactical) and annual plan (APO) is generated. Operational Harvesting Plans (OHP) are completed for each compartment prior to harvesting, during which phase the harvesting equipment to be used is matched to the site, making use of terrain classification data. The average annual cut for the current five-year Periodic Block should be approximately 1,985ha. A first thinning is carried out at 8 years, and a second thinning at 13 years, thereafter, depending on the site, a third thinning may be carried out at 18 years. Pine compartments are then clear felled at 25- 30 years, depending on the quality of the site and the MAI (mean annual increment). Most of the gum compartments, and specifically the old gum belts that were established, will be converted to pine compartments. Poplars, which have traditionally been planted in the floodplains of the rivers, are gradually being excised and the areas converted back to riparian zone conservation areas. The company subscribes to the FESA (Forest Engineering South Africa) Harvesting Code of Practice and the Environmental Guidelines for Commercial Forestry Plantations in South Africa. All of the planning and operational phases of harvesting are guided by the principles and operating procedures as recommended by this Code of Practice
3.4 Monitoring processes Informal monitoring and auditing of operations forms an integral part of the daily activities of the forest managers, their foresters, and their contractors. Operational progress is monitored through the preparation and presentation of monthly reports through the hierarchy of the management structure; and through management meetings held weekly and monthly. Working Plan and Thinning Control enumerations are carried out regularly, which enables the monitoring of growth and the health of stands. Any occurrence of pests or diseases is monitored on an ongoing basis by all field staff. Reviews of transgressions of company policy and procedures are undertaken according to the Company’s Disciplinary Code.
4. SOCIO-ECONOMIC AND ENVIRONMENTAL CONTEXT
4.1 Social aspects
Number of own workers permanent staff 392 Number of own workers – fixed term contracts (casuals) 177 Number of contract workers 373 Minimum daily wage for agricultural/forestry workers 45.25 Infant mortality rates (under 5 years) Proportion of workers employed from the local population (%)
The Matiwane plantations are part of the package of State plantations leased to Singisi Forest Products in the northern area of the Eastern Cape Province. The plantations are completely surrounded by an area that was previously the nominally independent homeland of the Transkei. Although the homeland areas were abolished and incorporated back into South Africa in 1994 when AD 36-A-06 Page 12 of 50
the first democratic government came into power, the legacy of apartheid policies continue to shape current socio-economic reality. Plantations were established on community controlled land, allocated to the government by local chiefs and headmen, a dispossession still keenly felt amongst the 126 rural communities living in the surrounding areas. The majority of the population in these areas are Xhosa- speaking people, living in small settlements within rural areas. Income sources include small scale cultivation, livestock, employment in the informal sector, remittances from relatives employed elsewhere and state pensions. Opportunities for formal employment locally are virtually non-existent. The main problems are the high levels of unemployment and under-employment, low wages paid for unskilled work, high rates of HIV/AIDS infection and the poor state of local infrastructure and facilities. Communities surrounding the FMU have an important stake as land claimants and through their need to access opportunities for improved livelihoods that could be provided through the business. Land claims have been lodged against plantation land, and these are still in the process of being settled by the Land Claims Commission. In the interim, lease fees paid to government are being paid into a Trust account with the undertaking that these will be disbursed to the rightful owners of the land after settlement. Delays in this process are causing considerable frustration and depriving communities of a much needed development income. There are however a number of other ways in which community stakeholders access benefits from the FMU. SFP elected to include the local community as shareholders in the company, an innovative approach to giving them a stake in the business. Annual dividends are paid out through a specialised trust vehicle set up for the purpose. There is also a policy of preferentially employing people from surrounding areas, and promoting small forest based business enterprises.
4.2 Environmental aspects It is the policy of SFP that all new developments that may result in a change of land use or have a potential impact on the environment are subject to an Environmental Impact Assessment (EIA). Further detail of the EIA procedure is shown in the EIA Policy document. Each Forest Management Unit has its own unique Environmental Plan in which the following are addressed in greater detail.
4.2.1 Bio-geographical considerations. Landscape processes like the dispersal and migration of plants and animals via corridors are to be promoted, and the conservation of vegetation and habitat gradients are also ensured. Plantations in corridors, wetlands and riparian zones; and afforestation of vast areas without links to different unplanted areas are a threat to these processes. Areas that have high conservation value should not be afforested. Such areas that have been planted up in the past should be rehabilitated back to natural vegetation where possible. Conservation areas should be consolidated to have a few large areas rather than many small ones. Patches of open grassland and other natural vegetation types should be linked by means of corridors. Rare, threatened and endangered species are protected by allowing migration pathways and natural dispersal within an area, by keeping the genetic flow alive. Species richness increases with increased habitat size - larger patches of natural vegetation in between plantations, can hold a more diverse range of plants and animals due to the increased number of habitats found in one large area, compared to several small ones.
4.2.2 Sites of Special Interest & Natural Heritage Sites. In keeping with the company policy on sites of special interest, such areas will be identified and managed accordingly. Examples are grave sites; arboreta; national monuments; areas with multiple, or special, vegetation types; habitats or localities where rare, threatened and / or endangered species are found; etc. Threats to these areas are exotic weed species, and non-adherence to management prescriptions resulting in loss of or decrease in numbers of plants or animals to be conserved. In the event of registering a Natural Heritage Site, one is responsible for the site and automatically gives an undertaking not to conduct any actions which could destroy or degrade the site while it is registered. By registration of a site, one is also bound to undertake to report any adverse change in the site. These sites can be used as examples of certain management practices and to advertise the company's commitment to conserve the different habitat types. AD 36-A-06 Page 13 of 50
4.2.3 Management for biodiversity Riparian zones Riparian zones should be managed to maintain a range of vegetation types, habitats and ecological processes and act as corridors between natural vegetation patches, in addition to improving the quality of water. All exotic weeds should be removed from riparian zones and the debris resulting from this must not be allowed to enter the watercourse/stream. The riparian zone must be clearly and accurately demarcated by means of the wetland delineation procedure. Where possible the riparian zone can be bounded by low maintenance grassed roads - if this is not possible the delineation must be clear to all the managers involved. Attempt to include some grassland on the outer edges of riparian forest and attempt to link various riparian zones through natural corridors. Where burning is a management tool it should be done in such a way that a patchwork of burnt and unburnt areas is left, because animals that occur in riparian zones are habitat specialists to some degree. Alternatively only one side of the riparian zone should be burnt in a particular year. Wetlands All wetlands should be properly delineated, rehabilitated and conserved as important and valuable ecosystems, and functioning at maximum capacity. They must be accurately delineated according to the vegetation and hydromorphic soil types associated with permanent, seasonal and temporary wetlands. Drainage lines, canals and other damage, including headcuts and roads, must be rehabilitated to promote the value and functioning of a healthy wetland system. Dykes were built in the past to prevent water dispersing along it's natural course and to make land available for green feed and other crops - these dykes have to be broken at intervals to assist in the natural dispersion of water and reclamation of wetland vegetation. By rehabilitation of wetlands, biodiversity will be increased naturally because of the different habitat types occurring in a healthy wetland and the vegetation and animals associated with them. Management plans are needed for large wetlands that have a big influence on the river systems and other ecotones that affect biodiversity directly. Ecotones An ecotone is an area where different biomes meet (e.g., forest and grassland / or a plantation and grassland etc.), in these areas the biodiversity is usually higher than in the surrounding areas, due to the edge effect and the law of interspersion. Ecotones contain a variety of vegetation structures and many important dynamic processes take place along them. Management procedures to mimic the natural landscape processes can also be applied to assist in the conservation of natural diversity in the catchment. Efforts should be made to minimise damage to ecotones during normal forestry operations. Ecotones need the periodic application of fire in patches (not roaring fires running up valleys into indigenous forests), and weeds should be eradicated. Periodic burning of grassland/forest edges will promote dense ecotone structure formation, this will protect the forest and limit the establishment of alien vegetation Indigenous forests Indigenous forest patches are to be managed with the aim of maintaining maximum biodiversity, excluding exotic weed species, and preventing damage by means of bark stripping, timber theft, and forestry operations. Clearfelling into indigenous forests is not permitted, and where this has happened it must be rehabilitated. Where burning is necessary it must be allowed to burn up to the forest from only a short distance away (on slopes). Small forest patches are important features in the landscape as they provide refuge sites for animals and plants. Corridors will benefit genetic flow within species, preventing the possibility of localised extinction due to domination of excessive genealogy. Transect monitoring of the high conservation value indigenous forests must be formulated and implemented. Grasslands Grassland patches should be managed with the aim of maintaining maximum biodiversity. Burning of grassland is important for maintaining the biotic diversity - burning too often will change the species AD 36-A-06 Page 14 of 50
composition to the detriment of the veld type and the overall species diversity; burning too seldom will cause the vegetation to become moribund and die in patches, creating the potential for erosion and exotic weed infestation. Depending on the grassland veld type, the average burning regime is between one to three years. Overgrazing and stock numbers in excess of the carrying capacity not only affects the environment but decreases the value the land as well. The intensity of the fire and time of the year plays an important role in the biodiversity management, as well as the size of area burnt. Very hot and slow fires (often burning downhill or against the wind) sometimes burn down into the root of the plant and kills or damages it, topography, fuel load and climatic factors should be the main points of consideration prior to burning. Perennial grass species have a pronounced dormant period during the dry winter season, burning during this time does the least damage to the plant because most nutrients have been withdrawn from the sward and are stored in the roots. Grass should not be burnt before the first frost or during the active growing season, veld burnt in early spring prior to the first rains often does the most damage to the plant as the last reserves left after winter is put into the first growth of the early spring season, burning at that time could easily kill the plant. Cliffs, Rocky outcrops and waterfalls Cliff faces, rocky outcrops and waterfalls are all aesthetically pleasing and constitute unique habitats for both fauna and flora with higher diversity of species than surrounding areas. These areas should therefore, be given special conservation status and managed with sensitivity. Fauna An indigenous animal community of genetically viable populations in which the specificity of the gene pools is conserved and aimed at optimum biodiversity. Habitat destruction due to afforestation must be taken into consideration and in the case of rare or endangered species, a certain area, suitable to the particular specie should be reserved for its survival, and linked with other similar areas. Persecution of certain reptile, mammal and bird species due to folklore and myths should be addressed and the appropriate steps taken to educate the guilty persons (e.g., most snakes, leguaans, owls, chameleons etc.). Monitoring should take place on an ongoing basis to list and establish systems to monitor the status of rare or endangered species and the viability of the population sizes. Soils All forms of man induced and animal induced erosion should be identified and controlled. The aim of the rehabilitation is to effectively control soil loss from identified areas (roads, extraction routes, quarries, buildings etc.). Management actions would be to map all the erosion areas and prioritise these for attention. The follow up of rehabilitated areas are as important as the initial phase.
4.3 Administration, Legislation and Guidelines The following table lists the key national legislation, regulations, guidelines and codes of best practice that are relevant to forestry in the commercial, environmental and social sectors. This list does not purport to be comprehensive, but indicates information that is key to the forestry sector.
Legislation and regulation Notes Advertising On Roads And Ribbon Development Act (No. 21 of 1940) Agricultural Pests Act (No. 39 of 1983) Animal Disease Act (No. 35 of 1984) Constitution of South Africa (1996) Conservation of Agricultural Resources Act (No. 43 of 1983), as amended 2001. Environment Conservation Act (No. 73 of 1989) Fencing Act (No. 31 of 1963) Fertilisers, Farm Feeds, Agricultural Remedies and Stock Remedies Act (No. 36 of 1947). AD 36-A-06 Page 15 of 50
Hazardous Substances Act (No. 15 of 1973) Minerals and Petroleum Resources Development Act (No. 28 of 2002) National Building Regulations and Building Standards (No. 103 of 1977) National Environmental Management Act (No. 107 of 1998) National Environmental Management: Air Quality Act (2004) National Environmental Management: Biodiversity Act (No. 10 of 2004) National Environmental Management: Protected Areas Act (No. 57 of 2003) National Forests Act (No. 84 of 1998) National Road Traffic Amendment Act [No. 21 of 1999] National Veld and Forest Fire Act (No. 101 of 1998) National Water Act (No. 36 of 1998) Plant Breeders Rights Act (No. 15 of 1976) Plant Improvement Act (No. 53 of 1976) Cultural And Social Notes Animal Protection Act (No. 71 of 1962) Basic Conditions of Employment Act (No. 75 of 1997) Communal Land Rights Act (No. 11 of 2004) Compensation for Occupational Injuries and Diseases Act (No. 130 of 1993) Employment Equity Act (No. 55 of 1998) Extension of Security of Tenure Act (No. 67 of 1997) Labour Relations Act (No. 66 of 1995) and Labour Relations Amendment Act of 1997. Land Reform Act (No. 3 of 1996) National Heritage Resources Act (No. 25 of 1999) Occupational Health and Safety Act (No. 85 of 1993) Prevention of Illegal Eviction from and Unlawful occupation of Land Act (No. 19 of 1998) Protection of Informal land Rights Act (No. 31 of 1996) Restitution of Land Rights Act (No. 22 of 1994) SA Schools Act (No. 84 of 1996) Security Officer’s Amendment Act (1997) Skills Development Act (No. 97 of 1998) Skills Development Levies Act (No. 9 of 1999) Unemployment Insurance Act (No. 30 of 1966) Scientific and biodiversity reference works Notes Barnes, K. N. (ed.) 2000. The Eskom Red Data Book of Birds of South Africa, Lesotho and Swaziland. BirdLife South Africa, Johannesburg - ISBN number 0-620-25499-8 Bromilow, C. 2001. Problem Plants of South Africa. A guide to the identification and control of more than 300 invasive plants and other AD 36-A-06 Page 16 of 50
weeds. Briza Publications. Draft Lists of Threatened and Protected Species issued in terms of Section 56 (1) of the National Environmental Management: Biodiversity Act, 2004. Friedmann Y. and Daly B, (editors) 2004. Red Data Book of the Mammals of South Africa: A Conservation Assessment: CBSG Southern Africa, Conservation Breeding Specialist Group (SSC/IUCN), Endangered Wildlife Trust. South Africa - ISBN number 0-620-32017-6 Golding, J. (ed) 2002. Southern African Plant Red Data Lists. South African Botanical Diversity Network report No 14. Henderson, L. 2001. Alien Weeds and Invasive Plants: A complete guide to declared weeds and invaders in South Africa. Plant Protection Research Institute handbook No12, Agricultural Research Council. Hilton-Taylor, C. 1996. Red Data list of Southern African Plants. NBI. Strelitzia 4. Minter, L.R., M. Burger, J.A. Harrison, H.H. Braak, P.J. Bishop and D. Kloepfer, eds, 2004. Atlas and Red Data Book of the Frogs of South Africa, Lesotho and Swaziland. SI/MAB Series #9. National List of Declared Weeds and Invader Plants: Table 3 of Regulation 15 of Conservation of Agricultural resources Act (43 of 1983). National Principles, Criteria, Indicators and Standards (PCI&S) of Sustainable Forest Management (SFM). Section 3 of the National Forest Act (84 of 1998). Version 30 March 2005. Scott-Shaw, C. R. 1999. Rare and Threatened Plants of KwaZulu- Natal and Neighbouring Regions. KwaZulu-Natal Nature Conservation Service. The South African Red Data Book Series (National Scientific Programmes Report Series published by the CSIR: No 7 and 11 in 1976, 14 and 18 in 1977, 23 in 1978, 45 in 1980, 97 in 1984 and 117 in 1986. These cover birds, small mammals, fishes, large mammals, reptiles and amphibians and vascular plants.
INTERNATIONAL AGREEMENTS PERTINENT TO FORESTRY South Africa is a signatory to the following and current South African legislation encapsulates the obligations of these international agreements: Convention on Biological Diversity Convention on the International Trade in Endangered Species (CITES) International Labour Organisation (ILO) Guidelines and Codes of Best Practice A practical field procedure for identification and delineation of wetlands and riparian areas. Final draft: February 2003. Department of Water Affairs and Forestry. Best Management Practices for Preventing and Controlling Invasive Alien Species. Symposium Proceedings, The Working for Water Programme, 22-24 February 2000. Engelbrecht, G. v. R. and Warkotsch, P.W. 1994. Chute Operating Manual – FESA Chute Project Group Environmental Guidelines for Commercial Forestry Plantations in South Africa (Forestry South Africa, Second Edition, August 2002). AD 36-A-06 Page 17 of 50
Guidelines for Forest Engineering Practices in South Africa. Forest Engineering Working Group of South Africa (FESA), May 1999. Protective Device for users of sharp bladed tools: Requirements for leg protectors. FESA standard FESA 001:1998. Relevant ICFR Bulletins and handbook series. Responsible Use Guide. AVCASA Crop protection and Animal Health Association, October 2001. South African Forestry Handbook, Volumes 1 & 2. The South African Institute of Forestry, 2000. The Private Security Industry Regulatory Authority (SIRA) Regulations. The South African Cable-yarding Safety and Operating handbook (FESA). The South African Chainsaw Safety and Operating handbook January 2000. (FESA). The South African Forestry Road Handbook. FESA Working Group, August 2004. (Available on CD, and currently in publication – available from Francois Oberholzer 082 850 4330).
5. CHANGES IN MANAGEMENT, HARVESTING, SILVICULTURE AND MONITORING The following table shows significant changes that took place in the management, monitoring, harvesting and regeneration practices of the certificate holder over the certificate period.
Description of Change Notes SURVEILLANCE 1 The company went through a restructuring process and is now working with a reporting system that reports along the functional activities. The FSC coordinator left the company and was replaced. Due to the economic recession the company also had to restructure its resources and had to close one of the mills in the eastern Cape.
SURVEILLANCE 2 Some of the managers has changed including the officer in charge. There were devastating fires in the past few years that has had a big influence on the growing stock and planning of annual operations.
SURVEILLANCE 3
SURVEILLANCE 4
6. PREPARATION FOR THE EVALUATION
6.1 Schedule AD 36-A-06 Page 18 of 50
This was a re-assessment, therefore the initiation of the second 5-year cycle of certification. There was no need for a pre-evaluation by SGS QUALIFOR. Key stakeholders have been identified by Matiwane Forests, who provided SGS with this information.
6.2 Team The table below shows the team that conducted the re-evaluation and the independent specialist(s) that were selected to review the main evaluation report before certification is considered.
Evaluation Team Notes Team Leader Has a Master degree in Environmental management, 15 years experience in forestry and environmental management in South Africa. Local Specialist Has a Master degree in Ecology, 28 years experience in social and community forestry nationally and in the southern African region Peer Reviewers Notes Peer Reviewer 1 Since this was a re-assessment, this report was not peer reviewed externally, but went through internal review by SGS.
6.3 Checklist Preparation The SGS Qualifor Checklist for Forest Management, based on the FSC Principles and Criteria, adapted for South Africa was used. This adapted checklist underwent extensive stakeholder consultation at the time of collation. A copy of this checklist is available on the SGS Qualifor website, www.forestry.sgs.com. South Africa is currently in the process of forming a National Initiative to develop an FSC Standard for South Africa, which will replace this SGS Qualifor standard when it has been approved.
Standard Used in Evaluation Effective Date Version Nr Changes to Standard SGS Qualifor: Generic Forest 1 September 02 There have been no changes to this Management Standard (AD33) 2005 standard since 2005. adapted for South Africa. SGS Qualifor: Generic Forest 29 March 04 New indicator 5.5.3 has been added and Management Standard (AD33) 2010 the South African indicators have been adapted for South Africa. updated.
6.4 Stakeholder notification A wide range of stakeholders were contacted 4 weeks before the planned evaluation to inform them of the evaluation and ask for their views on relevant forest management issues, These included environmental interest groups, local government agencies and forestry authorities, forest user groups, and workers’ unions. The full list of stakeholders that were contacted is available from SGS. Responses received and comments from interviews are recorded under paragraph 13 of this Public Summary.
7. THE EVALUATION The Main Evaluation was conducted in the steps outlined below.
7.1 Opening meeting An opening meeting was held at Langeni Mill Matiwane Forests. The scope of the evaluation was explained and schedules were determined. Record was kept of all persons that attended this meeting.
7.2 Document review A review of the main forest management documentation was conducted to evaluate the adequacy of coverage of the QUALIFOR Programme requirements. This involved examination of policies, management plans, systems, procedures, instructions and controls. AD 36-A-06 Page 19 of 50
7.3 Sampling and Evaluation Approach A detailed record of the following is available in section B of the evaluation report. This section does not form part of the public summary, but includes information on:
Sampling methodology and rationale; FMUs included in the sample; Sites visited during the field evaluation; and Man-day allocation. At the 2008 Re-assessment of Matiwane Forests, Baziya, Nqadu, Mhlahlane and Langeni were visited. The assessment took two and a half days and the team comprised of a Lead Auditor and a Social Specialist. In addition to accompanying the Lead Auditor to certain sites, the Social Specialist spent time assessing documentation and also conducted interviews with stakeholders in the area.
7.4 Field assessments Field assessments aimed to determine how closely activities in the field complied with documented management systems and QUALIFOR Programme requirements. Interviews with staff, operators and contractors were conducted to determine their familiarity with and their application of policies, procedures and practices that are relevant to their activities. A carefully selected sample of sites was visited to evaluate whether practices met the required performance levels.
7.5 Stakeholder interviews Meetings or telephone interviews were held with stakeholders as determined by the responses to notification letters and SGS discretion as to key stakeholders that should be interviewed. These aimed to:
clarify any issues raised and the company’s responses to them;
obtain additional information where necessary; and
obtain the views of key stakeholders that did not respond to the written invitation sent out before the evaluation.
Nr of Stakeholders Nr of Interviews with contacted NGOs Government Other MAIN EVALUATION
55 8 1 SURVEILLANCE 1
4 2 2 SURVEILLANCE 2
9 4 (emails 1 4 sent – no response.) SURVEILLANCE 3
SURVEILLANCE 4
Responses received and comments from interviews are recorded under paragraph 13 of this Public Summary.
7.6 Summing up and closing meeting AD 36-A-06 Page 20 of 50
At the conclusion of the field evaluation, findings were presented to company management at a closing meeting. Any areas of non-conformance with the QUALIFOR Programme were raised as one of two types of Corrective Action Request (CAR):
Major CARs - which must be addressed and re-assessed before certification can proceed
Minor CARs - which do not preclude certification, but must be addressed within an agreed time frame, and will be checked at the first surveillance visit A record was kept of persons that attended this meeting.
8. EVALUATION RESULTS Detailed evaluation findings are included in Section B of the evaluation report. This does not form part of the public summary. For each QUALIFOR requirement, these show the related findings, and any observations or corrective actions raised. The main issues are discussed below. 8.1 Findings related to the general QUALIFOR Programme
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Criterion 1.1 Respect for national and local laws and administrative requirements
Strengths
Weaknesses The black empowerment partners of Singisi Forest Products (SFP), primarily local communities with land claims and other interests in the plantations are not being adequately empowered. Taken together with other failures to ensure distribution of benefits from forests to the local community on the part of state shareholders in SFP, and the government land restitution program, are a threat to achieving the BBBEE goals of the restructuring / privatisation of state plantation assets and present a threat to the sustainability of the plantation. Observation 07 was raised in this Compliance No evidence of legal non compliance was observed at the time of the assessment. Forest Manager(s) have an underlying knowledge of applicable legislation and codes of practices. List of applicable laws are available on procedures media. Aside from difficulties experienced with ensuring meaningful empowerment of local community stakeholders, compliance with laws and administrative requirements was of a high standard.
Criterion 1.2 Payment of legally prescribed fees, royalties, taxes and other charges
Strengths Weaknesses Compliance Evidence of payments of water registration, COIDA, UIF, Skills Development Levies and Rental for the forest (DWAF) and buildings (ECDC) provided. Annual budget allocations include all fees and payments due.
Criterion 1.3 Respect for provisions of international agreements
Strengths Weaknesses Compliance Copies of CITES and CBD have been made available to all senior staff. A list of CITES listed species that occur in South Africa has been made available to staff. HR policies and procedures are based on South African labour legislation which includes ILO conventions and standards. The ITTA governs the sale of tropical hardwoods derived from indigenous forests and does not apply to plantations based on exotic species. The provisions of the CBD are incorporated into national environmental legislation, and environmental policies and practice of the company are developed to give effect to these.
Criterion 1.4 Conflicts between laws and regulations, and the FSC P&C
Strengths Weaknesses AD 36-A-06 Page 21 of 50
Compliance No conflicts were identified
Criterion 1.5 Protection of forests from illegal activities
Strengths Weaknesses Cattle from neighbouring areas do considerable damage to newly planted compartments. Compliance The problem of cattle is being addressed through a variety of measures including employing of “cowboys” to herd cattle out of plantations, ongoing meetings with leaders from surrounding areas to discuss the problem and find solutions, fencing, a branding programme combined with impounding of stray livestock. Access to an array of forest products (firewood, grass) is regulated through a permit system. Forest guards are employed to ensure conditions of permits are adhered to and to prevent illegal harvesting. Adequate resources are in place to monitor illegal activities – Environmental Rangers and security personnel.
Criterion 1.6 Demonstration of a long-term commitment to the FSC P&C
Strengths Matiwane Forests provides yearly FSC refresher courses to workers and contractors and levels of awareness amongst staff were found to be high. Weaknesses Compliance The Environmental Policy explicitly states long term commitment to FSC P&C. The Environmental Policy is displayed on notice boards and has been translated into Xhosa. All the other plantation areas belonging to Matiwane Forests and to the majority shareholder, Hans Merensky, are FSC certified.
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Criterion 2.1 Demonstration of land tenure and forest use rights
Strengths Weaknesses Compliance The plantation land is leased to the company by the Government. A lease agreement is in place, and boundaries of the leased area clearly demarcated. The land owner (government) supports certification and in fact it is a requirement of the lease that company obtains certification for the plantations under their management
Criterion 2.2 Local communities’ legal or customary tenure or use rights
Strengths Weaknesses Compliance Land claims have been lodged against various portions of the FMU. The process of verifying and settling these claims is the responsibility of the Land Claims Commission, as is the maintenance of records. The National Forests Act (Act No. 84 of 1998) provides local communities with rights of access to State Forests for non-consumptive purposes (s19), as well as an exemption from requiring a license to obtain non-timber forest products for domestic consumption (s24). Matiwane Forests has a system in place to allow for controlled access, and harvesting of non-timber forest products for domestic consumption
Criterion 2.3 Disputes over tenure claims and use rights
Strengths Weaknesses Compliance The responsibility for resolving land claims lies with the Land Claims Commission. Matiwane Forests maintains contact with land claimants from surrounding communities and has provided ongoing assistance to land claimants to expedite settlement.
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Criterion 3.1 Indigenous peoples’ control of forest management
Strengths AD 36-A-06 Page 22 of 50
Weaknesses Compliance Land claims have been lodged against various portions of the FMU. The process of verifying and settling these claims is the responsibility of the Land Claims Commission, as is records keeping. All existing tenure and access rights of third parties are specified in terms of the lease agreement., and the company is obliged to respect these
Criterion 3.2 Maintenance of indigenous peoples’ resources or tenure rights
Strengths Weaknesses Compliance The plantation land was alienated many decades ago and impacts on tenure and resource rights would have been significant at the time. The purpose of the land restitution program of government is to provide redress for impacts of land alienation in the past. Current forest management activities are not further impacting on resource or tenure rights
Criterion 3.3 Protection of sites of special cultural, ecological, economic or religious significance to indigenous peoples
Strengths Weaknesses Some sites listed at Baziya were clearly not ASIs. See Observation 01. Compliance All ASIs (Areas of Special Interest) have been identified with interested stakeholders. All of these are mapped and indicated on operational and management maps. Management objectives exist for each of the ASIs and a buffer of 5m was verified. Operators questioned in field knew about the management requirements of the different sites as well as the reporting procedure should they identify new sites during operations. The normal permit system applies to all visitors to the landholdings.
Criterion 3.4 Compensation of indigenous peoples for the application of their traditional knowledge
Strengths Weaknesses Compliance No use of traditional knowledge in commercial forestry operations in this area
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Criterion 4.1 Employment, training, and other services for local communities
Strengths Matiwane Forests has a comprehensive training program for employees, and a bursary scheme that is open to youngsters from surrounding communities. There is also a program to up-skill a group of young diploma foresters through on-the-job training and part time studies for a B Tech in Forestry. Weaknesses Contributions to local infrastructure and facilities in areas surrounding the plantations have been confined mainly to payment of dividends to those communities who are shareholders in the company. These dividends are however fairly limited after they are divided up amongst all the shareholding communities and have had made minimal contributions to local infrastructure and facilities. The company is taking on new workers at the minimum wage, which is nearly half that paid to those doing the same work who are already on the payroll. See Observation 06 . Compliance The company has had to invest very heavily in the infrastructure and facilities (office buildings, roads, accommodation) on the plantation as this was in a very poor state when they took the operations over from the government . Company employees and those employed by contractors are being paid at or above the minimum wage, and no evidence of payment below for not achieving task was found.
Criterion 4.2 Compliance with health and safety regulations
Strengths Weaknesses The company inherited worker villages in a very poor state of repair. These villages are being steadily upgraded. The company has committed to ensuring that there is a supply of potable AD 36-A-06 Page 23 of 50
water at all villages and sufficient toilets of an acceptable standard by 2010. See Observation 05 Compliance There is a comprehensive and independently audited health and safety system in place based on National Health and Safety Legislation. There are 2 government clinics housed on the FMU that provide medical services to workers, their families and surrounding communities. Industry standards for PPE and safe work procedures are applied for all tasks. All employees interviewed were aware of potential hazards related to their tasks. Emergency procedures were explained and demonstrated. First aider had proof of refresher training in April 2007. Workers had the necessary PPE and equipment at the different harvesting and silviculture sites visited. PPE requirements are emphasised during daily toolbox talks and it is the responsibility of supervisors to check that PPE is being worn.
Criterion 4.3 Workers’ rights to organise and negotiate with employers
Strengths Weaknesses Compliance Workers of the company and contractors are free to join unions, and there are 2 unions that are active. Union membership of workers employed by the company is as follows: CEPPAWU 45%; NEHAWU 37% non-unionised 9%.
Criterion 4.4 Social impact evaluations and consultation
Strengths Weaknesses The effectiveness of monthly meetings is not clearly evidenced by the minutes and a review of these and other community programs is recommended. A Stakeholder list for the entire Matiwane FMU has been compiled but it is not clear that this is a useful document at Estate level. See Observation 08. Compliance Matiwane Forests is required in terms of their lease agreement with DWAF to maintain regular communications with communities living within 5 km of the plantation boundary. The liaison committees were set up for this purpose, and monthly meetings are held with each. Forestry operations have been underway for several decades, and there have been no major changes that necessitated an impact assessment. Monthly liaison committee meetings provide an opportunity for communities living adjacent to the plantation to raise issues that concern them, regarding negative impacts and access to opportunities.
Criterion 4.5 Resolution of grievances and settlement of compensation claims
Strengths Weaknesses The liaison committees provide a forum for addressing issues however minutes of the meetings requires more attention. Compliance The liaison committees provide a forum for addressing grievances that arise, and there is a dispute resolution procedure in place.
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Criterion 5.1 Economic viability taking full environmental, social, and operational costs into account
Strengths Weaknesses Compliance All logs are tallied after felling and transported to the mill where the timber truck is weighed on a weigh bridge. Variances between estimated volumes, tallied volume and sales volume is continually monitored and reconciled. Timber volumes and sales volumes are documented through the financial records. Detailed budgets are available and these make provision for environmental and social costs. A significant effort has been undertaken to remove planted areas within the riparian zones.
Criterion 5.2 Optimal use and local processing of forest products
Strengths AD 36-A-06 Page 24 of 50
Weaknesses Compliance Matiwane support access to and promotes the sustainable utilization of multiple resources associated with their landholdings. Such utilization include collection of thatch grass, mushrooms and honey collection. The Langeni mill takes all sawlogs however two small millers are also supplied.
Criterion 5.3 Waste minimisation and avoidance of damage to forest resources
Strengths Weaknesses Compliance A strategic plan is available and does demonstrate sustainability over the long term considering the impacts that fire have had on the FMU previously. The tactical plan is available and compartments are allocated according to standard industry criteria. Operational harvest plans and maps were available at both the harvesting operations visited and of sufficient detail them. Precautionary measures near SMZs were identified and evidence was seen that these measures were implemented. Directional felling is used to reduce the breakage of trees during harvesting and any other damage. Waste is minimised infield through tree length extraction and adequate organic material remains. All logs are removed from the compartments to the processing plant and no deteriorating timber was observed infield.
Criterion 5.4 Forest management and the local economy
Strengths Weaknesses Compliance A range of timber products is produced from sawlogs, pulpwood and roundlogs. NTFP produced by the FMU are mushrooms, thatch grass, livestock grazing and bee keeping.
Criterion 5.5 Maintenance of the value of forest services and resources
Strengths Weaknesses Compliance Environmental values and social were identified by the forest managers. Operational impacts on services and other forest resources are identified in management procedures and considered in plans prior to implementation infield.
Criterion 5.6 Harvest levels
Strengths Weaknesses Compliance The current sustainable level of harvesting has been determined. Actual volumes harvested per compartment are compared against predictions. All reported work is checked monthly against the Annual Plan (APO) and the relevant compartment data updated when completed. Each compartment is assigned to a specific working circle and therein to a regime which predetermines the silvicultural operations. All compartments to be thinned in any given year are enumerated prior to the event as a control measure and corrective action carried out where necessary. No commercial harvesting of NTFPs is undertaken. Studies are undertaken to determine the carrying capacity of company land for cattle grazing. Although a permit system is in place to allow legal grazing within the limits thus.
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Criterion 6.1 Environmental impacts evaluation
Strengths Weaknesses On Langeni at compartments E4, E4A and E5 slash and brush has not been removed from the riparian and stream buffer zones. On Baziya at A43A slash and brush has not been removed from the stream buffer zones. Minor CAR 01 was raised. Compliance A precautionary approach is followed with regards to any impact that the activities might have AD 36-A-06 Page 25 of 50
on the environment. It is the policy of Matiwane Forests that all new developments that may result in a change of land use or have a potential impact on the environment are subject to an Environmental Impact Assessment (EIA). The management plan and operational procedures have identified the potential impacts that could result from plantation management practices and recommended controls to mitigate the impacts. The CAR register is used extensively for internal CARs and progress of CAR close out actions are managed through management meetings. No introduction of non-native plant and animal species has taken place.
Criterion 6.2 Protection of rare, threatened and endangered species
Strengths Weaknesses Compliance Red data species for Matiwane management units of HM Timber were available. The species list has been rated in terms of IUCN and National RT & E status. There has been co-operation with acknowledged experts, conservation bodies or authorities in determining management and habitat requirements for these species. A booklet on the threatened species has been produced to educate employees and to promote awareness of species. Annual awareness training is provided to all employees on RTE species known and likely to occur within the FMU. Employees interviewed had an awareness of RTE species. There is cooperation with the Cape Parrot and the Groundhornbill Working Groups and the Maloti Drakensberg Transfrontier park regarding the identification of conservation zones and protection of RTE species habitats. Maps adequately depict areas set aside for conservation management. All areas of Matiwane Forests have been classified according to “A classification of the Natural vegetation for the unplanted areas of HM Timber”. Plans are available and being implemented for the control and eradication of declared weeds and invasive alien plants. Riparian zones are being rehabilitated from areas that have been previously commercially afforested to natural vegetation. Maps are available depicting the conservation areas from commercial plantation areas. Internal and external fire breaks are also depicted on the maps for management purposes. Grazing and collecting activities are controlled through a permit system.
Criterion 6.3 Maintenance of ecological functions and values
Strengths Weaknesses Compliance Declared weeds and invader plants that occur on the FMU have been identified. Assessments have been carried out in certain conservation areas to identify the conservation attributes, determine what management is required to maintain or enhance the current condition of the area. Flora species have also been identified and the occurrence recorded. Silviculture carried out was appropriate and invasive alien plant control operations being carried out were satisfactory. Degraded sites have been identified on the FMU and management prescriptions determined. Riparian zones previously commercially afforested are in the process of being delineated and rehabilitated. Burning for the management of conservation areas is being carried out where appropriate. Progress in invasive alien plant control programmes is evident on the FMU. No artificial regeneration has been carried out.
Criterion 6.4 Protection of representative samples of existing ecosystems
Strengths Weaknesses Compliance Red data species for Matiwane management units of HM Timber was available. The species list has been rated in terms of IUCN and National RT & E status. There has been co-operation with acknowledged experts, conservation bodies or authorities in determining management and habitat requirements for these species. A booklet on the threatened species has been produced to educate employees and to promote AD 36-A-06 Page 26 of 50
awareness of species. Annual awareness training is provided to all employees on RTE species known and likely to occur within the FMU. Employees interviewed had an awareness of RTE species. There is cooperation with the Cape Parrot and the Groundhornbill Working Groups and the Maloti Drakensberg Transfrontier park regarding the identification of conservation zones and protection of RTE species habitats. Maps adequately depict areas set aside for conservation management. All areas of Matiwane Forests have been classified according to “A classification of the Natural vegetation for the unplanted areas of HM Timber”. Plans are available and being implemented for the control and eradication of declared weeds and invasive alien plants. Riparian zones are being rehabilitated from areas that have been previously commercially afforested to natural vegetation. Maps are available depicting the conservation areas from commercial plantation areas. Internal and external fire breaks are also depicted on the maps for management purposes.
Criterion 6.5 Protection against damage to soils, residual forest and water resources during operations
Strengths Weaknesses Removal of brush from buffer zones was not implemented. Observation 02 was raised. Compliance The industry guidelines for forest management are applied by Matiwane Forests. Policies/procedures/guidelines are available for “Tending and Weed control” and an Oil Spill procedure amongst others. The implementation of guidelines was verified at harvesting operations and pruning operation visited. Roads travelled on the FMU were adequately maintained and meet the Forest Engineering South Africa road guidelines. Wetland and Riparian delineation is in progress on the FMU. Buffer zones are in place around indigenous forest patches. An oil spill procedure is available and the knowledge regarding the implementation of the procedure was assessed at the various operations visited.
Criterion 6.6 Chemical pest management
Strengths Weaknesses Compliance An up-to-date list of pesticides used on the FMU is available depicting quantities used over time. Prohibited pesticides were in use on the FMU however a temporary derogation is currently in place for the use of paraquat. All pesticides used are registered for such use and application methods have been determined through cooperation with acknowledged experts. No effective Bio-control have been released on Matiwane Forest. Chemical storage and handling is adequately managed.
Criterion 6.7 Use and disposal of chemicals, containers, liquid and solid non-organic wastes
Strengths Weaknesses Bins are in place for easy collection of waste however these bins are not been used at a certain village, as some waste was observed around the perimeter fence. Observation 03 was raised to address this. Compliance Chemical containers and used oil are recycled. Waste pits are located on the FMU and managed in an acceptable manner. Chemical containers used are kept in the store, recorded in the register and empty containers are removed to the supplier. Handling of chemicals is done in accordance to AVCASA responsible use guidelines.
Criterion 6.8 Use of biological control agents and genetically modified organisms
Strengths Weaknesses Compliance No biological control agents have been released on the FMU. No genetically modified organisms are used in management, production or research programmes within the FMU.
Criterion 6.9 The use of exotic species
Strengths Weaknesses AD 36-A-06 Page 27 of 50
Compliance Exotic species are used as the core of the business and the impacts of these species are well documented. Impacts are managed and mitigated accordingly. Unwanted regeneration and exotic aliens are controlled under a weed management program. A tending and weed control policy is being actively implemented on Matiwane Forests.
Criterion 6.10 Forest conversion to plantations or non-forest land uses
Strengths Weaknesses Compliance No forest conversion is taking place or was observed during the assessment. Areas are being converted from plantations back to wetlands, grasslands and other natural areas. Land, once converted to natural vegetation and rehabilitated will remain as such for the long term and not be converted to plantation again.
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Criterion 7.1 Management plan requirements
Strengths Weaknesses Compliance A management plan dated May 2008 version 3 is available which provides an overview of various documents and systems that are linked to the management plan. The primary management objective is the optimum sustainable production of high quality pine sawtimber. Secondary objectives include the following: • To maintain the temporary unplanted (TU) area to below 2% of the total commercial area • To minimise the impact of our forestry operations on the environment • To make a positive contribution to the socio-economic development of our employees and neighbours • To produce a positive economic return for our shareholders The forest management plan adequately describes the forest resources, environmental limitations, special characteristics of the forest, land use and ownership status and socio- economic conditions. The attributes of high conservation value forest areas are addressed in a separate document “Identification, conservation and management of indigenous vegetation and high conservation value areas”. Rate of harvest, species selection, management prescriptions (for production and conservation zones) and operational techniques are documented and justified. The working circles determine the various regimes. Operational techniques are determined using industry best practice and research results. Monitoring parameters are described in the management plan and information regarding age classes and PSP’s was reviewed. Every five the working plans are reviewed and enumerations are done and prior to thinnings enumerations are carried out as a thinning control. GIS maps, are available and these maps have all of the required information. The maps are used for numerous operational management and other planning activities. Planning follows a traditional 3-tiered approach, with the following levels: Strategic – Planning is carried out by the senior forest management team and includes business planning and yield regulation (30 year plan) to ensure sustainability. Tactical – Planning is carried out by individual management unit teams and includes the Annual Plan of Operations (APO), silviculture and fire break schedules, harvesting, and conservation plans Operational – Planning undertaken by foresters, supervisors and contractors responsible for particular operations. These plans include compartment level planning for silviculture, harvesting and the maintenance of conservation areas.
In addition, each Management Unit is required to maintain an up-to-date Fire Protection Plan, Roads Plan and Environmental Management Plan (EMP). These are 5-year plans that are updated annually. Plans are being implemented and this is monitored through management meetings. Financial reports are available depicting budget work and actual work carried out. All deviations receive the necessary management attention. AD 36-A-06 Page 28 of 50
Criterion 7.2 Management plan revision
Strengths Weaknesses Compliance Staff member responsible for updating the management plan is Forest Manager: Technical Services and this responsibility is documented in the job description. The company is kept informed of the latest scientific, technical and industry developments, through its majority shareholder Hans Merensky, members of the ICFR, FSA and Forestry Solutions. Information or results from these forums are freely available to management staff. Numerous trials are also established on the. New developments are incorporated in procedures where relevant. Where relevant economic considerations have been included into the revision of the management plan or overarching documents. Environmental and social considerations have also been included in the overarching documents. The management plan is updated annually where necessary and the current management plan was updated in May 2008.
Criterion 7.3 Training and supervision of forest workers
Strengths Weaknesses Compliance Training is provided on the basis of needs identified by line managers and contractors on an annual basis. All operational staff are adequately trained for the task at hand and all operations visited were carried out in accordance with procedures. Knowledge of staff regarding the work being carried out was excellent. Employees interviewed infield had received the necessary training or refresher training for the work being carried out. Contractors training requirements are also identified on an annual basis, and incorporated into the company’s training plan.
Criterion 7.4 Public availability of the management plan elements
Strengths Weaknesses Compliance A public summary of the management plan is available on request and adequately covers the elements listed in 7.1.
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Criterion 8.1 Frequency, intensity and consistency of monitoring
Strengths Weaknesses Monitoring information is available for various activities but not in a format that facilitates effective auditing. Observation 01 was raised. Compliance All activities that are monitored are listed as an annexure to the management plan. The frequency of monitoring is defined per criteria monitored. Monitoring costs are incorporated in the annual budget under conservation costs. The corrective action register contains certain corrective action requests that were specific to monitoring that had been carried out.
Criterion 8.2 Research and data collection for monitoring
Strengths Weaknesses Compliance Yield of forest products are recorded per compartment and reconciliation takes place of the estimated volume, tallied volume and sales volume. A timber resource inventory has been conducted and this information is used to determine volumes and condition of the compartments. A list of non-timber products is available. Annual sightings registers are available at the plantation offices. Monitoring of rare, threatened and endangered species is carried out. Assessments are being carried out of specific conservation areas to determine condition and species composition of these areas. Management recommendations are determined from these assessments and incorporated into plans. Environmental indicators have been identified AD 36-A-06 Page 29 of 50
for monitoring of non commercial areas. Social indicators are being measured considering grazing, fire and records of any accidents or incidents recorded. Post harvest assessments are carried for all completed compartments. Data on cost, productivity and efficiency are managed through annual plan of operations and budgets. Management meetings are held to ensure any necessary results can be incorporated into revised plans. Contractors audit document is available and this is carried out on all contractors throughout the year.
Criterion 8.3 Chain of custody
Strengths Weaknesses Compliance Matiwane Forests has a harvesting chain of custody procedure explaining the process to be followed for all timber harvested within the FMU. Although there is no system of delivery notes adequate controls are in place. All timber is sourced from own plantations to own mill within the FMU. Langeni Mill also has a COC certificate. Sales invoices where necessary depict the certificate number. Sales records and invoices are available as records of all products sold. No use of the FSC trademark by Matiwane Forests.
Criterion 8.4 Incorporation of monitoring results into the management plan
Strengths Weaknesses Compliance Results from research and monitoring are incorporated where necessary into planning. Recommendations from monitoring are incorporated into management plans.
Criterion 8.5 Publicly available summary of monitoring
Strengths Weaknesses Compliance A summary of monitoring results is made available to public on request.
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Criterion 9.1 Evaluation to determine high conservation value attributes
Strengths Weaknesses Compliance The FMU has been assessed with experts to identify any HCVF’s. The assessment procedure has been documented and is available “HM Timber Strategy on FSC Principle 9, High Conservation Value Habitats.
Criterion 9.2 Consultation process
Strengths Weaknesses Compliance Management prescriptions are determined together with relevant stakeholders. No HCVF’s have been identified for the socio-economic or cultural attributes.
Criterion 9.3 Measures to maintain and enhance high conservation value attributes
Strengths Weaknesses Compliance The biological attributes of the identified HCVF’s are described in the management plan with specific management prescriptions. The measures taken to enhance the identified attributes are to protect and minimise any disturbance and these are well described in the management plan. The public summary of the management plan makes reference to the measures. HCVF’s are being management according to these criteria. No harvesting is authorised and the HCVF’s are patrolled by environmental guards to identify and report any illegal harvesting AD 36-A-06 Page 30 of 50
should it take place.
Criterion 9.4 Monitoring to assess effectiveness
Strengths Weaknesses Compliance These indicators and frequency are defined within the monitoring programme having received input from environmental organisations and acknowledge experts. Indicators such as disturbance and illegal activities and invasive alien plant infestations are monitored more frequently than the condition of the forest. Through a partnership with the Grassland programme the management is made aware of any developments which could contribute to the management of HCVF’s. These developments are then incorporated into the conservation management plans.
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Criterion 10.1 Statement of objectives in the management plan
Strengths Weaknesses Compliance Management objectives are explicitly stated in the management plan. Progress towards achieving of the objectives is clearly demonstrated through reduction of temporary unplanted area and forestry practice across the landholding.
Criterion 10.2 Plantation design and layout
Strengths Weaknesses Compliance Maps depict the natural vegetation areas and these areas are considered during planning. These areas are known and consider during planning of forestry activities. Buffer zones are in place along water courses and in many areas delineation of wetlands or riparian areas is been carried out. No new large scale plantation areas have been established.
Criterion 10.3 Diversity in composition
Strengths Weaknesses Compliance Sites species matching is used and research is being conducted to investigate other species. The plantation planning has incorporated the various species to achieve optimal stability. Maximum clear-cut size is defined. The layout of plantations are such that a network of ecological corridors exist allowing for movement and havens of fauna.
Criterion 10.4 Species selection
Strengths Weaknesses Compliance Species are selected according to the suitability of the site and other growing conditions. Numerous trials have been undertaken to improve the selection of species. Only exotic species are used as they out perform the native species such as yellow wood. Plant records are available for all seedlings received from nurseries.
Criterion 10.5 Restoration of natural forest
Strengths Weaknesses Compliance There has been co-operation with acknowledged experts, conservation bodies or authorities in determining management and habitat requirements for species. Maps adequately depict areas set aside for conservation management. All areas of Matiwane Forests have been classified according to “A classification of the Natural vegetation for the AD 36-A-06 Page 31 of 50
unplanted areas of HM Timber”. Plans are available and being implemented for the control and eradication of declared weeds and invasive alien plants. Riparian zones are being rehabilitated from areas that have been previously commercially afforested to natural vegetation.
Criterion 10.6 Impacts on soil and water
Strengths Weaknesses Compliance Good quality soil maps are available for all properties. These are based on a soil survey done. A degraded sites register exists that lists sites and has recommendations of rehabilitation. Records of rehabilitation are available for these sites from 2003. All major water sources on the FMU are identified and mapped. A no burn policy is applied to slash management and visible erosion areas are under rehabilitation.
Criterion 10.7 Pests and diseases
Strengths Weaknesses Compliance Matiwane Forests are members of Forestry and Agricultural Biotechnology Institute (FABI) and Plant and Pest Research Institute (PPRI). Awareness days have taken place to ensure foresters are aware of symptoms of the various diseases and potential diseases for the FMU have been listed. Pest control and remedial actions are documented in the management plan. Fire plans are in place, which identify the external and internal breaks, fire lookouts, and water points amongst others. Fire fighting crews are based at Langeni office with aerial support station at Langeni office. Fire breaks have been prepared considering the surrounding topography and climatic conditions. A fire risk map has also been completed for the FMU to identify areas of highest risk prior to the fire season.
Criterion 10.8 Monitoring of impacts, species testing and tenure rights
Strengths Weaknesses Compliance Regular liaison meetings are held with local communities and the Regional development council to discuss amongst others off-site impacts. A precautionary approach is followed with regards to any impact that the activities might have on the environment. The management plan and operational procedures have identified the potential impacts that could result from plantation management practices and recommended controls to mitigate the impacts. No introduction of non-native plant and animal species has taken place. The industry guidelines for forest management are applied by Matiwane Forests. Policies/procedures/guidelines are available and implemented. Wetland and Riparian delineation is in progress on the FMU. Buffer zones are in place around indigenous forest patches. The plantation land is leased to the company by the Government. Land claims have been lodged against various portions of the FMU. The process of verifying and settling these claims is the responsibility of the Land Claims Commission, as is records keeping.
Criterion 10.9 Plantations established in areas converted from natural forests after November 1994
Strengths Weaknesses Compliance No land on the FMU has been converted from natural forest since November 2004.
9. CERTIFICATION DECISION SGS considers that HM Timber Limited forest management of Matiwane forests, Langeni can be certified as: AD 36-A-06 Page 32 of 50
i. There are no outstanding Major Corrective Action Requests ii. The outstanding Minor Corrective Action Requests do not preclude certification, but Matiwane Forests is required to take the agreed actions before 31st July 2009. These will be verified by SGS QUALIFOR at the first surveillance to be carried out about 6 months from the date of the issuance of the certificate. If satisfactory actions have been taken, the CARs will be ‘closed out’; otherwise, Minor CARs will be raised to Major CARs. iii. The management system, if implemented as described, is capable of ensuring that all of the requirements of the applicable standard(s) are met over the whole forest area covered by the scope of the evaluation; iv. The certificate holder has demonstrated, subject to the specified corrective actions, that the described system of management is being implemented consistently over the whole forest area covered by the scope of the certificate.
10. MAINTENANCE OF CERTIFICATION During the surveillance evaluation, it is assessed if there is continuing compliance with the requirements of the Qualifor Programme. Any areas of non-conformance with the QUALIFOR Programme are raised as one of two types of Corrective Action Request (CAR): .01 Major CARs - which must be addressed and closed out urgently with an agreed short time frame since the organisation is already a QUALIFOR certified organisation. Failure to close out within the agreed time frame can lead to suspension of the certificate. .02 Minor CARs - which must be addressed within an agreed time frame, and will normally be checked at the next surveillance visit The full record of CARs raised over the certification period is listed under section 11 below. The table below provides a progressive summary of findings for each surveillance. A complete record of observations demonstrating compliance or non-compliance with each criterion of the Forest Stewardship Standard is contained in a separate document that does not form part of the public summary.
SURVEILLANCE 1 Issues that were hard to None. The company was cooperative and transparent in revealing any assess information requested. Where it was not available, a CAR was raised. Number of CARs closed _1_ Outstanding CARs were closed. Nr of CARs remaining open _0_ Outstanding CARs from previous evaluations were not closed.
New CARs raised _1_ New Major CARs and 7 Minor CARs were raised. Recommendation The forest management of the forests of Matewane remains certified as: The management system is capable of ensuring that all of the requirements of the applicable standard(s) are met over the whole forest area covered by the scope of the evaluation; and The certificate holder has demonstrated, subject to the specified corrective actions, that the described system of management is being implemented consistently over the whole forest area covered by the scope of the certificate. SURVEILLANCE 2 Issues that were hard to The company had substantial changes to staff prior to the audit and some of assess the managers are new in their posts. Number of CARs closed 8 CARS closed Nr of CARs remaining open 0 Nr of New CARs raised _4_ New Major CARs and 5 Minor CARs were raised. 4 Major CAR’s closed at COF on 2011/01/31 Recommendation The forest management of the forests of Matewane remains certified as: The management system is capable of ensuring that all of the requirements AD 36-A-06 Page 33 of 50
of the applicable standard(s) are met over the whole forest area covered by the scope of the evaluation; and The certificate holder has demonstrated, subject to the specified corrective actions, that the described system of management is being implemented consistently over the whole forest area covered by the scope of the certificate. SURVEILLANCE 3 Issues that were hard to assess Number of CARs closed Nr of CARs remaining open Nr of New CARs raised Recommendation SURVEILLANCE 4 Issues that were hard to assess Number of CARs closed Nr of CARs remaining open Nr of New CARs raised Recommendation
AD 36-A-06 Page 34 of 50
11. RECORD OF CORRECTIVE ACTION REQUESTS (CARS)
CAR # Indicator CAR Detail
Date 01 6.1.3 Due Date> Date Closed> Recorded> 23 07 08 1st Surv 26/8/2009
Non-Conformance:
All potential environmental impacts identified during assessments are not adequately considered during operations and planning and do not ensure that adverse impacts are avoided or mitigated. Objective Evidence: On Langeni at compartments E4, E4a and E5 slash and brush has not been removed from the riparian and stream buffer zones. On Baziya at A43A slash and brush has not been removed from the stream buffer zones and the post harvesting assessment has been signed off by all parties. Close-out evidence: Post harvest compartments Baziya F9 & E6 were evaluated. All post harvest checks were carried out and no non-compliances were noted in field. The sites were correctly handed over and the environmental impacts from harvesting were mitigated. Date M02 8.5.1 26/8/2009 Due Date> 20/11/2009 Date Closed> 20/11/2009 Recorded>
Non-Conformance:
Regular summaries of monitoring results are not available to the public. Objective Evidence: Public summary of the management plan only refers to the components that are monitored but no results are summarised. Close-out evidence: The monitoring report for 2009 was provided and is available to the public. No need for site visit. Major CAR 02 closed.
03 6.7.2 Date Next 26/8/2009 Due Date> Date Closed> 28/10/2010 Recorded> surveillance
Non-Conformance:
Waste that cannot be re-cycled is not disposed of in environmentally appropriate ways. Objective Evidence: Nqadu labour village where this was raised as observation was clean but Mhlahlane village & Gqogqora villages were found littered. Close-out evidence: Closed and raised as major 14
04 4.2.9 Date Next 26/8/2009 Due Date> Date Closed> 28/10/2010 Recorded> surveillance
Non-Conformance:
Worker accommodation provided and located on the FMU does not comply with minimum requirements of the ILO Code of Practice. Objective Evidence: AD 36-A-06 Page 35 of 50
CAR # Indicator CAR Detail
Although there is a general housing upgrading programme, this was halted by senior management on 5th March 2009. It was stopped as part of a strategy to retain workers and keeping them employed during the recession. Had this capital expenditure not been stopped this CAR would have been raised as a Major CAR. The year to date under expenditure reflects approximately R1,000,000. Three villages were visited, in two of these excessive litter and unhygienic and dangerous pit latrines were evident. There is a risk of workers and or children falling into these which is a dangerous and unsafe situation. It requires immediate attention and therefore the table raised in the previous report will be carried forward and reported on at the next surveillance. Table 1: Plans for the upgrading of water and sanitation facilities for monitoring purposes Sanitation Showers, Water clothes washing Diamane VIPs 09 No Tank – filled by firetruck Langeni Centre Flush 07 Yes Piped s/b Langeni VIP 09 No Piped, reservoir 08 Baziya VIPs 08/09 No Piped, reservoir 05 Mhlahlane 3 Ablution blocks – 08/09 Piped, reservoir 02 Poengela 2 Ablution blocks 05/06 Tank, reservoir under construction Ludaga 1 ablution block 05/06 Tank, reservoir 08 Ceka VIPs 09/10 No Piped, reservoir 06 Bela VIPs 09/10 No Windmill, dam Nquadu VIPs 09/10 No Piped, reservoir 08 Gqogqora VIP 09 No Piped, filter system 08
Close-out evidence: Sites visited that do not comply – Baziya; Langeni; Mhlahlane. The non-compliance includes litter, lack of running water, leaking roofs, crumbling walls, unhygienic and hazardous pit latrines, disused pit latrine structures left lying around, barbed wire wash lines between buildings at neck/face level, No fire extinguishers to be found. Closed and raised as Major 15.
5 4.4.3 Date Next 26/8/2009 Due Date> Date Closed> 28/10/2010 Recorded> surveillance
Non-Conformance:
The stakeholder list provided is not maintained and up to date. Objective Evidence: The stakeholder list remains incomplete, with many contact personnel and telephone numbers missing. The list is incomplete with critical stakeholders omitted, for example the local Land Affairs Department and Trade Unions. Close-out evidence: An up to date stakeholder list was available with all the necessary contact details. The stakeholders have been categorised into the following groups; Contractors; Environmental groups; Community Development; Universities; Local Land Affairs; Trade Unions; and Surrounding Communities. CAR Closed
06 4.1.7 Date Next 26/8/2009 Due Date> Date Closed> 28/10/2010 Recorded> surveillance
Non-Conformance:
Not all employees and contractors are paid a fair wage and other benefits, which meet or exceed all legal requirements and those provided in comparable occupations in the same region. The current employment contract for permanent, casual and contract workers does not meet the minimum requirements of Sectoral Determination 12 : Forestry Sector. AD 36-A-06 Page 36 of 50
CAR # Indicator CAR Detail
Objective Evidence: The current minimum daily wage effective from 1st April 2009 is R52.56, 217 employees were found to be earning R52.36. The present Hans Merensky contract of employment does not comply with the “Basic conditions of Employment Act – Sectoral Determination 12 : Forestry Sector South Africa. The contract of employment for contractors likewise does not comply. Areas of non-compliance are for example; Notice periods; Notice period to vacate housing; Saturday, Sunday and Public Holiday payments and agreements to work; Maternity leave clause; Family leave Clause; Probationary Clause; Monthly verses daily wage; calculated net wage; etc. Close-out evidence: The contracts of employment of the company and the two contractors was checked in detail against the “Basic conditions of Employment Act – Sectorial Determination 12 : Forestry Sector South Africa and found to comply in all respects.
The wage register of the company and both contractors was checked for compliance with the minimum requirements and in all cases was found to comply to the following table; 1st April 2010 ‐ Period 31st March 2011 Per Month R 1 221.83 Per Week R 281.98 Per Hour R 6.26 CAR closed.
07 8.3.3 Date Next 26/8/2009 Due Date> Date Closed> 28/10/2010 Recorded> surveillance
Non-Conformance:
Sales invoices and other documentation ie. delivery notes related to sales of certified material do not include the chain of custody certificate number, in the correct format (SGS-FM/CoC-XXXXXX) or the material category. Objective Evidence: Sales invoices and D/N correspond to reflect the COC number and the material category. Invoices OEIN277397 is linked to D/N 13928 dated 18/12/2008and likewise invoice number OEIN277133 is linked to D/N 13800 dated 16/12/2008. Neither of the D/N or any others indicate the COC or material category ie. FSC Pure. Close-out evidence: Closed and raised as major 13.
08 8.3.5 Date Next 26/8/2009 Due Date> Date Closed> 28/10/2010 Recorded> surveillance
Non-Conformance:
Use of the FSC trademark is not in accordance with policy. Objective Evidence: The trademark use has been approved, but the change in wording that was requested was not implemented. The logo itself on the letterhead is also out of proportion. Close-out evidence: Closed and raised as major 16
09 6.6.1 Date Next 26/8/2009 Due Date> Date Closed> 28/10/2010 Recorded> surveillance AD 36-A-06 Page 37 of 50
CAR # Indicator CAR Detail
Non-Conformance:
The list of chemicals used was not up to date and available for the audit. Objective Evidence: No chemical use list was available. Close-out evidence: List of chemicals used for the previous year as well as the past year were available. CAR closed.
10 8.3.4 Date Next 26/8/2009 Due Date> Date Closed> 28/10/2010 Recorded> surveillance
Non-Conformance:
Records of certified products sold are not available. Objective Evidence: The certified products sold were provided for the year 2008 but not for the part Jan to June 2009 as was requested in report and in the AD 20 Itinerary before the audit. Close-out evidence: Records of the certified products sold for the previous as well as the past year were available. CAR closed.
11 8.2.7 Date Next 28/10/2010 Due Date> Date Closed> dd mmm yy Recorded> surveillance
Non-Conformance:
Post harvest monitoring is not adequately done and documented. Objective Evidence: Post harvest monitoring is carried out and the monitoring is documented. However interviews and document reviews revealed that the process and the forms used are not well understood or interpreted. Several mis- interpretations were noted on the form for compartment G18. Where corrective actions should have been raised to harvesting before the compartments are accepted back by silviculture. Close-out evidence:
12 10.8.2 Date Next 28/10/2010 Due Date> Date Closed> dd mmm yy Recorded> surveillance
Non-Conformance:
Off site impacts are not adequately monitored and there is no evidence of consultation with affected parties. Objective Evidence: There was evidence of the spread of plantation species onto the neighbouring land at Baziya compartment B29. The current economic climate is considered and the cut-back on budgets understood. However the budget structure allows budgeting for open area management, that is part of the leased land. No proof was provided that the future budgets would address escapees from the leased area, neither was proof provided on consultation with affected parties. Close-out evidence:
Date M13 8.3.3 Due Date> Date Closed> Recorded> 28/10/2010 28 /1/2011 31/1/2011
Non-Conformance: AD 36-A-06 Page 38 of 50
CAR # Indicator CAR Detail
Sales invoices and other documentation related to sales of certified material did not include the correct CoC number. Objective Evidence: The certificate numbers used were SGS-FM/CoC 000780 and not the correct number SGS-FM CoC 001503 that should have been used. Upgraded from CAR 07 Close-out evidence: The invoice details were changed at head office where the invoices are made out. Sales invoices verified OEIN 349053; OEIN 349052 & OEIN 349051 to NECF (PG Bison) all contained the Number SGS-FM/CoC-001503. And specified the products as pulp wood round logs. Invoices OEIN 347624; OEIN 347622 & OEIN 347621 to Treated timber Products contained the number SGS-FM/CoC-001503 and described the products as Euc saw logs. Invoices OEIN 347611 to Langeni Sawmil as internal sales contained the same SGS number. CAR closed Date M14 6.7.2 Due Date> Date Closed> Recorded> 28/10/2010 28/1/2011 31/1/2011
Non-Conformance:
Waste that cannot be re-cycled is not disposed of in environmentally appropriate ways. Objective Evidence: Mhlahlane and Baziya and Langeni villages were still found littered. Upgraded from CAR 03 Close-out evidence: A cleanup action was done and the villages are clean. New dustbins were supplied to all villages. Inspection and reporting on the conditions were put on the key performance indicators of the supervisors and the estate managers. Estate managers are now responsible to inspect and control on it. CAR closed. Date M15 4.2.9 Due Date> Date Closed> Recorded> 28/10/2010 28/1/2011 31/1/2011
Non-Conformance:
Worker accommodation provided and located on the FMU does not comply with minimum requirements of the ILO Code of Practice. Objective Evidence: Sites visited that do not comply – Baziya; Langeni; Mhlahlane. The non-compliance includes litter, lack of running water, leaking roofs, crumbling walls, unhygienic and hazardous pit latrines, disused pit latrine structures left lying around, barbed wire wash lines between buildings at neck/face level, NO fire extinguishes to be found. Close-out evidence: AD 36-A-06 Page 39 of 50
CAR # Indicator CAR Detail
The company provided an action plan for the upgrades of the houses. An inventory was given of all the buildings and all the work each of them require. The action plan contains the immediate actions that are required. With a budget attached to it. An additional budget of R395 980 is approved for the emergency repairs for this project. Immediate actions were implemented and all the dangerous and unserviceable structures were demolished so that people cannot move into them illegally. The action plan was verified on site and the actions are taken. The villages of Baziya: Mhlahlane and Langeni were visited. It is an emergency plan and will take until end of May to complete, but work is up to date according to the plan. Repairing of the roofs is temporary until the grass is available by the end of April. Foundations are done, doors are replaced, screeding is done. All unsafe toilets have been removed and new toilets were erected. As preventative measure, a system of village inspection and reporting on a monthly basis is implemented. The estate managers will have responsibility for ensuring conditions of the buildings are regularly reported. The buildings are all old and require continuous maintenance. A maintenance plan is developed that take care of the annual work to be done. A special cost code is implemented to ensure continuous implementation of the plan. CAR closed. Date M16 8.3.5 Due Date> Date Closed> Recorded> 28/10/2010 28/11/2011 31/1/2011
Non-Conformance:
Use of the FSC trademark is not in accordance with policy. Objective Evidence: No Approval was found for the off product use of trade mark as appeared on the stakeholder list. Upgrade from CAR 08 Close-out evidence: All trade marks are removed from documentation. The updated stakeholder list was reviewed and had no logo. CAR closed.
17 4.2.5 Date Next 28/10/2010 Due Date> Date Closed> dd mmm yy Recorded> surveillance
Non-Conformance:
Not all necessary tools, machines, substances and equipment, including appropriate PPE, were available at the worksite, and are not all in a safe and serviceable condition Objective Evidence: B30 – three wheel Bell; - drivers’ seat in poor condition, Fire extinguisher under peddles. G44 – Cable in poor condition; no harness; machine over greased; brake mechanism faulty G51 – chain saw operator incorrect leggings and no protective clothing on. B28b – employee doing the treating of slashed stumps had no protective gloves on. Close-out evidence:
18 4.2.7. Date Next 28/10/2010 Due Date> Date Closed> dd mmm yy Recorded> surveillance
Non-Conformance:
Health and safety records are not maintained or up-to-date Objective Evidence: B30 and B32b Infield records of accidents, incidents, not kept available. G44 Skyline operation - Reporting of accidents on 19/05/2010,; 17/06/2010; and 05/08/2010 not reported through to Langeni Admin office for inclusion into DIFR and accidents statistics. Close-out evidence: AD 36-A-06 Page 40 of 50
CAR # Indicator CAR Detail
19 4.5.2 Date Next 28/10/2010 Due Date> Date Closed> dd mmm yy Recorded> surveillance
Non-Conformance:
Dispute resolution is not clearly defined. System for resolving disputes does not include legal requirements and is not documented. Objective Evidence: There is no documented procedure to resolve disputes and to provide a mechanism for fair compensation in the case of loss or damage caused by the FMU activities. Close-out evidence:
AD 36-A-06 Page 41 of 50
12. RECORD OF OBSERVATIONS
OBS # Indicator Observation Detail
01 8.1.4 Date Recorded> 23 07 08 Date Closed> 26/8/2009
Observation:
Monitoring information is not necessarily readily available & in a format that facilitates effective auditing. Follow-up evidence: The monitoring information is put in a spreadsheet format for easy auditing. Parameters that are monitored are identified with the relevant frequency indicated and the specific area where to find the information. Observation closed. 02 6.5.2 Date Recorded> 23 07 08 Date Closed> 26/8/2009
Observation:
Guidelines developed in terms of all environmentally sensitive forest operations defining acceptable practice are not adequately implemented in certain cases – Brush and slash found in stream buffer zones at Baziya (B20A), Mhlahane (A43A), Langeni (E4,E4A,E5). Follow-up evidence: With reference to close out evidence of CAR 01 the guidelines regarding the environmental management of post harvest operations were implemented in the compartments visited. Streams and buffer zones were cleaned after harvesting operations prior to the compartment being handed back to silviculture. 03 6.7.2 Date Recorded> 23 07 08 Date Closed> 26/8/2009 Observation: Waste that cannot be re-cycled is not disposed of in environmentally appropriate ways. Nqadu labour village had plastic, glass and water containers lying around. Follow-up evidence: Closed. Captured in CAR 03 04 3.3.1 Date Recorded> 23 07 08 Date Closed> 26/8/2009 Observation: ASI register at Baziya had recorded sightings of Black-Backed Jackal, Jackal Buzzard & Parrot sites. These are not ASI’s as per definition. Follow-up evidence: The procedure for HM’s identification of ASI was evaluated and it gave clear indication regarding what kind of issues needs to be identified. The listed items were removed from the ASI register. 05 4.2.9 Date Recorded> 23 07 08 Date Closed> 26/8/2009 Observation: AD 36-A-06 Page 42 of 50
OBS # Indicator Observation Detail
There is a program to upgrade sanitation and water facilities in worker villages but the program should continue to be monitored to ensure that there is a supply of potable water at all villages and sufficient toilets of a decent standard. The old style unventilated pit latrines are in poor condition and pose a health hazard. Table 1: Plans for the upgrading of water and sanitation facilities for monitoring purposes Sanitation Showers, Water clothes washing Diamane VIPs 09 No Tank – filled by firetruck Langeni Centre Flush 07 Yes Piped s/b Langeni VIP 09 No Piped, reservoir 08 Baziya VIPs 08/09 No Piped, reservoir 05 Mhlahlane 3 Ablution blocks – 08/09 Piped, reservoir 02 Poengela 2 Ablution blocks 05/06 Tank, reservoir under construction Ludaga 1 ablution block 05/06 Tank, reservoir 08 Ceka VIPs 09/10 No Piped, reservoir 06 Bela VIPs 09/10 No Windmill, dam Nquadu VIPs 09/10 No Piped, reservoir 08 Gqogqora VIP 09 No Piped, filter system 08 Monitoring: 1. Construction of VIPs as planned. Numbers of latrines need to be adequate for number of residents. 2. Completion of ablution block at Mhlahlane 3. Completion of water supplies as planned- all those marked 08 are still under construction Follow-up evidence: Closed Issue captured in CAR 04 06 4.1.7 Date Recorded> 23 07 08 Date Closed> 26/8/2009 Observation: All employees are not paid a fair wage and other benefits that meet or exceed all legal requirements and those provided in comparable occupations in the same region Follow-up evidence: Disproportionate differential in the salaries of workers doing the same job (as a result of the creation of the AO Band in the job grading system) that runs counter to the spirit of section s27 of the Employment Equity Act that calls for employers to take measures to progressively reduce differentials in remuneration and benefits. The introduction of a new band in the staff grading system, the AO band, in order to employ new workers at the minimum wage prescribed by the Sectoral Determination leading to a differential in the salaries of workers doing the same job (R92.45 as against R45.70). Closed and addressed in CAR 06 07 1.1.1 Date Recorded> 23 07 08 Date Closed> 26/8/2009 Observation: The black empowerment partners of Singisi Forest Products (SFP), primarily local communities with land claims and other interests in the plantations, are not being adequately empowered. Taken together with other failures to ensure distribution of benefits from forests to the local community on the part of state shareholders in SFP, and the government land restitution program, are a threat to achieving the BBBEE goals of the restructuring / privatisation of state plantation assets and present a threat to the sustainability of the plantation Follow-up evidence: AD 36-A-06 Page 43 of 50
OBS # Indicator Observation Detail
The land claims issues are complex and the Department of Land Affairs seems unable to make the necessary decisions to settle the claims. This is symptomatic of many parts of South Africa at present and whilst the claims have been lodged and are being tied up in bureaucratic processes, there is little the company can do. They have honoured the payment of the dividends and have given a R600,000 grant to the communities against future dividends. This Observation is closed but needs to be a permanent issue in every surveillance. The dividend payments referred to above are tabled below; Year Dividend paid out to local community. 2005 R484,000.00 2006 R320,000.00 2007 R812,000.00 2008 R1,300,000.00 2009 R600,000.00 Closed. 08 4.4.3 Date Recorded> 23 07 08 Date Closed> 26/8/2009 Observation: A Stakeholder list for the entire Matiwane FMU has been compiled but it is not clear that this is a useful document at Estate level. It does not for example include contact details for surrounding communities. These details are kept by the community foresters who work with liaison committees and new afforestation projects around each Estate Follow-up evidence: Closed. Issue addressed in CAR 05 09 7.1.13 Date Recorded> 26/8/2009 Date Closed> 28/10/2010 Observation: Deviations from management plans are not adequately documented. Although a justifiable reason was given for the deviation from the APO it was not recorded as such. Due to the large fires the previous season, all harvesting operations on Nqadu was stopped to focus on the recovery of burnt timber. As a result none of the compartments for clear felling that appear on the APO were done and 8 months down the year it still reflects these compartments to be done. Follow-up evidence: There is an active catch-up plan in place where all the burnt compartments are clear felled and replanted. It is planned on the APO and work is on schedule. 10 6.1.3 Date Recorded> 28/10/2010 Date Closed> 31/1/2011 Observation: The lillipit sewage system on Langeni appears not to be functioning well and no responsibility for it is assigned. It is used by the government contractors but is still on the FMU. Follow-up evidence: The mill engineers are responsible for the correct operation of the plant. The plant was visited during the audit and was functioning well OBS Closed. 11 10.6.2 Date Recorded> 28/10/2010 Date Closed> Observation: Quarry management plans are cryptic and the diagrams very schematic to be of any value during actual management decisions on what to do to on the specific site. The plan for QC5 did not reflect the actual site and contain no monitoring of the site. Follow-up evidence: AD 36-A-06 Page 44 of 50
OBS # Indicator Observation Detail
12 Date Recorded> 28/10/2010 Date Closed> Observation: Post harvest monitoring is carried out and the monitoring is documented. However interviews and document reviews revealed that the process and the forms used are not well understood or interpreted. Several mis- interpretations were noted on the form for compartment G18. Where corrective actions should have been raised to harvesting before the compartments are accepted back by silviculture. Follow-up evidence:
AD 36-A-06 Page 45 of 50
13. RECORD OF STAKEHOLDER COMMENTS AND INTERVIEWS
Nr Comment Response
1. Concerns expressed about the lack of Problems in settling land claims is a big concern but is progress in settling land claims, and the lack out of the control of SFP. The group of land claimants of benefits land claimants are receiving from with particular concerns about their failure to benefit the company. from the plantations has now been included in the liaison committees. These concerns do however need great attentions by the company and CAR 02 was raised 2. The misappropriation of dividend payouts and These comments are not of direct relevance to conflicts within communities related to Matiwane Forests. Management of Singisi Forests has operations of the Langeni community trust are been made aware of the concerns and are continually of serious concern. The company should liasing with the Langeni community trust. attend to these and other ways of ensuring that communities benefit from the existing plantations as a matter of priority rather than focusing on new aforestation. Surveillance 1
3 CEPPWAWU – Union Organiser plus 13 Management’s response was as follows; company shop stewards. The following issues • Extensive training was done for all were raised; employees, records of this training are • Health and safety in the forest, well documented and all attendees always management should do more to look sign the attendance sheets. after their employees • The management style refers mainly to • The forest management style was first line black supervisory levels where not acceptable as the first line further development and coaching is still supervisors did not give clear required. instructions. • The training records are available for • Management should train their inspection by the union, it was felt that the employees, especially blacks, to union official was not up to date with the avoid accidents company’s training activities. • The dispute resolution process • Management acknowledged that this had worked very well with management always been an area of high always giving answers to queries. focus/importance and had always The company housing that was provided was addressed disputes as a high priority. not acceptable. • Management had agreed with the union that in order to save jobs not all the planned capex could be spent and that the directors had frozen all future housing expenditures until trading conditions improved Management felt that the shop stewards were not adequately trained in their functions. AD 36-A-06 Page 46 of 50
Nr Comment Response
4 Two local community chiefs from the Management have taken note of the information from Lunyaweni and Bele Community representing the traditional leaders and would take their requests collectively; 2700 households and into consideration when developing plans and approximately 21,600 people. Herewith a objectives. précis of issues raised; They also undertook to investigate the grant monies, • There are no major or serious issues and would to explore the opportunities through the and they were grateful to the Corporate Responsibility Program to assist the ladies company. group dealing with HIV/AIDS. • The money from the R600,000 grant had not yet arrived and they would appreciate it if this could be expedited. As leaders of the communities they wished to develop their areas and the money is needed urgently. • The relationship with the company is very good especially the monthly liaison meetings. • They accept that they have a responsibility during the fire season to help the company control the fires and also to assist with the burning of firebreaks. • They appreciate that management have honoured their word and employ people from their communities and that some have been sent to Fort Cox college for training. • Due to the excellent partnership the future looks bright and there is more land available for development and they request the company to plant more trees on the community land. • They request assistance from the company to support a women’s group that looks after HIV/AIDES sufferers and the orphaned children. Due to a lack of funding from government the ladies are despondent and are leaving the program which was felt to be great shame. The group is known as PHANDUNCEDO. Finally, they requested management to conduct research into why so many community projects were never successful. Surveillance 2 AD 36-A-06 Page 47 of 50
Nr Comment Response
5 Customer and Supplier; The relationship with this customer/supplier is built on He reported that since the mountain pass contact on all levels in both companies - from highest between Ugie and Mthatha had been opened strategic level to lowest operational level. they had enjoyed a most beneficial Mutual contractual content and operational obligations relationship of buying pulp and chips from the are discussed on an interdependent mode to benefit of company and in turn supplying sawlogs to the both parties mill. A formal contract is in force regulating quantities and prices which is reviewed on an annual basis. The cooperation and channels of communication have worked very well for both parties. In addition to timber supply and purchase they have an excellent relationship with the company for purposes of fire fighting and the use of helicopters where they have always been able to assist one another. In his appraisal of the company, they have met and exceeded all expectations, with particular reference to the communication process. AD 36-A-06 Page 48 of 50
Nr Comment Response
6 Two Local Community Chiefs, representing Merensky value its relationship with neighbouring chiefs ten separate communities between them, of highest importance. Relationships are built on the comprising approximately 20,000 rural level of Executive Board participation to the tree root inhabitants. The chiefs also participate at level of Community Forester involvement in daily higher levels, with one serving on the National support of Chiefs' communication with the company. Advisory Forestry Council and the other being a member of the Board of trustees on the Singilanga Trust. Herewith a summary of points raised;
• They expressed their gratitude for having been chosen to talk wit Merensky suffers huge losses due to livestock grazing auditor, and although there were only of young trees, and spends millions of rand on two of them they felt empowered to prevention of this damage. In order to control this represent the other chiefs as they damage to the young trees, livestock is impounded and gad regular meetings amongst a minimal release fee is charged to cover some basic themselves. protection costs. Merensky allows controlled grazing on demarcated open areas during the season of low • The problem of impounding their cattle grazing capacity on communal land. when found in the plantation was difficult to resolve due to te fees that had to be paid to release the cattle. They requested that the company should provide a grazing area for cattle. Transformation is a serious concern on all levels in the • The transformation in the company company. The minutes of resent meetings with all appeared to have lost momentum at internal stakeholders is proof of the action taken in this present and they requested that respect. company divulge the long term strategy in this regard. • They appreciated the dividends that The Merensky auditors, KPMG, has full control over the have been paid out but commented accuracy of book keeping of the company, which that they had never been “involved in includes the calculation of the dividends. the counting” so they could never Merensky is committed to participation of the know if the amount paid was in fact communities. The BBBEE status of all our contractors correct. is evidence of our empowerment drive. • The company had promised in the past The minutes for the Liaison Committee meetings are that BBBEE contactors would be available. used for pruning. But this did not Employment in Merensky is based on sound business seem to be the case yet. and empowerment principles, based on an Equity • Despite the comments above, both Policy and a personnel structure that allows for optimal Chiefs emphasised that they had a management of the forest by different levels of very good relationship with the experience and expertise. company which had been built over the years through openness and the regulatory of Liaison committee Meetings. The company had a responsibility to people that had studied through the bursary scheme that there should be better prospects of employment on completion of their studies. 7 DAFF – Representative from the Forest Land management Unit. He emphasised that DAFF was very happy High profile contact with DAFF maintains a stable with the company as they adhered to all the partnership of shared interest and common required clauses of the lease. It was very relationships with third parties involved. important to DAFF that the company adhered in particular to Clause 46 of the lease – which requires the formal meetings with stakeholders through the Liaison Committee meeting process. AD 36-A-06 Page 49 of 50
Nr Comment Response
8 Local Organiser - Chemical Engineering Paper Printing Wood & Allied Workers Union. (Represents the whole workforce) He confirmed that workers enjoyed “Freedom The Merensky workforce association is spread between of Association” and “The Right to Bargain PAPAWU and NAHW and some unassosiated Collectively”. The company had never members seemed to have a problem with these concepts for which he was most grateful. Likewise stop order payments that were collected were always paid over in time and were always correct.
He felt strongly that the union should form part Merensky is in process of compiling a 3rd Party of any accident investigation when it involved incident/accident reporting procedure. This procedure any lost time accident. He expressed his will pick up this problem. frustration at not having been invited to attend the accident investigation when the chainsaw operator died. He sensed management had something to hide, and he was embarrassed when his members asked him for details and he was at that stage unaware of the accident having occurred. The awarding of contracts was seen to be The tender processes are audited by KPMG and biased and felt there was corruption in the awarded on the highest level of authority in the tender process, - that is how it is perceived company. There is little opportunity of fraud the tender by the workforce. system in Merensky. He expressed concern over Junior Merensky is constantly paying attention to supervisor Management’s attitude to the workforce which training, of which part is interpersonal relationships. was reflected in the manner in which they There should not be low level relationship problems. An spo0ke to the staff. effective Shop Steward Representative Committee is in Finally, there is a situation of a Chainsaw place to pick up these kind of problems Operator having been promoted to a Bell The Merensky Human Resources Department is busy driver and his rate of pay has remained the with a comprehensive placement and remuneration same. The frustration is that management do package revision. It is foreseen that any problems in not want to make a decision, but in the this respect, should be solved in due course. meantime the worker is seen to being exploited. This has been raised with the supervisor , who refered it his superior who to date has nothing about it.
Surveillance 3
Surveillance 4
AD 36-A-06 Page 50 of 50
14. RECORD OF COMPLAINTS
Nr Detail
Complaint: Date Recorded > dd MMM yy
Objective evidence obtained:
Close-out information: Date Closed > dd MMM yy
End of Public Summary