PUBLIC SUMMARY SECOND RECERTIFICATION AUDIT ON FOREST MANAGEMENT UNIT FOR FORST MANAGEMENT CERTIFICATION

Certificate Number: FMC 004 Date of First Certification: 7 July 2010 Audit Date: 28 September – 3 October 2015 Date of Public Summary: 1 August 2016

Certification Body:

SIRIM QAS International Sdn Bhd Block 4, SIRIM Complex No. 1, Persiaran Dato’ Menteri Section 2, 40700 Shah Alam

Tel: 603-5544 6400/5544 6448 Fax: 603-5544 6763 E-mail: radziah@sirim.

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 1 of 36 TABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY 3 2.0 INTRODUCTION 4 2.1 Name of FMU 4 2.2 Contact Person and Address 4 2.3 General Background on the Perak FMU 4 2.4 Date First Certified 4 2.5 Location of the Perak FMUError! Bookmark not defined. 4 2.6 Forest Management System 4 2.7 Annual Allowable Cut/Annual Harvest Under the Forest Managemet Plan 5 3.0 AUDIT PROCESS 5 3.1 Audit Dates 5 3.2 Audit Team 5 3.3 Standard Used 5 3.4 Stakeholders Consultation 5 3.5 Audit Process 5 4.0 SUMMARY OF AUDIT FINDINGS 6

Appendices:

1. Map of Perak FMU 15 2. Experiences and Qualifications of Audit Team Mmbers 16 3. Comments Received from Stakeholders and Responses by Audit Team Leader 20 4. Recertification Audit Plan 23 5. Peer Reviewer Evaluation of Audit Report 26 6. Recertification Audit Findings and Corrective Action Taken 30 7. Verification of Corrective Actions on NCRs and OFIs Raised During Previous Audit 34

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 2 of 36 1.0 EXECUTIVE SUMMARY

The recertification audit on the Perak Forest Management Unit (hereafter referred to as the Perak FMU) was conducted on 28 September – 3 October 2015. The audit was conducted to assess the continued compliance of the overall management system and practices of the Perak FMU against the requirements of the Malaysian Criteria and Indicators for Forest Management Certification (Natural Forest) [MC&I (Natural Forest)]. The scope of this recertification audit was still limited to the forest management system and practices of the Permanent Reserved Forests (PRF) within the Perak FMU.

This recertification audit was conducted by a four- member team comprising Mr. Mohd Razman Salim (Forester and as Lead Auditor), Khairul Najwan Ahmad Jahari (Forester), Prof. Mohd Basri Hamzah (Forester) and Dr. Zahid Emby (Sociologist). The audit team was accompanied by a trainee auditor, Puteri Arlydia Abdul. The audit commenced with an opening meeting on 28 September 2015 at the Perak State Forestry Department’s (PSFD’s) Head Office in Meru, .

Based on the findings of this recertification audit, it was found that the Perak FMU had continued to comply with most of the requirements of the MC&I (Natural Forest). This recertification audit has resulted in the issuance of three (3) minor Non Conformity Reports (NCRs) and six (6) Observation for Improvements (OFIs).

This public summary contains general information on the Perak FMU, the findings of the recertification audit, NCRs raised as well as the decision on the continued certification of the FMU.

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2.0 INTRODUCTION

2.1 Name of FMU

Perak Forest Management Unit

2.2 Contact Person and Address

Dato’ Hj Roslan bin Ariffin (Director) Perak State Forestry Department Persiaran Meru Utama 30020 Ipoh PERAK DARUL RIDZUAN Phone # : 05-528 8100 Fax # : 05-528 8101

2.3 General Background on the Perak FMU

The Perak FMU is managed by the Perak State Forestry Department (PSFD). In 2013, the Perak FMU comprised of 991,433 hectares (ha) of Permanent Reserved Forest (PRF) or 47.2% of the State’s total land area of 2.1 million ha. During this recertification audit, it was observed that there was a new gazettement made in 2015 of 6,870.02 ha of PRF. The Perak FMU now has a total of 998,306.02 ha of PRF. A map of the Perak FMU showing the locations of the PRFs is as shown in Appendix 1.

The PSFD was still committed to the management of the Perak FMU on a sustainable basis. The administration of the FMU was still divided into five forest districts namely the South Perak, Kinta/Manjung, , Larut & Matang and Hulu Perak Forest Districts.

The inland forest is managed under a Selective Management System (SMS) on a 30-year rotation period. Under the Tenth Malaysia Plan (2011-2015), the Annual Allowable Cut (AAC) for the Perak State FMU has been set at 6,990 ha. A Forest Management Plan (FMP) covering the period from 2006 to 2015 had been completed and presented during this audit.

The forest resources in the Perak FMU were being managed by the PSFD with a total workforce of 724. They consisted of professional and sub-professional forestry officers and the uniformed field staff comprised the forest rangers and foresters. The others were administrative and general staff.

2.4 Date First Certified

7 July 2010.

2.5 Location of FMU

The FMU is located between 3º 40’30” N to 5º 53’30” N and 100º12’30”E to 101º54’00”E.

2.6 Forest Management System

The inland forest is managed under a Selective Management System (SMS) on a 30-year rotation period. Under the Tenth Malaysian Plan (2011-2015), the AAC for the FMU has been set at 6,990 ha. A FMP covering the period from 2006 to 2015 was presented during this recertification audit.

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 4 of 36 2.7 Annual Allowable Cut/Annual Harvest under the FMP

Under the Tenth Malaysian Plan (2011-2015), the AAC for the FMU has been set at 6,990 ha.

3.0 AUDIT PROCESS

3.1 Audit Dates

28 September – 3 October 2015

3.2 Audit Team

Mr. Mohd Razman Salim (Forester and as Lead Auditor) Mr. Khairul Najwan Ahmad Jahari (Forester) Prof. Mohd Basri Hamzah (Forester) Dr. Zahid Emby (Sociologist) Puteri Arlydia Abdul (Trainee Auditor)

The details on the experiences and qualifications of the audit team members are as in Appendix 2.

Peer Reviewers:

(i) Dr. Ahmad Ainuddin bin Nuruddin (Universiti Putra Malaysia) (ii) Dr. Woon Weng Chuen (Forest Research Institute Malaysia)

3.3 Standard Used

Malaysian Criteria and Indicators for Forest Management Certification (Natural Forest) [MC&I (Natural Forest)] using the verifiers stipulated for .

3.4 Stakeholder Consultations

A stakeholder consultation was conducted in August 2015 for a period of one month. There were six (6) comments received from the stakeholders and the responses made by the audit team leader on these comments were as in Appendix 3.

3.5 Audit Process

The audit was conducted primarily to evaluate the level of continued compliance of the FMU’s current documentation and field practices in forest management with the detailed of the SOPs listed in the MC&I (Natural Forest), using the verifiers stipulated for Peninsular Malaysia.

For each Indicator, the auditors had conducted either a documentation review, consultation with the relevant personnel of the Perak FMU or stakeholders or field audit or a combination of these methods. Depending on the compliance with the verifiers for a particular indicator, the auditors then decided on the degree of the FMU’s overall compliance on the indicator and whether or not to issue a major or minor Non Conformity Report (NCR) or an Observation for Improvement (OFI) which is defined as follows:. (i) a major NCR is a non-compliance with the requirements of the MC&I (Natural Forest); (ii) a minor NCR is a deviation or a lapse in complying with the requirements of the MC&I (Natural Forest); and (iii) an OFI is a situation where the auditor has noted an area of concern on the capability of the forest management system to achieve conformance to the requirements of the MC&I (Natural Forest) but without sufficient objective evidence to support a non-conformity.

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 5 of 36 The coverage of the audit on the FMU is as shown in the Recertification Audit Plan in Appendix 4. The PSFD had sent a corrective action plan to the audit team to address the minor NCRs which the audit team had reviewed and accepted them. The audit team had then prepared an interim recertification audit report and sent it to the PSFD for comment. A second draft recertification audit report which had incorporated the comments received from the PSFD was then prepared and sent to two peer reviewers for independent reviewing. The comments received from the peer reviews on the second draft recertification audit report and the responses made by the audit team leader are as in Appendix 5. A final recertification audit report was prepared dated 8 February 2016 which was acknowledged by the PSFD on 29 February 2016.

4. SUMMARY OF AUDIT FINDINGS

Based on the findings of this recertification audit, it was found that the PSFD had continued to manage the Perak FMU in compliance with most of the requirements of the MC&I (Natural Forest). This recertification audit had resulted in the issuance of three (3) minor NCRs and six (6) OFIs. The details on the NCRs and OFIs raised are shown in Appendix 6.

The audit team had also verified on the corrective actions taken by the PSFD to address the five (5) OFIs which were raised during the previous surveillance audit. The responses made by the audit team leader on these corrective actions and on the final status of these OFIs are as in Appendix 7.

On indigenous peoples’ right, the PSFD had established various committees to maintain a continuous communication with the local communities to resolve any issues raised on matters affecting their customary, legal and use rights as a result of the forest management operations including logging activities. It was observed that there was no recorded civil court case pertaining to legal or customary tenure or use rights filed against the Perak FMU.

With regard to Criterion 6.10, there had been no new conversion of the PRF to forest plantations/non-forest land use. On the contrary, there was a new gazettement made in 2015 of 6,870.02 ha of PRF. The audit team had seen the forest conversion plan (Forest Plantation Development and Management Plan, 2014) for 2,000 ha of Korbu PRF into TLC (timber latex clone) plantation. The plan had also described the impact of the conversion on the environment including flora and fauna and also the local community.

There was no major NCR raised during this recertification audit. The PSFD had submitted a corrective action plan to address the OFIs raised which had been reviewed and accepted by the audit team. These proposed corrective actions by the PSFD to address these OFIs shall be verified by the audit team during the next surveillance audit.

As no major NCR had been raised, the audit team had therefore recommended the Certificate for Forest Management No. FMC 0004 awarded to the Perak State Forest Department be extended for another 3 years from 1 June 2016 to 31 May 2019.

The summary on the findings of the recertification audit on the Perak FMU against the requirements of the MC&I (Natural Forest) are as follows:

Principle Strengths Weaknesses Principle 1 All relevant national and local laws and Demarcation of boundary and signage had regulations and policies related to forest not been clearly marked at the Kledang management were up-dated. These Saiong PRF. Thus, an OFI 1 was raised. documents were also made available at the District Forest Offices.

Documents on all the binding international agreements which Malaysia is a signatory were made available to the senior forest officers.

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There was no documented conflict between the Principles and Criteria with laws and regulations. This was evaluated by the head office of the Forestry Department Peninsular Malaysia. The forest managers demonstrated willingness to participate in resolution of such conflicts if they arise.

Encroachment, illegal harvesting, hunting, and settlement, and other unauthorised activities in the FMU had been controlled by the Perak FMU through aerial monitoring.

The PSFD had continued to conduct briefings and seminars to explain the concept and implementation of the MC&I (Natural Forest) and policies to the department’s staff and contractors.

Principle 2 Documents related to forest reserve There were no negative findings. gazettement which are under the National Forestry Act were kept at the PSFD headquarters. A records of the gazetted forest reserves in the 5 districts of the FMU with their names, land areas, gazette numbers and dates of gazettement were presented to the audit team.

Relevant documentations on legal or customary tenure or use rights of local communities such as National Forestry Act, 1984 (Sections 19, 28, 33, 34, 40 and 62), Aboriginal Peoples Act, 1954 (Sections 6, 7, 8, 10, 13 and 19), and United Nations Declaration on Rights of Indigenous Peoples, 2007 were made available.

There were mechanisms available for resolving disputes. In addition, the PSFD had established a joint consultative committee with the Department of Orang Asli Development or Jabatan Kemajuan Orang Asli (JAKOA).

Principle 3 The customary use rights of the Orang Asli There were no negative findings. within the PRF were still being respected in forest management planning and implementation in accordance to the Aboriginal Peoples Act 1954. There was no case of logging/harvesting/forest operations being carried out in aboriginal reserves or areas.

The PSFD had in principle recognized that forestry activities would not be conducted in

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 7 of 36 the legally recognized land of the Orang Asli. This was followed through in practice whereby no forestry activities were carried out in aboriginal reserves and areas.

With regards to employment of local people, it was observed in the licence files (e.g. PPNPK 44/12/2 JLD 5) had shown that a number of the licensees had recruited their workers from the local areas. Through an examination of the PSFD’s employee list, it was found that a number of PSFD employees were also from the local area.

There was no evidence to show that the Orang Asli’s traditional forest-related knowledge and practices in forest species or management systems had been used in forest operations.

Principle 4 A perusal of the license file PPNPK 44/12/2 During a site visit at the Kaki JLD 5) had shown a number of the licensees nursery, it was observed that empty and their workers were from the local areas. pesticide containers were properly stored In addition, from the PSFD’s employee list, it and labelled in the pesticide store. was found that a number of them were also However, the label could be improved by from the local area. adding information on the date when the scheduled wastes were first generated, as An up-to date information on all applicable well as the name, address and telephone laws and regulations covering occupational number of the waste generator on the safety and health of forest workers had been containers. Thus, an OFI 2 was therefore disseminated to the forest workers. raised.

Collective bargaining was undertaken by the During site visits to Compartments 304 & PSFD’s staff through the government 305 of Bukit Kinta PRF (AM-01-65-15) and employees union, CUEPACS and ‘Persatuan Ulu Piol nursery, the auditor had found that: Pegawai-Pegawai Hutan Melayu Malaysia 1. The first aid kit was not being monitored; Barat (Association of Malay Foresters and Peninsular Malaysia)’. The logging 2. Oral medicine e.g. Panadol, was mixed contractors’ workers were not unionised but with other medical kit (First Aid Kit) for their welfare was being protected under the external used Employment Act 1955. Therefore minor NCR LYD-01/2015 was raised. Provisions for the workers of the forest contractors to organise and undertake collective bargaining had improved and being encouraged with the information made available to them through posters and a letter from the Perak Timber Trade Association to all companies and contractors on the freedom of the workers to participate in a union or association as provided for under the ILO Convention No.98.

The PSFD had continued to monitor the potential impacts of forest operations on local community’s socio-economic and cultural life

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 8 of 36 through: a. Consultations with the local community each time an area was approved for harvesting; b. Issues raised during the monthly District Action and Development Committee meeting; and c. Ad hoc formal and informal dialogues with local leaders and community members.

Principle 5 The PSFD has included the Non-Timber There were no negative findings. Forest Products (NTFP) in one of its development programmes aimed at collating data on the management of these resources.

The PSFD had also undertaken effort to diversify the source of timber by planting timber latex clone (TLC) rubber which could produce latex throughout its rotation and finally timber at the end of the harvesting. The planting of Rubber trees was aimed at lessening the pressure on the demand for natural timber while fulfilling the demand by the furniture industry.

Harvesting operation in the FMU was still aimed at full utilization of the timber resources with minimal wastages in line with the objectives of the National Forest Policy. A ceiling was imposed on the volume extraction with 85 m3/ha set for primary forests (tagged tree during Pre-F inventory) and 61 m3/ha for subsequent rotations of secondary forests. The PSFD had continued to minimize wastage through proper pre- harvest, tree tagging as well as precise directional felling to prevent residual stand from being damaged. The auditor had seen no significant damage or waste (such as abandoned logs) during harvesting from the tree stumps to main log landing site or matau.

The PSFD has to-date established a total of 159,866 ha of catchment areas in 18 forest reserves involving 23 areas in the FMU which were being managed according to the Guidelines for Catchment Forests (2010) for resource sustainability, conservation, local climate stabilization and to preserve and enhance catchment and aquatic environment.

For the long-term sustainability of harvest, the PSFD had continued to keep records of the harvested timber volumes to ensure the

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 9 of 36 AAC would not be exceeded at the FMU level both in terms of area and volume. Similar records were also kept for NTFP.

Principle 6 In view of the state-wide scale of the Perak In selection of mother trees or protection FMU an appropriate macro-level trees their safety is important to ensure long- environmental impact assessment (MEIA) term survival. During a site visit at was conducted in 2007. Recommendations Compartment 355 Banding PRF (AU01- from the MEIA report were incorporated in 4415), a Keruing mother tree was however the mid-term review of the FMP. The report is observed situated on a high risk location that available at the Ipoh PSFD and also at all the may lead to potential toppling over. The tree forest districts. In the Central Forest Spine was situated close to the edge of the (CFS) Programme several biological upslope embankment of skid trail LP23/1 corridors were planned within the FMU to with bank height of 1.8m. The tree risks conserve wildlife movement and habitats. toppling over with future bank erosion and The PSFD was a prominent and active growing mass. For this, an OFI 3 was member of the Central Forest Spine (CFS) issued with suggestion that a replacement to working committee (Jawatankuasa Kerja be made at more secured location. CFS). The PSFD had continued to conserve biological corridors for wildlife movement. During site visit, side drain had been constructed partially at the visited area Environmental impact assessments (EIA) on feeder road JT1 and JT3 in Compartment rare and threatened species of flora and 304 and 305 of Bukit Kinta PRF (AM-01-65- fauna were included in the MEIA report on 15) and feeder road JT2 in Compartment the FMU. The need for biological corridors 138, 140 and 157 of Kledang Saiong PRF for wildlife movement was also addressed in (AK-01-49-15). Numbers of silt trap the report. constructed were found to be inadequate at JT2 Compartment 138, 140 and 157, Guidelines exist and were made available for Kledang Saiong PRF (AK-01-49-15). During identifying and protecting ERT species site visit at Banding PRF, Compartment 355 including features of special biological in the Hulu Perak Forest District (Primary interest. Lowland Dipterocarp Forest, 700-980m elevation, general slope >50degrees, There was continuous cooperation between License AU 01-44-15), the auditor had found forest managers, conservation organizations that access road found was without side and regulatory authorities on implementing drain; inadequate or no side bund on the conservation and management activities. slope side; absence of sump in area draining into a cross drain. Action has been Activities such as illegal hunting, fishing and taken, following the August monthly report, collecting were controlled and inappropriate by the PSFD to compound the contractor activities prevented in the FMU. The concerned. Skid Trail # LP23/1: surface cooperation with the WWF to close post- scraping in excess of 1m, consistent over logging access to PRFs in Hulu Perak, as ~200m distance covered. The auditor took mentioned above, was mainly to curb illegal note on the extreme condition of the hunting in the area. Adequate signage was topography and the concern for operational seen being erected strategically in the forest safety. Thus, a Minor NCR LYD-02/2015 area. for Indicator 6.5.3 was raised.

Harvesting was designed in the FMU taking The smaller vegetation along the buffer into consideration the need for the periphery was brushed aside by the conservation of biological corridors and buffer bulldozer in the process of road zones for features of special biological construction. The cleared vegetation interest for wildlife. however, avertedly fell into the fringe of the buffer zone e.g. JT 2 Compartment 138, 140 The practice of reduced/low impact logging and 157 of Kledang Saiong PRF (AK-01-49- (RIL) was strictly observed in order to 15) and LP 1/1, JT2 and JT3 Compartment

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 10 of 36 minimize damage to the environment in the 304 and 305 of Bukit Kinta PRF (AM-01-65- FMU. 15). Thus, a Minor NCR LYD-03/2015 for Indicator 6.5.4 was raised. Conversion from natural forest to forest plantations or non-forest use in the FMU had Consultations with the forest managers and not included any High Conservation Value workers indicated that they were aware of Forest (HCVF) areas and covered a very the procedures on the use of approved limited portion of the management unit with chemicals in the forest. Some of the ensured conservation, economic and social workers had also been trained on chemical values. The forest conversion plan (Forest handling in PSFD’s Forestry Training Plantation Development and Management Complex at Sg. Siput. Plan, 2014) for 2,000 ha of Korbu PRF into TLC (timber latex clone) plantation by Waja However, some staff members were found Kinrara SB was seen by the auditor. The inadequately trained in poison chemical plan described the impact on the handling. During the site visit at Kaki Bukit environment including flora and fauna and Larut Forest Nursery, Larut Matang Forest also impact on the local community. District, one nursery personnel (Ashaari bin Mitigation measures were also prescribed. Sukri, general worker (PRA)) assigned to the nursery since 2010 had not yet attended There were no high conservation value a course on handling of poison chemicals. elements in the area and the planned And the file on staff training was found not plantation would benefit the state and local being up to date, with the last entry dated economy from employment opportunity, May, 2013. The latest training attended by including from local community, to production nursery staff (Shamsul Azhar bin Ishak, of latex and Rubberwood timber at end of general worker (PRA)) was in May 2015. rotation. In addition the state-wide Thus, an OFI 4 re-issued. cumulative area of FMU, forest affected in the conversion was within the stipulated limit The storage and handling of poisons and and schedule. fertilizers at the Bukit Larut and Piol Forest Nursery were found satisfactory and in accordance with SOP. Empty waste containers and scheduled waste have been appropriate disposed and labelled at the Kaki Bukit Larut and Ulu Piol Forest Nursery. However, an OFI 5 was re-issued due to record of disposal of empty pesticides containers was not being made available at the Ulu Piol Forest Nursery.

Principle 7 FMP (2006-2015) was seen during this There were no negative findings. recertification audit. The document provided for all the items (a-i) as listed above including annual harvest rate, species selection, environmental safeguard and assessment, protection of ERT species, protected areas, planned management activities and the RIL. Collectively the elements contribute to the overall objective of managing the nation’s forest resources sustainably for the continuous yield in forest products and services and their optimum use in harmony with the requirements of the environment.

The PSFD forest managers were generally aware of recent technological advancement relevant to areas under certification. Recent

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 11 of 36 information was made available to the management staff and together with structured training programmes regularly conducted had enabled the staff to be kept abreast with new developments.

All levels of departmental staff, as appropriate to their roles, were required to attend training programmes designed towards proper implementation of the management plan in particular in managing the MC&I. These included the lower category staff (Foresters G11, 14 and General Workers or PAK, R3) as well as rangers and forest managers (G17 to G44).

The summary of the PSFD FMP (2006-2015) was made widely accessible to the general public through downloading of its webpage.

Principle 8 The Director General’s Directive on the use Results of Pre-F at Compartment 13 Bukit of monitoring forms A-D had been strictly PRF was recorded in PPN.PK UPPH adhered to. (S) 44/2015 dated 15/05/2015 conducted by the contractor Sri Petaling Enterprise. Growth plots in the FMU were being Result of Post-F at Compartment 37 (80 ha) maintained by the PSFD with data collection Bubu PRF license 48/2011 dated 2015 and analyses, and record compilation conducted by Pertubuhan Peladang undertaken in accordance to set procedures Kawasan had also been in the forestry manual (Manual Perhutanan verified. However, during site visit at Pre-F Jilid 2, Lampiran 14 dan 26). The PSFD had inventory area at Compartment 13 Bukit also routinely collated inventoried data (Pre-F Tapah PRF, it was found the stock map did and Post-F) to assist in harvesting together not correspond to the inventory result of the with data from VJR stands. The Post-F analysis. Thus an OFI 6 was raised. assessment of regeneration capacity was conducted through the established 1 ha plots following harvesting of each compartment. Adequacy of the Post-F regeneration was a core requirement under the SMS, the standard management system adopted for the hill forests. Records on Growth Plot (1992-2011) were sighted during this audit.

All logs transported out of the forest in the FMU were accompanied by a delivery order prepared by the logging contractor where the tree number, species, log production number, log length, diameter, and net volume were documented. On the same form, the block number, coupe/license number, stumping point, name of recorder, date and vehicle number are also recorded. This delivery order accompanied the logs to the nearest forest checking station of the PSFD. The foresters of the PSFD measured the logs and checked the species, tag number and compared them with the information in the

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 12 of 36 “Record of Tree Tagging” based on 100% tree enumeration above the prescribed cutting limit and marking conducted by the PSFD prior to harvesting.

The Annual Report of the PSFD was still made available to the public on request. A public summary of the results of monitoring indicators such as growth rates, regeneration and conditions of the forest; composition of the flora and fauna and environmental and social impacts of harvesting had been published in the annual report as well as in the website and made available during the audit.

Principle 9 There was no new HCVF site reported for the There were no negative findings. audit in 2015. However, potential HCVF had been identified at Compartment 51 & 52 of the PRF. An area, about 4 ha of Keruing Paya, was still in the preliminary stage of discussion involving the various stakeholders to be established as HCVF within the FMU.

Past sites had however been identified and established in close compliance with set guidelines including appropriate consultations with the relevant stakeholders. The HCVF Report (2007) and its revision, High Conservation Value Forests 2012, and the report on water catchment areas (Kawasan Tadahan Air Bagi Hutan Simpan Negeri Perak Darul Ridzuan) were seen during document review.

To date six HCVF sites, excluding water catchments, had been established in the FMU; three for protection of ERTs flora; Balau Putih (Shorea lumutensis) in Segari Melintang and Sungai Pinang, Daun Sang (Johannestaijmannia perakensis) in Keledang Saiong, Bunga Pakma (Rafflesia spp.) in Temenggor, a salt lick in Temenggor and an archaeological site with prehistoric graves in Pulau Kalumpang. Each HCVF area had been demarcated on the ground, planned and managed according to individual management plans.

The protection and management of HCVF sites was still the main thrust of conservation effort as reflected clearly in the PSFD FMP. The protection for such sites was also stressed in any environment impact analysis. All demarcated HCVF sites were protected

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 13 of 36 from impact of forest operations particularly harvesting and all forms of forest encroachment.

Measures to demarcate, maintain and/or enhance the HCVF attributes were documented in the FMP and being effectively implemented. HCVFs in the FMU were documented under protection forests in the FMP (2004-2015).

Monitoring guidelines to assess the effectiveness of the measures in the management of the HCVFs has been established and documented as Pekeliling Ketua Pengarah Perhutanan Semenanjung Malaysia Bil. 8 Tahun 2015 – Panduan Penubuhan dan Pengurusan Kawasan Hutan yang Mempunyai Nilai Pemeliharaan yang Tinggi (HCVF) dalam Hutan Simpan Kekal (HSK) di Semenanjung Malaysia dated 28/02/2015.

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Appendix I Map of Perak FMU

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 15 of 36 Appendix 2

Experiences and Qualifications of Audit Team Members

Assessmen Role/Area of Qualification and Experience t Team MC&I Requiremen t Mohd Assessment Academic Qualifications: Razman Team Leader B.Sc. Forestry (Forest Production), University Putra Malaysia. Salim / Forester Work Experiences:  Five year experience as Research Officer at the Forest Research Institute Malaysia (FRIM) since 2007 in various areas such as ecological research for lowland and hill dipterocarp forest, Geographic Information Systems, forest inventories, forest harvesting and forest management system (SMS).  Participate in organizing committee member, division level activities and projects.  Coordinate and collaborate long term ecological plot and inventory data about 25 years at the Pasoh, with Negeri Sembilan Forestry Department, universities (local & international) and NGOs.  Published and presented research findings at the seminars and conferences. Currently as Auditor at the Food, Agriculture and Forestry Section (FAF), SIRIM QAS International Sdn Bhd, since 2013.  Conduct assessments on forest management certification [MC&I (Natural Forest)] & [MC&I (Plantations)], MYNI of RSPO P&C and other management systems such as ISO 9001, 14001 and OHSA 18001

Training/Research Areas: Attended and passed the following training programmes:  Auditor Training Course on Malaysian Criteria and Indicators for Forest Management Certification [MC&I (Natural Forest)] & [MC&I (Plantations] organized by MTCC, 1-4 December 2013;  EMS 14001: 2004 Lead Auditor Course organized by SIRIM Training Services Sdn Bhd, 18-22 March 2013;  OHSAS 18001: 2007 Lead Auditor Course organized by SIRIM Training Services Sdn Bhd, 11-15 March 2013; and  QMS 9001: 2008 Lead Auditor Course organized by SIRIM Training Services Sdn Bhd, 4-8 March 2013.

Khairul Assessor Academic Qualifications: Najwan B. Sc Forestry (Forest Management), Universiti Putra Malaysia (UPM). Ahmad Jahari Work Experiences:  Appointed as contract Research Officer in the Natural Forest Division, Forest Research Institute of Malaysia (FRIM), since 2001  Conduct and coordinate research on 8th Malaysian Plan Project  Produce technical reports, meeting, seminar and conferences as well as quarterly physical and financial reports.  Coordinate and participate in field works, multi-level meetings, seminars, conferences and workshops.

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 16 of 36  Spent some time in other existing FRIM projects (inter divisional) as an organizing committee member, division level activities and projects  Currently as Auditor at the Food, Agriculture and Forestry Section (FAF), SIRIM QAS International, since 2009. Involved in conducting assessments on forest management certification (MC&I and FSC P&C), MYNI of RSPO P&C and other management system on ISO 9001, 14001 and OHSA 1800

Training/Research Areas: Attended and passed in the following training programmes:  Auditor Training Course on Malaysian Criteria and Indicators for Forest Management Certification [MC&I (2002)] organized by MTCC, 30 March - 2 April 2009;  EMS 14001: 2004 Lead Auditor Course organized by SIRIM Training Services Sdn Bhd, 2-6 March 2009;  OHSAS 18001: 2007 Lead Auditor Course organized by SIRIM Training Services Sdn Bhd, 23-27 Feb 2009;  QMS 9001: 2008 Lead Auditor Course organized by SIRIM Training Services Sdn Bhd, 16 – 21 Feb 2009.

Prof. Muhd Assessor Academic Qualifications: Basri M. Sc (Australian National University), sponsored by UPM. Hamzah B. Sc (Forestry) (Australian National University), Colombo Plan Scholarship. B.Sc (Botany) (University of Western Australia), Colombo Plan Scholarship.

Work Experiences:  Tiara Nusa Sdn Bhd (No.807309-P): Director, 2008-Present  UPM: INTROP (Institute of Tropical Forestry and Forest Products) – Consultancy Associate 2012-present; Consultancy Fellow, 2008- 2011;  Professorial Researcher (Penyelidik Khas), 2005-2008; Faculty of Forestry - Associate Professor, 1984 – 2001: Lecturer, 1976 – 1984: Tutor, 1973-1976: Deputy Dean, 1985 – 1986: Head, Department of Forest Production, 1983 – 1984: Head, Department of Forestry (UPM Campus) 1981 – 1982: Course Co-ordinator (UPM Sarawak Campus) 1979-82. FDPM (Forestry Department Peninsular Malaysia)  ITTO (International Tropical Timber Organisation), Consultant 2001- 2004  ANU (Australian National University): Department of Forestry, Demonstrator, 1975-76

Training/Research Areas:  Main research area: Regeneration and rehabilitation problems of Malaysian Rainforest; with emphasis on Hill Dipterocarp Forests;  Refinements of the Selective Management System: Forest Plantation Establishment  Specialisation: Silviculture, Forest Ecology, Agroforestry.  Latest research: Mapping and Assessment of Present and Future Potential Carbon Storage in Malaysian Forest: Soil Carbon, Woody Debris and Vegetation. RUGs, UPM, 2009-2011

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 17 of 36 Other academic/university experiences:  Faculty Research supervision of postgraduate and undergraduate students at UPM, up to 2001;  Chairman, Faculty Curriculum Committee, 1985; Head, Faculty Research Thrust in Hill Dipterocarp Forest, 1983-88; Chairman, UPM Faculty Student Affairs Committee, 1984-85  UPM Panel Chairman/Member for Postgraduate Theses Examination & Viva up to 2001;  Chairman, UPM Diploma Curriculum Revision Committee, 1985;  Member, UPM Curriculum Comm. 1984-85;  College Master (Bangi College), 1984-85.

Dr. Zahid Assessor /  1977- 1992 – Lecturer, Department of Social Sciences, Faculty of Emby workers & Educational Services, UPM. community  August 1992 – 1994 - Head, Department of Social Development issues and Studies, UPM related legal  August 1, 1998 -2001. Reappointed as Head of the renamed issues Department of Social and Development Science UPM for a three year term  Head, Department of Music UPM from October 2003 until retirement on December 17, 2006  Spent some time as a visiting scholar at University of Hull, U.K. and Victoria University of Wellington, New Zealand.  Freelance consultant on social issues.

Puteri Trainee Academic Qualifications: Arlydia Auditor B. Sc Forestry (Forest Production), UPM. Abdul Work Experiences:  2015 onward: Trainee auditor at the Food, Agriculture and Forestry Section (FAF), SIRIM QAS International Sdn Bhd for Forest Management Certification [MC&I (Natural Forest)] & [MC&I (Plantations)], MYNI of RSPO P&C, MSPO and other management systems e.g. ISO 9001 & 14001  2012 – 2015: Certification Administration Executive/Auditor and Coordinator for PEFC CoC, RSPO P&C , RSPO SCC, RSPO RED, ISCC DE, ISCC EU with Intertek Certification International Sdn Bhd.  2011 – 2012 Project Research Officer at Transparency International Malaysia - research, coordinating & implementation project requirements for forest governance integrity, liaise with external parties on matter arising and related to the project to forest governance integrity.  2008 – 2011 Project Officer/Forester at Forest Plantation Development Sdn Bhd (wholly owned by MTIB) - auditing document/proposal for forest plantation softloan, field auditing for forest plantation (against Malaysian National Indicator for Forest Plantation, Environmental, HCVF, Land Title (legal assuring of land, land tenure, terms of land title , land boundary, land dispute and claims under encumbrances, dispute and process of negotiation and compensation) & Company Act, Good Agricultural Practices (GAP), and Integrated Pest Management (IPM), pesticide and fertilizer ) and mapping forest plantation.  2007 – 2008 Forester/GIS Officer at Forestry Department Peninsular Malaysia (HQ) - handlings Geographic Information System (GIS) Database, Mapping Forest and facilitate GIS and Remote Sensing

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 18 of 36 Training (‘Human Resource Development in Geographic Information System and Remote Sensing for the Forestry Personnel of ASEAN Countries’ August 2007.

Training/Research Areas: Attended and passed in the following training programmes:  Auditor Training Course on Malaysian Criteria and Indicators for Forest Management Certification [MC&I (Natural Forest)] & [MC&I (Plantations] organized by MTCC, 9-10 June 2015.  EMS 14001: 2004 Lead Auditor Course organized by SIRIM Training Services Sdn Bhd, 18-22 May 2015.  QMS 9001: 2008 Lead Auditor Course organized by SIRIM Training Services Sdn Bhd, 19-23 March 2012 and New Revision 2015 on 21 September 2015  Forest Plantation Management Training by Malaysian Timber Industry Board (MTIB), Forest Research Institute Malaysia (FRIM), and Forest Plantation Development Sdn Bhd, 19-21 March 2009  Forest Plantation (for Rubber) Development & Training by Malaysia Rubber Board, 24-26 November 2008

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 19 of 36 Appendix 3

Comments Received From Stakeholders and Responses by Audit Team Leader

No. Stakeholder Comments/Issues Raised Response by Audit Team 1 Stakeholder 1 The Orang Asli Semai at Kg. Auditor has consulted with the Batin Orang Asli Semai Ulu Geruh, has and two other villagers at Kg. Ulu Geruh who affirmed problems related to forest that there was no logging in any PRF close to the harvesting nearby to their village. residential area and ‘tanah adat’. Accordingly, no Auditor has verified at the Ulu Kinta Forest Reserve consultation was held before where there was no evidence to show that forest harvesting. Suggestion: harvesting operation had taken place close to the Kg. Have local consultation with Ulu Geruh. The DFO Perak Selatan had also informed Orang Asli at Kg. Ulu Geroh. the auditor that there was no plan to issue licenses to Note: The harvesting area is harvest PRF close to the village. in the Ulu Kinta Forest Reserve. The FMU would conduct a SIA before forest harvesting operation including discussion with JAKOA Perak once a year in order to avoid any conflict between the FMU and the nearby Orang Asli community.

2 Stakeholder 2 EIA is compulsory although The PSFD was well inform that an EIA is compulsory current practice that area for harvesting operation in natural forest and that area which more than 50 hectares more than 80 ha and forest plantation area are under is require EIA. However, for ‘Zon Pembangunan Ladang Hutan’. all projects on forest clearing, EIA shall be made compulsory.

3 Stakeholder 3 Workers right on: 1. Facilities provided by 1. The PSFD had provided adequate facilities for their employer for employee staff. At the logging camp, licensees had provided (Section 15(2)(e)AKKP1994). their workers with basic facilities. 2. The PSFD and licensees had monitored and 2. Work environment in term maintained the safety and health of their staff at all of safety and health (Section visited area; office and operation area (harvesting 15(2)(a)AKKP1994). area, nursery and forest checking station). 3. Training and information 3. Auditor has verified that the PSFD and licensees and supervising for workers had provided adequate training and information for related with safety and health all activities as mentioned in the report. cover all works activities 4. PPE was provided for to all workers especially at (Section 15(2)(c)AKKP1994). harvesting area and nursery. 4. Personal Protective 5. Recently (2015), one forestry officer has attended Equipment (PPE) which are training on safety and health. The officer would provided to all workers based monitor the most significant risk area. However, on type of work and hazard based on MC&I (Natural Forest) Standard, the (Section 15(1)(e)AKKP1994). PSFD was not required to conduct a risk 5. Risk assessment for all assessment (HIRARC). activities and control 6. Usage of chemical had followed USECHH measures should be requirement as verified at the nursery where PPE implemented by employer was provided, verified list of chemicals, spraying (HIRARC). activities was less than 8-hours per day, CSDS was made available and training has been 6. Method on usage of schedule. However, chemical health risk chemical (Reg. USECHH

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 20 of 36 2000). assessment, medical surveillance and monitoring 7. Workers right to be a of exposure are not required by MC&I (Natural member of the safety and Forest) Standard. health committee in a work 7. The safety and health committee meeting was place. attended by the staff as verified through meeting minutes. 8. Rights to get medical 8. Based on MC&I (Natural Forest) Standard, the treatment and surveillance by FMU is not required to comply with this health officer doctor (Reg. requirement. USECHH 2000).

4 Stakeholder 4 Online news dated 25 Based on verification audit report dated 12-14/08/2015 September 2014 had reported under the heading During on-site visit to the Pondok Tanjung PRF, it was ‘300 Pesara Tentera Tuntut observed that there were evidences that the forest had Janji’ an encroachment of the indeed been encroached. However, the size of the Changkat Niru Forest encroached area was estimated at 20-30 ha or about Reserve in Pondok Tanjung, 15% of the total area of the PRF of 150 ha and not 600 in the by 300 ha as reported by the media. members of the Kooperasi Wira Wawasan Taiping The PSFD had initially approached the problem Berhad (Kooperasi Wira cautiously producing two police reports on the Wawasan). The Chairman of encroachment (11/08/2014 and 07/09/2014). Overall the Kooperasi Wira stand damage was estimated at RM155K. In order to Wawasan had allowed the ensure sanctity of the PRF, and against future members to work on the 600 encroachment, the lead instigators were subjected to ha Forest Reserve for litigation, with Abdul Rahman Hashim being charged agricultural and livestock on 03/03/2015 in the Taiping Session Court but was farming. The news had set free on bail. The latest court hearing was scheduled reported that the on 21/08/2015. encroachment had resulted in a complete clear cutting of The PSFD had initiated rehabilitation of the affected the Cangkat Niru Forest area. Forest Ranger and his team has line-planted Reserve, Larut/Matang local species including Meranti Tembaga (Shorea Forest District. leprosula), Meranti Sarang Punai (Shorea parvifolia), Kelempayan (Neolamarckia cadamba), Merbau (Intsia palembanica), Kempas (Koompasia malaccensis) covering a total of 12 ha. Signage against forest encroachment had also been strategically emplaced.

5 Stakeholder 5 An article in media dated Based on verification audit report dated 12-14/08/2015 18/02/2015 entitled ‘Jabatan Perhutanan Perak Semak The PSFD had confiscated the four timber lorries on Data Bayaran Royalti’ had the road in with excess loading on 12 alleged three timber February 2015. A police report had subsequently been companies had cheated on lodged on the same day at Sg. Siput. royalty payment. This was discovered during a joint Another police report was subsequently lodged on the operation conducted by infringement of the Temenggor PRF. An investigation Malaysian Anti-Corruption was duly initiated under the Forestry Act 1984 with Commission (MACC), PSFD samples of the logs taken for forensic analysis by the and Ibu Pejabat Polis FDPM. The analysis should reveal whether it was a Kontingen Perak during deliberate attempt by the contractor if it could be which, 4 lorry loads of 114 proven that the buried logs matched with those illegally logs valued at RM 300,000 felled logs in the vicinity.

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 21 of 36 had been confiscated. Following the joint investigation by the PSFD, MACC and FDPM (Integrity Unit) conducted on 4 and 5 March 2015 which had found infringement in Compt. 138 and Compt. 141 in the Temenggor PRF, a police report was filed in Bersia, on 5 March 2015.

During this Recertification Audit 2015, the auditor had verified that DFO has stopped all harvesting operation at both compartments.

6 Stakeholder 6 An article posted in Based on verification audit report dated 12-14/08/2015 Facebook on 24/02/2015 entitled ‘Clogging Rivers, The PSFD had maintained that the eight active logging Choking Live’ on distressing licenses in Temenggor PRF were operating in areas sight of log remnants and quite removed from river systems fringing the affected other timber debris floating Orang Asli villages. It was apparent from the map that across the width of the Sara it was not possible for Sg. Sara to be clogged with River which flows into Tasik logging debris from current operations as alleged. Banding. The article had reported none was taking The audit team, in a road trip upstream of the Sg. Sara, responsibility and no up to a point where a bridge had collapsed and swept apparent attempt to do away the year before, observed that logging had something about it. actually been confined to the approved areas. During the visit to the area, it was clear to the audit team that the debris was most likely the results of forest clearing downstream by the Orang Asli villagers adjacent to the Sg. Sara river within the vicinity of the villages.

In addition, the wood debris seen in the pictures provided in the COAC report, was more consistent with that of small-sized trees, either from secondary stand (belukar) of long fallows or understorey trees in intact stand. In typical slash and burn practice, the overstorey of intact stands comprising large trees, including timber species, were simply burnt after felling since they were too massive to move.

During the field visit on 14/04//2015, it was observed that the clogging of the Sg. Sara was found to have been completely cleared.

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 22 of 36

Appendix 4 Recertification Audit Plan

PROGRAM DAY TIME Team A Team B Team C AUDITOR 1 AUDITOR 2 AUDITOR 3 AUDITOR 4 (AUDIT TEAM Prof Basri Najwan Dr Zahid LEADER) *Puteri Arlydia Razman *Ismail Adnan *Prof Awang Day 0 4.00 pm  Travel to Ipoh  Check-in Tower Regency Hotel and Apartments (Sunday)  Briefing by Audit Team Leader on the recertification audit plan 9.30 am –  Opening Meeting with representatives of FMU Day 1 1.00 pm  Briefing session by Forest Manager of the FMU on progress of forest activities  Q&A Session (Monday)  Evaluation of changes to the management of the FMU  Check on progress of planned activities aimed at enhancing the operation system to achieve improvement in overall performance  Check on complaints, stakeholder comments and follow-up actions o Orang Asli o Government agencies o NGOs 2.00 pm –  Check on verification for closing NCRs and OFIs raised during the previous 5.00 pm audit (if any)  Evaluate on procedures for internal audit  Evaluate on management review system  Documentation and records review o Principle 1 – Compliance with Laws and Principles o Principle 2 – Tenure and Use Rights and Responsibilities o Principle 3 – Indigenous Peoples’ Right o Principle 4 – Community Relations and Workers’ Right 8.30 am –  Documentation and records review Day 2 1.00 pm o Principle 5 – Benefits from the forest o Principle 6 – Environmental Impact (Tuesday) o Principle 7 – Management Plan o Principle 8 – Monitoring and Assessment o Principle 9 – Maintenance of High Conservation on Value Forests o 2.00 – Team A & Team C travelling to Hulu Perak 5.00 pm  Stakeholder consultation with Chairman of Logger Association & NGOs

Team B travelling to Perak Selatan  Visit nursery Ulu Piol

Site visit at active area: Day 3 8.30 am – 5.30pm  Document review at  Document review at  Document review (Wednesd at Hulu Perak ay) Office and interview Office and interview with District Office with staffs staffs  Consultation with  Site verification on  Site verification on workers union stakeholders stakeholders complaints  Interview with local

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 23 of 36 complaints and  Inspection of active communities / verification audit harvesting area, Orang Asli  Inspection of active boundaries, HCV area harvesting area, and workers camp at boundaries and Compt. 138, 140 & 157, workers camp Kledang Saiong PRF (AK i. Compt. 364, 01-49-15) Banding PRF  Temporary Forest (AU01-05-15) Checking Station ii. Compt. 355 Banding PRF (AU 01-44-15)  Bandariang Forest Checking Station

5.30pm  Team A and Team C travel to Larut & Matang  Team B travel to Kinta/Manjung

8.30 am – Site visit at active area: Day 4 5.30 pm  Document review at  Document review at  Document review (Thursday) Larut & Matang Kinta at Larut & Matang District Office and Office District Office interview staffs  Site verification on  Consultation with  Interview with stakeholders complaints workers union stakeholders – Perak  Inspection of active  Interview with local Timber Trade harvesting area, communities – Kg. Association boundaries and workers Melayu, HS  Kaki Bukit Larut camp at Compt. 304 & Pondok Tanjung Forest Nursery 305, Bukit Kinta PRF  HCVF – HS Pulau (AM 01-65-15) Kecil (Berus Mata  Forest Checking Station Buaya – Bruguiera  HCVF area – HS Segari hainesii) Melintang (Balau Putih)

5.30 pm  Team A, Team B & Team C travel to Kuala Kangsar

8.30 am – Site visit at active area: Day 5 5.30 pm  Virgin Jungle  Document review at  Document review (Friday) Reserved (VJR) at Kuala Kangsar at Kuala Kangsar Compt. 41, Bukit - Inspection of pre-  Site verification on Larut PRF harvesting area, tree stakeholders  Interview with tagging, buffer zone and complaints Stakeholders - forest boundary at  Consultation with PERHILITAN Compt. 13, Bukit Tapah workers union PRF  Interview with local  HCVFs HS Chikus, communities Compt. 51 & 52 – Keruing Paya  Interview with Stakeholders – Department of Environment

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 24 of 36 5.30 pm  Team A, Team B & Team C travel to Ipoh

8.30 –  Check-in Casuarina Hotel@Meru 9.30 pm  Review of Day 1-5 Findings with Auditors

8.30 am –  Preparation of audit report and finding Day 6 12.00 pm  Briefing to representatives of FMU on the findings of audit

(Saturday) 3.00pm-  Closing Meeting and presentation of findings of audit and discussion on follow- 5.30pm up activities  Adjourn Closing Meeting

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 25 of 36 Appendix 5

Peer Reviewer Evaluation of Audit Report

Peer Reviewer 1

No Item Comments Auditor’s Response 1 Comprehensiveness and quality of I am satisfied with the quality and Noted. reporting comprehensiveness of the Auditor’s report.

2 Has the audit been conducted In my opinion the auditor has Noted. objectively and professionally? conducted the audit objectively and professionally.

3 Has each Principles and Criterion Yes, all the Principles and Noted. been adequately addressed? Criterion have been adequately Please include comments on each addressed. principles and Criterion

4 Are the conclusions of the findings The conclusions of the findings Noted. appropriate? were appropriate.

5 Agreement/Disagreement with the I agreed with the 3 Minor NCRs Noted. NCRs raised by the Audit Team raised by the Audit Team.

6 Are the recommendations by the All the recommendations were Noted. audit team appropriate? appropriate and reasonable. Agreed with the Audit Team recommendation to renew the certification of the Perak FMU.

7 Areas where additional information No additional information is Noted. is required required as those provided were adequate.

8 Others The major short coming of the Noted. PSFD seems to be maintaining an up-to-date records and documenting the activities taken. Could be easily rectified.

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 26 of 36 Peer Reviewer 2

No Item Comments Auditor’s Response 1 Comprehensiveness and quality of Report is comprehensive and the Noted. Correction has reporting quality of the reporting is good. been made. The report covers all aspects of the certification. However, there was a mistake on page 4 on Organizational Information/ Contact Person

Name: YM Ku Azmi bin Ku Aman Designation: Director, State Forestry Department Address: Level 8, Bangunan Sultan Abdul Halim, Jalan Sultan Badlishah, 05000 , Kedah Phone # : 04 733 3911 Fax # : 04 731 0610

Obviously the FMU was not Kedah but Perak.

The audit team had covered all the Criteria and Indicators of the MC&I (Natural Forest).

2 Has the audit been conducted The audit had been conducted Noted. objectively and professionally? objectively and professionally. The audit team was briefed by the FMU managers and held meetings with managers at various levels, state and districts. They reviewed documents, inspected active harvesting sites, make sites verifications, did consultations and interviews. Complaints were also checked with the concerned parties. All these were compiled and reported in the audit report.

3 Has each Principles and Criterion Each Principle and Criterion had i. There was a mistake been adequately addressed? been adequately addressed. on the page 5. Please include comments on each However, there are few things in Correction has been principles and Criterion the report which I want to raise made. Actually, we here. have received six (6) i. Pg. 5, Stakeholder comments from Consultation stakeholders as A stakeholder consultation shown in the was conducted in August Appendix VI on page 2015 for a period of one 57. month. However, there is no comment received from the ii. An agreement was stakeholders. signed between the

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 27 of 36 PSFD and Waja How was this Stakeholder Kinrara SB in April Consultation conducted and 2014 for approval of why there was no comments forest conversion received? Should the (Korbu Permanent Stakeholder Consultation be Forest Reserve, done by another way to get Kuala Kangsar) into better feedback from the TLC plantation and stakeholders? the 2,000 ha to be leased over a stated ii. In Criteria 5.2, Indicator period. 5.2.2, Objective evidence, iii. The ‘recreational last paragraph (pg. 19, 20). parks’ were established at costs No mention of the location of to the PSFD in the the proposed TLC plantation FMU, and had within the FMU. provided free entrance to the iii. Criterion 5.4, Indicator 5.4.1, public. Development Objective evidence, 2nd and management of paragraph (pg. 21). recreational parks (such as Need to elaborate the maintenance of development of recreation chalet, jungle areas and management were tracking, domestic contracted out to the local waste management, community. What were the drainage evidence of these activities? maintenance, public toilet, camping area, iv. In the report unit of cum/ha landscaping) were was used (pg. 20, second contracted out to the paragraph, line 3). Suggest local community by to change the unit to m3/ha. tender as had been verified by the v. Criterion 7.4, Indicator 7.4.1, auditor, see letter Objective evidence. PPN. Pk(S) 2/2016

Hyperlinks to iv. Noted. Corrections http://www.perakforestry.gov.my/i have been made. ndes.php/mengenai- jpnpk/maklumat-mc-i/ringkasan- v. The hyperlinks were eksekutif-rancangan- accessible during the pengurusan-hutan.html and other audit and after similar links were inoperable. receiving comments Maybe it is good to put the image from the peer review. of the website as a backup if the By the way, the image hyperlinks fail. of the website have been put in the report The audit team addressed all the as backup. Principles and Criterion of the Standard. They raised 3 Minor NCRs and 6 OFIs.

Principle 4, Criterion 4.2 Minor NCR was raised against Indicator

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 28 of 36 4.2.3. NCR #: LYD-01 /2015

Principle 6, Criterion 6.5 Minor NCR was raised against Indicator 6.5.3. NCR #: LYD-02 /2015

Minor NCR was raised against Indicator 6.5.4. NCR #: LYD-03 /2015

Principle 1, Criterion 1.5 OFI was raised against Indicator 1.5.2

Principle 4, Criterion 4.2 OFI was raised against Indicator 4.2.5

Principle 6, Criterion 6.2 OFI was raised against Indicator 6.2.1

Principle 6, Criterion 6.6 OFI was raised against Indicator 6.6.3

Principle 6, Criterion 6.7 OFI was raised against Indicator 6.7.1

Principle 8, Criterion 8.2 OFI was raised against Indicator 8.2.1

4 Are the conclusions of the findings Conclusions of certification Noted. appropriate? findings are appropriate.

5 Agreement/Disagreement with the I agree with all the minor NCRs Noted. NCRs raised by the Audit Team raised by the Audit team

6 Are the recommendations by the Recommendations by the audit Noted. audit team appropriate? team are appropriate. However, it would be good to suggest the FMU manager to put more attention on Criterion 6.5 since 2 minor were raised against this criterion.

7 Areas where additional information None. Noted. is required

8 Others NA NA

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 29 of 36 Appendix 6 Recertification Audit Findings and Corrective Action Taken

Specification Detail Non-conformances Corrective Action Verification Indicato Major/Minor/ Taken by Assessor r OFI Indicator Minor Appropriate safety and The audit 4.2.3 (Upgraded operational equipment in good The PSFD had team had from OFI) working condition, including established and reviewed and operational procedures, shall be circulated first aid accepted the NCR #: Area/Location: made available to forest workers monitoring corrective LYD-01 in the work place. schedule to all the actions taken /2015 Compartment forest district offices by the PSFD 304 & 305 3. Auditor found that first aid kit (see letter ref. to address PRF Bukit was not monitored at PPN.Pk this minor Kinta (AM-01- Compartment 304 & 305 100/03/40(95)). NCR. The 65-15) and PRF Bukit Kinta (AM-01-65- effectiveness Ulu Piol 15) and Ulu Piol nursery The FMU has of the nursery such as yellow lotion. requested SOP and corrective 4. Oral medicine e.g. Panadol, poster usage of first action would was mixed with other medical aid kit from be verified kit (First Aid Kit) for external Department of during the used at Ulu Piol nursery & Health Perak State next audit. Compartment 304 & 305 (#PPN.Pk PRF Bukit Kinta (AM-01-65- 100/03/40(94)) 15). dated 13 October 2015.

First aid kit at Ulu Piol forest nursery has been replaced with new set.

Oral medicine in the first aid box at licensee area #AM01-65-15 has been separated from external medicine.

Indicator Minor Availability and implementation of The District Forest The audit 6.5.3 guidelines for forest road lay-out Officer had team had and construction, including log compounded the received the Area/Location: landings and drainage licensee through a official letter NCR #: requirements. letter dated 21 from the LYD-02 Compartment August 2015 and PSFD ref. /2015 304 & 305 1. Side drain has been stopped the #PPN.Pk PRF Bukit constructed partially at the visited harvesting 100/03/64 Jld Kinta (AM-01- area: operation. (20) dated 29 65-15) i) Feeder road JT1 & JT3 in October 2015 Compartment 304 & 305 The FMU also has on the Compartment PRF Bukit Kinta (AM-01-65- sent an official letter corrective 138, 140 & 15) to inform the actions taken 157 PRF ii) Feeder road JT2 in Chairman of Perak by the PSFD Kledang Compartment 138, 140 & Timber Association to address

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 30 of 36 Saiong (AK- 157 PRF Kledang Saiong on the non- this minor 01-49-15) (AK-01-49-15) conformities in NCR. 2. No. of silt trap constructed order to prevent found to be inadequate at JT2 any recurrence. Status: Compartment 138, 140 & 157, The audit PRF Kledang Saiong (AK-01-49- The FMU has team had 15) directed their reviewed and 3.During site visit at Banding officers to monitor accepted the PRF, Compartment 355, Perak the contractor’s corrective Hulu Forest District, Primary logging operations. actions taken Lowland Dipterocarp Forest, 700- by the PSFD 980m elevation, general slope to address >50degrees, License AU 01-44- this minor 15 NCR. The i) Access road found without effectiveness side drain; inadequate or no of the side bund on the slope side; corrective absence of sump in area actions would draining into a cross drain. be verified Action has been taken, during the following the August monthly next audit report, by the Department to compound the contractor concerned. ii) Skid Trail # LP23/1: surface scraping in excess of 1m, consistent over ~200m distance covered. The auditor took note on the extreme condition of the topography and the concern for operational safety.

Indicator Minor Availability and implementation of The FMU has The audit 6.5.4 guidelines for forest road layout directed the team had and construction, including log licensee to clearly received the NCR #: Area/Location: landings and drainage marked the buffer official letter LYD-03 requirement. zone area and pull from the /2015 Compartment out the trees which PSFD ref. # 304 & 305 The smaller vegetation along the fell into the fringe of PPN.Pk 100/ PRF Bukit buffer periphery was brushed the buffer zone. 03/64 Jld (20) Kinta (AM-01- aside by the bulldozer in the The licensee was dated 29 65-15) process of road construction. The compounded by the October 2015 cleared vegetation however, PSFD and ordered and had Compartment avertedly fell into the fringe of the to stop the accepted the 138, 140 & buffer zone e.g. JT 2 harvesting corrective 157 PRF Compartment 138, 140 & 157 operation actions taken Kledang PRF Kledang Saiong (AK-01-49- immediately. as stated in Saiong (AK- 15) and LP 1/1, JT2 & JT3 the said letter 01-49-15) Compartment 304 & 305 PRF to address Bukit Kinta (AM-01-65-15) this minor NCR. The effectiveness of the corrective

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 31 of 36 action would be verified during the next audit.

Control of encroachment, illegal Not applicable. Auditor would Indicator OFI 1 harvesting, hunting, and verified this 1.5.2 settlement, and other OFI during unauthorised activities in the the next audit FMU.

Boundary demarcation and signage was not clearly mark at Kledang Saiong PRF.

Demarcation of hazardous areas Not applicable. Auditor would Indicator OFI 2 and provision of guidelines for verified this 4.2.5 storage and handling of OFI during hazardous materials the next audit

During site visit at Kaki Bukit Larut nursery, auditor has observed that empty pesticide containers were properly stored and labelled in the pesticide store. However, the label could be improved by adding information on date when the scheduled wastes are first generated, name, address and telephone number of the waste generator shall be clearly labelled on the containers that are used to store the scheduled wastes.

Availability and implementation of Not applicable Auditor would Indicator OFI 3 guidelines to identify and protect verify this OFI 6.2.1 endangered, rare and threatened during the species of forest flora and fauna, next audit including features of special biological interest such as seed trees, salt licks, nesting and feeding areas in the FMU.

Site visited: Banding PRF, Compartment 355, Perak Hulu Forest District, Primary Lowland Dipterocarp Forest, 700-980m elevation, general slope >50degrees, License AU 01-44- 15

A mother tree was observed situated on a high risk location that may lead to potential

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 32 of 36 toppling over. The tree (Keruing, 42cm diameter) was situated close to the edge of upslope embankment of skid trail LP23/1. Bank height was estimated at 1.8m. The tree risks toppling over with future bank erosion and growing mass.

Indicator OFI 4 Forest workers shall be aware of Not applicable Auditor would 6.6.3 (Reissue) the procedures on the use of verify this OFI approved chemicals in the forest. during the next audit Site visited: Kaki Bukit Larut Forest Nursery, Larut Matang Forest District.

1) One nursery staff (Ashaari bin Sukri, general worker (PRA)) assigned to the nursery since 2010 has not yet attended a course on handling of poison chemicals.

2) The file recording staff training was found not up to date, with the last entry dated May, 2013. The latest training attended by nursery staff (Shamsul Azhar bin Ishak, general worker (PRA)) was in May 2015.

Indicator OFI 5 Oil, fuel, containers, liquid and Not applicable Auditor would 6.7.1 (Reissue) solid non organic wastes shall be verify this OFI disposed of in an environmentally during the appropriate and legal manner next audit

Disposal record for pesticide containers was not available at Piol nursery

Indicator OFI 6 Forest managers shall gather the Not applicable Auditor would 8.2.1 relevant information, appropriate verify this OFI to the scale and intensity of the during the forest management operations, next audit needed to monitor the items to (e) listed in Criterion 8.2

Stock map of pre-felling inventory at Compartment 13 PRF Bukit Tapah found to be contradict with inventory result.

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 33 of 36 Appendix 7

Verification of Corrective Actions on NCRs and OFIs Raised During the Previous Audit

Specification Detail Non-conformances Corrective Verification by Indicato Major/Minor/ Action Taken Assessor r OFI Indicator OFI 1 Appropriate safety and Due to The PSFD had 4.2.3 operational equipment in good recurrence of submitted a Area/Location: working condition, including the same issue. corrective action Safety and operational procedures, shall be This OFI has plan which the operational made available to forest workers been upgraded audit team had equipment in the work place. to Minor NCR reviewed and LYDIA-01/2015. accepted. 1) Safety equipment such as fire extinguisher and first aid Status: box have been monitored by The verification the FMU and contractors. of the corrective However, the monitoring action would be activity could be enhance by done during the recording all activities related next surveillance to safety equipment and audit. maintenance of heavy machineries and vehicles.

2) Management has provided PPE for sprayer such as gloves, apron and goggle. However, the PPE was not in a good condition.

Indicator OFI 2 Forest managers shall evaluate, Cases of forest The audit team 4.4.1 through consultations, social operations had accepted Area/Location: impact of forest operations directly and verified the SIA directly affecting communities, impacting on the corrective actions and the people and groups surrounding taken by the directly affected by the forest communities PSFD to address operations shall have access to were also this OFI. information on the results of the brought to the social impact evaluations. attention of the Status: ‘Jawatankuasa This OFI was The FMU had conducted social Tindakan therefore closed survey with head of village and Pembangunan out. some of villagers on the impact Daerah’ (District of logging to their health and Development safety. However, conclusion of and Action social survey was not highlighted Committee) by management in order to which met finalise whether the logging monthly. The operation will give positive, findings on the negative or no impact at all to the impacts nearby village communities. identified were then incorporated into the planning and management of

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 34 of 36 the Perak State FMU. Indicator OFI 3 Implementation of reduced/low The PSFD had The audit team 6.5.2 impact logging to minimise taken the had accepted Area/Location: damage to the environment following and verified the actions: corrective actions Inspection of active logging site  Guidelines for taken by the in Compartment 92 H.S conservation PSFD to address Temenggor indicated that certain of buffer strips this OFI. stretches of the road leading to along streams the site found that some excess and rivers Status: earthwork and loose soil spilled were available This OFI was into downslope area. Since the and therefore closed logging is being undertaken in implemented. out. sensitive areas, road The guidelines construction specification needs used included to be enhanced and applied Guidelines for consistently. RIL in Peninsular Malaysia, 2003, Garis Panduan Jalan Hutan, 2010 (Guidelines for Forest Roads, 2010) and Forest Harvesting Plan.  Boundary trees that marked the stream buffer zone, painted with single yellow stripes, were seen from the skid trail #LP23/1 accessed by the auditor in Banding PRF.

Indicator OFI 4 Forest workers shall be aware of During a site Status: 6.6.3 the procedures on the use of visit to the Kaki This OFI Area/Location: approved chemicals in the forest. Bukit Larut remained Training Forest Nursery, outstanding and Management has conducted Larut-Matang would be verified awareness training on handling Forest District, during the next of herbicides for sprayer. one nursery staff surveillance However, the training did not assigned to the audit. attended by all sprayers. nursery has not yet attended a training on the

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 35 of 36 handling of poison chemicals. It was also found that the file on staff training had not been up- dated with the last entry made in May, 2013.

Indicator OFI 5 Oil, fuel, tyres, containers, liquid The storage and Status: 6.7.1 and solid nonorganic wastes, handling of This OFI Area/Location: shall be disposed of in an poisons and remained environmentally appropriate and fertilizers at the outstanding and legal manner Bukit Larut and would be verified Piol Forest during the next 1) Contractors has disposed Nursery were surveillance empty herbicides and found to be audit. hydraulic oil containers by satisfactory and selling to recycle companies. in accordance However, record of disposal with SOP. of containers was not Empty waste available during site review. containers and 2) During site review at the scheduled waste tagging area, there was no have been evidence of spillage of red appropriately paint at the block boundary. disposed and However, auditor has found labelled. one empty container of red However, record paint was left in the tagging of disposal of area. empty pesticides 3) The FMU established SOP containers was on management of not available at scheduled waste. However, Ulu Piol Forest appropriate waste container Nursery. and labelling type of hazard could be enhance by management and contractors.

SQAS/MSC/FOR/30-15a Issue 1 Rev 1 Page 36 of 36