Date: 07 October 2013cciglobe.com/files/FBKSBK_MAV.pdf · 2019. 4. 26. · Mohd Fadhli Zil Ikhram...

CCI-QP-07-07A

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Assessment

Report

Date: 29 December to 31 December

2018

Company name KILANG SAWIT BUKIT KEPONG FELCRA BERHAD

Address KM 22, JLN LABIS – MUAR

85300 LABIS JOHOR.

Report no MS18MM0060

Status of audit Main Assessment If surveillance NA

Date: 07 October

2013

[Disclaimer: The audit report has been generated to reflect the compliance of the company

toward the MSPO standard and every criterion’s have been in every effort taken to ensure

the accuracy of the assessment and reporting produced. As the assessment is been carried

out based on sampling, certain areas or processes may not be able to verified on its

compliances. ]

MSPO 253O:2013

Part 4

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Thank you for your trustful cooperation during our audit of your organization. This report has been prepared of

every effort to ensure the accuracy of the information recorded. The assessment is based on sampling on the

records, practice, documents and personnel, therefore the final results of the assessment is of representative

towards the system implementation of the organization. This report may generated to record as much of the

system implementation information but may still limited due to the sampling .This report details the assessment

results including strengths, opportunities, and weaknesses. These results were presented to your management at

the closing meeting of the audit. You can use these results to improve the effectiveness of your management

system. We look forward to continuing our partnership towards sustainable business success. This report has been

prepared in compliance to the ISO 17021:2011 requirements.

To ensure the next assessment will be carry out in compliance to the ISO 17021:2011, please remember to

immediately notify CARE Certification International about any significant change to your company at any point of

time. Together we will then coordinate appropriate measures to maintain your current certification. Such

circumstances include, for example, changes relating to the legal, commercial, organizational status or ownership,

organization and management (e.g. key managerial, decision making or technical staff), contact address and sites,

scope of operations under the certified management system, and major changes to the management system and

processes. Together we CARE and will then ensure the smoothness of the upcoming assessment. Thank you for

your persistence of support.

Signed for on behalf of CCI Signed for on behalf of client

Sign

Name :

IC :

Name Mohammad Hafizuddin Bin Rossley Company stamp

Date 29-31/12/2018

Email [email protected]

Fax no 038073 2688

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Section A General Information General

Audit objectives

To verify that the system initial implementation is in accordance

to requirements of the standard adopted.

To verify that the system implementation is continuously in

accordance to the requirements of the standards adopted.

To verify that the system implementation is continuously after

and in third years of implementation is in accordance to the

standards adopted.

Other, (please specify)

Integrate Assessment No

Issue of certificate Yes

Scope of Certification

Scope of certification in English The provision of Fresh Fruits Bunch (FFB) processing by palm oil

mill

Requirement not being applicable nil

Justification nil

Other language than above No

Changes from Previous registration No

Extension/changes of scope date NA

Contact Details

Management Representative En Helmi B. Ali

Alternate contacts Nur Muzakkir B. Mohamad Rusli

Management Representative contact no. +6013 454 6388

E-mail address [email protected]

Fax Number +07 7998312

Fixed Line Number +07 7998311

NO OF GROUP MEMBERS 1

Section B Previous Audit Result The result of the last audit system have been reviewed, in particular to ensure appropriate correction and

corrective action has been implemented to address any nonconformities identified. This review has concluded

that:

No nonconformities have been raised during last assessment.

Any nonconformities identified during last previous audit have been corrected and the corrective action continuous

to be effective.

The management system has not adequately addressed non conformity identified during previous audit

activities and the specific issue has been re-defined in the nonconformity section of this report.

Section C Conclusion

The audit team conducted a process based audit focusing on significant aspects/risk objectives required by

the standard(s). The audit methodology used is based on 3P which were People, Paper and Practice.

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The audit team concludes and express

CONGRATULATION and has

CONGRATULATION however some processes need to address non-compliance(s) but others has

SORRY and the organization has not established and maintained its management system in line with the

requirements of the standard and

demonstrated

not demonstrated

the ability of the system to systematically achieved agreed requirements within the scope of the

organizations.

Base on the record, there is/are NIL unresolved issue.

Therefore the audit team recommends that based on the results of this audit and the system's

demonstrated state of development and maturity, management system certification be:

Granted (initial certification or recertification)

Granted upon the acceptance of the noncompliance(s)

Continued (surveillance)

Continued (surveillance) upon the acceptance of the noncompliance(s)

Withheld

suspend until satisfactory corrective action(s) is completed

Others (please specify)

Note :

The assessment and recommendation for the initial or continue was based on random samples and therefore

nonconformities may exist which have not been identified. All the pages should be attached if the organization wishes to

copy and delivered to the interested party.

Section D (For Recertification only)

1 The company has demonstrated effective implementation and maintenance/improvement on its

management system

Yes No

2 The internal audit program has been fully implemented and demonstrates its effectiveness as a

tool for maintaining and improving the management system.

Yes No

3 The management review process demonstrates its capability to ensure the continuing suitability,

adequacy and effectiveness of the management system

Yes No

3 The management review process demonstrates its capability to ensure the continuing suitability,

adequacy and effectiveness of the management system

Yes No

4 Throughout the audit process, the management system demonstrates overall conformance with

the requirements of the audit standard

Yes No

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Section E Auditor and Auditees Names

CCI Assessors

Attendance during opening and closing meeting

Team leader Name Designation

Mohammad Hafizuddin Bin Rossley En Helmi B. Hj Ali

Mohd Fadely Bin. Md Asri

Norhuda Bt. Norazman

Muhammad B. Abdullah

Ghazali Yaacob

Mohd Fadhli Zil Ikhram B. Che Zahari

Nur Muzakkir B. Mohamad Rusli

Pengurus Kilang

Penolong Pengurus

Executive Alam Sekitar

Penolong Pengurus

Penyelia

CKKP MSPO

MSPO HQ

Team member

Trainee auditor

NA

Observer

Section F Audit Process Matrix

Next Audit Matrix (legend “ ” plan to cover & covered, “ ” for uncover)

Planned month & year 12/2018 11/2019 11/2020 11/2021 11/2021

Internal Audits

Stakeholder consultation / survey

Use of logo

Follow-up from previous audit finding

4.1 Management Commitment & Responsibility

4.1.1 MSPO Policy

4.1.2 Internal audit

4.1.3 Management Review

4.1.4 Continual Improvement

4.2 Transparency

4.2.1 Transparency of information and documents relevant

to MSPO requirements

4.2.2 Transparent method of communication and

consultation

4.2.3 Traceability

4.3 Compliance to legal requirements

4.3.1 Regulatory requirements

4.3.2 Land use rights

4.3.3 Customary land rights

4.4 Social responsibility, health, safety and employment condition

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4.4.1 Social impact assessment (SIA)

4.4.2 Complaints and grievances

4.4.3 Commitment to contribute to local sustainable

development

4.4.4 Employees safety and health

4.4.5 Employment conditions

4.4.6 Training and competency

4.5 Environment, natural resources, biodiversity and ecosystem services

4.5.1 Environmental management plan

4.5.2 Efficiency of energy use and use of renewable energy

4.5.3 Waste management and disposal

4.5.4 Reduction of pollution and emission including

green house gas

4.5.5 Natural water resources

4.6 Best Practices

4.6.1 Mill management

4.6.2 Economic and financial viability plan

4.6.3 Transparent and fair price dealing

4.6.4 Contractor

Assessment man days for the next assessment : 3 md. Recertification: 3

Note: Recertification should be carry out minimum 2 months prior to the expiry of the certificate

Section G Audit Note Summary of Area Audited

BUSINESS AREAS DETAILS OF AUDITED SUMMARY

Auditor Date Time

HF 29-31/12/2018 9.30

Opening Meeting

a) introduction of the participants, including an outline of their roles;

b) confirmation of the scope of certification;

c) confirmation of the audit plan (including type and scope of audit, objectives and criteria), any

changes, and other relevant arrangements with the client, such as the date and time for the

closing meeting, interim meetings between the audit team and the client's management;

d) confirmation of formal communication channels between the audit team and the client;

e) confirmation that the resources and facilities needed by the audit team are available;

f) confirmation of matters relating to confidentiality;

g) confirmation of relevant work safety, emergency and security procedures for the audit team;

h) confirmation of the availability, roles and identities of any guides and observers;

i) the method of reporting, including any grading of audit findings;

j) information about the conditions under which the audit may be premature terminated;

k) confirmation that the audit team leader and audit team representing the certification body is

responsible for the audit and shall be in control of executing the audit plan including audit

activities and audit trails;

l) confirmation of the status of findings of the previous review or audit, if applicable;

m) methods and procedures to be used to conduct the audit based on sampling;

n) confirmation of the language to be used during the audit;

o) confirmation that, during the audit, the client will be kept informed of audit progress and any

concerns;

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p) opportunity for the client to ask questions.

Closing Meeting

a) informing the client that the audit evidence collected was based on a sample of the information;

thereby introducing an element of uncertainty

b) the method and timeframe of reporting, including any grading of audit findings;

c) the certification body's process for handling nonconformities including any consequences relating

to the status of the client's certification;

d) the timeframe for the client to present a plan for correction and corrective action for any

nonconformities identified during the audit;

e) the certification body's post audit activities;

f) information about the complaint handling and appeal processes.

g) Any diverging opinion that are not resolved.

h) opportunity for the client to ask questions.

Executive Summary

The audit was based on the MSPO2503:2013 Part 4 Standard, procedure and and applicable requirements. The audit were done for 3 day of total mandays for audit at KILANG SAWIT FELCRA BERHAD BUKIT KEPONG. The audit was lead by Mr Mohamad Hafizuddin who are have almost 8 years in the sustainable certification and other management system certification such as RSPO, ISCC, ISO 14001, ISO9001 etc and also attended the MSPO Lead Assessor Course conducted by SIRIM.

Stakeholder Consultation

29/12/2018 2M Marketting - Supply Civil material to the Mill Khairul Anuar bin Zainal Sighted the company had a business with the mill more than 10 years. Recently payment were delay for month November aorund 1 month late for work payment of JCB work. Verified with auditee no permit to work given to them before conducting the work 29/12/2018 Mahsuri - Supplier buah Mohd Arifin Bin Mahsuri Sighted the awareness on MSPO had been shown by auditee due previously he had been brief by MPOB. Verified with the auditee average supply crop to the mill which is total 80-120 matrix tonn. Verified with the auditee there is issue of late payment of crop purchase however the issue had been resolve. Sighted the issue happened on November 2018 of late payment of crop purchase by mill. Verified correspondence in response to the complaint is not been address to the stakeholder for how long the issue will take action. The stakeholder is not been brief in detail the process of procedure complaints. 29/12/2018 Perdagangan Pah Hisyam bin Abu Hasan Verified the auditee is weel verse on knowledge of MSPO due to previously had been brief from MPOB. Verified average tonnage supply to the mill with total 300-350 mt. Verified with the auditee there is issued of complaint regarding the late payment of FFB purchase from mill since October until todate no payment been made by FELCRA Berhad. Others issue been raise is regarding OER percentage distribution were not equal to the others supplier. 29/12/2018 Kilang BOF - Bio Organik Fertiliser - Felcra Plantation Services Sdn Bhd - uptake EFB from mill for organic fertiliser process. En. Hamzah Bin Mahad & Mohd Syukri Bin Samsudin As verified with the auditee there is no issue with mill management . Verified with the auditee they are not aware on procedure of complaints. 29/12/2018 Balai Bomba Penyelamat Pagoh - En Hairulnizam bin Ridhuan Verified from auditee mill management had arrange with Balai Bomba for inpection of Fire Certification inspection and training for Fire drill. As at todated no issued from mill management.

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Introduction

1. Location of the mill

NAME OF MILL LOCATION COORDINATE

KILANG SAWIT FELCRA

BERHAD BUKIT KEPONG,

LABIS JOHOR

KM 22, JLN LABIS – MUAR

85300 LABIS JOHOR.

LATITUDE : 02o 52.959’

LONGITUDE: 102o 52. 959’

2. Approximate tonnage per year

NAME OF MILL CPO PK

KILANG SAWIT FELCRA

BERHAD BUKIT KEPONG,

LABIS JOHOR

47,616.00 TAN 12,600 TAN

3. Location of the supply base

NAME LOCATION

HIGHLAND PALM PRODUCE NO.21,1STFLOOR, JLN ALI,MUAR JOHOR.

HUAT HENG REALTY 186,KUNDANG ULU,81470 MUAR,JOHOR.

ENG HUAT LATEX CONCENTRATE LOT 1182, LADANG CHIN HUAT, GEDOK, 73200

GEMENCHEH, NEGERI SEMBILAN.

KIM MA OIL PALM

(TRANSPORTATION) SDN BHD

NO. 8888, JALAN KEMAYAN-TRIANG, 28380

KEMAYAN, BERA PAHANG.

HONG BEE AGRICULTURE LOT 412, KAMPUNG KUALA PAYA, MUKIM BULOH

KASAP, BULOH KASAP, 85010 SEGAMAT, JOHOR.

MASRAN AHMAD SAYUTI , NO. 403, JALAN LIMAU, FELDA CHEMPLAK 85300

LABIS, JOHOR.

PERDAGANGAN PAH . No 224, JALAN KEMBOJA , FELCRA BUKIT KEPONG ,

MUAR JOHOR.

KHALID BIN ABDUL HAMID,

(KARTINI)

NO 38, JALAN A. KADIR ABDULLAH, SUNRISE

PARK, 86000 KLUANG JOHOR.

MASURI BIN SEBI, NO 23 JALAN ANGGERIK, FELCRA BUKIT KEPONG,

PETI SURAT 4, LABIS JOHOR.

KUM I`IKHLAS , NO 268 , FELCRA BKT KEPONG, PETI SURAT NO 4,

85300 LABIS JOHOR.

GEMILANG MEGA TRADING NO.6, LOCK UP STALL, FELCRA BUKIT KEPONG,

85300 LABIS, JOHOR.

KOPERASI WAWASAN FELCRA

SG. SEPULUH PALOH KLUANG

BHD

NO.7, TINGKAT 1, JALAN EMAS, TAMAN KLUANG

JAYA, 86000 KLUANG, JOHOR.

BON HON COMMODITY

TRD.SDN.BHD,

236A,JLN BESAR,TMN SEMBRONG BARU,83700

YONG PENG,JOHOR.

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CHOP LI KOON, 54, JALAN PT ISMAIL, 82200 PONTIAN, JOHOR

DARUL TAKZIM

4. Statistic of the supply base

NAME ESTIMATE TONNES

FFB/YEAR

HIGHLAND PALM PRODUCE 12000

HUAT HENG REALTY 9650

ENG HUAT LATEX

CONCENTRATE

68000

KIM MA OIL PALM

(TRANSPORTATION) SDN BHD

2350

HONG BEE AGRICULTURE 2400

MASRAN AHMAD SAYUTI , 3840

PERDAGANGAN PAH . 3900

KHALID BIN ABDUL HAMID,

(KARTINI)

360

MASURI BIN SEBI, 1500

KUM I`IKHLAS , 510

GEMILANG MEGA TRADING 8145

KOPERASI WAWASAN FELCRA

SG. SEPULUH PALOH KLUANG

BHD

30793

BON HON COMMODITY

TRD.SDN.BHD,

2700

CHOP LI KOON, 2500

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Audit Checklist

P1: Management Commitment & Responsibility

Criterion 1 Malaysian Sustainable Palm Oil (MSPO) Policy

Indicator Requirement Findings

4.1.1.1

A policy for the implementation of MSPO shall be established

VeKilang Sawit Bukit Kepong The management had established policy for MSPO dated on 13/11/2018 - Polisi Pensijilan Minyak Sawit Mampan Malaysia (MSPO). Verified there is another 4 policy had been established towards implementation of MSPO as per below : i. Polisi kesihatan dan Keselamatan Pekerjaan ii. Polisi Alam Sekitar dan Biodiverisiti iii. Polisi Sosial iv. Polisi Gangguan Seksual 4.1.1.2 The policy shall also emphasize commitment to continual improvement with the objective

of improving the milling operation.

Sighted inside the policy there is a statement of the company will commited to implementing continuos improvement by leveraging on human resources as well as existing processe and technologies to ensure that palm oil production activities are produced in a sustainable manner..

Criterion 2 Internal Audit


4.1.2.1

Internal audit shall be planned and conducted regularly to determine the strong and weak points and potential area for further improvement.

Kilang Sawit Bukit Kepong Sighted the internal audit plan and the audit report for the internal audit conducted on 10-11/10/2018. The assessment was conducted by Mr Azahar Ali . Seen the assessment covers requirements needed by the MSPO scheme and mill best practices which are result with 20 NC. Verified the corrective action had been done and reply to sustainability unit.

4.1.2.2 The internal audit procedures and audit results shall be documented and evaluated, followed by the identification of strengths and root causes of nonconformities, in order to implement the necessary corrective action

Sighted the internal audit procedure were established dated 1/8/2018. The internal audit summary report were recorded inside the file "Pengurusan MSPO" file no;2 vol.1. The corrective action were verified for the NC been raised had been closed accordingly.

4.1.2.3 Report shall be made available to the management for their review.

Sighted the finding of NC during internal audit had been disscused during management review dated on 25/10/2018.

Criterion 3 Management Review


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4.1.3.1 The management shall periodically review the continuous suitability, adequacy and effectiveness of the requirements for effective implementation of MSPO and decide on any changes, improvement and modification.

Sighted the MRM dated on 25/10/2018 at mill’s office attended by 7 staff including estate manager. Sighted the MRM conducted were the first meeting due to the mill management just started implement of MSPO.

Criterion 4 Continual improvement


4.1.4.1 The action plan for continual improvement shall be based on consideration of the main social and environmental impact and opportunities for the company.

Sighted the action plan for continual improvement can be verified inside the Budget plan 2019. Verified sample of action plan as per below : i. upgrade press no. 1 and no .2 and change new digester no. 3 ii. upgrade vacuum dearator for boiler 50mt/hr iii.replace 1 unit sand filter no.1 (PMT 47405)

4.1.4.2 The company shall establish a system to improve practices in line with new information and techniques, and for disseminating this information throughout the workforce.

Verified the establish air monitoring system CEMS had been installed in February 2018 to improve air emmision at boiler.

P2: Transparency

Criterion 1 Transparency of information and documents relevant to MSPO requirements


4.2.1.1

The management shall communicate adequate information to other stakeholders on environmental, social and legal issues relevant to sustainable practices in the relevant languages and form.

4.2.1.1 Obs - Sighted frequent meeting with the relevant supplier is not been conducted to communicate information regarding issues on sosial, environmental and legal issues. Verified during stakeholder consultation session some of stakeholder had issues on late payment, transperency on daily price of FFB purchase, process of complaints etc.

4.2.1.2 Management documents shall be publicly available, except where this is prevented by commercial confidentiality or where disclosure of information would result in negative environmental or social outcomes.

Kilang Sawit Bukit Kepong Sighted where appropriate information on sustainable activities were made available to the felcra website and other publications.

Criterion 2 Transparent method of communication and consultation


4.2.2.1 Procedures shall be established for consultation and communication with the relevant stakeholders

Kilang Sawit Bukit Kepong Verified the procedure of communication had been established "Pengurusan dan Komunikasi Pihak Berkepentingan" dated on 1/8/2018.

4.2.2.2 A management official shall nominated officials at the operating unit responsible for issues related to indicator 1 (4.2.2.1)




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Kilang Sawit Bukit Kepong - En Ahmad farid Bin hassan, Environment Executive has been nominated as officer to responsible to communication and consulation with the local communities and other interested parties. Sighted appointment letter date on 13 September 2018. 4.2.2.3 List of stakeholders, records of all consultation and communication and records of action

taken in response to input from stakeholders should be properly maintained.

Kilang Sawit Bukit Kepong The Mill Management had maintained as per document list of stakeholders consist of 4 contractors, 10 suppliers, 5 local communities and others. Verified recent meeting with the stakeholder - FELCRA Berhad Kawasan Pogoh dated on 16/12/2018 discussed on POME intake from etstate. Criterion 3 Traceability


4.2.3.1 The management shall commit itself to implement and maintain the requirements for traceability and shall establish a standard operating procedure for traceability.

Kilang Sawit Bukit Kepong The mill management has implemented SOP for Tracebility - Kebolehjejakan, dated 1/8/2018. The process can be trace through the system Lyntramax.

4.2.3.2 The management shall conduct regular inspections on compliance with the established traceability system

Kilang Sawit Bukit Kepong - The mill assistant management holds the responsibility on regular inspection, whereby the effectiveness of monitoring seen captured in the internal audit. Aside there is also daily routine visit by the manager.

4.2.3.3 The management should identify and assign suitable employees to implement and maintain the traceability system

Kilang Sawit Bukit Kepong The system of traceability had been monitored through relevant person incharge for each station of work. Verification made through JD. Below are the sample : Penolong eksekutif : responsiblelities : - to ensure throughput result - responsible to any loses during process in the permitted limit and production quality Penolong Esekutif Pemasaran responsiblelities : - monitoring of despatch milling output Verified monitoring of traceabilty of receiving crops and depsathc of CPO were monitor by "Pn ismariah binti ithnin as verified in the Appointment letter dated on 12/07/2012 . 4.2.3.4 Records of storage, sales, delivery or transportation of crude palm oil shall be maintained.

Kilang Sawit Bukit Kepong Sighted records of storage CPO can be trace inside the system Lyntramax. The record can were established inside the daily production record. Verified record of delivery of CPO to the buyer as per sample below: Buyer company : Pacific Oils & Fats Industries Sdn Bhd i. Date : 29/12/2018 - Ticket no : CPO 18001102W, Lorry no : JLH 7699 Time in : 8:59:55 Time out : 10:08:57 Seal CPO no : FB 970536,37,38,39,40,41,42 Contract no : 21007365,21007378 No Hantran Minyak Sawit ; 17802 Borang MPOB L3 no : D2131915 Verified the record were properly maintained P3: Compliance to legal requirements

Criterion 1 Regulatory requirements


4.3.1.1.

All operations are in compliance with the applicable local, state, national and ratified international laws and regulations



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Kilang Sawit Sungai Melikai The management had done assessment to monitor compliance as verified the evidence "MSPO Pengawasan pematuhan undang-Undang" dated on 1/8/2018 doc no : FB-MSPO-P03/F1 Verified during the audit, list of license and Permit related to the mill : DOE License: Lesen Premis Minyak Kelapa Sawit Mentah: No Lesen: 004741 Date Expired: 30 Jun 2019 ii. Fire Certificate - certificate no : 303570 valid from 11/10/2018 until 10/10/2019 iii) Calibrate of weight bridge been conducted on 09/10/2018 - No Sijil : B898816 for equipment series no : 5384571-5LE , conducted on 12/9/2018 - No sijil: B89415 for equipment series no : B349083721 v. MPOB License no : 500247104000 started 1/1/2018 until 31/12/2019 1) Sell and Transfer PK,CPO SPO 2) Buy and Transfer FFB 3) Store PK,CPO, SPO 4) Mengilang FFB iv) Lesen melencong atau Mengabstrak Air Sungai Seksyen 7: Verified the mill management had submit application to the BAKAJ for applying permit however the process is still on going by authorities. The submission of application were done on 7/1/2018. v) Lesen Bagi Pepasangan Persendirian Akta Bekalan Elektrik 1990: Pepasangan No : ST(SJB)P/S/JHR/01842 Expired Date: 10/12/2019 List of Certificate of Fitness: 1) Mechmar Boilers - JH PMD 916 valid until 26/09/2019 2) Back Pressure Receiver - JH PMT 23889 valid until 26/9/2019 3) Sterilizer no.1 - JH PMT 25234 valid until 26/09/2019 4) Steriliser no. 2 - JH PMT 18420 valid until 26/09/2019 5) Steriliser no.3 - JH PMT 20371 valid until 26/09/2019 6) Air receiver - JH PMT 14180 valid until 26/9/2019 7) Air receiver Tank - JH PMT 80971 valid until 26/9/2019 8) Bi Drum Water Tube Boiler - JH PMD 80255 valid until 3/7/2019 4.3.1.1 OBS - Verified with the auidtee license permit for abstraction river water from BAKAJ still in progress by the authorities. Verified the submission of application had been made dated on 7/1/2018. NC - According to the Workers Minimum Standard of Housing and Amenities Act 1990 , the employee need to do weekly inspection : - to ensure area surounding the workers housing is kept clear of undergrowth and maintained in a clean and sanitary - the parameter drains around each dwelling block of dwelling including all outlet drains are kept in a good state - all refuse in the housing site is collected daily and disposed of satisfactorily. 4.3.1.2 The management shall list all laws applicable to their operations in a legal requirements

register

Sighted all the applicable law ere registered inside the "Senarai Daftar Undang-undang" dated on 1/8/2018 Below are the sample applicable law register : 1. Akta Kilang dan Jentera 1967 2. Akta Keselamatan dan Kesihatan pekerjaan 1994 3. Akta Kualiti Alam Sekeliling 1974 4. Akta Lembaga Minyak Sawit malaysia 1998 5. Akta Kerja 1955 6. Akta Standard Minimum Perumahan dan kemudahan pekerja 1990 7. Perintah gaji Minimum 2016 8. Akta Keselamatan Sosial pekerja 1969 9. Akta Perkhidmatan Bomba 1988 10. Akta Bekalan elektrik 1990 11. Akta timbang dan Sukat 1972 12. Akta Kawalan bekalan 1961 4.3.1.2 Obs - Sighted the Enakmen Air (Johor) 1921 were not been register inside the legal register . 4.3.1.3 The legal requirements register shall be updated as and when there are any new

amendments or any new regulations coming into force.

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Kilang Sawit Bukit Kepong Sighted the legal register were review and updated dated on 1/8/2018. 4.3.1.3 OFI - To updated the latest Minimum Wages Act 2018 inside the legal register. The act will be applicable strating on next January 2019. 4.3.1.4 The management should assign a person responsible to monitor compliance and to track

and update the changes in regulatory requirements.

Kilang Sawit Bukit Kepong -Sighted management appoint Mr Muhammad B. Abdullah date 18/10/2018 Function as follow: I. Ensuring LRR up to date and amend any new regulation coming into force. II. Documenting and issuing of document and report III. Monitoring compliance and track update and changes in regulatory requirements. Criterion 2 Land used right


4.3.2.1

The management shall ensure that their oil palm milling activities do not diminish the land use rights of other users

Kilang Sawit Bukit Kepong 4.3.2.1 Obs - Sighted letter of award from "Majlis Mesyuarat kerajaan Johor" dated 29/9/1976 permitted Felcra berhad to manage the land .The management had send application letter to land department (Pejabat Tanah Muar) on application of land requisition for lot no PTD 7647-PTD 7651. However until now the process still on going. Advice to follow up with land department. 4.3.2.2 The management shall provide documents showing legal ownership or lease, history of

land tenure and the actual use of the land.

Refer to 4.3.2.1

4.3.2.3 Legal perimeter boundary markers should be clearly demarcated and visibly maintained on the ground where practicable.

Sighted the mill boundary markers by the fencing surrounding the mill area

4.3.2.4 Where there are, or have been, disputes, documented proof of legal acquisition of land title and fair compensation that have been or are being made to previous owners and occupants; shall be made available and that these should have been accepted with free prior informed consent (FPIC).

As to date, no land disputes issue been recorded.

Criterion 3 Customary rights


4.3.3.1

Where lands are encumbered by customary rights, the company shall demonstrate that these rights are understood and are not being threatened or reduced.

No customary rights





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4.3.3.2

Maps of an appropriate scale showing extent of recognized customary rights shall be made available

No customary rights

4.3.3.3 Negotiation and FPIC shall be recorded and copies of negotiated agreements should be made available.

No customary rights

P4: Social responsibility, health, safety and employment condition

Criterion 1 Social impact Assessment (SIA)


4.4.1.1

Social impacts should be identified and plans are implemented to mitigate the negative impacts and promote the positive ones

Social Impact Assessment has been conducted dated on 30-31/7/2018 5 Result from SIA shown the impact as per below : i. 5 positive impact were identified ;- provide infrastructure and facilities for the stakeholder , career and job vacancy to the nearby stakeholder ii. 19 negative impact were identified;- example: i) falls of bunches of FB during transportation causing disturbace for the other road users. ii) Air pollution Sighted the Action Plan from the Social Impact Assessment had been established inside the SIA report. Seen the area of concern, action plan, person in-charge and date of completion. 4.4.1.1 Obs - The progress from the action plan from social impact assesment were not been indicate inside the plan. Criterion 2 Complaints and grievances


4.4.2.1

A system for dealing with complaints and grievances shall be established and documented

Sighted the SOP for dealing with complaint had been established - "Pengurusan dan Komunikasi Pihak Berkepentingan" dated on 1/8/2018. Verified all the complaint form had been recorded and been kept in file name "pengurusan Sosial 06 vol.1 1/8/2018.

4.4.2.2 The system shall be able to resolve disputes in an effective, timely and appropriate manner that is accepted by all parties.

Sighted the mill management had establishe cprocess flow for the complaint resolve as per "Carta Aliran Aduan. Verified in the complaint log all the complaint receive had been resolve and notice the status of action taken with signature of Officer who receive the complaint.

4.4.2.3 A complaint form should be made available at the premises, where employees and affected stakeholders can make a complaint.

Sighted the complaint form were located at the Security post in front of mill office..

4.4.2.4 Employees and the surrounding communities should be made aware that complaints or suggestions can be made any time






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All stakeholders were freely to write their complaint to the mill management thru complaint form and submit the issues.

4.4.2.5 Complaints and resolutions for the last 24 months shall be documented and made available to affected stakeholders upon request.

Sighted the record of complaint were maintained since the implementation of MSPO earlier of year 2018. As at year 2018 1 complaint receive from the relevant stakeholder which is the employee of the mill.Verified all the complaint had been resolve appropriately. This were verified inside the register complaint record.

Criterion 3 Commitment to contribute to local sustainable development


4.4.3.1 Palm oil mill should contribute to local development in consultation with the local communities. Where the mills in an integral part of plantation, such contribution to local community development may be regarded as a joint effort by the mill and the plantation.

Sighted record of CSR activity for 2018 are available. Example; 1. Donation to KESUKAF for Maulidur Rasul wilayah Johor, dated 21/1/2018. 2. Donation for "Kejohanan Olahraga " Tahun 2018 - Reff : JEA 5041/700-1/2/3 (3) dated on 28/2/2018. 3. Donation - "Majlis Persaraan Guru Besar Sk LKTP Chemplak" - reff : JBA. 7031/1/2 dated on 19/9/2018.

Criterion 4 Employees safety and health


4.4.4.1

An occupational safety and health policy and plan shall be documented, effectively communicated and implemented

Polisi Keselamatan dan Kesihatan Pekerjaan had been established datedn 13/11/2018. Sighted the mill management had established management plan for "Keselamatan & Kesihatan Pekerjaan" for FY2018/19. Verified the plan had been identified issues which need a plan as per sample below ; 1. Compliance in the legal 2. ERP team 3. OSH management system 4. CHRA report and chemical register 5. Medical monitoring 6. MSDS 7. OSH Committee selection 8. DIsplaying of SOP for each activities 9. Workplace inspection 4.4.4.2 The occupational safety and health plan shall cover the following:

a) A safety and health policy, which is communicated and implemented

Sighted the OSH policy had been established "Polisi Keselamatan dan Kesihatan Pekerjaan" dated on 13/11/2018. Verified the communication of policy had been brief during row call. As interview with the employee stated the management had brief the OSH policy during row call. b) The risks of all operations shall be assessed and documented

Verified the HIRARC for mill operation such as laboratory, loading ramp, sterilizer, threshing etc. The HIRARC were established dated on 1/08/2018.




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c) An awareness and training programme which includes the following requirements for employees exposed to pesticides: i) all employees involved shall be adequately trained on safe working practices; and ii) all precautions attached to products shall be properly observed and applied. i. Sighted the relevant awareness training for Safety and Health were been planed inside the training plan . Verified training such as PPE used Training, ERP plan training, Chemical Handling training etc.

d) The management shall provide the appropriate personal protective equipment (PPE) at the place of work to cover all potentially hazardous operations as identified in the risk assessment and control such as Hazard Identification, Risk Assessment and Risk Control (HIRARC).

Record for PPE Distribution are available. All potential area has been identified according to the HIRARC.

e) The management shall establish Standard Operating Procedure for handling of chemicals to ensure proper and safe handling and storage in accordance to Occupational Safety Health (Classification Packaging and Labeling) Regulation 1997 and Occupational Safety Health (Use and Standard of Exposure of Chemical Hazardous to Health) Regulation 2000.

Verified document on procedure "Pengurusan Bahan Kimia dated on 13/11/2018. Sighted the CHRA were conducted on 18/9/2018. 4.4.4.2 ( e) Obs - Notice the medical surveillance and chemical exposure were not yet been conducted and this were include inside budget financial year 2019. 4.4.4.2 ( e) OBS - SOP chemical handling were not been placed at the store.

f) The management shall appoint responsible person(s) for workers' safety and health. The appointed person(s) of trust must have knowledge and access to latest national regulations and collective agreements. Verified the safety and health committee organisation chart and noted the Chairman of the OSH Committee will responsible for any safety issue for the company. Sighted the appointment letter for all the committee member and the chairman appoint were the mill manager Mr. Helmi Bin Ali dated on 7/8/2018.

g) The management shall conduct regular two-way communication with their employees where issues affecting their business such as employee's health, safety and welfare are discussed openly. Records from such meetings are kept and the concerns of the employees and any remedial actions taken are recorded.

Safety and health committee are available. The OSH meeting had been conducted quarterly basis as per OSHA 1994.

h) Accident and emergency procedures shall exist and instructions shall be clearly understood by all employees. Emergency preparedness and response procedure are available " Tindak Balas Kecemasan dan Persediaan" dated on 1/9/2018..

i) Employees trained in First Aid should be present at all field operations. A First Aid Kit equipped with approved contents should be available at each worksite

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Verified the mill management had 6 employee for the first aid trainer under "Kursus Asas pertolongan Cemas dan CPR " conducted by Professional IT Acaemic Sdn Bhd. However the Certificate still in progress. Verified the first aid box content were aedequate.

j) Records shall be kept of all accidents and be reviewed periodically at quarterly intervals.

There are 2 accident has been reported in year 2018. Verified form JKKP 6 had been submitted to the DOSH . The accident detail as per below : i. Leg falls at the steam drainage - action taken install drain cover. ii. steam heat exposed during open the steriliser door - repair the door steam valve due to loose.

Criterion 5 Employment conditions


4.4.5.1 The management shall establish policy on good social practices regarding human rights in respect of industrial harmony. The policy shall be signed by the top management and effectively communicated to the employees

Sighted management established "Polisi Sosial and Polisi Ganguan Seksual" dated 13 November 2018 and approved by CEO. The policy content included below: a) comply with all labor law and regulation b) Implement fair and reasonable working contract and requirement c) To respect the employees’ rights to associate and join unions d) To provide reasonable wages that meet living requirement Communication of the policy sighted done by display at the notice board, briefing on policy to the stakeholder during the stakeholder meeting. 4.4.5.2 The management shall not engage in or support discriminatory practices and shall provide

equal opportunity and treatment regardless of race, colour, sex, religion, political opinion, nationality, social origin or any other distinguishing characteristics.

Refer to "Polisi Sosial and Polisi Gangguan Seksual" had mentioned no discrimination on race, gender, nationality, religion and political view. The company seek to maintain a workplace free from discrimination.

4.4.5.3 Management shall ensure that employees’ pay and conditions meet legal or industry minimum standards and as per agreed Collective Agreements. The living wage should be sufficient to meet basic needs and provide some discretionary income based on minimum wage.

Verified the employee pay slip and found the calculation of the OT and basic salary was complying with the minimum standards. Samples below; 1- Zulhilmi Bin Abdul Ghani - Salary date November 2018. Gross salary RM1,948.07 4.4.5.4 Management should ensure employees of contractors are paid based on legal or industry

minimum standards according to the employment contract agreed between the contractor and his employee

Verified the contractor employee for company TWO - M - MARKETING & ENTERPRISE were pay according to the minimum standards wages. Verified the payslip for month september as per below : i. Muhammad bin Jamalludin - Basic wages : RM50/day - Gross salary : RM1725.00

4.4.5.5 The management shall establish records that provide an accurate overview of the employees (including seasonal workers and subcontracted workers on the premises). The records should contain full names, gender, date of birth, date of entry, a job description, wage and the period of employment.

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Verified the list of the employee data for Mill employee and sighted the data contain name, gender, date of birth, date of entry, job description and wage rate were recorded inside Employee profile data ase record file.

4.4.5.6 All employees shall be provided with fair contracts that have been signed by both employee and employer. A copy of employment contract is available for each and every employee indicated in the employment records

As verified the contract agreement were sign by both employee and employer. Verified for each employement contract is available for each employee.

4.4.5.7 The management shall establish a time recording system that makes working hours and overtime transparent for both employees and employer.

Time records of employee is based on the Punch Card and thumb print. The overtime and working days transparently showed inside the pays slip.

4.4.5.8 The working hours and breaks of each individual employee as indicated in the time records shall comply with legal regulations and collective agreements. Overtime shall be mutually agreed and shall always be compensated at the rate applicable and shall meet the applicable legal requirement

Verified the record of working hours were generated through punch card andThumb print and be manually key by the clerk in to the Lyntramax system. Verified records of payslip of employee , the payment of OT were as per employment act and collective agreement.

4.4.5.9 Wages and overtime payment documented on the pay slips shall be in line with legal regulations and collective agreements

Verified the pay slip and punch card working time records and found the calculation is sufficient as per legal regulation.

4.4.5.10 Other forms of social benefits should be offered by the employer to employees, their families or the community such as incentives for good work performance, bonus payment, professional development, medical care and health provisions

Refer to employment contract as below: i. Housing provided free by employer. ii. Employer will provide the healthcare facility and provide medical benefit to the employee - Insurans Great Eastern subsidize RM 10

4.4.5.11 In cases where on-site living quarters are provided, these quarters shall be habitable and have basic amenities and facilities.

Verified the basic ammenities susch as water and and electricity were provided by the mill.

4.4.5.12 The management shall establish a policy and provide guidelines to prevent all forms of sexual harassment and violence at the workplace

Refer to "Polisi Sosial and Polisi Gangguan Seksual" dated on 13/11/2018. 4.4.5.12 Obs- Sighted the guideline for prevent sexual harrassment and violence were not yet been established.

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4.4.5.13 The management shall respect the right of all employees to form or join trade union and allow workers own representative(s) to facilitate collective bargaining in accordance with applicable laws and regulations. Employees shall be given the freedom to join a trade union relevant to the industry or to organize themselves for collective bargaining. Employees shall have the right to organize and negotiate their work conditions. Employees exercising this right should not be discriminated against or suffer repercussions.

Verified the Polisi Sosial stated no obligation or restriction from the employer for the employee to join any union or form union. Verified the some of the employee were join NUPW . 4.4.5.13 NC - Verified on Appoinment Letter to Muhammad Zaed Bin Abd Razak dated on 29/11/2018 and sighted statement of not allowed join Union NUPW in the letter. This were againts company Polisi Sosial that have been established dated on 13/11/2018. 4.4.5.14 Children and young persons shall not be employed or exploited. The minimum age shall

comply with local, state and national legislation. Work by children and young persons is acceptable on family farms, under adult supervision, and when not interfering with their education. They shall not be exposed to hazardous working conditions.

Verified the in the employee recorded in the Lyntramax system NIL under age workers work in the premise.

Criterion 6 Training and competency


4.5.6.1 All employees, contractors and relevant smallholders are appropriately trained. A training programme (appropriate to the scale of the organization) that includes regular assessment of training needs and documentation, including records of training shall be kept.

Verified the Training Matrix for all employee for year 2018 and listed Training requirement for mill as per sample below: a) OSH Act & regulations awareness b) SOP for all mill sections c) Kesedaran Alam Sekitar Verified the training records as per sample below : i. Kursus Asas Latihan Kebakaran dated on 3-4/9/2018 - training evaluation score : 25 marks ii. Awareness MSPO dated on 18-19/7/2018 4.5.6.2 Training needs of individual employees shall be identified prior to the planning and

implementation of the training programmes in order to provide the specific skill and competency required to all employees based on their job description.

Verified the training needs for each individual employee had been identified in the training matrix plan.

4.4.6.3 A continuous training programme should be planned and implemented to ensure that all employees are well trained in their job function and responsibility, in accordance to the documented training procedure.

Verified the Training Plan for Year 2018 and listed 19 planned training such as Act & Regulation, SOP Training, MSPO Awareness etc.

P5 Environment, natural resources, biodiversity and ecosystem services

Criterion 1 Environmental management plan



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4.5.1.1 An environmental policy and management plan in compliance with the relevant country and state environmental laws shall be developed, effectively communicated and implemented.

Sighted management establish Environmental And Biodiversity Policy dated 13/11/2018 and approved by CEO. Communication of the policy sighted done by display at the notice board, briefing during row call and MSPO awareness training to the employee .

4.5.1.2

The environmental management plan shall cover the following: a) An environmental policy and objectives. b) The aspects and impacts analysis of all operations

Verified the mill management had doen Environmental management plan which cover 10 issues related to the environmental impact. Below are the sample issues taken from the environmental management plan : i. Air pollution from the smoke emmision transport and milling operation ii. Awareness training on Environmetal regulation and Act. iii. Appointed of Environment Officer iv. Oil leakage and spillage fromtractor and vehicle v. spillage of claybath vi. EFB disposaal management vii. Spill kit The action taken were verified from the environmental management plan and the status were still in progress. Beside that the mill also had establish others management plan to promote the postive impact and reduce the pollutant as per below : i. water management plan ii. Pelan Pengurusan Sisa dan Bahan Pencemar Seen the establishment of Environmental Impact and Aspect registration and sample of the impact as below: a) Activity: Menimbang BTS di Tempat penimbang Env. Aspect: Disel , Output - Asap Hitam Interaksi Alam Sekitar :Udara Pengenalan Impak - penipisan lapisan ozon, pemanasan global, hujan asid, pencemaran bunyi, pencemaran udara, impak kesihatan Penilain impak - 11 ( need to have action plan to reduce the impact) The rating indicator as per procedure shown that if rate above 11 , an action plan need to be established while below that the activities is not contribute to environmental impact. However if there is legal requirement to the aspect therefore the impact will be treated for the action plan eventhough the reating is below 11. 4.5.1.2 NC - Sighted the Aspect impact analysis is not cover for those activities and work place which is contribute to the environmental pollutant . Below are the area : i. Diesel Skid tank area - activities fuel refill to the tractor or vehicle. - Impact oil spillage , oil leakage. ii. Schedule waste store - activities handling of schedule waste - impact - spillage of chemical, used oil - etc iii. Chemical store - acivities storage of chemical - Impact - leakage from chemical container, spillage during handling of chemical etc iv. Workshop activity - activities of welding, greasing, etc - Impact - air pollutant , land pollutant v. Boiler station - activities - energy genarotor - impact - air pollution, land pollution 4.5.1.3 An environmental improvement plan to mitigate the negative impacts and to promote the

positive ones, shall be developed, effectively implemented and monitored.



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Verified the mill management had doen Environmental management plan which cover 10 issues related to the environmental impact. Below are the sample issues taken from the environmental management plan : i. Air pollution from the smoke emmision transport and milling operation ii. Awareness training on Environmetal regulation and Act. iii. Appointed of Environment Officer iv. Oil leakage and spillage fromtractor and vehicle v. spillage of claybath vi. EFB disposaal management vii. Spill kit The action taken were verified from the environmental management plan and the status were still in progress. Beside that the mill also had establish others management plan to promote the postive impact and reduce the pollutant as per below : i. water management plan ii. Pelan Pengurusan Sisa dan Bahan Pencemar 4.5.1.4 A programme to promote the positive impacts should be included in the continual

improvement plan

As per 4.5.1.3

4.5.1.5 An awareness and training programme shall be established and implemented to ensure that all employees understand the policy and objectives of the environmental management and improvement plans and are working towards achieving the objectives.

Refer to the Training Record and sighted sufficient training related to environment and sample as below: i. Esh Training ii. SOP Training for water treatment plant iii. SOP Training for Chemical handling iv. Training in Schedule waste handling Verified the Environment Executive had attende CEPswap course 7-11/7/2018.

4.5.1.6 Management shall organize regular meetings with employees where their concerns about environmental quality are discussed

Sighted the Envronmental committee meeting had been done by mill management. Sighted the recent meeting conducted dated on 25/10/2018 attended by Chairman ( Mill manager ), deputy chairman (Mill assistant manager ) , secretary of environment, employer representativeand employee representative. Verified the issues related to environment ha had been discussed during the meeting as per sample below ; i. Tugasan di Efluen ii. Mill cleanliness iii. Schedule waste management iv. Environment notice Criterion 2 Efficiency of energy use and use of renewable energy


4.5.2.1 Consumption of non-renewable energy shall be optimized and closely monitored by establishing baseline values and trends shall be observed within an appropriate timeframe. There should be a plan to assess the usage of non-renewable energy including fossil fuel, electricity and energy efficiency in the operations over the base period.

Verified the usage of diesel consumption were closely monitored through the baseline set . Sighted from the summary date of diesel consumption shown the usage is within the baseline limit of maximum and minimum parameter. The usage of diesel will increase inline with volume of FFB process. Sen the highest usage were in the month of September due to high crop receive and process by mill.


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4.5.2.2 Palm oil millers shall estimate the direct usage of non-renewable energy for their operations, including fossil fuel, and electricity to determine energy efficiency of their operations.

The estimation yearly has been budgeted in Budget General charges & manufacturing expenses for Mill electricity stated as budget vs actual.

4.5.2.3 The use of renewable energy should be applied where possible

Sighted the renewable energy were fibre and shel kernel used in the turbine. The more of process crop will effected in high usage of turbine.

Criterion 3 Waste management and disposal Indicator Requirement Findings 4.5.3.1 All waste products and sources of pollution shall be identified and documented.

Sighted the mill management had idenified the all the waste products and source of pollution as describe in "Senarai Sisa Buangan Industri" and 'Senarai Sisa Buangan Domestic". Verified sample schdeule waste identified is SW305, 306, 410, 409, 430.

4.5.3.2 A waste management plan to avoid or reduce pollution shall be developed and implemented. The waste management plan should include measures for: a) Identifying and monitoring sources of waste and pollution. b) Improving the efficiency of resource utilization and recycling of potential wastes as nutrients or converting them into value-added by-products.

The mill management establish the Waste Management Plan for FY 2018, the detail of waste management plan such type of waste, S.W. code, item description, location, action to be taken, PIC. Sample taken as below; a) Spent lubricant Oil and hydraulic oil location: scheduled waste store Action to be taken - collect & record amount of relevant scheduled waste, empty containers are stored and used for storage of waste oil, etc. . b) Industrial waste - used tyre, scrap iron Action to be taken: Collect at stored at designated area and disposal tu recylce contractor. 4.5.3.3 The management shall establish Standard Operating Procedure for handling of used

chemicals that are classified under Environment Quality Regulations (Scheduled Waste) 2005, Environmental Quality Act, 1974 to ensure proper and safe handling, storage and disposal.

Sighted the mill management had established SOP " Pengendalian Bahan Buangan Terjadual " dated on 1/8/2018 last SW disposed: i. SW305 , dated on 22/10/2018 - disposal by Register contractor - barrel 7 Drum (M) Sdn Bhd contractor code :38191 300/405 4.5.3.3 NC - Verified for SW 409 is not yet been register inside the eswiss. 4.5.3.4 Domestic waste should be disposed as such to minimize the risk of contamination of the

environment and watercourses.

Domestic waste were dispose at the landfill area. Verified the landfill were closed within 4 month. Proper signage were in place.


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Criterion 4 Reduction of pollution and emission


4.5..4.1 An assessment of all polluting activities shall be conducted, including greenhouse gas emissions, scheduled wastes, solid wastes and effluent

This were verified as per Aspect and Impact Assessment.

4.5.4.2 An action plan to reduce identified significant pollutants and emissions shall be established and implemented

As per environmental management plan and waste managemnt plan. The action plan were detail inside the plan and the action plan status were in progress. As per 4.5.3.2.

4.5.4.3 Palm oil mill effluent (POME) shall be treated to ensure compliance with standards as stipulated in the relevant Environmental Quality (Prescribed Premises) (Crude Palm Oil) Regulations 1977. POME discharge limits and method should be in accordance with the respective state and national policies and regulations.

Verified through Jadual Pematuhan DOE the parameter level of POME discharges were according to specification of DOE. As at todate no issues from DOE. The mill discharge the effluent through land dischage through furrow system , flat bed and geo tube. Criterion 5 Natural water resources


4.5.7.1 The management shall establish a water management plan to maintain the quality and availability of natural water resources (surface and ground water). The water management plan may include:

The Water management Plan has been established. The water source came from river from nearby estate. This water is used for mill and boiler. Sighted the records of Water abstraction Usage for the year 2018.

a) Assessment of water usage and sources of supply.

The mill management has record past years of water consumption and has update monthly basis and seen record of month January until october 2018. Verified the water were abstract from the nearby river.

b) Monitoring of outgoing water which may have negative impacts into the natural waterways at a frequency that reflects the estate’s current activities

Sighted the final discharge water quality analysis and analyzed by Envilab Sdn Bhd and the result as below: Upstream - pH 8.1 , BOD - 2, Ammonicial Nitrogen - not detected Donstream - pH 8.0 , BOD - 2, Ammonical Nitrogen - not detected Verified from the result there is no signof pollutant contribute by the mill activity process. c) Ways to optimize water and nutrient usage to reduce wastage (e.g. having in place systems for re-use, night application, maintenance of equipment to reduce leakage, collection of rainwater, etc.).

Sighted the record of monthly monitoring of water usage for mill operation .



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4.5.5.2 Where open discharge of POME into water course is practiced, mills should undertake to gradually phase it out in accordance to the applicable state or national regulations.

Not applicable due to land discharge of POME through Furrow system, Flat bed and Gio Tube.

P6: Best Practices

Criterion 1 Mill management


4.6.1.1 Standard operating procedures shall be appropriately documented and consistently implemented and monitored.

Sighted Kilang Sawit Bukit Kepong had their on SOP manual for milling Operation which cover all operation activities. Verified manual operation as per below : i. Manual Operasi Despatch ii. Manual Operasi Boiler iii. Manual Operasi Nut Kernel iv. Manual Operasi Clarifier v. Manual Operasi Timbang vi. Manual Operasi Steriliser vii. Manual Operasi Press viii. Manual Operasi Tresher xi. Manual Operasi maintenance xii. Manual Operasi Proses 4.6.1.2 All palm oil mills shall implement best practices.

Sighted the sample evidence of milling operation activities as per below a) Establish the SOP for milling operation which is cover station for streilizer, boiler , clarifier , effluent , water treatment etc. b) Verified the Check Boiler Multicyclone Checklist and found sufficient with updated the check sheet for every day for Pressure Drop, Check Stack, Fan Amp etc. c) verified the daily production report which stated as at todate OER achievement 19.51. Criterion 2 Economic and financial viability plan


4.6.2.1 A documented business or management plan shall be established to demonstrate attention to economic and financial viability through long-term management planning.

Verified the Klilang Sawit Bukit Kepong had established business budget plan for year 2019. 4.6.2.1 Obs - The planning of budget created for operation and capital expenditure is for one year . The managemnt need to establish long term management planing as required by the standard requirement.

Criterion 3 Transparent and fair price dealing


6.6.3.1 Pricing mechanisms for the products and other services shall be documented and effectively implemented.

Verified the pricing mechanism were stated in the contract agreement.





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6.6.3.2 All contracts shall be fair, legal and transparent and agreed payments shall be made in a timely manner

6.6.3.2 NC - Could not verified the latest contract agreement between mill and supplier (Perdagangan Pah and Mahsuri) . Verified the old contract agreement been recorded were for year 2012 and the contract period validity is for 1 year. Define in the contract terms of payment on duration 1 month period. As interview with the stakeholder currently the payment were late more than 1 month. Criterion 4 Contractor

Indicator 1 Requirement Findings

4.6.4.1 In case of the engagement of contractors, they shall be made to understand the MSPO

As to date, the briefing regarding the MSPO was done during the Stakeholder Meeting dated 18-19/7/2018 and among the contractors .

4.6.4.2 The management shall provide evidence of agreed contracts with the contractor.

Verified the contract agreement with agreed contract with the contractors as per sample below : Contractor name : Two M Marketting & Enterprise - Supply labour for work isolating unripe bunches - Period of contract - 1/1/2018 - 31/12/2018

4.6.4.3 The management shall accept MSPO approved auditors to verify assessments through a physical inspection if required

During site visit the no obligation from the management for the auditor to verify through physical inspection.

Observation for Improvement Details

4.2.1.1 Obs - Sighted frequent meeting with the relevant supplier is not been conducted to communicate information regarding issues on sosial, environmental and legal issues. Verified during stakeholder consultation session some of stakeholder had issues on late payment, transperency on daily price of FFB purchase, process of complaints etc. 4.3.1.1 OBS - Verified with the auidtee license permit for abstraction river water from BAKAJ still in progress by the authorities. Verified the submission of application had been made dated on 7/1/2018. 4.3.1.2 Obs - Sighted the Enakmen Air (Johor) 1921 were not been register inside the legal register . 4.3.1.3 OFI - To updated the latest Minimum Wages Act 2018 inside the legal register. The act will be applicable strating on next January 2019. 4.3.2.1 Obs - Sighted letter of award from "Majlis Mesyuarat kerajaan Johor" dated 29/9/1976 permitted Felcra berhad to manage the land .The management had send application letter to land department (Pejabat Tanah Muar) on application of land requisition for lot no PTD 7647-PTD 7651. However until now the process still on going. Advice to follow up with land department. 4.4.1.1 Obs - The progress from the action plan from social impact assesment were not been indicate inside the plan.

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4.4.4.2 ( e) Obs - Notice the medical surveillance and hemical exposure were not yet been conducted and this were include inside budget financial year 2019. 4.4.4.2 ( e) OBS - SOP chemical handling were not been placed at the store. 4.4.5.12 Obs- Sighted the guideline for prevent sexual harrassment and violence were not yet been established. 4.6.2.1 Obs - The planning of budget created for operation and capital expenditure is for one year . The managemnt need to establish long term management planing as required by the standard requirement.

During the assessment 3 nonconformities were identified.

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Maps KILANG SAWIT BUKIT KEPONG – FELCRA BERHAD

Date: 07 October 2013cciglobe.com/files/FBKSBK_MAV.pdf · 2019. 4. 26. · Mohd Fadhli Zil Ikhram...

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Transcript of Date: 07 October 2013cciglobe.com/files/FBKSBK_MAV.pdf · 2019. 4. 26. · Mohd Fadhli Zil Ikhram...