CCI-QP-07-07A 1 Assessment Report Date: 3 rd Jan to 4 th Jan 2019 Company name ARAH KAWASAN SDN BHD (PALM OIL MILL) Address LOT 713, MUKIM SINGAU BATU, 09180 DAERAH BANDAR BHARU, KEDAH DARUL AMAN. Report no MS18MM020 Status of audit Main Assessment If surveillance NA [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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CCI-QP-07-07A
1
Assessment
Report
Date: 3rd Jan to 4th Jan
2019
Company name ARAH KAWASAN SDN BHD (PALM OIL MILL)
Address LOT 713, MUKIM SINGAU BATU, 09180 DAERAH BANDAR BHARU,
KEDAH DARUL AMAN.
Report no MS18MM020
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
CCI-QP-07-07A
2
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
Internal audit shall be planned and conducted regularly to determine the strong and weak points and potential area for further improvement.
Arah Kawasan POM establish the procedure for internal audit, dated 01/04/2018 Doc. No SOP-02
Arah Kawasan POM already done the Internal Audit on 19/10/2018. Internal Audit Plan dated on
08.10.2018 and Internal Assessment report dated on 19/10/2018.
Sighted the audit scheduled, audit planed and audit report were in place as per internal audit procedure.
Sighted no NC and OFI as a result from the internal audit.
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
Verified the internal audit procedure and audit report.
Sighted there is no nonconformities and opportunity for improvement resulted from internal audit.
4.1.2.3 Report shall be made available to the management for their review.
As per 4.1.2.2
Sighted the report were done and the issue inside the report have been discussed during management
review meeting held on 19th Oct 2018.
Criterion 3 Management Review
Indicator Requirement Findings
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.
Arah Kawasan POM conducted the once of Management Review Meeting on 15/11/2018; with twice
Internal Audit Meeting specifically for MSPO on 19/10/2018 & 6/10/2018 chaired by Mr. Lee Mooi Tong
(Production Manager) and attended by all heads and staffs.
Sighted the meeting which cover all important indicator and agenda including the findings based on last
MSPO Internal Audit for palm oil mill.
Criterion 4 Continual improvement
Indicator Requirement Findings
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.
Arah Kawasan POM establish the continual improvement plan as below:
a) Water Conservation Program
b) Reduce Electricity Consumption
c) Reduce amount of paper used
d) Zero accidents in the company
e) Air quality monitoring
f) Zero ill health related incidents in the company
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.
Arah Kawasan POM has no new technology and techniques in the plant.
1. EPS Installations (Dark Smoke Indicator).
P2: Transparency
Criterion 1 Transparency of information and documents relevant to MSPO requirements
Indicator Requirement Findings
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.
Generally, Arah Kawasan POM communicate the information with stakeholders and public through
meeting with stakeholders.
The mill management annually organize meeting with stakeholder.
The recent meeting was held on 15/10/2018.
For every issue raised the Mill management has prepared management plan on social impact
assessment.
Verified the Penilaian Impak Aspek Alam Sekitar – Environment Aspect Impact Assessment & Evaluation,
dated 01/04/2018
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.
The company has engage with nearest Head of Villages for any issues raised impacted within their area.
Criterion 2 Transparent method of communication and consultation
Indicator Requirement Findings
4.2.2.1 Procedures shall be established for consultation and communication with the relevant stakeholders
APOM has established procedure for stakeholder and procedure Communication and Consultation.
This SOP has been communicated to all stakeholders during stakeholder meeting dated 15/10/2018
held at Meeting Room, Arah Kawasan Sdn. Bhd.
Records of complaints and grievances were implemented by complaints form for Stakeholder/supplier
and Internal.
So far there is no issue related to external stakeholder.
Sighted the appointment letter PIC for stakeholder’s consultation matters, Miss Salina Binti Ismail dated
13/03/2018.
Sighted the list of internal and external stakeholders updated on 01.04.2018.
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)
Noted that the management had appoint the official management representative responsible for issue
related to stakeholder;
Miss Salina Binti Ismail.
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.
Sighted all the list of stakeholders, minute meeting during stakeholder meeting, communication and
record of action taken have been kept inside stakeholder file.
Verified inside the file the list of attendance of participant for stakeholder meeting, MSPO Awareness
training plan for stakeholder, SIA report and others document related to stakeholder were inside the file.
Criterion 3 Traceability
Indicator Requirement Findings
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.
SOP for traceability has been established by Arah Kawasan POM, Doc No: SOP-08 dated 01/04/2018.
A clear procedure and proper guideline to mill to comply with the supply chain certification under Malaysia
sustainable palm oil
Sighted the flow chart for FFB received.
Verified the sample of FFB weighbridge ticket;
Date: 18/12/2018 – Ticket no: 1812/22294 – 15.5mt
Grading with unripe FFB: 45 fruits
Grading with overripe FFB: 85 fruits
total rejected fruits: 17% (2.77 mt).
Sighted the MPOB license agreement of ‘Menjual, Membeli & Mengalih' for Choon Hoay Trading Sdn. Bhd.,
with license no: 5-5356-315000 which expired dated on 30/06/2019.
4.2.3.2 The management shall conduct regular inspections on compliance with the established traceability system
SOP for traceability has been established by Arah Kawasan Palm Oil Mill, Doc No: SOP-08 dated
01/08/2018.
A clear procedure and proper guideline to mill to comply with the supply chain certification under Malaysia
sustainable palm oil
Letter of appointment of personnel in charge of traceability – Cik Nor Ida Farida Bt. Hashim, dated
08/10/2018.
Verified the internal audit meeting has mention about traceability.
The amount of FFB processed was cross-checked against the amount received. Example, weighbridge
tickets include Supplier. CPO delivery order weighbridge tickets include contract number.
Sighted the management had done monthly inspection on the traceability system.
Sample of weighbridge ticket;
Ticket no: C107355 - 32.18mt - 18/12/2018
CCI-QP-07-07A
19
Delivery Order no: C107359
Contract No: Arah Kawasan (AKSCPO1812009) - Grant Contract dated on 12.12.2018 with 400 mt.
iii) Air Receiver Tank PMT-KD/18 09772, 10982, 10985, 10987, 10982, 10990, 09772
f) Lesen MPOB: No: 50031410400 valid until 31/12/2018
NCR: Found that there is no evidence of prove that the management apply for Fire Certificate as under the
regulation of Fire Service Act 1988 (Act 341). With under the Fire Services Designated Premises Order,
1998; Arah Kawasan Palm Oil Mill is listed under No.7, Seksyen 3, fire Services (Designated Premises)
Order 1998 (Factories, flatted factories exceeding 7000 cubic meters, Special structures, palm oil mills,
oil refinery, cement works and those with Hazardous processes.
4.3.1.2 The management shall list all laws applicable to their operations in a legal requirements register
Verified the list of all laws applicable to the Arah Kawasan Palm Oil Mill as per Legal Requirement Register
listed legal applicable as below:
a) Manual Penggredan Buah Kelapa Sawit MPOB Edisi Ketiga (2015)
b) Envrionment Quality Act 1967
c) Occupational Safety Health Act 1994 (514)
d) Akta 582 Akta Lembaga Minyak Sawit Malaysia 1998 - License No. 509280104000
(01.10.2018-30.09.2019)
e) Fire Service Act 1988 (Act 341) - No evidence of Fire Certificate applied
f) Akta 597 Akta Suruhunjaya Hak Asasi Manusia Malaysia 1999
g) Akta 139 Akta Kilang Dan Jentera 1967
h) Akta 447 Akta Bekalan Elektrik 1990 - Form F (License No. 2018/01661) Serial No. 30104
(27.06.2018 - 26.6.2019) - 1931 kWh
i) Akta 341 Akta Perkhidmatan Bomba 1998
j) Akta 265 Akta Kerja 1955
k) Akta 446 Akta Standard-Standard Minimum Perumahan Dan Kemudahan Pekerja 1990
l) Enakment Sumber air Kedah 2008 (Pengabstrakan Air) 2015 - Form B (Water Abstraction License)
License No. WA2018010047 (22.06.2018 - 21.06.2019) - Serial No. 000174
m) Children and Young Person (Employement) Act 2010
n) Minimum Wages Order 2012.
NCR: Found that there is no evidence of prove that the management apply for Fire Certificate as under the
regulation of Fire Service Act 1988 (Act 341). With under the Fire Services Designated Premises Order,
1998; Arah Kawasan Palm Oil Mill is listed under No.7, Seksyen 3, fire Services (Designated Premises)
Order 1998 (Factories, flatted factories exceeding 7000 cubic meters, Special structures, palm oil mills,
oil refinery, cement works and those with Hazardous processes.
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.
Refer to the Legal Requirement Register and found was updated on 01.06.2018 with status of compliance
is 100% compliance.
CCI-QP-07-07A
21
4.3.1.4 The management should assign a person responsible to monitor compliance and to track and update the changes in regulatory requirements.
Arah Kawasan POM appoint En Azirah Inez Bt. Jamaludin as a person responsible to monitor compliance
and to track and updated the changes. Seen the appointment letter dated 08/10/2018 and approved by
Mill Manager.
OFI:
Interview with Person Incharge for Legal and sighted the PIC was not well verse on the national legal
requirement.
Criterion 2 Land used right
Indicator Requirement Findings
4.3.2.1
The management shall ensure that their oil palm milling activities do not diminish the land use rights of other users
Arah Kawasan POM operation was sighted operated in the area at Lot 2660, 453, and 454 with 16.3286ha was bought by Arah Kawasan Sdn. Bhd. Arah Kawasan POM operation leased land in the area lot 477, 481, 320, and 1995 with 6.5875ha from 4 different land tittle and 2 different personel. 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.
Verified the valid land title as below:
a) Borang 5DK (Jadual Keempat belas), No. H.S.(D) : 2092
b) No PT : Lot 2660
c) Kategori Penggunaan Tanah : Perusahaan/Perindustrian
d) Width Lot : 11.28 ha
e) Date registered on 12.04.2018
f) Town: Mukim Sungai Batu (Bandar Baharu District)
4.3.2.3 Legal perimeter boundary markers should be clearly demarcated and visibly maintained on the ground where practicable.
Verified the Arah Kawasan had documented the picture of boundary perimeter in Doc No.
MSPO/P3/C4.3.2.
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
Indicator Requirement Findings
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
4.3.3.2
Maps of an appropriate scale showing extent of recognized customary rights shall be made available
Observe the Grievance Log Book was available at the Office. For stakeholder, they can email or sent letter
to the management for complaints direct to Production Manager.
4.4.2.4 Employees and the surrounding communities should be made aware that complaints or suggestions can be made any time
All stakeholder are freely to request the "Rekod Daftar Aduan/ Pertanyaan" from the Mill Management and
submit directly to the mill management.
The communities surrounding was aware with the complaint procedure and explanation was done during
the stakeholder consultation and most of the mill workers are from the local communities.
4.4.2.5 Complaints and resolutions for the last 24 months shall be documented and made available to affected stakeholders upon request.
Verified the last complaint for Year 2018 and sighted the record is still available.
Criterion 3 Commitment to contribute to local sustainable development
Indicator Requirement Findings
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.
Verified the record of “Corporate Social Responsibilities to nearest stakeholder" and listed a contribution
from management to the local community. Sample as below:
a) Rumah Cahaya Sg. Tengas, Kulim - 13.10.2018 - Gotong Royong
b) Masjid Al-Falah - 22.06.2018 - Majlis Sambutan Hari Raya Aidilfitri
c) Lembaga Pengurus SJK (C)Alor Pongsu - 07.06.2018 - School Donation.
d) JKK Kampung Keda Sg. Tengas - 12.04.2018 - Sukaneka
e) Sekolah Kebangsaan Sg. Tengas - 12.04.2018 - Hari Kantin
f) Ibu Pejabat polis Kontijen Jalan - 05.03.2018 - Sukan Sepak Takraw
g) Pusat Daerah Mengundi - 08.02.2018 - Sumbangan Ikhlas
h) JKK Kampung Keda Sg. Tengas - 05.02.2018 - Lawatan Kerja Menteri Besar Kedah
Criterion 4 Employees safety and health
Indicator Requirement Findings
4.4.4.1
An occupational safety and health policy and plan shall be documented, effectively communicated and implemented
Verified the policy Occupational Safety & Health Policy date on 01/04/2018 - sign by Managing Director.
Communication of the policy sighted done by display at the notice board, briefing on explaining the policy
to the employees on 13/09/2018.
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
Observed the policy was display at the noticed board surrounding the mill. The policy communicated
during the safety briefing on 13/09/2018
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 was reviewed on 01/04/2018.
a) Boiler station - Welding, repair of pump
i) Hot surface/cut bys harp surface/ machine unexpectedly run : L (2) X S (2) = R (4) - LOW
b) Laboratory - Mixing chemical for production kaolin
i) Chemical hazard upon contact with eyes or skin: L(3) X S(2) = R(6)- MED, Risk control : To give training on
chemical handling - completed on 01/04/2018
c) Reception - Load/Unload of FFB/PK/ CPO/EFB
i) Falling bunches/ EFB: L(2) X S(2) = R(4)- LOW on chemical handling - completed on 01/04/2018
Chemical Health Risk Assessment (CHRA) conducted by Goh Teik Beng #CHRA/18-10/002, work unit
covered such 1) Raw water treatment plant operator, 2) Maintenance Workshop/Production-fitter, Boiler
man, Laboratory - lab technician/lab assistant.
Environmental Noise Monitoring conducted by SEMC Sdn Bhd on 25-16/10/2017. The monitoring of
boundary point at N1-Near sister manufacturer mill, N2-Opposite boiler, N3-sewage pond, N4-near
construction site.
Initial Noise Exposure Monitoring Report dated 01/10/2007 by TK EHS Consultancy Services Sdn Bhd
Audiometric report conducted on 26/10/2016 by involved 10 employees with result 1 employee (Alif
Hanafiee - resigned) need to undergone every year for a n employee exposed to noise level at or above the
limits, and 9 employees (Aslam, Fikri - Resign, Gobmathan AL Kuppusamy, Halim Pramanik, Kamal
Hossain, Mahandran AL Ramasamy, Mohd Nor Faridzul, Mohidul Hawlader - resign, Muhammad Faizal -
resign) with result need to undergone every year for an employee whose baseline audiogram shows a
hearing impairment
31/10/2018 - 2 person, NB Lab, Bandar Perda, Bukit Mertajam. - Mahandran & Razali
OBS:
To include the control measure in HIRARC for working at height for CPO dispatch process.
CAR
Refer to Initial Noise Exposure Monitoring Report on 01/10/2007:
1. Hearing protection safety sign no available at production area exposed with above 85db (Power house,
boiler house & kernel station/fiacre cyclone section.
2. Additional Noise Monitoring - During site visit and verified with auditee, the additional of equipment
such sterilizer and boiler after year 2007, where refer to FMA (Noise Exposure) Reg 12. Additional
monitoring. Whenever there has been a production, process, equipment, control measures or personnel
change in the factory, the occupier shall conduct additional monitoring within six months from the date of
such change or changes.
3. Audiometric test for Aslam, Gobmathan, Halim Pramanik, Kamal Hossain, Mohd Nor Faridzul not yet
conducted for yearly audiometric test as per recommend from audiometric.
CCI-QP-07-07A
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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) Environmental management program & Chemical Handling conducted by consultant on 23/04/2018,
Pre-treatment system & boiler water treatment training conducted on 15/11/2017.
ii) Precaution attached to product and displayed at chemical was available for operator references.
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).
Verified the HIRARC and required PPE such as hand glove, ear plug, safety shoe, safety helmet etc.
Verified the PPE issuance records for below sample:
a) Safety Shoe to Halimi B Alliyas, Muhammad Faizal B Mat Abu & etc.
b) helmet t0 Kyaw Naing Soe, Sangar AL Yalumalai & etc
c) Earplug Kyaw Naing Soe, Zulnaim & etc
OBS:
Verified during site visit and refer to record PPE distribution, the Lab assistant were not provided with
respirator as per CHRA recommend.
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.
Sighted procedure "Raw Chemical Management" #SOP013.
Noted laboratory has provided with MPOB Methods book - A Compendium of Test on Palm Oil Products,
Palm Kernel Products, Fatty Acids, Food Related Products and Others.
OBS:
1. Lack of precaution sign at oxy-acetylene cylinder storage at maintenance station and chemical at mini
lab.
2. Containment for chemical storage at mini lab not available
3. During site visit, the containment of CPO skid tank have the flow pipe without any stop valve.
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.
Arah Kawasan POM appointed as per Safety and Health Committee Organization Chart - Secretary - Mr
Heah Chin Chai. Interview Mr Sharudin and observe he is aware with a basic knowledge of the latest
national safety & health matters and regulations.
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.
CCI-QP-07-07A
26
Verified the Safety & health Committee minute meeting and conducted regularly dated 15/11/2018,
29/08/2018 & etc. and sighted the meeting was discuss on the issue of the safety training, mill
cleanliness, safe work etc.
h) Accident and emergency procedures shall exist and instructions shall be clearly understood by all employees.
Verified Procedure "Emergency Preparedness and Reponses" #SOP-12. The procedure has detail in such
Fire response, chemical and oil spillage/leakage response, Incident/accident control, emergency
response training, impact on environment & the form of incident reporting. Sighted drill conducted such
Chemical response on 28/10/2018 and Fire response 16/07/2018, Introduction of Basic First Aid on
26/07/2018, with item discuss such factory safety, shock, nose bleeding, faint & suffocation, amputation
& etc.
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
Verified certificate of attendance for "Introduction Basic First Aid Training dated 26/0/2018 attended by
supervisor and ERT members.
j) Records shall be kept of all accidents and be reviewed periodically at quarterly intervals.
Accident record available for year 2018 recorded in form "Borang Laporan Kemalangan" Accident on:
1.19/12/2018 to En Mohd Irwan Ismail where get caught in chain conveyor during stopping the conveyor.
Total Medical Leave 3 days.
2. 27/11/2018 to En Sulahudin Omar, victim fall during pulling the FFB using hook at ramp. Total Medical
Leave 6 days.
3. 01/07/2018 to En Che Azrul Bin Che Ta caused a finger caught between valves during maintenance.
Total Medical Leave 29 days. Noted JKKP6 submitted to DOSH on 21/11/2018.
Sighted all the accident been investigated and record with the root cause and corrective action. As refer to
auditees, the accident been reviewed in OSHC meeting every quarterly basis, but not recorded in the
minute.
CAR:
Accident case of En Sulahudin Bin Omar on 27/11/2018 with Medical leave 6 days (28/11-29/11/28,
30/11-01/12/2018, 03/12-04/12/2018) not yet submit to DOSH.
OBS:
To record the accident investigation and corrective action in OSHC minute meeting quarterly interval to
trace the status of compliance for the corrective action.
Criterion 5 Employment conditions
Indicator Requirement Findings
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 establish the Human Right Policy dated 01/04/2018 approved by MD.
Communication of the policy sighted done by display at the notice board, briefing on policy to the
stakeholder during the stakeholder meeting.
CCI-QP-07-07A
27
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 Human Right Policy and 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 records of payment to workers;
1. Mohamad Homaun – Emp. No: F158 – Gross Salary for Nov 2018 = RM 2,240.46
2. Zaw Lin - Emp. No: F139 – Gross Salary for Nov 2018 = RM1,725.54
3. Mohd Hazrol Bin Abu Hanafiah – Emp. No: L024 – Gross Salary for Nov 2018 = RM2,168.70
Sighted the contract agreement for:-
1. Mohamad Homaun (Bangladesh Worker)
2. Zaw LIn (Myanmar Worker)
3. Mohd Hazrol Bin Abu Hanafiah (Local Worker)
All the agreement is under UNION Koperasi MAPA/NUPW and employment act 1955.
Sighted the daily rate:
1. RM44.038/day
2. RM43.615/day
3. RM50.038/day
Noted, increment letter to comply with minimum wages order 2018 has issues to employees with income
below than rm1100 and implement on the minimum wages rate start on Jan 2018 salary.
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
Refer to auditee, the contractor has aware and explained on the requirement as employer to pay based on
legal or industry minimum standards to employees. Verified during stakeholder consultation with
contractor, they has understand and implement the minimum wages to his employees.
OFI:
To kept the contractor's employee payslip as record and references.
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.
Verified the list of the employee data from local & foreign workers particular record book dated November
2018 with total 121 employees in eps system.
Sighted the data contain name, gender, status, date of birth, date of entry, designation, etc.
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
CCI-QP-07-07A
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As per 4.4.5.4
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 thumb print system (eps system).
Verified the salary calculation as per 4.4.5.3 and found accurate with the system calculation.
Refer to Overtime Requisition From for Nov 2018:
1. Mohamad Homaun (Bangladesh Worker) - 62hour (normal day - 1.5), 21 hour (rest day - 2.0),
2. Zaw LIn (Myanmar Worker)
3. Mohd Hazrol Bin Abu Hanafiah (Local Worker)
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
Morning Shift : 8am - 5pm, 1 - 2pm rest
Night Shift : 6pm - 3am, 11 - 12am rest
All the payment is follow the legal regulations and collective agreements.
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 check roll book, 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:
1. Hostel provided free by employer.
2. Employer will provide the healthcare facility and provide medical benefit to the employee
3. Foreign Workers Compensation Scheme Policy provided by the Employer Deceased in the event of any
employee dies in the cause of his employment
4.4.5.11 In cases where on-site living quarters are provided, these quarters shall be habitable and have basic amenities and facilities.
Site visit at the worker’s quarters and found all the basic amenities and facilities was provided sufficiently
such as electricity and fresh water. Noted the employee quarters for mill and estate are located in same
area. Mill quarters managed by mill itself.
Monthly worker's housing inspection checklist conducted monthly on December, November, October & etc
by assistant supervisor. Item inspected such toilet, electricity, water, drain, rubbish, lighting, cleanliness.
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
The management has establish the Sexual Harassment Policy dated 01/04/2018.
Sighted Procedure of Employment #SOP-04 dated 01/04/2018 mention on the sexual harassment.
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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.
Company shown the respect the right of employees to join the trade union as per Social & Human Rights
Policy dated 01/04/2018.
Verified, this mill's employees were not joined any union.
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 Employee name list, there is no young person and child worker was hired.
Criterion 6 Training and competency
Indicator Requirement Findings
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 training conducted such Fire drill training on 16/07/2018, Internal audit MSPO on 20 &
24/09/2018, Legal requirement training on 20/09/2018 & etc. Training attendance, training material,
training certificate of attendance were available in record.
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.
Refer to doc MSPO Training Syllabus, the need of training were identified for personnel such
Non-operational, operational, internal auditor, forklift handler, ERT, MSPO team.
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 11 planned training such as MSPO Policy, objectives,
internal audit training, scheduled waste handling, 5s housekeeping training, fire drill training & etc.
P5 Environment, natural resources, biodiversity and ecosystem services
Criterion 1 Environmental management plan
Indicator Requirement Findings
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 Policy dated 01/04/2018 and approved by the Managing
Director, Beh Hang Tong. The policy mention on the management commitment on sustain the
environmental issues as first priority to tackle thru environmental management and decision making
committee in the pursuit of business activities. The management had committed to protect the
environment, including prevention of pollution and shall fulfill compliance obligations as part of continual
improvement in their company.
Communication of the policy sighted done by display at the notice board.
CAR:
1. During site visit, the containment of CPO skid tank have the flow pipe without any stop valve.
2. Containment for chemical storage at mini lab not available
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
a) Environmental management plan dated 01/04/2018 available with 5 Objective to environmental
issues.
The plan Objective. Sample as below:
1. Objective: Reduce water consumption by 5% yearly.
Action plan: Monthly monitoring of Non-renewable energy consumption. But based on summary table show
during document review. No evidence that management had monitor the achievement based on objective
sighted.
b) Arah Kawasan POM establish the Environmental Aspect Impact Assessment and evaluation for year
2018, dated of preparation 01/04/2018 by Noor Hidayah Bt. Abd. Wahab, Documentation Control total 7
Station process covered such jambatan timbang, pejabat, pengedan BKS, Ramp BKS & etc. The
OBS: Sighted that the Environment Management is not available, but the management had split the
management as (water management plan, waste management plan).
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.
Document as indicator 4.5.1.2.
4.5.1.4 A programme to promote the positive impacts should be included in the continual improvement plan
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:
a) Environmental Objective Action Plan Training dated 23/04/2018
b) Environmental Aspect & Impacts Identification Training dated on 14.3.2018
c) Environmental Management Program & Chemical Handling training dated 23/04/2018.
4.5.1.6 Management shall organize regular meetings with employees where their concerns about environmental quality are discussed
Noted minute meeting of "Jawatankuasa Pengurusan Alam Sekitar 02/2018" dated 05/09/2018
attended by manager, assistant manager, technical department, s.w. coordinator & etc. The meeting of
environment discuss issues such scheduled waste, 3R program, zero burning inspection & etc and the PIC
of each issues discussed.
Criterion 2 Efficiency of energy use and use of renewable energy
Indicator Requirement Findings
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.
1) Arah Kawasan POM monitored the Diesel usage monthly. The quantity:-
- Nov - 11,445L
- Oct - 15,905L
- Sept - 11,341
2) Arah Kawasan POM monitored the electrical usage by Arah Kawasan POM for year 2018. The quantity:-
- Nov - 61,390 kWh
- Oct - 55,860 kWh
- Sept - 17,859 kWh
OBS
The management had not tabulated the monitoring based on objective of MSPO to monitor the
non-renewable consumption.
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.
Refer to auditee, the efficiency benchmarked are based on the previous average usage.
OBS:
Record of the efficiency for year 2017 are not yet used to benchmarked for current consumption
monitoring
4.5.2.3 The use of renewable energy should be applied where possible
Noted Arah Kawasan POM generated the electricity by steam turbine for process in Factory. While for
electrical supply, the management using TNB power supply.
The TNB generated as below:
Electric by steam turbine:
November 2018 - 61,390 kWh
October 2018 - 55,860 kWh
Electric by turbine:
September 2018 - 5196 kWh
August 2018 - 5074 kWh.
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.
Arah Kawasan POM listed all the SW generated as per List Of Waste Produced By Arah Kawasan POM and
listed the SW such as SW 305, SW 306, SW 410, SW429 and domestic waste such as rubbish, Industrial
waste such as POME, EFB, scrap metal. The SW been registered online into the eswiss.doe.gov.my. with
File Reference No. AS(B)K9KLM)31/152/000/007
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.
Arah Kawasan POM establish the Waste Management Plan dated 02/05/2018, 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) Scheduled - SW 305, SW 306, SW 410 & SW429.
location: Workshop/Lab
Action to be taken - collect & record amount of relevant scheduled waste, used for storage of waste oil, etc.
Scrap iron not included in the Waste Management Plan, as during site visit seen the scrap iron
scattered/collected at few different area (next to ramp & next to maintenance station).
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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.
Arah Kawasan POM has established scheduled waste procedure #27.0, ver1.0 dated 01/04/2018.
Sighted scheduled waste inventory are updated monthly basis in eswis, sample;
November 2018
SW305 - Balance 0.048MT
SW306 - Balance 0.000MT
SW410 - Balance 0.036MT
Disposal record:
i) 04/12/2018 - Consignment Note for Chemicals that are discarded or off-specification (SW429)
#2018120411T5G3R1, transporter - Alam Aliran Kualiti (M) Sdn. Bhd., receiver - Alam Aliran Kualiti (M)
Sdn. Bhd., Quantity disposed - 0.2290MT
CAR
Lack of Scheduled waste management - site visit at scheduled waste store,
- The waste not label properly (Used filter and spent engine oil) & laboratory of spent IPA/hexane
- Seen empty chemical container used inside toilet of ramp office, housing area.
4.5.3.4 Domestic waste should be disposed as such to minimize the risk of contamination of the environment and watercourses.
Domestic waste will be manage by Arah Kawasan and the waste will be taken and dispose on every 2 days
to dumping into landfill.
OBS:
During site visit, seen a domestic waste nearby of ramp office
Criterion 4 Reduction of pollution and emission
Indicator Requirement Findings
4.5..4.1 An assessment of all polluting activities shall be conducted, including greenhouse gas emissions, scheduled wastes, solid wastes and effluent
Noted "Buku rekod effluent", the record of the parameter of each pond been measured daily basis by lab
assistant.
4.5.4.2 An action plan to reduce identified significant pollutants and emissions shall be established and implemented
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.
Refer to Jadual Pematuhan "Jadual Pematuhan DOE" under "syarat 2.8" refrerene no ;
AS(B)K31/152/000/007 JLD.11 - License no : JPKKS/004562/2018-2019 validity from 1/7/2018 until
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 source came from river from nearby estate. This water is used for mill and boiler. Sighted the
records of Water treatment Usage for the year 2018. The last record shown for the October usage is
17,818m3.
Arah Kawasan POM establish the comprehensive assessment report of water usage. The usage of water
were used for milling processing
Sighted that the Arah Kawasan POM had a permit of License " Lesen Melencong atau Mengabstrak Air
Sungai" - section 7 under Enakmen Air (Johor) 1921 -No license : 08/A/KT/032
a) Assessment of water usage and sources of supply.
Arah Kawasan POM has record of water consumption and has update monthly basis, sample as below:
a) November 2018 - 44,905m3
b) October 2018 - 46,535m3
c) September 2018 - 50,648m3
b) Monitoring of outgoing water which may have negative impacts into the natural waterways at a frequency that reflects the estate’s current activities
Arah Kawasan POM do the assessment of water sampling to check the quality of water at the point of
natural river, river before and river after as per "Jadual Pematuhan DOE" under "syarat 2.8" refrerene no ;
AS(B)K31/152/000/007 JLD.11 - License no : JPKKS/004562/2018-2019 validity from 1/7/2018 until
30/6/2019. The water sampling test report were accepted by DOE. No issue of environmental were
comment by DOE.
Latest result of Water Analysis was conducted by BioChem Laboratories Sdn. Bhd. (MS/ISO/IED 17025,
Testing SAMM No. 020) for Arah Kawasan dated on 22.11.2018, with below parameter:-
pH @ 25% : 8.5
BOD @ 30°C for 3 days (mg/L) : 5
Suspended Solid (mg/L) : 3
Oil & Grease (mg/L) : <1.0
Ammoniacal Nitrogen (mg/L) : <1
Total Kjeldhal Nitrogen (mg/L) : 3
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 in the continual improvement plan for environment had mention element in ways of optimize
water nutrient usage by planning on as per below :
i. Water usage for toilet tapping from nearest river (Sg. Tengas).
Sighted and ‘Standard Operating Procedure – Water Consumption Management’ under Doc. No. WI-02
(Rev. 00) Eff Date: 01.01.2018
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.
Verified that the POME were discharge through Desluging. This were verified through "Jadual pematuhan
4.6.1.1 Standard operating procedures shall be appropriately documented and consistently implemented and monitored.
Sighted that company had established Basic Operation Guidelines with total 12 process such weighbridge,
loading ramp, sterilizer & etc.
4.6.1.2 All palm oil mills shall implement best practices.
Verified that the daily production were recorded inside the daily operation report :
- Sighted daily report dated on 30/11/2018 shown the total process 1100mt with total hours process
16hours.
Oil production 209mt
OER: 19
KER : 5.4
FFA: 4.48%
Verified the practices in the operation are as per documented SOP. Sighted the POM Alf were compliance
on MPOB Code of practices.
During site visit at ramp station - the ramp assessor were qualified grader certified by MPOB.
Sighted the understanding of quality of FFB category (unripe, underripe, ripe, overripe, rotten) were well
verse as according to "Manual Penggreddan buah kelapa Sawit MPOB edisi 3 (2015).
OBS:
1. During site visit, sighted FFB with longer stalk (>5cm) inside the hopper.
Criterion 2 Economic and financial viability plan
Indicator Requirement Findings
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 Business Management Plan of Arah Kawasan Sdn Bhd year 2019 budget as below:
1. Projected cash flow for year 2018 and year 2019, with nett cash flow rm3,581,000.00 for year 2018
and rm5,338,700.00 for year 2019
2 Projected profit and loss account for year 2018 and year 2019
3. Projected balance sheet for year 2018 and year 2019 with total liabilities RM89,278,000.00 for year
2018 and rm90,228,000.00 for year 2019.
4. Mill expenditure analysis for profit and Loss Account from 01/01/2018 - 31/10/2018
Criterion 3 Transparent and fair price dealing
Indicator Requirement Findings
6.6.3.1 Pricing mechanisms for the products and other services shall be documented and effectively implemented.
The pricing mechanisms will be based on the MPOB Monthly Prices and the prices will be announce by
issue the MEMO by monthly basis. Noted the prices will follow MPOB rate. Verified the price for month of
November as per memo "MPOB Press Release dated 03/12/2018" is RM1820.00 (Crude Palm Oil
Regional North)
6.6.3.2 All contracts shall be fair, legal and transparent and agreed payments shall be made in a timely manner