Organization Contact Person Office Address Mill Address Kilang Papan KK Assan Sdn. Bhd.(104025-W) Jude S. Arambala (Manager) Sabah TLAS Audit Report Principles 5 & 6 Lot No. 131 & 132, Block O, Alamesra Plaza Permai, Kuala Menggatal, 88400, Kota Kinabalu, Sabah, Malaysia. KM 4, Jalan Kg. Lotong, Kota Marudu, Sabah, Malaysia. Reference # G162-277 Audit Date Date close out Telephone Fax 14 March 2017 - +6088 448 827 (KK) +6088 661 116 (KM) +6088 448 826 (KK) +6088 661 833 (KM) Email kkassan1@gmail.com Approved By Dr. Kevin Grace Statements Audit Statement # GFS 062 WTP Issuance Date 1 April 2017 Expiration Date 31 March 2018 Assessment Details Company Type Scope of Assessment Product Group Source of Material Species Lead Assessor Assessor(s) FDS Staff Sawmill & Moulding Facility Kilang Papan KK Assan Sdn. Bhd. Sawn timber, Finger joint, Mouldings Sabah, Malaysia Acacia mangium (Acacia) Siti Radiah Mohamad Wong Bin Heang and Priera Bagang Nasrin Ladu (PPD Kota Marudu), Valerian J. Anthonius (PPD Kota Marudu) Terms of Assessment The scope of the evaluation is to verify compliance of the Kilang Papan KK Assan Sdn. Bhd. to the criteria within the Sabah Timber Legality Assurance System (TLAS) Principle 5 - Mill Operations and Principle 6 - Trade and Customs standards. Compliance is defined when the organization demonstrates that there is no non-compliance to any applicable criteria. Non-compliance to the Sabah Legality Standard occurs when the organization does not comply with 1 or more criteria. Non-compliance must be formally addressed prior to certification or within 2 months following a surveillance assessment. Limitations of Assessment The information presented in this report is based on documentation and other information presented by the client and observations made during the field verification under the assessment. Auditor s reporting of information presented by the client are taken as accurate, unless evaluated differently through the observations made during the assessment. All information presented in the report is accurate and complete to the best of knowledge of GFS. 2
Background Information: Kilang Papan KK Assan Sdn. Bhd. (KK Assan) registered in Kota Kinabalu, Malaysia with registration # 104025-W. The company produces and trade sawn timber, finger joint, and lumber mouldings for export sales. Associated Organizations & Subcontractors: KK Assan does not engage other companies as subcontractors to provide or manufacture products. Description of the Supply Chain: Munsikal Bin Maluk Osman Bin Mohamad Robert Usal @ Ursa Jaiwat B Yanun Sinalahing Bt Nantarasa Sunlight Laao Seafood Sdn. Bhd. Nurlina Bt. Magalai Joseh @ Josepah Impah In year 2016, KK Assan purchased Acacia logs from Form 2B suppliers as below: Supplier License Raw Material Location Audit Statement # (Expiry Date) Burit Adtaru & 2 Peserta 3/3/3Klt.10/53 3/3/3Klt.10/54 Peck Vui Keong 3/7/Jld.14/151 Adina bte Guinuina 3/3/3/Jld. 16/65 3/7/Jld.14/137 3/7/Jld.14/136 3/7/Jld.14/127 3/3/3/Jld.16/6 3/7/Jld.14/66 3/7/Jld.251(6) 3/7/Jld.249/171 3/Jld.14/32 JPHTN/KDT: 800-4//2/3/Jld.7/60 JPHTN/FRM:700-2/4/1/313/3 Acacia logs Pitas - Justin Bin Dunggap JPHTN/PP700-3/3/3/Jld.13/77 Ojarap Bin Mangatang JPHTN/KDT: 800-4/2/3/Jld.7/ 38 Nuriba Bin Muwali JPHTN/KDT.800-4/2/3/Jld.7/39 Amir Bin Halipah JPHTN/KDT.800-4/2/3/Jld.7/37 Mojirun Bin Akim JPHTN/KDT: 800/4/2/3/Jld.7/45 Sumisi @ Koro B. Lambangan 3/3/3/Jld.14/15 Addrik Bin Guali 4/2/3(Jld.7)83 Antali Bin Ambiloh 3/3/3/Jld.14/4 Dahlia Datuk Idrus Matakim 3/7/Jld.246/99 Marasun Bin Dulup 4/2/3(Jld.6)172 3
Willy Baindang Kumbong Bin Banintok Vlannah Binti Putar Ronnie Bin Muliding Hasnah Binti Yokong Kimbawan Bin Kimbilin John @ Celistinus B. Samy Marindu Bin Maligom Yusrin Rinompit Unsanang Bte Manilong Yusri Bin Ompit Andingos @ Antikos bin Lanting Torutok Bin Korongkan Onggoh Magami Ungau Bin KK Rambabi KAN Ominsin @ Razan Bin Azam Jessie John & Winnie Anpulag 2/5//2/Jld.63 23/3/3/Jld.13/20 3/3/3/Klt.10/28 4/2/3/Jld.6/164 JPHTN/KDT:800/4/2/3/Klt.6/ 150 JPHTN/PP:700/3/7/Klt.6/246 /253 JPHTN/PP:700/3/7/Klt.6/246 /210 JPHTN/PP:700/3/7/Klt.6/246 /101 JPHTN/KGU:700/2/5/2/Jld.7/ 37 JPHTN/KGU:700/2/5/2/Jld.5/ 52 2/5/3/Klt.1/16 3/7/Klt.245/205 4/2/3Klt.6/129 3/7/Klt.245/207 4/2/3/Klt.6/130 3/7/Klt.245/209 4/2/3/Klt.6/132 3/7/Klt.245/207 3/7/Klt.245/164 2/5/2/Klt.5/52 2/5/2/Klt.5/10 3/7/Klt.244/03 4/2/3(Klt.6)117 4/2/3/Klt.6/106 3/7/Klt.244/103 3/7/Klt.243/165 3/7/Klt.243/16 4/2/3/Klt.6/105 3/3/7/Klt.243/167 3/3/7/Klt.243/123 3/7/Klt.243/68 2/5/0/Jld.2/16 2/5/0/Jld.2/20 4
2/5/0/Jld.2/34 2/5/0/Jld.2/26 Roland Mogimbong 3/7/Klt.242/166 3/7/Klt.243/62 3/7/Klt.243/23 Peter James & 2 Peserta JPHTN/FRM:700-2/4/1/249 Ojimpul Bin Asam 3/7/Klt.242/20 3/7/Klt.243/25 3/7/Klt.243/8 Lee Chen Hui 3/7/Klt.241/177 3/7/Klt.242/18 3/7/Klt.242/56 Runshin Binti Lamadoi 3/7/Klt.240/154 3/7/Klt.241/22 3/7/Klt.241/126 3/7/Klt.241/128 Enchin Bin Majimbun @ Eric Saingin Dutik Jimer Bin Mojupi Gurat @ Kinsui Assingga & Victor Assingga Masongke Bin Oloh Jeston Bin Lumungking 3/7/Klt.241/173 3/7/Klt.240//61 3/7/Klt.241/24 JPHTN/FRM:700-2/4/1/237/3 3/7/Klt.239/153 3/7/Klt.240/10 3/7/Klt.240/113 3/7/Klt.240/115 3/7/Klt.240/160 JPHTN/FRM:700-2/4/1/231/3 JPHTN/FRM:700-2/4/1/251 3/7/Klt.239/97 3/7/Klt.239/131 JPHTN/PP: 700-3/7/Klt.240/8 3/7/Klt.239/9 3/7/Klt.239/57 3/7/Klt.239/99 3/7/Klt.239/133 3/7/Klt.240/12 5
Hijauan Bengkoka SAFODA Acacia logs Pitas GFS 028 LVS Plantation Sdn. Bhd. (30/11/2016) Alum B. Tamanong 2/5/2/3/35 Abdul Lizan Bin Ayung & Peserta 4/2/3/Jld.6/37 Rachel Jane Ongkui 3/7/Klt.238/120 Tropical Timber and JP (PT) 002/01 Sawn timber Kota GFS 135 WTP Trading (S) Sdn. Bhd. Kinabalu (31/10/2017) Dumus Enterprise DBKK 128750 Sawn timber Kota - Kinabalu Cymasun Trading Sdn. Bhd. JP(K) KK 001/04 (M01) Sawn timber Kota Kinabalu GFS 091 WTP (30/06/2017) Yung Chen Wood JP(S) SS 001/00(X19) R Sawn timber Sandakan GFS 058 WTP Industry Sdn. Bhd. (28/02/2018) Common species used only Acacia mangium (Acacia). Export of sawn timber and moulding include Korea, China, Japan, and Taiwan. Summary Results: (Major gap = 0, Minor gap = 3, Observation = 2) GAPs: Year 2017 GAP # Type Checklist Description 006/2017 Minor 5.2.4, 5.2.5, 5.2.7 KK Assan does not have a formal system for wood product traceability to the origin of raw material that is required by Sabah TLAS standard. The new requirement has officially begun starting September 2016. All raw materials were locally sourced from Sabah. Status of Outstanding GAPs: 2016 GAP # Type Checklist Status Description 16 th March 2016: PPE distribution records are available during document review. However, most of the workers in the production line were not equipped with PPE during mill visit the assessing team observed workers at the band saw, finger joint and moulding section wore slippers while working. 004/2016 Minor 5.3.2 Outstanding 005/2016 Minor 5.3.8 Outstanding 14 th March 2017: General briefing was given to the workers regarding the appliance of PPEs. However, no proper training or awareness program given to the workers regarding the necessity of wearing appropriate PPEs and potential work risk. Two workers were observed wearing slippers during operating machinery (band saw & forklift). 16 th March 2016: No fire training was provided to mill workers to date. The assessing team interviewed few workers during mill visit; most of the workers do not have safety awareness and know-how on the immediate response if emergency happened. 14 th March 2017: No fire training was provided to mill workers to date. 6
KK Assan had submitted an application letter to Fire & Rescue Department requesting for Fire Drill training but still pending for response (Refer JBPM/SB/KMU: 700-6/7/1 dated 15 February 2016). Observations: Year 2017 OBS # Checklist # Description 001 5.2.2, 5.2.3 It was observed that the identification of Sabah TLAS Compliant on the receiving documents from the supplier has yet to be implemented in this assessment as this new requirement has just officially begun in September 2016. According to FD 36/2016, the stamping of Sabah TLAS Compliant on the TLAS-CC verified forest products Removal Pass starts on 1 st January 2017. Currently, FDS is in the transition period of preparing stamp. The assessing team shall verify this in the next surveillance audit. 002 5.3.8 The mill operation areas are equipped with fire hydrants, hose reels and water tanks. However, the location of the band saw operation area is beyond the reachable distance of the hose reel. Two units of fire extinguishers are placed at the area but both are found out of pressure. Highlights of Close-Out Visit (if applicable) Date Not Applicable. Recommendations Kilang Papan KK Assan Sdn. Bhd. has demonstrated compliance to the Sabah Standard Principles 5-6 for Chain of Custody and is recommended to receive a GFS Audit Statement and Sabah Timber Legality Assurance System Compliance Certificate (TLAS-CC) by SFD. Minor gaps and observation identified in this assessment should be addressed before the next surveillance visit. Actions required to close the gaps include: a. GAP004/2016 (Checklist 5.3.2): To conduct a proper training or PPE awareness program to the workers. b. GAP005/2016 (Checklist 5.3.8): While waiting for the Fire & Rescue Department to respond, in house fire drill should be carried out to inform workers the emergency action plan in the mill. c. GAP 006/2017 (Checklist C5.2.4, C5.2.5, C5.2.7) KK Assan shall establish a standard procedure to assign batch # or production unit that is Sabah TLAS Compliant for its operation. It is recommended FDS to provide Chain of Custody (COC) workshop for mills in Sabah. d. Observation002 (Checklist 5.3.8): To locate useable and sufficient fire extinguisher at the area where hose reels are beyond reach. End of Summary Report 7