April7th,2017

CommentsonnewplantingnoticeforGoodhopeAsiaHoldings/PTNabireBaru.ReviewofdocumentssubmittedbyGoodhopeAsiaHoldingsLtdaspartoftheRSPONPPforPTNabireBaru,Nabiredistrict,Papuaprovince,Indonesia(includingsummariesofAMDAL,HCV,andHCSassessments)CommentssubmittedjointlybyPusaka,theEnvironmentalInvestigationAgency(EIA),theForestPeoplesProgramme(FPP)andGreenpeace.Date:April7th,2017Nameofcommenter:AudreyVersteegen,EnvironmentalInvestigationAgency(EIA)OnbehalfofEIA,theForestPeoplesProgramme(FPP),GreenpeaceandPusaka.Contactdetailsofcommenter

• Email:audreyversteegen@eia-international.org• Telephone:+44(0)2073547960

Nameofgrower:GoodhopeAsiaHoldingsLocationofproposednewplanting

• Countryanddistrict:Indonesia,Papua,Nabiredistrict• ProjectName:PTNabireBaru

April5th,2017

SummaryAstheassessmentscarriedoutinPTNabireBaru(PTNB)wereopenforpublicconsultationinMarch2017,thecurrentreviewbyEIA,FPP,GreenpeaceandPusakawascarriedoutagainsttherequirementsoftheRSPONewPlantingProcedure2015,whichcameintoforceonJuly1st2016.ThereviewfoundthatthedocumentssubmittedaspartoftheRSPONPPforPTNabireBaruwerenotfitforpurposeforthefollowingreasons:

1. Compliance:Theassessmentswerefoundtobenon-compliantwiththerequirementsoftheNPP:a. Soilsurvey,GreenhouseGas(GHG)assessmentandLandUseChangeAnalysis

(LUCA)aremissing.b. SocialImpactAssessment(SIA)isoutofdate.c. ThereportmakesnomentionofanyprocesstoensureFree,PriorandInformed

Consent(FPIC)wasobtainedfromalllocalcommunitiesimpactedbytheoperations.

2. Legality:Between2010/11and2014,thecompanyoperatedwithoutanEnvironmentalImpactAssessment(AMDAL)–alegalrequirementtoobtainplantationpermits(IUPandHGU).BythetimeitfinallyobtainedanAMDAL,thecompanyhadalreadyclearedlargeareasoflandwithoutapprovedmitigationmanagementmeasuresinplace.

3. Quality:TheHighConservationValue(HCV)assessmentiseitherofpoorqualityordeliberatelyfalse,withinadequatesamplingandfieldwork,andafailuretoidentifyprimaryforestorpeatlandswithintheconcession.

Responsibilityforthecompliance,factualreliabilityandqualityoftheassessmentssubmittedundertheNPPliesfirstandforemostwiththecompany.

• Inlightoftheaboveconcerns,weurgetheRSPOtoissueaStopWorkOrderonPTNBuntilnewassessmentshavebeenfinalisedandpeerreviewed,andagreementhasbeenreachedoncompensation/restorationofareasillegallydevelopedordevelopedingrossviolationofRSPOP&C.

Inaddition,thereviewfoundthattheassessor(inthiscaseNyotoSantoso)isaccountableforthequalityandveracityoftheassessmentshehasundertaken.

• Inlightoftheaboveconcerns,weurgetheRSPOtorequestthattheHCVRNreviewhislicenceandfurthertorequirecompaniesthathadNPPassessmentspreparedbyhimtosubmitthemtotheHCVRNforreviewwithacommitmenttocommissionreassessmentsiffoundwanting.

Further,theCertificationBody(inthiscaseBSI)isatfaultforsigningoffontheNPPnotificationandsupportingdocumentswhentheyareofobvioussubstandardquality.BSI’smisleadingstatementonthecomplianceofthedocumentssubmittedwiththeRSPONPPrequirementsistypicalofmostthird-partycertificationbodies’lackofcompetenceandcapacitytoassesscompliancetotheRSPOstandardidentifiedinEIA’s2015WhoWatchestheWatchmenreport.Additionally,BSIseeminglywilfullyattemptedtopassoffthesubmissionas

April7th,2017

“ongoingplanting”,therebyreducingrequirementsonthecompany,whichcausesustoquestionwhetherthisoccurredasaresultofcollusionorothermisconduct.

• Inlightoftheseconcerns,weurgetheRSPOtoprioritisethecredibleimplementationofResolution6handotherreformsrequiredtoensurethequalityofassessmentsandtherelevanceofthestandardintothefuture.WefurtherurgetheRSPOtoinstructtheASItoinvestigatetheconductofBSIintheNPPprocessforPTNB.

Finally,ithascometolightthattheRSPOknewthedocumentssubmittedbyGAHforPTNabireBaruwereinadequate.OnceitreceivedtheNPPsubmission,theRSPOcommissionedanindependentreview,whichfoundthattheassessmentswereinadequateandshouldberedonebeforetheycouldbeconsideredcompliant.TheRSPOSecretariatshouldneverhaveallowedanon-compliantsubmissiontobepublishedforconsultation.

• Inlightofthis,weurgetheRSPOBoGtoconductafullytransparentinvestigationintofailingsbytheSecretariatrelatingtothepostingoftheNPPofPTNB/Goodhopeandtodisciplineappropriatelyanypersonfoundtohaveactedwrongfully..TheinvestigationshouldincludequestioningofanyundueinfluenceontheRSPOSecretariatthatmayhavebeenexercisedbyGoodhope’sEdiSuhardi.

April5th,2017

I. CommentstoGoodhopeAsiaHoldings

1.HCVassessmentTherevisedRSPONPPendorsedbytheBoardofGovernors(BoG)cameintoforceonJanuary1st2016,withagraceperiodof6monthsforimplementation.GAH’sNPPsubmissionwaspostedinMarch2017,longaftertheendofthegraceperiod(July1st2016),andassuchisreviewedagainstthenewNPPrequirements.However,theassessmentssubmittedwerecarriedoutbeforetherevisionoftheNPP,andfalljustshortofthecomingintoforceofadditionalrequirements.Inparticular,theHCVassessmentwascarriedoutin2011,revisedattheendof2014,andsotheHCVassessordidnotneedtobelicensedundertheHCVRNALS.“TheIntentionisthatnewoilpalmplantingswillnotnegativelyimpactprimaryforest,HighConservationValues(HCV),highcarbonstocks(HCS),fragileandmarginalsoilsorlocalpeople’slands.”(RSPONPP,2015)

a. Incorrectclassificationofforestquality

“TheassessmentalsoshowsthereisnoprimaryforestandpeatlandintheplantationareaofPTNabireBaru”(HCVassessmentforPTNabireBaru,2014).ThisstatementintheHCVassessmentisnotbackedbyanyconcreteevidence.TheHCVassessmentdoesnotincludeavegetationclassification:thereisnoevidencefieldsurveyswerecarriedouttocharacteriseforestqualitywithintheconcessionandthelistofspeciesincludedintheannexestotheassessmentdoesnotgiveanyindicationofthesizeoftreesorsurroundingvegetation.Inparallel,nationallandcovermaps,freelyavailablefromtheIndonesianMinistryofEnvironmentandForestry,showoverathirdofPTNabireBaru’sconcessionforestcoverwasprimaryforestsin2011and2012(beforeanyclearanceoperationstarted).Landsatimagesbetween2006and2013ofareasmappedasprimaryforestsonnationalmapsshowdense,closedcanopycover(seephotooverleaf).AdditionalanalysisofLandsatimagescorrespondingtothedatesofthelandcovermapspresentedintheHCVassessmentreportshowthesemapsincorrectlyclassifieddense,closedcanopycoveras“secondaryforests”(seeannex).Independentdatasourcesthusappeartocorroboratethepresenceofgoodqualityforestswithintheconcessionbeforethestartofoperations.Inorderforthecompanytobeabletoclaimduediligencewasexercisedtopreventthelossofcriticalenvironmentalvalues,findingsshouldhavebeencheckedbyathoroughground-truthingexercise.Thereisnoevidencethisoccurredinanyofthestudiessubmitted.Onthecontrary,the2014revisedHCVassessmentpresentsanunreliableanalysisof2006satelliteimagesinitssummary,thenonlyrefersto2014Landsatimagery(whenmostoftheconcessionhadalreadybeencleared)inthefullreport,thuscompoundingthelikelihoodthatthedestructionofprimaryforestbythecompanywasdeliberatelyconcealed.

April7th,2017

b. False/incompleteidentificationofbiodiversityThebiodiversityassessmentcarriedouttoidentifyHCV1isincomplete:itislimitedtomammals,birdsandreptilesandfailedtoincludeinvertebrates.Timespentinthefieldcouldnothavebeensufficientfortheteamtoadequatelyassessforest,biodiversity,holdconsultationswithlocalcommunitiesanddrawparticipatorymaps.Thesamplingsurveyforthefaunalspeciesthatwereincludedinthestudyisinsufficientanddoesnotsystematicallycovertheentireareaoftheconcession.Samplingpointsarelimitedtoareasthatwillbeset-asideanyway(e.g.riparianzones),givingabsolutelynoindicationofwhatfaunacouldactuallybefoundintheareasthathavesubsequentlybeenclearedonthebasisofthisinadequateassessment.Further,faunalspeciesthathavebeenlistedintheresultshavespecificrangeslimitedtoareasofPapuaandWestPapuanowhereneartheNabiredistrict.Forthosespeciessupposedlyidentifiedduringfieldwork,nomorein-depthsurveywascarriedouttodescribepopulationsizeandlocationoftheendangeredandcriticallyendangeredspeciestheteamclaimstohavefound,norisitestablishedthatmanagementmeasuresproposed(smallset-asidesaroundsamplingpoints)wouldbesufficienttopreservethesepopulations.

April5th,2017

c. Noidentificationoflocalpeoples’landoruserrights,nomentionofFPICorcompensation

TheidentificationofHCVs5and6cannotbereliablycarriedoutwithoutmappinglocalpeoples’landanduseofnaturalresourcesinthelandscape,andthelocationofpotentialsacredorculturalsitesandburialgrounds.Thismappingshouldbedoneinconsultationwithlocalpopulations.TheHCVsummarysubmittedbyGAHdoesnotpresentanyparticipatorymapforanyofthevillagesimpactedbyPTNabireBaru’soperations.The286page2011HCVassessment–supposedlyrevisedin2014–doesnotoncementiontheword“partisipatif”or“participatory”.Nomapatall(participatoryornot)couldbefoundinanyofthedocumentssubmittedorstudiescarriedoutthatwouldpresentevidencethatcustomarylandoruserrightshavebeenidentifiedinoraroundPTNabireBaru’sconcession.Noneofthedocuments(summariesorfullassessments)presentevidencethatanystakeholder(international,nationalorlocal)havebeenconsulted.Theydonotincludeanymeetingminutesorpresencelists,noaccountofanyinformationthatshouldhavebeensharedwithlocalcommunitiesabouttheoperationsbeforetheirstart,noranyfeedbackorcommentreceivedinresponse.NodocumentmakesanymentionofwhetherconsentwasgivenbycommunitiesforPTNabireBaru’soperationsontheirland.Finally,nomentionismadeofthecurrentandopencomplaintagainstGoodhopePTNabireBaru,filedinApril2016–nearlyoneyearbeforetheNPPsubmissionwaspostedontheRSPOwebsite,whichwasofficiallyacceptedbytheRSPOinDecember2016.Thiscomplaintcruciallyincludesgrievancesfromlocalcommunitiesimpactedbylandclearanceandoperationstodate,carriedoutwithouttheirconsentorfaircompensation.

2.Nosoilsurvey–missedidentificationofpeatareas“7.4.1Mapsidentifyingmarginalandfragilesoils,includingexcessivegradientsandpeatsoils,shallbeavailableandusedtoidentifyareastobeavoided”(RSPOP&C,2013)PTNabireBarufailedtocarryoutasoilsurveybeforestartingitsoperations,therebyfailingtoensurethattheiroilpalmplantationwouldnotbedevelopedon,ornegativelyimpact(i.e.leadtodrainage)ofapeatarea.GAHadmittedthatitonlycommissionedoneinMarch2017.Officialgovernmentmaps(bytheMinistryofEnvironmentandForestry)labelanareawithintheconcession'kesatuanhidrologigambut'.Duediligencebythecompanywouldrequireathoroughchecktoensureplantationhasnotbeendevelopedonpeat.“Criterion7.8:requiresthatnewplantationdevelopmentsaredesignedtominimisenetGreenhouseGas(GHG)emissions,takingintoaccountavoidanceoflandareaswithhighcarbonstocks(HCS)and/orsequestrationoptions”(RSPONPP,2015)WhileanHCSassessmentisnotformallyrequiredaspartoftheNPPsubmission,itshouldbecarriedouttocomplywithCriterion7.8oftheRSPOP&C,andreportedonpublicly(aspartoftheNPPsubmission)fromJanuary1st2017.TheHCSassessmentcommissionedbyGAH(alsoledbyNyotoSantoso)failstomakeanymentionofpeat,andonlycounts18samplingpointsinthefield.Noneofthesoilsamplesweretestedfororganiccontent,onlythelivingvegetation,leaflitter(serasah)anddecayingtrees(nekromassa)weresampled.Thereisnoevidencethattheteamevenlookedforpeattoensureadequatemanagementmeasures.

April7th,2017

Additionally,theHCSassessmentwascarriedoutonthebasisoflandcoverin2014,whenclosetohalfoftheplantationhadalreadybeencleared,someofitalreadyplantedwithoilpalm.

3.Non-compliancewithRSPOproceduresandcertificationrequirementsEveniftheaboveassessmentscouldbefoundtobeofappropriatequality,GAH’sNPPsubmissionforPTNabireBarufallsshortofRSPOrequirementsforthefollowingreasons:

a. Assessments/Informationmissing

• EvidenceofstakeholderconsultationsaftertheHCVassessment,summaryoffeedbackandcomments,andhowtheywereaddressed.

• GHGassessment.AsofJanuary1st2017,GAHneedstoreportonthispubliclyaspartoftheNPPsubmission,andnottoERWGonly.ThestatementbyBSI(certificationbody)ismisleading.

• Soilsurvey.• LUCanalysis.“Alandusechange(LUC)analysisshouldusehistoricalremotesensing

imagery(oflandcover)todemonstratetherehasbeennoconversionofprimaryforestoranyarearequiredtomaintainorenhanceHCVssinceNovember2005”(RSPONPP,2015).Itisincompleteinthecurrentsubmission(startsin2006),itdoesnotusesatelliteimageryanddoesnotmakeanyconclusionastothestatusofHCVareas.

• FPICprocess.

b. Assessmentsoutofdate“IftheSEIAreportisolderthanthreeyearsatthepointofNPPsubmission,itshouldbereviewedandupdatedtoreflectchangesonthegroundandmustalsomeetanynewRSPOrequirements”(RSPONPP,2015)TheSIAsubmittedforPTNabireBaruwascarriedoutin2011,6yearsbeforetheNPPsubmissionforpublicconsultation,4yearsbeforetheNPPsubmissiontoRSPOforreview(allegedlyin2015).Itisnotadmissibleuntilithasbeenupdatedbyacompetentassessor.Thisisespeciallyimportantasnoothersocialengagementappearstohavebeenconductedbythecompany(cf.commentonFPIC),andgiventheopencomplaintagainstPTNabireBaru’soperationsfiledbythelocalcommunitiesinApril2016.

c. LateNPPsubmission(2.5yearslate)

LandclearanceinPTNabireBarustartedin2011.However,GAHonlybecameamemberoftheRSPOonDecember2nd2014.Consequently,thetwofollowingrequirementsapplytotheconcession:

• Forlandclearedbetween2011andDecember2nd2014“Iflandclearanceoccurredafter1January2010:Iflandwasdevelopedafter1January2010anddidnotcomplywithNPPrequirementsthegrowerhastoensurecompliancewithPrinciple7atthetimeofcertification.ThismaybethecaseiflandclearanceoccurredbeforethegrowerbecameanRSPOmemberorforanynewacquisitionswhereclearinganddevelopmenthavealreadytakenplace.”(RSPONPP,2015)

April5th,2017

• ForlandclearedfromDecember2nd2014“NewlandacquisitionsbyRSPOmembers:Iflandclearingisactivelyoccurringatthetimeofacquisition,operationsmustceasecompletelyandtheNPPrequirementsshallbefollowedforanyareathathasnotyetbeenconverted.”(RSPONPP,2015)

AllRSPOrequirementsappliedtoGoodhopefromthemomenttheybecameamemberoftheRSPOonDecember2nd2014.Onthatdate,operationsinPTNabireBaru’sconcessionshouldhavebeenstoppeduntiltheRSPONPPprocesswascompleted.TheRSPONPPrequiresassessmentsshouldbecarriedout,verifiedbyacertificationbodyandtheRSPOSecretariat,andfinallyopenforwiderpublicconsultation.Crucially,onlyaftertheendofthepublicconsultationandanycommentreceivedhavebeensatisfactorilyansweredcanoperationsbegin.“OnceverifiedandapprovedbyaCB[certificationbody],afinalNPPreportissubmittedtoRSPOfora30-daypublicconsultationperiod.Onsatisfactorycompletionofthe30-dayperiodandresolutionofanycomments,theRSPOSecretariatwillapprovetheproposednewplantings.”(RSPONPP,2015)“Plantingandanyassociateddevelopment(suchasroaddevelopment)canonlybeginoncetheNPPiscompletedandRSPOapprovalisgranted.”(RSPONPP,2015)“Thepartywhosubmittedacommenthasthefinalsayonwhetherandwhenthesubjectoftheircommentcanbeconsideredresolved.”(RSPONPP,2015)Itisconsequentlyirrelevantwhetherassessmentswerecarriedoutbeforethestartoftheoperationsin2011:thecompanyhadtocompletetheNPPprocessbeforeclearingland,orbeatriskofnotbeingcompliantwithRSPOrequirementsforcertification.AnyclearancebetweenDecember2014andpresentday(identifiableusinghistoricalsatelliteimages)isincontraventionofRSPOP&C.HavingdisregardedtherequirementsoftheirRSPOmembershipandtheNPPforover2years,GAH’soperationsinPapuashouldnotbeeligibleforcertification.ItshouldbenotedthatGAHhasmentioned“bottlenecks”intheRSPOprocessesasajustificationfornotwaitingforRSPOapprovaloftheirNPPsubmissionforPTNabireBarubeforecontinuingtheiroperations.Itusesthesamejustification–lengthyapprovalprocessfortheAMDALattheprovincialenvironmentalagencylevel–toexplainwhytheiroperationsstartedillegallyandremainedsoforthreeyearsbeforetheyretrospectivelyregularisedtheirpermitsandcouldapplyforRSPOmembershipin2014.

d. PTSariwanaAdiPerkasaMostcommentsmadeinthisdocumentarealsoapplicabletoPTNabireBaru’ssisterandneighbouringconcession:PTSariwanaAdiPerkasa,alsoasubsidiaryofGAH’s,whichiscurrentlybeingclearedwithouttheNPPprocesshavingbeencompleted.WeareawarethatasimilarNPPapplicationwassubmittedtotheRSPOforPTSAP,andiscurrentlyunderreview.Wewillsubmitcommentsassoonasitisopenforpublicconsultation.

April7th,2017

4.RecommendationsonGoodhope

• AlloperationsarestoppedatPTNabireBaruuntilnewassessmentshavebeenfinalisedandpeerreviewed,andagreementhasbeenreachedoncompensation/restorationofareasillegallydevelopedordevelopedingrossviolationofRSPOP&C.

• TheresolutionoftheopencomplaintagainstPTNabireBaruisgivenpriorityuntilthelocalcommunitiesimpactedhavereceivedafairandagreedsettlement.

• TheFPICprocessisrestartedandoperationsdonotcommenceuntilthelocalcommunitiesimpactedhavegiventheirclearconsent.Iftheydonotgiveconsent,GAHmustrespecttheirchoice.

• AllrequiredassessmentsareredonefollowingtheRSPONPP2015requirements.Thismustincludeataminimum(i)HCVassessmentledbyHCVRNALSlicensedassessorfollowingHCVRNALSrules,(ii)detailedcrediblesoilsurvey,(iii)publicreportofGHGassessmentincludingcredibleHCSassessment,(iv)LUCAsinceNovember2005,(v)FPIC.

• GAH’sRSPOmembershipissuspendeduntilcompensationhasbeenestimatedandpaidforalllandclearedincontraventionofRSPOrequirements.

• EdiSuhardishouldrecusehimselffromtheAssuranceTaskForceSteeringGroupandanydiscussionsaboutNPPsandcomplaintsproceduresattheBoarduntilthesemattersareresolved.

• ThesameprocessisfollowedforPTSariwanaAdiPerkasa–followingtherecommendationsoftheindependentreviewcommissionedbytheRSPOSecretariat.

II. Commentsonassessorsandauditors

1.HCVassessor:NyotoSantosoAsdetailedinourcommentsontheNPPnotificationforPTNabireBaru(GoodhopeAsiaHoldings),thecorrespondingHCVassessmentiseitherlazyordeliberatelyfalse,includingfakeinformationsuchaslistsofspeciesobviouslynotfoundinthevicinityoftheconcession.GoodhopeAsiaHoldings(GAH)suggeststhatasNyotoSantosowasincludedonthelistofRSPOapprovedHCVassessors,andisnowanHCVRNALSprovisionallylicensedHCVassessor,theconclusionsoftheassessmentsarevalid.WhileonpaperNyotoSantosohastherequiredapprovalstoconductHCVassessmentsforRSPOcertification,thequalityoftheHCVassessmentshehasproducedhasneverbeenformallyreviewed.AnumberofhisassessmentshavebeenreviewedindependentlybyenvironmentalNGOsandsystematicallyshowthesameflawsastheassessmentincludedinPTNabireBaru’sNPPsubmission:insufficienttimeinthefield,inadequatesampling,nodescriptionofvegetationclasses,nocrediblelistsofspecies,andHCVsonlydescribedinareasthatwouldbeprotectedanywayunderIndonesianlaw(e.g.riparianzones).RegardingNyotoSantoso’sprovisionalHCVRNALSlicense,itwasobtainedaftertheHCVassessmentforPTNabireBaru,whichwascarriedoutafewmonthsbeforetheentryintoforceoftheRSPOnewrequirementforHCVRNlicensedassessorsaspartoftheNPP,thusavoidingtohavetofollowtheHCVRNALSrulesandqualitycontrol.

April5th,2017

SinceacquiringhisprovisionallicenceinDecember2014,NyotoSantosohasnotsubmittedoneHCVassessmenttotheHCVRN,makingitimpossibletorelyonanyformalindependentreviewtogiveanindicationastohiscapacityasanHCVassessor.SeveralHCVassessmentsledbyNyotoSantosohavehoweverbeenreviewedonanadhocbasisbydifferentorganisations.Inparticular,thetwostudiesheledforthetwosubsidiariesoftheNobleGroup,PTHenrisonIntiPersadaandPTPusakaAgroLestarilocatedintheprovinceofWestPapua,werereviewedbytheCouncilonEthicsoftheNorwegianGovernmentPensionFundGlobal(GPFG).ThereviewersnotedsimilarfaultstothosefoundinthepresentHCVassessmentandconcludedthattherewasanon-negligibleriskthatanyHCVpotentiallypresentintheconcessionswouldnothavebeenidentifiedandthepotentialfor“severeenvironmentaldamage”.NyotoSantoso’sHCVassessmentswerefoundofsuchpoorquality,thatallGPFGsharesinNobleGroupwereimmediatelydivested.ItshouldthenbenotedthatanindependentreviewoftheHCVassessmentwascommissionedbytheRSPOwhenGAHsubmitteditsNPPapplicationforPTNabireBaru.ThereviewersfoundtheNPPapplicationtobeofunacceptablypoorquality,andrecommendedalltheassessmentsberedonebeforetheRSPOshouldacceptorpublishGAH’sNPPsubmission.ItistheRSPOSecretariat’sdutyandresponsibilitytoactontheserecommendations.Indeed,inanRSPOdocumentfromJanuary2017,itisstatedthatarevisionwouldberecommendedifnecessary–whythiswasnotacteduponisunclear.

2.Certificationbody:BSI“TheauditorconcludethattheSEI(AMDAL),SIAandHCVAssessmentwerecomprehensive,detailedandprofessionallycarriedout.”(VerificationstatementbyBSI,NPPnotificationforPTNabireBaru)ThecertificationbodyhiredbyGAHtoverifytheNPPsubmissionforPTNabireBaruwasBSIServicesMalaysiaSdnBhd(BSI).ItisnotedthatthedocumentwasverifiedbyBSIbeforetheentryintoforceoftherevisedNPP.HowevermostoftheshortcomingsofthesubmissionhighlightedinourcommentsonPTNabireBaru’sNPPnotificationwerealsorequirementsundertheoriginalNPPandshouldhavebeenpickedupbythecertificationbody.BSIinsteadissuedthebroadverificationstatementquotedabovewithoutnotinganyofthefundamentalflawspresentedinthisreview(seeSectionI).OtherstatementsbyBSIwerefoundtobefalse,suchasclassifyingPTNabireBaru’soperationsasongoing“Basedonreviewofnewplantingplan,itwasnotedthatthispartofanon-goingplantingismeantfornotificationonly”.Asevidencedinsection1.3.cofourcommentsonPTNabireBaru’sNPPnotification,BSIdoesnotappeartohaveeitherthecapacityorcompetencetocheckthecomplianceofpalmoilproducersagainsttherequirementsoftheRSPOstandard.VerificationstatementssuchastheoneprovidedbyBSIforPTNabireBaruhavebeenfoundtobeasystemicissueintheRSPOsystem,andformedthebasisofthereportWhoWatchestheWatchmenproducedin2015byEIAandGrassroots,whichspurredtheRSPOmembershiptovoteinResolution6h(proposedbyFPP)intheRSPONovember2015GeneralAssembly.Resolution6hgavemandatetotheRSPOSecretariattoreformtheRSPOcertificationsystemsinordertoguaranteebetterHCVassessments,FPICprocesses,aswellasgeneralauditperformance,inparticularattheearlystageofNPPverification.

April7th,2017

AspartofResolution6h,currentaccreditedauditorswereassessedbyAccreditationSystemsInternational(ASI)in2016.InallASI’sassessmentsBSIscoredmajornoncompliancesinenforcingtheRSPOstandard.SinceNovember2015,verylittleprogresshasbeenmadebytheRSPOSecretariattoimprovetheperformanceofRSPOcertificationbodies,resultinginalackofenforcementofthestandard,perfectlyillustratedbythePTNabireBarucase.

3.Recommendations• RSPOBoardofGovernorstorequestthattheHCVRNreviewthelicenceofNyoto

SantosoandfurthertorequirecompaniesthathadNPPassessmentspreparedbyhimtosubmitthemtotheHCVRNforreviewwithacommitmenttoredoiffoundwanting.

• RSPOBoGtoinstructASItoinvestigatetheNPPprocessatPTNB,includingtheconductofBSI.

III. CommentsontheRSPOSecretariatforitsBoardofGovernors

1.Lackofqualitycontrol“Onreceipt,theRSPOchecksthatthesubmissioniscompleteandwithintenworkingdays,poststhenotificationonRSPOwebsiteforaperiodof30days(SeeAnnex2).ThenotificationwillnotbeuploadedtotheRSPOwebsiteifsubmissionisfoundtobeincomplete.ThetenworkingdaysrequiredbytheSecretariattoprocesstheNPPsubmissionandtouploaditonthewebsiteisonlyindicativeandsubjecttothecompletenessofthesubmissionandthetimelinessofthegrowerand/orCBinaddressinganyissuesraisedbytheSecretariat.”(RSPONPP,2015)TheRSPOhasadmittedcommissioninganexternalreviewofthefullassessmentssubmittedaspartoftheNPPforPTNabireBaru.TheexternalreviewerrecommendedthattheassessmentsshouldberedonebeforetheNPPcouldbeaccepted.TheRSPOSecretariatthenproceededtoignoretheserecommendationsandstillpostedtheNPPnotificationforpublicconsultation,reportedlyfollowingarequestbyGAHfortheRSPOSecretariattodoso.Whileitmaybetherightofthecompanytomakethatrequest,itshouldbethedutyoftheRSPOtofollowitsownproceduresandupholdthecredibilityofitsstandardsbynotgrantingthatrequestwhendocumentssubmittedbyoneoftheirmembersaresoobviouslysubstandardtotheirownrequirements.InsufficientqualitycontrolbytheRSPOSecretariatappearstobegettingincreasinglyfrequent:asprivatesectormembersmakeforaneverincreasingproportionoftheRSPOmembershipbase,andthevoiceofenvironmentalandsocialconcernsgetsdrowned.Suchpanderingtoprivatesectorwishes,inobviousbreachoftherequirementsofthestandard,putstheentireorganisation’scredibilityatseriousrisk.

April5th,2017

2.ConflictofInterestPakEdiSuhardiistheDirectorofSustainabilityofoneofGAH’swhollyownedsubsidiaries.HeistheChairoftheCaucusofIndonesiangrowermembersoftheRSPOandtheVicePresidentoftheRSPOBoardofGovernors.InthosepositionsthereareconcernsoverPakEdiSuhardi’spotentialtoundulyinfluenceSecretariatdecision-makingtofavourthecompanyheworksfor.Attheveryleast,thisappearanceofconflictofinterestrisksunderminingpublicconfidenceintheintegrityoftheRSPOanditsprocedures.Additionally,PakEdiSuhardinowsitsontheSteeringGroupoftheResolution6h(2015)AssuranceTaskforce,raisingfurtherconcernsoverhispotentialinfluenceoverongoingattemptsatreform.

3.IllegalityGAHoperateditsPTNabireBaru(PTNB)concessionillegallyforuptothreeyears.Developmentoftheconcession–includingsignificantlandclearing–beganin2011.PlantingbeganinJanuary2012.However,PTNBdidnotreceiveitsPlantationBusinessPermit(IUP)until15April2014,sohadnolegalbasisonwhichtooperateaplantation.ThatIUPitselfwasissuedillegitimately,asthecompanyhadnotyetreceiveditsEnvironmentalPermit(AMDAL),anddidnotreceiveituntil26August2014.TheissuanceofanIUPisdependentonacompanyhavingobtainedanAMDAL.InDecember2016,GAHstatedthat"ThegovernmentagenciesofNabireandPapuaprovincearemutuallyinagreementthatcommencementoflimitedoilpalmdevelopmentpriortoAMDALapprovalwasnotinlinewiththelegalrequirementsinIndonesia”,andagaininMarch2017“thatthecommencementofoilpalmplantationdevelopmentpriortoAMDALapprovalhascompromisedthelegalprocedureinIndonesia”.IneffectGAHadmitsthatitsoperationswerenotincompliancewithnationallaw.However,itaddedthat"itwasdeemedasnotviolatingthelawasthegovernmentexerciseditsdiscretionandauthoritytoissueallnecessarypermits".Yetthisnecessitatesthatthegovernmentissuedthepermitsinviolationofboththenationalplantationlaw,andtheEnvironmentLaw,bothofwhichgovernhowgovernorsanddistrictheadsaretoadministersuchpermits.NeitherlawallowstheinterpretationtowhichGAHalludes,orthatlocalofficialsappeartohavetaken.NoneoftheseissuesisaddressedintheNPPforPTNB,buttheywouldhavebeencleartobothBSIandtheRSPOSecretariatwhentheyauthorisedtheuploadingoftheNPPtotheRSPOwebsite.TheRSPOshouldbeconcernedthatitsmembersarelaunderingillegallydevelopedlandintothecertificationprocess.Thisbringsthestandardintodisrepute.

4.RecommendationsfortheBoardofGovernors

RegardingPTNabireBaruandGoodhopeAsiaHoldingsLtd.

• RSPOBoGtoinstructtheSecretariattopublishinformationitholdspertinenttotheincompleteness,poorqualityandfactualinaccuracyoftheNPPofPTNB.

April7th,2017

• RSPOBoGtoinstructtheSecretariattoissueastopworkordertoPTNBuntilnewassessmentshavebeenfinalisedandpeerreviewed,andagreementhasbeenreachedoncompensation/restorationofareasillegallydevelopedordevelopedingrossviolationofRSPOP&C.

• RSPOBoGtoinstructASItoinvestigatetheNPPprocessatPTNB,includingtheconductofPTNBandGoodhope,BSI,andtheRSPOSecretariat.

RegardingResolution6h• RSPOBoGtourgeEdiSuharditorecusehimselffromtheAssuranceTaskForce

SteeringCommittee.• RSPOBoGtoinvestigatethefailingsoftheRSPOSecretariatintheimplementationof

Resolution6h,urgetheSecretariattoredoubleitseffortsinthisreformprocess,andtoprioritiseitoverandabovetherevisionofwiderRSPOcoredocumentsoverthecoming1-2years.

• RSPOBoGtoissueanexplicitinstructiontotheRSPOSecretariattoensurethatnocoredocumentrevisionstakeplaceuntilResolution6hhasbeencrediblyimplementedandthatanyrevisionsofcoreRSPOdocuments(P&C,NPP,etc)overthecomingyearortwoarepredicatedentirelyonthefindingsandmeasurestobeimplementedaspartofResolution6h.

RegardingAccountabilityintheRSPOSecretariat• RSPOBoGtoestablishcomplaintsprocedurecateringexplicitlyforfailingsoftheRSPO

Secretariat.• RSPOBoGtoinvestigatethefailingsbytheSecretariatrelatingtothepostingofthe

NPPofPTNB/Goodhope,andtodisciplineappropriatelyanypersonfoundtohaveactedwrongfully.

• RSPOBoGtoinvestigateconcernsaboutactualorpotentialundueinfluenceontheRSPOSecretariatexercisedbyGoodhope’sEdiSuhardi,andtoactaccordinglyifundueinfluencewaswieldedbyhiminrelationtoGoodhopeNPPs.

StatementofresponsibilityIunderstandtheNPPprocessandsubmitthesecommentsingoodfaith(i.e.commentsandjustificationsaretruetothebestofmyknowledge).IwillengageactivelyintheNPPprocessandwillworktoresolvethesecommentsandconcerns.

AudreyVersteegenForestCampaignerEnvironmentalInvestigationAgency(EIA)