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To :

Mr Ravin Krishnan 18th February 2013 Grievance Co-ordinator Roundtable on Sustainable Palm Oil Unit A-37-1, Tower A,Level 37 Menara UOA Bangsar No. 5, Jalan Bangsar Utama 1, 59000 Kuala Lumpur, Malaysia Dear Mr Ravin,

Response to RRDC Request for Proof of Compliance.

The letter from RRDC dated 5 February 2013 refers. Before I proceed to make further clarification on the request, I wish to address a number of technical details in accordance with the RSPO guidelines on the New Planting Procedure.

1. The New Planting Procedure (NPP) is a site-specific notification. Point 5 of Detailed Process and Action steps for RSPO New Planting Procedures, states that “Any party, aggrieved by the assessment or plan, or wishing to dispute the verification statement may pursue this under the RSPO grievance procedure.” In the light of the above, we request that the Obansanjor farm that was raised by RRDC not be addressed under this NPP of Ibiae estate which is site-specific. Obansanjor farm is under Eyop Industries Limited, a separate entity altogether. Obansanjor farm was not part of the assessment or plan of Ibiae estate which is part of Biase Plantations Limited. In fact, Obasansjor farm is located about 113 km away from Ibiae Estate (Refer to Map- Document 1) We can address the concern of RRDC on Obanssanjor Farm, but we deem it more appropriate to do this outside the New Planting Procedure.

2. It is a common understanding among NPP practitioners that the SEIA referred to in the Detailed Process and Action steps for RSPO New Planting Procedure does not necessarily refer to the officially approved EIA document. The official EIA document which is a legal requirement is a tedious process that will take time to gain approval, and therefore so as not to cause unnecessarily delay, we were made to understand by the

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working committee that we can proceed with NPP assessment while waiting for the final EIA to be officially approved. In the meantime, we can use the draft document to identify the impact, draw the monitoring and management plan.

Considering the above, we will proceed to clarify points 1, 2 and 5 of RRDC letter dated 5th February.

1. On the meeting dated 15 January, it was clearly explained to Mr Odey by Director Mr F.J Esedeke from Federal Ministry of Environment that the EIA of Ibiae estate has complied with the Environmental Impact Assessment Law Act 86 of 1992 (Laws of Federal Republic of Nigeria). (Refer to Minutes of Meeting dated 15 Jan 2013- Document 2). Currently our penultimate EIA draft report is still undergoing a final review by the panel of technical experts from the Federal Ministry of Environment. Upon approval of this report, the Environmental Impact sSatement (EIS) will be issued.

We would like to clarify that the small Nursery that was highlighted in the RRDC complaint letter was established within the old plantation of Ibiae estate which is planned for replanting because the palm trees are too old (planted in 50’s and 60’s).

Section 64 of EIA Law of Nigeria Schedule 1A states that EIA is required only if

land development schemes covering an area of 500 hectares or more to bring forest into agricultural production;

agricultural programmes necessitating the resettlement of 100 families or more; and

development of agricultural estates covering an area of 500 hectares or more involving changer in type of agricultural use

The area selected for the nursery site of 10 ha is not covered in the above. Only the green-field undergoing NPP is.

Ibiae estate will not commence any operations on the green field part of the project even after the NPP is approved unless the EIS is issued.

2. It was also explained to Mr Odey during the meeting on 15 January by the State Ministry of Lands and Housing that land acquisition

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transactions of Biase Plantations is in accordance with the Land use Act no. 6 1978 (Refer to minutes of meeting –Document 2) We wish to convey the message from the Chariman of the Privatization Council that was minuted that the Freedom Information Act (FIA) is applicable only to Federal Government Agencies, and not to private enterprises like Biase Plantations Limited. Nevertheless we will provide RSPO with the following documents as reference of proof of compliance. i. Deed of Conveyance dated 23 October 2012 between Cross

River State Council on Privatization and Biased Plantations Limited (Ibiae estate) where transfer of properties was consented by the Commissioner of Land and Housing of Cross River State Government who is delegated by the Governor. (Document 3)

ii. Schedule of Compensation and payment of receipt. Append herewith the receipts of payment: a. made to the Cross River State Privatization Council dated

16th June 2012 Receipt no : 0001. For the lease of Ibiae Oil Palm Estate in Biase Local Council Area. (Document 4)

b. made to the community leaders by the Privatization Council dated 18 October 2011 for consultation. Receipt for the reimbursement of the above from Biase Plantations Limited dated 26 May 2012 to Privatization Council. (Document 5)

c. for performance of traditional rites for the local communities

of Ibiae Estate by Biase Plantations Limited dated 26 May 2012 (Document 6)

iii. Notice of acquisition dated 26 January 2011 to 8 February 2011

published by the Cross River State Privatization Council in Cross River State Tenders Journal for the application for pre-qualification as investors in the privatization of several estates among which Ibiae is one of them. (Document 7)

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iv. Copies of government gazettes in which the land transactions were made public. We have written to the Privatization Council on the above but we have yet to receive a response. We propose that RRDC approach the local government directly for clarification

We hope the above clarifies the doubts raised by RRDC on Ibiae Estate’s New Planting Procedure. We welcome Mr Odey for further dialogue and feel free to contact our plantation team based in Calabar for further clarification (if required).

Yours sincerely,

Simon Siburat General Manager, Group Sustainability

Copy

Darrel Webber- RSPO Secretary General Tn Hj Salahudin Yaacob – Technical Director RSPO Plantation Head – Wilmar Africa Limited General Manager- Biase Plantation Limited.

Margaret Ekpo Intl

NIGERIA

CAMEROON

State of Cross River

State of Akwa Ibom

State of Abia

State of Ebonyi

CROSS

CALABAR

EHOMA LAKE

EKWO LAKE

EGWEBE LAKE

BOB ERIE LAKE

Akamkpa

Biase

Ini

OdukpaniItu

EtungYakurr

Akpabuyo

Ohafia Abi a

Ikom

Ikono

UruanUyo

Okobo

Arochukw

Abak

Oruk-Ana

Mbo

Abi

Etnan

Ibiono Ibom

Obubra

AfikpoSo

Mkpat Enin

Eket

Calabar

Essien-U

Nsit Ubium

Bende

Ikot-Ekp

Oron

Nsit Atai

UrueOffo

Calabar SouthNsit Ibom

Ibesikpo Asutan

Bakassi

Onna

Afikpo

Esit Eket

Ivo

Ikot-Aba

EtmE kpo

Udung Uko

Ukanafun

Obot Akara

Bende

Bakassi

Ikwuano

uyo

oron

ugep

calabar

ikot-ekpene

9°0'E

9°0'E

8°40'E

8°40'E

8°20'E

8°20'E

8°0'E

8°0'E

7°40'E

7°40'E5°4

0'N

5°40'N

5°20'N

5°20'N

5°0'N

5°0'N

4°40'N

4°40'N

Ibad Plantation - 7,805 Ha

Oban Plant. - 2,986.385 Ha

Kwa Falls Plant. - 2,014.429 Ha

Ibiae Estate

Data Source :1. http://www.diva-gis.org/gData2. Point Bondary on Suvrey Map3. http://en.wikipedia.org/wiki/List_of_airports_in_Nigeria

Legend :

Road

Landmark

Capital CiityCityAirport

BoundaryInternationalStateLocal Authority

Shoreline

Waterway

StreamRiver

Title :L O C A T I O N

Calculate Road

Distance : 113 KM from Oban Estate to Ibiae Estate

Projection system :Geographic (WGS 1984)

Nigeria

Cameroon

Gabon Congo

GhanaChad

Benin

Togo

Equatorial Guinea

Ivory Coast

Zaire / Democratic Republic Of Congo

Sao Tome and Principe

State : Cross RiverNIGERIA

O B A S A N J O F A R M S

1:500,000

0 10 20 305KM

Scale

MINUTES OF MEETING OF THE PRIVATIZATION COUNCIL WITH IBIAE OILPALM ESTATE LANDLORD COMMUNITIES. MANAGEMENT OF WILMAR AND

1.0 PRESENT

Mr. Attah Ochinke

Mr. David C. Amiye

IN ATTENDANCE

Mr. James Aniyom

Dr. Sam Ekpe

Barr. Paul lshabor

Mr. E. O. Asuquo

Mr. F. J. Esedeke

Mr. Godwin U. llem

Chairman

Executive Secretary

Commissioner forNatural Resources

Agriculture and

Consultant on CommercialAgriculture

Representing Special Adviser, lnvestmentPromotion

Representing State Security Adviser

Director, Federal Ministry of Environment

State Ministry of Environment

Executive Director,Rainforest Resource & DevelopmentCentre, Calabar

Mr. Odey Oyama

Biase Plantations (Wilmar) Manaqement

Mr. Santosh Pillai

Mr. Ho Dye Joan

Mr. Lee KokSeng

lbiae Landlord Communities

- Managing Director

- Head (Plantations) West Africa

- GM, Cross River State

- See attendance list attached.

x-&nnmKD

1.1 CHAIRMAN'S OPENING REMARKS/ PRAYER

2.0

The meeting commenced at 12 noon with an opening prayer offered by

Professor Arikpo B. Arikpo. The Chairman in his opening remarks welcomedall parties and recalled the transparent programme of the Privatization Councilfor the privatization of Calaro, lbiae, Nsadop and Boki Oil Palm Estates.

He said series of sensitization meetings were held with the lbiae Landlord

communities assuring them that only viable and competent Oil Palm Companiesshall emerge through competitive bidding as core investors. These inputs werefurther discussed with the communities at Biase Local Government CouncilHall. Based on the inputs received from the communrties, the PrivatizationCouncil framed the Fundamental Terms which clearly outlined theresponsibilities of the Government, Communities and the lnvestor. lt would be

recalled that Biase Plantations (Wilmar) went through due process with othercompanies and emerged as core investor. He said that Government andPrivatization Council concluded the agreement with Biase Plantations Ltd

(Wilmar) in the presence of the representatives of the communities. He

lamented that - after having followed due process, he was shocked to seethat the company was rather petitioned to an lnternational organization knownas Roundtable on Sustainable Palm Oil (RPO) in Kuala Lumpur, Malaysiawithout cross-checking facts from relevant authorities.

MATTERS ARISING

lssues raised bv the Petitioner. Mr. Odev Ovama:

The Petitioner has alleged in his comments that Wilmar failed to address thefollowing issues and went ahead to propose sanctions against Biase Plantations(Wilmar). Some of the issues include:

i) That Biase Plantations (Wilmar) failed to reach an agreement with Landlordcommunities.

ii) That Biase Plantations (Wilmar) unlawfully acquired the land leased toCARES Farmers.

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iii) None payment of consultation and traditional rites to the Landlord

communities.

iv) None commitment to transparency.

v) No Environmental lmpact Assessment (ElA).

vi) Failure to adhere to Freedom lnformation Act (FlA).

ln his reaction to the above allegations, the Chairman of Council noted thatBiase Plantations (Wilmar) entered into agreement with government on behalfof the Communities with the signing of fundamental terms by both parties. Acopy of which was acknowledged by Obhort Sunday Evong, Clan Head ofAkpet.

That Government has paid full compensation to CARES Farmers.

That Biase Plantations (Wilmar) paid the sum of Eight Million Naira

(N8,000,000.00) as Consultation fee and Four Million Naira (N4,000,000.00) as

Traditional Rites, to the communities prior to take over of the plantations.

That the title documents of the Estate has been perfected by the State Ministryof Lands and Housing in favour of Biase Plantations (Wilmar) in accordancewith the Land Use Act No. 6 of 1978 CAP 202 (Laws of the Federal Republic ofNigeria).

That Freedom lnformation Act (FlA) which the petitioner alleged to have been

contravened is applicable only to Federal Government Agencies. ThereforeBiase Plantations (Wilmar) has not contravened the said law.

Responding to the allegation of Environmental lmpact Assessment, Mr. F. J.

Esedeke (Director) Federal Ministry of Environment told Mr. Oyama that the

Federal Ministry of Environment carried out its statutory responsibility inaccordance with the Environmental lmpact Assessment (ElA) Law Act 86 of 1992(Laws of Federal Republic of Nigeria). That the ElAs were made publicly availableto all Stakeholders of lbiae Oil Palm Estate for their attention in a mannerconsistent with the relevant law. Therefore Biase Plantations (Wilmar) is not incontravention of part 1 , section 2(1 ) as well as part 1 , section 12(1) and (2) of the

Environmental lmpact Assessment as alleged by the petitioner. He advised Mr.

Oyama to always cross-check facts from relevant quarters before any allegation.

2.2 Reactions from the Gommunities

Professor Arikpo B. Arikpo - Coordinator of lbiae landlord communities questioned thepetitioner, Mr. Oyama on whose mandate he petitioned without consulting theStakeholders. He told Mr. Oyama in very clear terms that the entire lbiae Landlordcommunities were not happy with him for the petition, because if he has the interest oflbiae Landlord communities and the estate, he would have cross checked facts.

(a)That the Landlord communities of lbiae Oil Palm Estate welcomed Biase

Plantations (Wilmar) wholeheartedly to lbiae Oil Palm Estate to revamp themoribund plantation. He also reminded Mr. Oyama that the handing overceremony of the Estate by the Communities to Biase Plantations (Wilmar) wascarried out openly in Biase Local Government Council Hall. The privatization ofthe estates started with advertisement in two National Dailies - ThisDayNewspapers and The Nation Newspaper. Thus the process was open to all

interested parties.

(b)That Wilmar paid arrears of royalties owed the Landlord communities before

letting Wilmar into possession of the plantations.

(c) That currently over one hundred indigenes of lbiae landlord Communities aregainfully employed by Biase Plantations (Wilmar) in the Estate.

(d) That Biase Plantations (Wilmar) has agreed as part of the Fundamental Terms

signed that it will provide scholarshrp to students of the Landlord communities.

(e) Dr. Oti Egbai, a Stakeholder of the community recalled the reaction of the

Landlord communities to the petition by Mr. Odey Oyama which the communityhas condemned in its entirety. He stated that Mr. Oyama wrote the petition

because he is not from lbiae and does not have the interest of lbiae at heart.

He condemned in totality the petition and advised Mr. Oyama to look elsewhere

for discord and not the lbiae Landlord communities. That the entire landlord

communities are solidly behind Biase Plantations (Wilmar) to develop lbiae Oil

Palm Estate.

(0 ln his reaction, the Youth President, Mr. Daniel lvang recalled their earlier

solidarity with Biase Plantations (Wilmar) against the petition of Mr. Odey

Oyama. That Mr. Oyama colluded with some mischievous elements to spread

falsehood that Biase Plantations (Wilmar) has not fully fulfilled its obligations to

the landlord communities.

(g)Obort Onda l. Onda, the Clan Head of Betem told Mr. Odey Oyama that theChiefs of lbiae Landlord Communities never mandated him to petition

Roundtable on Sustainable Palm Oil (RSPO) against Biase Plantations(Wilmar).

CONCLUSION

The Chairman advised Mr. Odey Oyama to desist from such write up in future,

because the State Government has acted in full transparency and would not fold itshands to watch transparent transaction being denigrated in an international forumwithout consulting stakeholders locally.

ln his advice, the Commissioner for Agriculture and Natural Resources, Mr. JamesAniyom cautioned Mr. Oyama to desist from such petitions. He said the economyof the State thrive on Agricultural ventures. Therefore such petitions as submittedby Mr. Oyama portrays the State, its people and the company in very bad light.

Finally, he was advised to always cross-check facts.

ln the absence of any other matter for discussion, the meeting came to an end atabout 4.00 pm. Mrs. Mary Arikpo, women leader, lgbofia said the closing prayer.

bC.Amxecutive

MEETING OF THE PRIVATIZATION COUNCIL WITH IBIAE OIL PALM ESTATE LANDLORD COMMUNITIES, MANAGEMENT OF WILMAR AND RAINFOREST RESOURCE &

DEVELOPMENT CENTRE (RRDC) 15th JANUARY 2013