GV5

Tee Family

8 Oct 2021

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Global Witness

Allegation made in the article “THE TRUE PRICE OF PALM OIL” by Global Witness

In response to the recent article published by Global Witness- THE TRUE PRICE OF PALM OIL, Prosper has decided to publish all the correspondences taken place between Global Witness and Tee Family as shown in Exhibit 1, 2 & 3 (see attached file). The purpose of doing so is to allow all our stakeholders to understand, to know what was said and what was not said, and in what context each statement was shared by the Tee Family in the 3 exhibits. This we hope would give our interested stakeholders a true and fair understanding of what transpired. The Tee Family divested all their interests in BOPPL, PNG in 2019 and in 2020 it engaged Global Environment Centre to adopt a recovery project at North Selangor peat swarm forest.

GV4

Amanah Saham Pahang (ASPA)

21 May 2020

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Bunge

Concern raised by stakeholder on recent oil palm development which may violate our NDPE Policy

On 3rd June 2020, Prosper’s representative had engaged ASPA to acquire detail information about the disputed project.

ASPA presented us their NDPE Policy on 9th July 2020. On 18th August 2020, ASPA informed Prosper of their commitment to Prosper’s NDPE policy with immediate moratorium on new land development. They agreed to upload the information in their website soon.

On 7th September 2020, Prosper had another round of engagement with YPPH, ASPA and Mentiga Corporation Berhad (Mentiga), with some stakeholders of Prosper. Prosper took time to share with YPPH, ASPA and Mentiga the process of engagement leading to recovery plan, if any. Thereafter, they were also introduced to Prosper’s recovery project partner, Global Environment Centre (GEC), to explain on some possible options for recovery plan. Positive feedbacks are given by all parties and they have scheduled a follow-up meeting with GEC by the end of the month.

GV3

YP Plantation Holdings Sdn Bhd (YPPH)

21 May 2020

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Bunge

Concern raised by stakeholder on recent oil palm development which may violate our NDPE Policy

On 3rd June 2020, Prosper’s representative had engaged YPPH to acquire detail information about the disputed project.

YPPH presented us their NDPE Policy on 24th August 2020. They agreed to upload the information in their website soon.

On 7th September 2020, Prosper had another round of engagement with YPPH, ASPA and Mentiga Corporation Berhad (Mentiga), with some stakeholders of Prosper. Prosper took time to share with YPPH, ASPA and Mentiga the process of engagement leading to recovery plan, if any. Thereafter, they were also introduced to Prosper’s recovery project partner, Global Environment Centre (GEC), to explain on some possible options for recovery plan. Positive feedbacks are given by all parties and they have scheduled a follow-up meeting with GEC by the end of the month.

On 18th September 2020, YPPH informed Prosper of their commitment to Prosper’s NDPE policy with immediate moratorium on new land development. A stop work order also has been issued on the remaining 800Ha unplanted area of the new development namely Ladang Pekan Timur and Ladang Pekan Barat.

 On 21st-22nd September 2020, GEC organised a follow up discussion at YPPH office in Kuantan followed by a field visit to YPPH Plantations at Pekan Timur, Pekan Barat and Bebar Utara followed by discussions with the State Forestry Department. Subsequently GEC developed and presented to YPPH in October 2020 a proposal for a Recovery Project to cover an area of intact and degraded forests and peatlands in a portion of Pekan Forest Reserve and its buffer Zone nearby the YPPH plantation

In October and November 2020, YPPH initiated measures in the proposed Recovery Project landscape to block abandoned logging canals in the buffer zone between its plantation and the forest reserve to reduce fire risk and support peatland rewetting and rehabilitation.

In December 2020, GEC undertook a specific assessment of the changes over the past 20 years of the vegetation and land use in the 800ha (actually 790ha) of unplanted area in the new development area. The study confirmed that the area was severely degraded after having been logged, drained and repeatedly burnt over a period of 25 years. It had also been partly cleared and drained by YPPH after the oil palm project EIA report was approved in 2018, before the stop work order. The area is severely degraded and vegetated with alien invasive tree species and cannot be restored to viable peat swamp forest. This was presented to YPPH and stakeholders in January 2021 and agreement reached to expand the proposed Recovery Project area to offset the 790ha

GEC was formally appointed by YPPH in January 2021 to implement an initial three years phase of the Recovery Project to cover an area of 4800ha to offset the impact of the Pekan Timur and Pekan Barat Plantations (including the 790ha area). 

On 23rd February 2021 GEC signed an MOU with the Pahang State Government to support conservation of forest and peatlands in Pahang State including the establishment of recovery projects in the Southeast Pahang Peatland Landscape (SEPPL). This was followed by a Kick-off meeting on the same day at YPPH to finalise a Joint Statement (link here) and initiate the Recovery Project.

On 24th February joint site visits to the Recovery Project area were undertaken with GEC, YPPH and the Pahang State Forest Department. 25th February 2021 implementation of Recovery Project initiated with stakeholder consultations and surveys started. March 2021, further work to enhance peatland rewetting, water management and fire prevention in and around YPPH Pekan Timur and Barat plantations and Recovery project area. Recommencement of land preparation in the 790ha unplanted area. 

In April 2021 GEC established an office in Pekan to manage the Recovery Project.

On the same month, Prosper’s internal monitoring system detected re-clearing of 90 Ha within YPPH’s Pekan Timur estate. This re-clearing occurred within the 790 Ha unplanted area which was already drained and partly cleared in 2018. Prosper requested information on nature of activities from YPPH. 

On 22nd April 2021 Prosper has communicated with YPPH which has agreed to immediately stop its re-clearing (see memo), pending review and clarification of YPPH’s sustainability policy. Prosper will continue to monitor the implementation of YPPH’s Recovery Project with GEC and ensure continued compliance to Prosper’s NDPE policy.

May 2021 – YPPH issues updated Sustainability Palm Oil Policy with clarification on NDPE procedures and implementation. (see link)

June 2021 – YPPH published progress update for February-May on Recovery Project on website. (see report)

May-July 2021 – further assessments undertaken by GEC on remaining incompletely developed 790ha portion of East Pekan Estate (Ladang Pekan Timur) indicate that it is not ecologically viable to re-establish peat swamp forest in this area due to 25-year history of degradation and dominance by alien invasive tree species.

June-August 2021 – GEC undertook an assessment of alternative development scenarios of the 790ha and projected impacts and greenhouse gas (GHG) emissions as well as projected emission reductions from the Recovery Project which were verified by an independent expert from Liverpool John Moores University and indicated that the proposed completion of development for oil palm would generate less GHG compared to other credible alternative scenarios and that the Recovery Project would offset any emissions that occur.

1 September – Review meetings between Prosper and selected supply chain and technical partners on progress with YPPH Recovery Project.

September 2021 – Meetings between GEC, Pahang State Forestry Department and YPPH to finalise arrangements and location for the Recovery Project to fully meet liability for YPPH development.

October 2021 – Second progress update for June–September on the Recovery Project published on YPPH website.

21 October 2021 – Meeting with YPPH and GEC to discuss request from YPPH for uplifting the SWO on the remaining portion of the YPPH East Pekan Estate.

22 October 2021 – Official request received from YPPH for uplifting the SWO on remaining portion of the YPPH East Pekan Estate.

22 October 2021 – Prosper issued a letter to YPPH agreeing to the ending of the SWO on remaining portion of the YPPH East Pekan Estate, but indicated that it will continue to monitor YPPH’s progress to ensure compliance with Prosper’s Sustainable Palm Oil Policy.

25 October 2021 – Closure of grievance: Since the grievance was first highlighted in May 2020, Prosper has actively engaged with YPPH to ensure compliance with Prosper’s Sustainable Palm Oil Policy. Prosper has confirmed that the liability of YPPH is 4,093ha (including the partly developed 790ha portion) based on 100% of the area of the approved/actual development of the Ladang Pekan Barat and Ladang Pekan Timur in degraded peatland areas in Pahang State, Malaysia between 2016-2020. YPPH appointed the Global Environment Centre (GEC) in January 2021 to help facilitate a Recovery Project. YPPH has initiated the Recovery Project to cover a targeted area of up to 4,800ha to more than cover its agreed liability. The Recovery Project was initiated in early 2021 and includes protection, rewetting and rehabilitation of degraded peatlands and peat swamp forest adjacent to its plantations in Pekan and other forest reserves in Southeast Pahang. Good initial progress has been made a described in periodic, publicly available, progress reports. YPPH has made a long-term commitment to develop and maintain the Recovery Project together with the State Government agencies and relevant stakeholders including local communities.

GV2

Far East Holdings Bhd (FEHB)

10 Jan 2019

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Aidenvironment

Alleged deforestation and peat development

On 11th January 2019, Prosper’s representative had engaged FEHB to acquire detail information about the disputed project, namely Ladang Sungai Sawak (LSS).

FEHB then replied in a letter dated 15th January 2019, explaining how the project started and the involvement of FEHB:

The land had been completely logged over for its timber by third party under a logging concession given by Malaysian Forestry Department during the period of 2009-2012. Only shrubs and bushes were left after the third party abandoned the land, and its peat soil was catching fire every year, causing haze issue around Rompin town. The annual peat fire also spread to surrounding estates causing loss and damage, including FEHB owned Ladang Delima.

In June 2017, FEHB was given consent by Pahang State Secretariat (land owner) to manage LSS (796.21Ha) for agricultural land development and operation. Environmental Impact Assessment (EIA) has been conducted by EIA Technical Consultant with Environmental Management Plan. By managing the water level of LSS’s peat area, the issue of peat fire has been solved.

On 4th April 2019, Prosper together with our stakeholder Cargill, visited LSS for an on-site assessment. FEHB has planted oil palm on the mineral soil (about 400Ha), leaving the peat soil area untouched. They have put up a stop work order for the remaining land, with 126Ha of the land is set aside as wetland protection area.

A soil survey has been conducted by Param Agricultural Soil Surveys (M) Sdn Bhd in May 2019 to identify the soil structure of LSS.

FEHB has also adopted the NDPE Policy on 15th May 2019, committed “No new development on peat regardless of depth”.

GV1

Bewani Oil Palm Plantations Limited (BOPPL) / Tee Family

19 Sep 2018

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Greenpeace

Alleged deforestation

On 5th April 2019, a letter written by Mr. Tee Kim Tee has admitted his involvement in the Bewani Oil Palm Project starting from 1st January 2016 up until his divestment on 1st February 2019.

Land Use Change Assessment was conducted to identify the total hectares deforested for the period of his involvement.

On October 2019, the Tee Family are finalizing the recovery plan with various options such as reforestation, wildlife conservation, or contribute to a trustee for environmental conservation projects.

A recovery plan has been finalized by establishing a partnership with Global Environment Centre (GEC) in March 2020. The recovery project will be conducted at Bukit Belata (Extension) Forest Reserve (BBEFR) which covers an area of lowland dipterocarp and peat swamp forest, in the south east portion of the North Selangor Peat Swamp Forest (NSPSF). For more information on the recovery project, please click here.