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Laos: Oji LPFL statement on FSC Certificate Withdrawal

As result of untenable conflict within the Lao Peoples Democratic Republic Laws and working to the Forest Stewardship Council(FSC)’s principles, LPFL give up to keep the FSC’s Forest Management Certification. LPFL accept official notification on 26th of May 2015 from SGS as Auditor as regarding. This is critical to the future management of this company. However LPFL management will continue to operate to improve all aspects of management with environmentally, socially and economically sustainable base working together with local society.

The critical issue to the withdrawal of the certification was strongly related to the actions of LPFL as regards several principles of the FSC, but with specific reference to FSC Principle 10 criterion 10.9[i].

LPFL is a joint venture between the Government of Lao (GOL) and many investors from Japan. In order for LPFL to operate in the country to operate any kind of activity adhering to the Laws of Lao PDR, and are governed by the concession agreements they have with the GOL. LPFL has always followed these instructions and directions and has been very transparent with any stakeholder that this is the method of operation. Its method and supporting document among such historical event has never been changed since pre-audit period for FSC audit conducted by same auditor for last 4 years. However this is deemed to be in breach of the Principle 10 amongst others and for this reason the certification will be withdrawn. LPFL are express concern about inconsistency of audit method and it has contempt and neglects regulations of GOL.

Fortunately LPFL do not see any negative impact regarding to withdrawal of the certificate among business activity included sales of LPFL product, as none of customer are not require FSC certificate. However LPFL would keep continue corporation to improve its management with whoever seek benefit to people in society and country Laos...

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