Victoria’s state-owned logging company doesn’t comply with Australian requirements designed to stop illegal logging in developing countries, the state’s Auditor-General has found. Breaches recorded by the Auditor-General show paper companies buying logs from VicForests may not be meeting the conditions of the Illegal Logging Prohibition Act, which requires companies to minimise the risks of legal breaches in supply chains. The act puts the onus on timber importers in wealthier countries rather than the regulators in poorer countries to carry out due diligence on their supply chains… Where risks of illegality cannot be reduced to a negligible level, logs cannot legally be processed. The Auditor-General’s report … found that in 2017-2018 VicForest had a non-compliance rate of 43 per cent in areas related to road design, and eight breaches were detected across the 30 logging coupes audited that were assessed to have a major environmental impact.