MOM arrests 14 over suspected employment offences involving ‘phantom workers’
Four company directors are suspected of bringing in migrant workers through inflated foreign worker quotas, with MOM also investigating alleged fraudulent CPF contributions made to 139 “phantom workers”.
Officers from the Ministry of Manpower arrest a director of a construction company. (Photo: MOM)
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SINGAPORE: The Ministry of Manpower (MOM) has arrested 14 people over suspected employment-related offences in a case it believes may involve a criminal syndicate.
Those arrested during an enforcement operation conducted across multiple locations on Tuesday (Jul 21) comprised four directors, nine foreign workers and one key appointment holder from an employment agency.
The suspects are being investigated over offences of false declarations and collection of employment-related kickbacks under the Employment of Foreign Manpower Act, as well as for unlicensed employment agency activities under the Employment Agencies Act.
“The directors are suspected to have brought in migrant workers through inflated foreign worker quotas,” said MOM in a statement on Thursday.
The ministry added that they are also under investigation for suspected fraudulent Central Provident Fund (CPF) contributions made to 139 locals who are not employed by these companies.
Describing these locals as “phantom workers”, MOM noted that they were not employed by the companies but may have been recruited to inflate their foreign worker quotas. Phantom workers are individuals who are declared as employees of a company and receive CPF contributions, despite not actually working for the firm.
MOM did not elaborate on why it believes a criminal syndicate may be involved or how the suspects are allegedly linked. CNA has contacted the ministry for information on the case, including how many migrant workers were brought into Singapore through allegedly inflated foreign worker quotas and whether any work passes have been revoked or suspended.
Under the Employment of Foreign Manpower Act, those found guilty of making false declarations in work pass applications may be fined up to S$20,000 (US$15,500), face a jail term of up to two years, or both.
MOM will also bar companies or individuals convicted of such offences from hiring foreign workers.
In addition, those who collude with companies by giving their particulars for fraudulent CPF contributions to inflate foreign worker quotas may be prosecuted for abetment of false declaration. If convicted, they may face a maximum fine of S$20,000, be jailed up to two years, or both.
The collection of employment-related kickbacks is also an offence punishable with a fine of up to S$30,000, a jail term of up to two years, or both.
Under the Employment Agencies Act, those found guilty of running an employment agency without a licence may be fined up to S$80,000, jailed up to two years, or both.
MOM urged members of the public not to accept CPF contributions from businesses they are not working for, as they may be guilty of aiding in false declaration offences by errant employers.
Those who know of suspicious employment activities, or people or employers who may have violated the Employment of Foreign Manpower Act, are advised to report the matter to MOM.
Source: CNA/dy(sn)
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