2 directors in construction sector allegedly made fraudulent CPF contributions to locals not under employment to inflate foreign worker quotas

A total of four people from the construction sector were arrested by the Ministry of Manpower (MOM) for suspected employment-related offences during a Sep. 2 enforcement operation.

According to a Sep. 4 MOM press release, they include two company directors and two company staff.

Suspected offences

MOM is investigating them for suspected offences under the Employment of Foreign Manpower Act (EFMA), such as false declarations and collection of employment-related kickbacks.

The directors are suspected of making fraudulent Central Provident Fund (CPF) contributions to locals not under their employment (phantom workers), to inflate their companies' foreign worker quotas.

They then allegedly brought in migrant workers through the inflated foreign worker quotas.

Another 21 people suspected of involvement in such illegal "phantom worker" arrangements are currently assisting in the investigation, the release noted.

MOM said it will continue to take action against companies suspected of inflating their foreign worker quotas through such illegal practices.

Penalties

The release stated that under the EFMA, making false declarations in work pass applications carries a fine of up to S$20,000, up to two years' jail, or both.

MOM will bar entities or individuals convicted of such offences from employing foreign workers.

Those who collude with companies by providing their particulars for fraudulent CPF contributions to inflate foreign worker quotas may also be prosecuted for abetment of false declaration.

This carries a fine of up to S$20,000, up to two years' jail, or both.

The collection of employment-related kickbacks is an offence punishable with a fine of up to S$30,000, up to two years' jail, or both.

Reminder

According to the release, MOM would like to remind members of the public not to accept CPF contributions from businesses they are not working for.

This is because they may be guilty of aiding in false declaration offences by errant employers.

Members of the public who are aware of such activities, or who know of persons or employers who may have contravened the EFMA, may report them to MOM online.