different species of crabvietnamese mud crab

'Phantom workers' for foreign worker quotas: 14 arrested for allegedly making false declarations, collecting kickbacks

They had allegedly done so to inflate the companies' foreign worker quotas
'Phantom workers' for foreign worker quotas: 14 arrested for allegedly making false declarations, collecting kickbacks
A male company director (left) and a female company director were arrested during the enforcement operation. Both suspects are in the construction business.
PHOTO: Ministry of Manpower

A total of 14 people have been arrested by Ministry of Manpower (MOM) enforcement officers for alleged employment-related offences.

The ministry said in a news release on Thursday (July 23) that the enforcement operation was conducted across multiple locations on Tuesday.

Among the 14 arrested are nine foreign workers, four company directors and one key appointment holder from an employment agency.

According to MOM, they are suspected to have made false declarations, collected employment-related kickbacks, and carried out employment agency activities without a valid licence.

Its ongoing investigations revealed that the four directors allegedly brought in migrant workers through inflated foreign worker quotas.

They are also believed to have made fraudulent Central Provident Fund (CPF) contributions to 139 locals who are not under their companies' employment.

These "phantom workers" were allegedly recruited to inflate the companies' foreign worker quotas. 

The number of work permit holders an employer can hire is limited by a quota known as the dependency ratio ceiling (DRC).

It differs between sectors, with the construction and process sectors having the highest DRC, at 83.3 per cent.

The DRC quota for marine shipyard, manufacturing and services are 75 per cent, 60 per cent and 35 per cent respectively. 

Under the Employment of Foreign Manpower Act (EFMA), those found making false declarations in work pass applications could be fined up to $20,000, jailed for up to two years, or both.

MOM will also 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, which carries a fine of up to $20,000, an imprisonment term of up to two years, or both.

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

Meanwhile, those found guilty of operating an employment agency without a licence could face a fine of up to $80,000, jail of up to two years, or both.

MOM also reminded members of the public not to accept CPF contributions from businesses they are not working for, as this could constitute aiding in false declaration offences by errant employers.

[[nid:740942]]

[email protected] 

This website is best viewed using the latest versions of web browsers.