MOM: 4 Singapore company directors and 9 foreign workers arrested over suspected employment offences involving ‘phantom workers’ of criminal syndicate

SINGAPORE: The Ministry of Manpower (MOM) has arrested 14 people over suspected employment-related offences in a case believed to involve a criminal syndicate.

Those arrested during an enforcement operation on July 21 included four Singapore company directors, nine foreign workers and one appointment holder from an employment agency. MOM said the group is being investigated for suspected false declarations, employment-related kickbacks and unlicensed employment agency activities.

The ministry believes the company directors may have secured larger foreign worker quotas by making fraudulent Central Provident Fund (CPF) contributions to 139 people who didn’t actually work for their companies. These individuals were allegedly listed as employees even though they were not employed there, Channel NewsAsia (CNA) reported (July 23).

Alleged scheme used false local employment records to expand quotas

MOM said the suspected directors are believed to have inflated their foreign worker quotas by declaring 139 locals as employees and making CPF contributions for them, even though they were not working for the companies.

The ministry described these individuals as ‘phantom workers’. Their names were allegedly used to make the companies appear to employ more local workers, allowing them to qualify for larger foreign worker quotas under Singapore’s work pass system.

Offences carry heavy fines, jail terms and hiring bans

The suspects are being investigated under the Employment of Foreign Manpower Act and the Employment Agencies Act.

Those convicted of making false declarations in work pass applications may be fined up to S$20,000, jailed for up to two years, or both. Convicted companies or individuals may also be barred from hiring foreign workers.

People who knowingly allow their personal details to be used for fraudulent CPF contributions may also face prosecution for helping to make false declarations. They face the same maximum penalty of a S$20,000 fine, up to two years’ jail, or both if convicted.

The collection of employment-related kickbacks carries a maximum penalty of a S$30,000 fine, up to two years’ imprisonment, or both. Running an employment agency without a licence is punishable by a fine of up to S$80,000, up to two years in jail, or both.

MOM urges public not to participate in false CPF declarations

Cases involving ‘phantom workers’ strike at the integrity of Singapore’s foreign manpower framework because employers’ foreign worker quotas are tied to their genuine local workforce.

False declarations can give businesses an unfair advantage over firms that follow the rules.

MOM urged members of the public not to accept CPF contributions from companies they don’t work for, warning that they could also face prosecution for helping employers make false declarations.

The ministry also encouraged anyone with information about suspicious employment activities or possible breaches of the Employment of Foreign Manpower Act to report them.

Singapore’s work pass system depends on trust. Employers who follow the law shouldn’t be placed at a disadvantage by those who try to bypass the rules.

Firm enforcement helps protect honest businesses, genuine workers and confidence in the country’s employment framework.

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