MOM arrests 10 people over alleged CPF scheme involving ‘phantom workers’ at 5 construction companies
Ten people were arrested and 41 others are assisting in investigations following an island-wide enforcement operation by the Ministry of Manpower (MOM) on March 31.
In a press release on April 1, MOM said the operation targeted suspected fraudulent work pass applications.
Among those arrested were directors and employees from five construction companies. MOM added that another group of more than 40 people is also being probed over their Central Provident Fund (CPF) contributions in relation to the same companies.
According to MOM, the companies had allegedly made CPF contributions to Singaporeans and permanent residents who were not employed by them, creating so-called “phantom workers” to inflate their quota to hire foreign workers.
The inflated quota was then allegedly used to submit work pass applications to hire more foreigners.
Investigations are ongoing.
Under the Employment of Foreign Manpower Act, those convicted of making false declarations in work pass applications can face a fine of up to $20,000, up to two years’ jail, or both.
Their work pass privileges may also be suspended and the work pass applicants may be barred from working in Singapore. Those who collude with companies by providing their particulars for fraudulent CPF contributions to meet the requirements for work pass applications may also be prosecuted.
MOM urged members of the public who are aware of illegal employment activities, such as receiving CPF contributions from companies they do not work for, to report the matter via its eService. All information will be kept confidential.
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