8 charged over 'phantom workers' scheme involving false CPF declarations in work pass applications

A total of eight individuals, aged between 31 and 61, were charged on Oct 8 for allegedly making false declarations in work pass applications involving Central Provident Fund (CPF) contributions.

In a statement issued on Friday (Oct 16), the Ministry of Manpower (MOM) said the seven employers and an administrative assistant had allegedly falsely declared that CPF contributions made by their companies were for local employees who did not actually work for them.

"These locals did not actually work for the companies ("phantom workers”)," the ministry stated.

According to MOM, the alleged false declarations were made to obtain work passes illegally, which constitutes an offence under the Employment of Foreign Manpower Act. 

The eight individuals charged are:

• Hou Ruisheng, 43, Singaporean director of Harvest Ecotech
• Cao Yongliu, 52, Chinese director of Blue Sky Builder
• Wei Yan, 48, Chinese director of Anchang
• Wang Jianheng, 61, Singaporean director of Advanced Coretrades
• Lin Jian, 37, Singaporean sole proprietor of Wang Da Construction
• Zhao Ying, 45, Chinese director of Urban Builders
• Cheng Pengfeng, 37, Singaporean director of He Jian Construction
• Yvonne Teo Peck Ling, 31, Singaporean administrative assistant at He Jian Construction

They face one charge each under the act, except for Hou, who faces an additional charge for allegedly obstructing an employment inspector.

In addition, three phantom workers will face administrative financial penalties for fraudulently receiving CPF contributions despite not working for these companies. 

In doing so, they are said to have abetted the companies in inflating their foreign worker quota.

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. 

The offence of making a false declaration carries a fine of up to $20,000, an imprisonment term of up to two years, or both.

Those found guilty of obstructing an employment inspector could be fined up to $20,000, jailed for up to two years, or both.

MOM reminded all employers and employment agencies that work pass fraud is a serious offence under the Employment of Foreign Manpower Act. 

"MOM has stepped up investigations into suspected cases and will take firm enforcement actions against errant parties," it added.

MOM also advised members of the public not to accept CPF contributions from employers they do not work for, as doing so may constitute abetment of false declaration offences or the inflation of foreign worker quotas.

[[nid:744215]]

editor@asiaone.com