Singapore arrests 14 in suspected employment fraud involving phantom workers and false declarations

Singapore's Ministry of Manpower (MOM) has arrested 14 individuals in a multi-location enforcement operation targeting a suspected criminal syndicate believed to be involved in employment-related offences, including false declarations, fraudulent foreign worker quota practices and illegal employment agency activities.

The arrests were made on July 21, with the ministry announcing the operation on July 23. Those detained include four company directors, nine foreign workers employed by the companies and one key appointment holder from an employment agency.

MOM said the individuals are being investigated under the Employment of Foreign Manpower Act (EFMA) for suspected offences involving false declarations and the collection of employment-related kickbacks. The employment agency representative is also being investigated under the Employment Agencies Act (EAA) for allegedly carrying out unlicensed employment agency activities.

According to the ministry, the company directors are suspected of bringing in migrant workers by inflating their foreign worker quotas. Investigators are also examining suspected fraudulent Central Provident Fund (CPF) contributions made to 139 individuals described as "phantom workers" who were not employed by the companies but may have been recruited to artificially increase the firms' foreign worker quota eligibility.

Under Singapore's foreign workforce framework, employers must meet local workforce requirements before they can hire migrant workers, with CPF contributions serving as one measure of local employment.

MOM warned that making false declarations in work pass applications under the EFMA carries penalties of up to S$20,000 in fines, imprisonment for up to two years, or both. Companies or individuals convicted of such offences may also be barred from employing foreign workers.

The ministry added that individuals who knowingly provide their personal details to facilitate fraudulent CPF contributions may be prosecuted for abetting false declarations and face similar penalties. Collecting employment-related kickbacks is punishable by fines of up to S$30,000, imprisonment of up to two years, or both.

Separately, operating an employment agency without a licence under the Employment Agencies Act may result in fines of up to S$80,000, imprisonment for up to two years, or both.

MOM urged members of the public not to accept CPF contributions from businesses they do not work for, warning that doing so could make them liable for aiding false declaration offences. 

The ministry also encouraged anyone with information about suspected employment-related violations to report them through its "Report an infringement" eService, assuring that all information would be kept confidential.