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3 firms fined, 4 ex-directors jailed in largest case involving false salary declarations to MOM
Parvis Ahamed Mohamed Ghouse (left) and Mohamed Jinna Mohamed Abdul Jaleel were directors at all three firms at the time of the offences.
SINGAPORE - Three firms were fined and four of its former directors were jailed on Thursday in the largest and most extensive case involving false declarations investigated by the Ministry of Manpower (MOM) to date.
Due to the ruse that ran from 2009 to 2019, the three companies under property and logistics solutions company MES Group – Mini Environment Service, Labourtel Management Corporation and MES Logistics – could hire more foreign employees than they would otherwise have qualified for, said MOM in a statement.
As a result, the companies made significant profits over the years. For instance, Labourtel, the operator of four foreign worker dormitories, made $6,225,589 while MES Logistics, which provided transport services for materials and workers, made $4,099,397.
The ruse involved the submission of 111 false salary declarations linked to work permit and S Pass applications or renewals to MOM.
The affected workers then had to return the difference between their inflated declared monthly salaries and their actual earnings in cash.
The prosecution said the returned monies amounted to approximately $1,225,140 for Mini Environment Service, $508,200 for Labourtel and $78,000 for MES Logistics.
On Thursday, Mini Environment Service, which was in the business of providing drainage construction and cleaning services, was fined $396,500.
Labourtel was fined $120,000 while MES Logistics was ordered to pay a fine of $59,000.
Mohamed Jinna Mohamed Abdul Jaleel, 40, and Parvis Ahamed Mohamed Ghouse, 46, were directors at all three companies at the time of the offences.
Jinna was sentenced to 42 weeks’ jail and ordered to pay fine of $48,000, while Parvis was ordered to spend 35 weeks behind bars and pay a fine of $42,500.
Haja Nawaz, 54, who was a director at Labourtel, was given four months and two weeks’ jail.
The fourth offender, Chew Chain Loon, 59, used to be a director at MES Logistics and Mini Environment Service. He was sentenced to four months’ jail.
The three firms and four Singaporean men were convicted on Thursday over multiple offences under the Employment of Foreign Manpower Act and the Employment Act.
Deputy Public Prosecutors Nicholas Khoo, Sarah Thaker and Yeow Xuan stated in court documents that Jinna’s father founded the three companies between 1984 and 1996.
Jinna started working at the three firms in 2004, while Parvis, who is Jinna’s brother-in-law, joined the family business around 2000.
Haja joined the MES Group in 1996 and Chew joined MES Logistics two years later. The pair later reported to Parvis and Jinna.
As part of the ruse, Haja and Chew submitted work pass applications and renewals for the three companies.
Under Parvis and Jinna’s directions, Haja and Chew inflated the monthly salaries of multiple foreign employees. The employees’ declared salaries were then credited into their bank accounts.
After that, the employees were told to return the difference between their declared monthly salaries and their actual salaries in cash to Haja or Chew.
The prosecutors said Haja and Chew kept the cash in a safe at their workplace. On occasion, the monies would be distributed to workers returning home on an ad hoc basis. However, there were no rules as to how much money would be distributed, and to which worker.
The DPPs added: “While some of the accused persons had tried to claim during investigations that the returned monies were a ‘savings plan’ for the workers... workers... have stated that there was no such (plan).”
The offences came to light when the authorities conducted an investigation into the companies.
The DPPs said MOM spent more than 3,000 hours investigating the case.
In its statement, the ministry said all seven offenders have been barred from employing migrant workers. MOM added that Labourtel’s eligibility to operate dormitories has also been affected.
The ministry is now in contact with the relevant parties to transition the dormitories to new operators, “within reasonable time and with minimal disruption” for the residents and their employers.
https://www.straitstimes.com/singap...se-involving-false-salary-declarations-to-mom
