'Phantom' workers: 9 charged

[metalslug]

http://www.straitstimes.com/Breaking+News/Singapore/Story/STIStory_343718.html

'Phantom' workers: 9 charged
By Elena Chong & Carolyn Quek

NINE people from 21 businesses were charged in court on Friday with falsely declaring the number of local workers they employed to inflate their foreign worker entitlement.

The number of charges against the nine is 286. Among the offenders hauled to court were two men in the SME Group of companies which provides cleaning services.

Lim Chye Cheng, who will be charged later, and Steven Lee Kong Weng, 60, a director of the SME Group, face 101 charges each in a scam involving the 14 companies in the group.

A Ministry of Manpower statement on Friday said the arrests and prosecutions were the culmination of painstaking intelligence probes and investigation over the past few months. The SME Group has been placed under surveillance since late last year on suspicion of employing 'phantom' workers.

Earlier this month, a group of foreign nationals working for some companies under the group lodged complaints over salary arrears. Some of the arrears have since been settled with MOM intervention. Action is underway to help the workers get their remaining salary arrears and to facilitate their return home.

Eight others involved in construction, marine, logistics, restaurant and manufacturing businesses were also charged with similar offences.

They are: Toh Eng Hock, 69, (28 charges); Teong Tye Soon, 39, (39); Tan Cheng Cheng, 34, (25); Chew Beng Huat, 54, (15); Jamali Bakran, 49, (20); Lim Chek Chee, 47, (13); Woon Siew Chor @ Mun Siew Chor, 69, (35); and Sulaiman Abdullah @ Tommy Goh Beng Hock, 66, (10).

All the cases were adjourned to March. Some had their MOM bails extended while others were granted bail of $20,000 to $50,000. MOM said it has put in place stringent processes and checks to flag out unusual company profiles. On-site checks are being done to ascertain if the employees are indeed working for the company.

It warns employers who have hired 'phantom' workers to stop immediately or face the full consequences of the law.

Under the Employment of Foreign Manpower Act, inflating the foreign worker entitlement by falsely declaring the number of local workers is punishable with a fine of up to $15,000 or 12 months' jail or both.

 

[DerekLeung]

We do not need so many redundant companies around !

 

[metalslug]

http://www.asiaone.com/Business/News/Office/Story/A1Story20090227-124978.html

Employers of 'phantom' workers face 369 charges

They falsely declared the number of local workers employed in their firm to inflate its foreign worker entitlement.

And for creating 'phantom' local workers, Lim Chye Cheng and Lee Kong Weng of the SME Group of Companies (SME group) now each face 101 charges under the Employment of Foreign Manpower Act.

The SME group provides cleaning services to places like hotels and factories.

In a media statement released by the Ministry of Manpower, the SME Group had been placed under surveillance since late 2008 due to suspicions that they were employing 'phantom' workers.

Earlier this month, as investigations were still underway, a group of disgruntled foreign nationals working under the group had lodged salary arrears complaints against the company.

Some of the arrears have since been settled with MOM's intervention.


Action is underway to help the workers secure their remaining salary arrears, and to facilitate their return to their home country.

"The SME Group case is unusual due to the number of foreign workers involved. The other cases brought to the court's attention today...are more typical," said Mr Aw Kum Cheong, Divisional Director of MOM's Foreign Manpower Management Division.

Apart from the SME group employers, eight other people were also charged in court today for their involvement in 'phantom' worker scams, bring the total number of charges made to 369.

They include the directors of two firms - Toh Eng Hock @ Toh Ah Hock of Toh Eng Hock Construction and Teong Tye Soon of marine company, Voyager Control Services.

Toh and Teong face 28 and 39 charges respectively.

MOM warns that employers who have resorted to 'phantom' workers should immediately stop doing so.

Under the law, sectors such as service and manufacturing must employ a number of Singaporeans or permanent residents before they can hire foreign workers, said an earlier report in The Straits Times.

Some employers skirt around this law by employing local workers, usually retirees, in name only and contributing to their CPF. Having such workers on their payroll allows them to hire more foreign workers, continued the report.

Inflating the foreign worker entitlement by falsely declaring the number of local workers is punishable with a fine of up to $15,000, or 12 months imprisonment, or both.The 'phantom' worker may also face prosecution for abetting the offence.


In November last year, MOM had prosecuted the owner of Spize - The Makan Place, Sambnani Anil Pritamdas, for making false declarations in 15 Work Pass application.