Unpaid workers case: Director behind firms files for bankruptcy

Indian national and Singapore permanent resident Ramu Palani Velu, the director behind several local companies, has filed for bankruptcy amid an investigation into unpaid salaries for over 400 migrant workers. These workers, employed by KPA Engineering, SK Industries, and VVR Plant Engineering, had filed claims for wages, with some unpaid for more than two months.

The issue garnered attention after roughly 100 workers turned up at the Ministry of Manpower (MOM) office in Bendemeer on June 22, with more subsequently coming forward. The National Trades Union Congress and the Migrant Workers’ Centre assisted the affected workers. MOM is probing the three companies for violations under the Employment Act and the Employment of Foreign Manpower Act, with fines ranging from $3,000 to $15,000 per charge and potential jail time.

Unpaid workers have since been rehoused and secured new jobs. Ramu, who was out of the country when the incident exploded, returned on June 26 and is cooperating with the investigation. The MOM Minister, Tan See Leng, reported that five workers from KPA Engineering had lodged disputes with the Tripartite Alliance for Dispute Management in 2025, which were resolved within a week.

Four other workers filed claims in May and before June 22, and the cases are ongoing. MOM had been alerted to salary delays after speaking to workers affected by a dormitory eviction notice on June 8. Curtailed work pass privileges for KPA Engineering and VVR Plant Engineering led to the inability to hire new foreign workers. SK Industries faced work pass restrictions but had them reinstated once they paid outstanding levies.

MOM intends to refine its processes to ensure timely payments to all workers, drawing lessons from the current case.