Director of firms in case involving 400 unpaid workers declared bankrupt
A Bankruptcy Order was made against Ramu Palani Velu, director of seven local firms, on Aug 13.
The director of multiple companies that owe wages to over 400 migrant workers has been declared bankrupt. A bankruptcy order was issued against Ramu Palani Velu, a Singapore permanent resident of Indian origin, on August 13. Velu is the director of seven firms that provide air-conditioning, plumbing, and building services, including KPA Engineering, SK Industries, and VVR Plant Engineering.
These companies had a total of 407 workers file claims for unpaid wages, some of whom had not received payment for more than two months. The first signs of financial difficulties emerged in May and June 2026 when four more KPA Engineering workers sought compensation for salaries owed. By June 22, more than 100 workers had gathered at the Ministry of Manpower (MOM) office in Bendemeer for assistance.
MOM had already been alerted to the unpaid wages issue after speaking with KPA Engineering employees regarding a dormitory eviction notice on June 8. Before the workers' mass appeal, authorities were already attempting to contact the company's directors. Velu had been abroad at the time and returned on June 26 to assist MOM with the investigation.
According to the Ministry of Law’s Insolvency Office, Velu filed for bankruptcy on July 9, with AAG Corporate Advisory serving as the trustee. Employers who do not pay salaries may face fines between $3,000 and $15,000 per charge and up to six months in jail.
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