MOM arrests four people for employment-related offences over ‘phantom workers’

On September 2, the Ministry of Manpower (MOM) in Singapore arrested four individuals for suspected employment-related offenses related to "phantom workers." The four individuals arrested included two company directors and two company staff members from the construction sector. The MOM announced this development in a press release on September 4th.

According to the report, the arrested directors are accused of making fraudulent Central Provident Fund (CPF) contributions to individuals who are not employed by their respective companies, which they refer to as "phantom workers." By engaging in this practice, the directors allegedly inflate the foreign worker quotas of their companies, enabling them to bring in more migrant workers.

The MOM further disclosed that 21 additional individuals are assisting in the investigation. It is important to note that making false declarations in work pass applications can lead to penalties of up to $20,000 in fines, a potential jail term of up to two years, or both. Those convicted may also be prohibited from employing foreign workers in the future.

Furthermore, individuals who collaborate with companies by providing details for fraudulent CPF contributions to inflate foreign worker quotas may also face prosecution and be subject to the same penalties.

The collection of employment-related kickbacks is another offense punishable by a fine of up to $30,000, a jail term of up to two years, or both. The MOM cautions the public against accepting CPF contributions from businesses they are not working for, as doing so could constitute aiding in false declaration offenses. The ministry encourages anyone with knowledge of such activities to report them via the MOM's eService under "Report an infringement."