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Construction Companies Under Fire for Fraudulent MOM Declarations

 



Singapore’s Ministry of Manpower (MOM) announced the arrest of 11 individuals on January 24 for allegedly providing false employment information to inflate the foreign worker quotas for eight construction companies. The suspects were apprehended during raids conducted at 37 locations by MOM officers earlier this week.

Among those arrested are five Singaporean directors of the implicated construction firms, aged between 42 and 57. Additionally, four other Singaporeans and two permanent residents are accused of abetting these directors in submitting false declarations of employment. The ministry revealed that the suspects allegedly made fraudulent Central Provident Fund (CPF) contributions on behalf of Singaporeans and permanent residents who were not genuinely employed by the companies.

This scheme was reportedly executed to manipulate foreign worker quotas, which are calculated based on the number of local employees registered with the company. The CPF contributions, a key factor in determining local employment figures, were falsified to show inflated numbers, allowing the companies to hire more foreign workers than legally permitted. MOM noted that another 16 individuals are currently being investigated for their potential involvement in similar offenses.

Singapore’s construction sector has stringent regulations governing the employment of foreign workers. According to MOM, foreign workers are allowed to make up no more than 83.3% of a company’s workforce in this sector. These regulations are enforced to ensure fair employment practices and to prioritize opportunities for local workers.

Under the Employment of Foreign Manpower Act, both employers and work pass applicants are required to provide truthful and accurate information in their declarations. Violations can lead to severe penalties, including up to two years of imprisonment, fines of up to S$20,000 (approximately US$14,800), or both. Employers found guilty of such offenses may also face the suspension of work pass privileges, while foreign workers involved may be barred from working in Singapore.

MOM warned that individuals who knowingly provide their personal details to facilitate fraudulent CPF contributions in exchange for monetary rewards may also face prosecution. The ministry emphasized the importance of upholding integrity in employment practices, stating that such fraudulent activities undermine Singapore’s labor market regulations and disrupt the balance between local and foreign worker employment.

This case serves as a reminder of the robust enforcement measures in place to deter and address illegal employment practices. MOM continues to monitor and investigate activities that compromise fair employment standards, ensuring that offenders are brought to justice.

The ministry urged members of the public to report any suspected violations of employment laws. Such vigilance is critical in maintaining a fair and equitable labor environment that supports both local and foreign workers.

As investigations into the 11 suspects and other implicated individuals progress, MOM reaffirmed its commitment to cracking down on fraudulent employment schemes. The incident underscores the need for companies to adhere strictly to labor laws and for individuals to avoid engaging in or facilitating such illicit activities.

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