SINGAPORE, July 14 — A syndicate that set up shell companies to bring in foreign workers, who are later abandoned to find work illegally after the firms have collected kickbacks from them, has been dismantled.
Three suspected syndicate members and 10 foreign workers were arrested during the operation carried out simultaneously by Ministry of Manpower (MOM) investigators on Wednesday at several locations, including Jalan Besar, Little India and Toa Payoh. Residential units, office premises and workers’ quarters were inspected as part of the operation, the ministry said yesterday.
Items such as identity cards, mobile phones, name lists of workers, bank transaction receipts and employment documents were also seized.
The MOM said illegal labour syndicates, such as the one crippled, work by setting up shell companies that have no actual business operations.
They would then hire “fall guys,” who have no knowledge of what the companies do, to act as directors and use these individuals’ Singpass accounts, which allow users to access Government e-services, to make bogus work pass applications.
These syndicates then obtain the quota to employ foreign workers by pretending to use “phantom local workers,” who are employed in name only.
Companies face a cap on the number of foreigners they can hire, depending on the number of Singaporeans on their payroll. The syndicates would then profit from collecting large amounts of kickbacks from the foreign workers they bring in.
The MOM said such these labour syndicates “severely undermine the integrity of our work pass framework at many levels,” such as deceiving the authorities and bringing in foreign workers without any jobs for them.
“The foreign workers are subsequently released to find their own jobs, and they end up working illegally across all industrial sectors,” it added.
The syndicates also put the well-being of the foreign workers at risk, as shell companies would not be providing them with basic care and protection such as medical care, insurance protection and accommodation.
In the past two years, the ministry has conducted six major operations against syndicates involved in the illegal importation of labour. These syndicates had set up nine companies and brought in about 700 workers. A total of 19 syndicate members were arrested.
Under the Employment of Foreign Manpower Act, a person who is convicted of illegal labour importation faces imprisonment of between six months and two years, and a fine of up to $6,000 per charge. If convicted for six or more charges, the person will also be caned.
Employers who hire foreign workers seeking illegal employment face a fine of between S$5,000 (RM15,558) and S$30,000 or up to 12 months’ imprisonment, or both. They may also be barred from employing foreign workers. — TODAY
