MOM arrests four people for employment-related offences over ‘phantom workers’
Singapore's Ministry of Manpower has arrested four individuals for allegedly creating 'phantom workers' to fraudulently inflate foreign worker quotas. The scheme involved making false CPF contributions for people not actually employed by the companies.
Why it matters
This case highlights enforcement efforts against labor exploitation and immigration fraud in the construction sector.
MOM said that another 21 individuals are assisting in the investigation.
Listen SINGAPORE – Four people were arrested on Sept 2 by the Ministry of Manpower (MOM) for suspected employment-related offences over “phantom workers”. The four, two company directors and two company staff from the construction sector, are being investigated for suspected offences such as making false declarations and collecting employment-related kickbacks, said the MOM in a press release on Sept 4.
The directors are alleged to have made fraudulent Central Provident Fund (CPF) contributions to locals who are not under their employment, or “phantom workers”.
By doing so, they can inflate the foreign worker quotas of their companies and thereafter bring in more migrant workers, said the MOM.
The ministry also said that another 21 individuals are assisting in the investigation.
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