Singapore Charges Eight Over Alleged Fake CPF Declarations for Work Passes
Singapore’s Ministry of Manpower says seven employers and an administrative assistant allegedly used CPF contributions for local workers who did not work for their companies to inflate foreign worker quotas and obtain work passes. The eight were charged on Oct. 8. Three alleged phantom workers will also face administrative financial penalties, while one accused employer faces an additional charge.
SINGAPORE — Alleged central provident fund declarations for workers who did not actually work for the companies have led to charges against eight people in Singapore. The Ministry of Manpower says the employers allegedly used the declarations to obtain work passes illegally, a case that also highlights the penalties for manipulating foreign worker quotas.
The seven employers and an administrative assistant, aged between 31 and 61, were charged on Oct. 8, MOM said in a statement issued on Oct. 16. Three people described as phantom workers will face administrative financial penalties for allegedly receiving CPF contributions despite not working for the companies.
“These locals did not actually work for the companies (‘phantom workers’),” the ministry said.
MOM said the employers allegedly declared that their companies had made CPF contributions for local employees who were not working for them. The alleged declarations were made in work pass applications. Under the Employment of Foreign Manpower Act, making false declarations in such applications is an offence.
The case involves seven employers linked to companies including Harvest Ecotech, Blue Sky Builder, Anchang, Advanced Coretrades, Wang Da Construction, Urban Builders and He Jian Construction. The eighth accused is an administrative assistant at He Jian Construction.
Each faces one charge, except Hou Ruisheng, a director of Harvest Ecotech, who also faces an allegation of obstructing an employment inspector. The Ministry’s account says the alleged conduct involved directing a person to sign backdated and falsified employment documents, providing false information about that person’s employment status.
How alleged CPF fraud affects work pass quotas
The alleged scheme matters because Singapore employers face limits on the number of work permit holders they can hire. MOM said those limits are set through the dependency ratio ceiling, or DRC, which varies by sector. The three alleged phantom workers are said to have helped the companies inflate their foreign worker quotas by receiving contributions despite not working for them.
The DRC is 83.3 per cent in the construction and process sectors, according to the ministry. It is 75 per cent for marine shipyards, 60 per cent for manufacturing and 35 per cent for services.
That link makes the allegations relevant beyond the companies named in the case. If false CPF declarations are used to present non-workers as local employees, employers could seek access to a larger foreign workforce than their quota allows. MOM also warned that people who accept contributions from employers they do not work for may be abetting false declaration offences or the inflation of foreign worker quotas.
The penalties can be substantial. A person convicted of making a false declaration faces a fine of up to $20,000, imprisonment for up to two years, or both. The same maximum fine and prison term apply to a person found guilty of obstructing an employment inspector.
MOM said it has stepped up investigations into suspected cases and will take firm enforcement action against parties that break the rules. The ministry reminded employers and employment agencies that work pass fraud is a serious offence under the Act.
Three alleged phantom workers will face administrative financial penalties for fraudulently receiving CPF contributions, MOM said.
