Company Director Faces 60 Charges for Phantom Worker Scam and Kickback Offences

1. 73-year-old Lim Ong Long @ Kenneth Lim (林皇良), Director of Highsan Lim Enterprise Pte Ltd (海山林), pleaded guilty in court today for falsely declaring in Work Permit applications that Central Provident Fund (CPF) contributions were paid to Singaporeans who were supposedly employed by him, when they were not. As a result of his actions, his foreign worker entitlement was fraudulently inflated. Of the 30 charges against him, 10 were proceeded on and the remaining 20 were taken into consideration.
2. In addition, Kenneth Lim also pleaded guilty to recovering employment-related costs from the foreign workers that he employed. Similarly, of the 30 charges against him, 10 were proceeded on and the remaining 20 were taken into consideration.
   
   Facts of the Case
3. Investigations into Highsan Lim Enterprise Pte Ltd revealed that Kenneth Lim had falsely declared the number of locals employed so as to inflate the company’s foreign worker entitlement. In addition, Kenneth Lim had received $6,000 each from 30 foreign workers in order to recover their employment costs.
4. The case will be heard again in court on 21 October 2011, 9.30am at Court 36 for sentencing.
   
   Another director convicted in July for kickback offence
5. On 19 July this year, Mok Siew Meng, the director of Kang Meng Marine Services Pte Ltd, was fined $37,500 for receiving kickbacks.
6. Mr Aw Kum Cheong (区锦章), Divisional Director, Foreign Manpower Management Division, MOM (人力部外劳管理署署长), said, "We will continue to identify such companies who infringe on our laws and put a stop to their fraudulent activities that distort the labour market and exploitative practices that target vulnerable workers. Our foreign worker policies are designed to assist companies to meet their genuine need for foreign workers. The use of “phantom workers” is dishonest and gives the culprits an unfair advantage over employers that play by the rules. Foreign workers should also not be made to pay kickbacks to employers. We will debar such employers from employing foreign workers. Anyone with information on such practices can provide confidential tip-offs to us via e-mail at mom_fmmd@mom.gov.sg or call us at 6438 5122.”
7. Under the Employment of Foreign Manpower Act, offenders who make false statements in work pass applications are liable to a fine not exceeding $15,000 or to imprisonment for a term not exceeding 12 months or to both. Receiving kickbacks is a breach of the Work Pass Conditions, and is punishable with a fine of up to $5,000, or a jail term of up to six months, or both. Those convicted will also be barred from employing foreign workers in future.
8. In 2010, 11 individuals were convicted for kickback offences and from January to July 2011, four individuals and one company were convicted for similar offences.
9. In 2010, 38 individuals and three companies were convicted for phantom worker scams and from January to July 2011, 25 individuals and one company were convicted for similar offences.