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Construction firm director charged for collecting kickbacks

  1. On 17 August 2017, the Ministry of Manpower (MOM) charged Yuan Shungao1 (Yuan), the Director of Yuan Chun Contractor Pte Ltd (“company”), in the State Courts with 21 counts of collecting kickbacks amounting to $3,650 from six of his foreign workers, as a condition for their continued employment with the company.
  2. If convicted, Yuan faces a fine of up to $30,000 or imprisonment for up to two years, or both, per offence, under the Employment of Foreign Manpower Act (EFMA). MOM will also impose a ban on both the company and Yuan from employing foreign workers.
  3. The collection of kickbacks as a condition or financial guarantee for employment, is prohibited under the EFMA. The case will be next heard in Court on 8 September 2017.

    About the case
  4. Investigations revealed that Yuan, in his capacity as a Director of the company, received a monthly sum of $200 each from two foreign workers between March and July 2016, and deducted a monthly sum of $150 each from another four workers between April and July 2016 as financial guarantee for their employment. The workers’ work passes would not be renewed if they did not pay up. In total, Yuan collected kickbacks amounting to $3,650. The monies collected from the foreign workers were returned to them upon MOM’s intervention.

    MOM takes a serious view of kickback offence
  5. MOM takes a tough stance against employers who collect kickbacks. In December 2016, a 53-year-old Singaporean, Mui Chee Mun, was sentenced to 24 weeks’ imprisonment for collecting $46,000 in kickbacks from 37 foreign workers2.

    Advisory to workers
  6. Foreign workers who are pressured into giving kickbacks should seek help immediately by calling MOM at 6438 5122 or the Migrant Workers’ Centre at 6536 2692.
  7. Members of the public who know of persons or employers who contravene the EFMA should report the matter to MOM at Tel: (65) 6438 5122 or email to MOM at All information will be kept strictly confidential.


  1. Accused is a 46-year-old Singapore PR man.
  2. See MOM’s media release dated 7 December 2016