Company Director Jailed 27 Months for Bringing in Foreign Workers Without the Intention to Employ

1. A 46-year-old Singaporean, Lim Kien Peng (“Lim”), was sentenced in the State Courts on 12 April 2016 for obtaining work passes for 30 foreign employees for a business that was not in operation, and releasing the workers to seek their own employment. Lim was charged with 30 counts of the offence. He pleaded guilty in the Court, and was sentenced to 27 months’ jail for five charges, with the remaining 25 taken into consideration.
   
   Obtaining work passes with no intention of providing work
2. Investigations revealed that Lim had obtained work passes for 30 foreign employees for MNF Investments & Holdings Pte Ltd between May 2013 and November 2013. The company was a shell company with no projects, contracts, profits or losses.
3. As the registered director of the company, Lim had full knowledge that the business was not in operation, and the sole purpose of the company was to bring in foreign employees with no intention of providing them any work. Lim intentionally deceived MOM by making work pass applications for the foreign employees. Investigations also revealed that two of the foreign employees were made to pay $8,000 each to obtain work passes with the company.
4. Lim admitted that he stood to gain at least $30,000 by obtaining work passes for the foreign employees. He was fully aware that all the workers would be released to find their own employment or work for other employers.
5. Lim has been permanently barred from employing foreign workers.
   
   Strong deterrence is necessary
6. Commenting on the case, Mr Kevin Teoh, Divisional Director of MOM’s Foreign Manpower Management Division, said, “This is one of the more severe cases involving the setting up of a shell company. The accused had not only blatantly disregarded the law, but also left 30 foreign workers in a vulnerable state. A strong deterrence is necessary. We will not hesitate to take stern actions against serious offences like this.”
7. Under the Employment of Foreign Manpower Act (EFMA) it is an offence to obtain work passes for foreign employees for a business that does not exist and with no intention of providing any work for the employees. Offenders will be sentenced to imprisonment for 6 months or more, and face a fine of up to $6,000 for each offence. If convicted for 6 or more charges, caning will also be imposed.
8. Members of the public who know of persons or employers who contravene the EFMA should report the matter to MOM at 6438 5122 or e-mail mom_fmmd@mom.gov.sg. All information will be kept strictly confidential.