SINGAPORE – Singapore's Ministry of Manpower (MOM) has arrested 14 people over suspected employment-related offences linked to an alleged scheme to fraudulently obtain foreign worker quotas.

The arrests were made during an enforcement operation conducted across multiple locations on July 21. Those detained comprised four company directors, nine foreign workers and a key appointment holder from an employment agency.

MOM said it believes the case may involve a criminal syndicate and is investigating suspected offences under the Employment of Foreign Manpower Act and the Employment Agencies Act.

"The directors are suspected to have brought in migrant workers through inflated foreign worker quotas," said MOM in a statement on July 23, as reported by CNA.

According to the ministry, the company directors are suspected of submitting false declarations to secure inflated foreign worker quotas by making fraudulent Central Provident Fund (CPF) contributions for 139 Singaporeans who were not actually employed by their companies.

The individuals, described as "phantom workers", were allegedly listed as employees to artificially increase the firms' entitlement to hire migrant workers.

The suspects are also being investigated for allegedly collecting employment-related kickbacks and carrying out unlicensed employment agency activities.

Under Singapore's Employment of Foreign Manpower Act, making false declarations in work pass applications carries a maximum penalty of a S$20,000 fine, up to two years' imprisonment, or both. Companies and individuals convicted of such offences may also be barred from employing foreign workers.

Those found to have colluded with employers by allowing their personal details to be used for fraudulent CPF contributions may also face prosecution for abetting false declarations, with the same maximum penalties.

Meanwhile, collecting employment-related kickbacks is punishable by a fine of up to S$30,000, imprisonment of up to two years, or both.

Under the Employment Agencies Act, operating an employment agency without a licence carries a maximum penalty of a S$80,000 fine, up to two years' jail, or both.

MOM urged members of the public not to accept CPF contributions from companies they do not work for, warning that doing so could amount to assisting employers in making false declarations.

The ministry also encouraged anyone with information on suspicious employment practices or potential violations of employment laws to report the matter to the authorities.