Phantom Workers Scam 2

The SME Group, a cleaning services firm, has had 3 of its staff charged with usinga phantom workers scam, the workings of such a scam being discussed in a previous post.

Stephen Lee Kong Weng, a director of the Group, was sentenced to a year's jail for his part in the scam. Tay Hian Chye, another director, is due to be sentenced shortly (before the end of August 2009) for his role in the scam (after pleading guilty to 15 charges and another 86 to be taken into account). Lim Chye Cheng, the actual mastermind, after being charged in court, has now disappeared.

The SME Group used a tactic of "recycling" its local workers. Once government approval was obtained to employ foreign workers for one company in the group, the same phantom local workers were then allocated to another company in the group for application for additional employment of foreign workers.