Ex-funeral director admits to taking bribes from competitor in return for customer referrals
The State Courts in Singapore. (File photo: CNA/Calvin Oh)
SINGAPORE: Disgruntled with the amount of pay he was receiving, a director of a funeral services company approached the owner of a competing firm to ask for kickbacks in exchange for referring customers to the rival company.
Former Direct Funeral Services director Sunny Thng Poh Leong, 47, pleaded guilty on Tuesday (Aug 17) to one count of corruptly accepting gratification from Funeral Hub Singapore partner Lim Eng Soon. A second charge will be considered in sentencing.
The court heard that Thng was employed as a director at Direct Funeral Services, which offers services such as setting up wakes, arranging for religious prayers for the deceased and collecting bodies from hospitals.
He was tasked with generating sales by meeting potential customers and selling them funeral packages.
In October 2018, co-accused Lim, 58, set up Funeral Hub intending to provide similar services, but did not begin his business as he lacked the contacts and skills.
A month later, Thng approached Lim to discuss a plan to collaborate. Thng did so as he was not satisfied with the pay he was receiving at Direct Funeral Services, the prosecutor said.
Thng also recommended a former colleague to Lim for employment at Funeral Hub.
In December 2018, the pair decided that Thng would refer customers to Funeral Hub in exchange for 5 per cent of the funeral package per referral.
Thng would also receive commission for upselling related items and services to customers, such as fruit baskets, religious chants and paper house sets.
He knew that he was in breach of his duty to Direct Funeral Services but entered into the corrupt arrangement as the 5 per cent referral commission was higher than the 1 per cent he received at his own firm.
Thng referred three customers to Funeral Hub in February 2019. One of them was his friend. Instead of referring Direct Funeral Services to her, Thng recommended Funeral Hub, saying it had a cheaper and “more value-for-money” funeral package.
Direct Funeral Services discovered the corruption in March 2019 and fired Thng. Thng then began working for Lim.
After Thng presented Lim a note setting out the commission due to him for referring the customers, Lim paid Thng S$3,520.
Thng used the money on his own expenses. The prosecutor called for at least four weeks’ jail and a penalty of S$3,520, the amount Thng gained corruptly.
Sentencing was adjourned to October.
Lim’s case is pending.
