Man jailed for setting up shell companies to obtain work passes for foreigners in exchange for money

SINGAPORE: A Singaporean was jailed for 40 months and fined S$3,000 for illegal labour importation offences under the Employment of Foreign Manpower Act (EFMA) on Tuesday (Oct 14). 

Leong Kwai Tong, 54, was charged with conspiring with four other Singaporeans to set up shell companies to obtain work passes for foreign nationals seeking to legalise their stay in Singapore, in exchange for monetary payments.

He faced 66 charges and pleaded guilty to 22 of them. The remaining 44 charges were taken into consideration for his sentencing, said the Ministry of Manpower (MOM) in a news release on Wednesday.

He was also ordered to pay S$105,000 for the proceeds of his crime, the same amount he gained from the scheme.

The four other Singaporeans involved in the scheme are Tan Tai Ji, Terence Sim Kian Boon, Roy Neo Hock Guan and Cheng Tee Howe.

Between 2019 and 2020, 12 shell companies were set up, resulting in 60 foreigners receiving work passes.

Leong managed the administrative aspects of the scheme, which included using the SingPass credentials of director-in-names to set up shell companies and submit work pass applications to MOM. The foreigners were released after they arrived in Singapore and did not work for any of the shell companies.

"To evade detection, Leong fabricated company documents and staged meetings at the shell companies’ registered addresses to create the illusion of legitimate business operations," said MOM.

"He also assisted with collecting monthly payments of S$2,000 to S$5,000 from the foreigners to maintain their work passes while they were in Singapore," the ministry said.

Leong sourced and hired local phantom workers to inflate the foreign manpower work pass quota for the shell companies. He paid monthly levies for the foreign workers and made monthly Central Provident Fund (CPF) contributions to create the false impression that the companies were actively operating.

Neo, Sim and Cheng also allegedly received payments for being nominal directors of the shell companies.

Neo and Sim have been convicted and sentenced. Cheng’s sentencing is still pending and Tan's case remains before the courts.

Apart from this scheme, Leong collaborated with 63-year-old Singaporean Teo Tia Fok to create a shell company called TL Wood in 2021 for the same purpose. 

Leong enlisted Teo to find local phantom workers to inflate the work pass quota for TL Wood. The company falsely declared a total of six foreigners as employees.

The foreigners paid Leong between S$2,000 and S$2,500 per month to maintain their work passes, allowing them to remain in Singapore. This scheme generated a monthly profit of S$5,000, which was divided between Leong and Teo.

Of the 66 foreigners involved in the case, 15 have been convicted and sentenced, while one individual’s case is still pending in court. Sixteen foreigners left Singapore before investigations started, and the remaining 34 foreigners were issued warnings before being repatriated.

Mr Adrian Quek, divisional director at MOM's Foreign Manpower Management Division, said: “Misuse of work pass is a serious offence that undermines the integrity of our work pass framework. MOM will continue to take tough enforcement action against all offenders who deliberately circumvent our laws."

Members of the public who are aware of suspicious employment activities, or who know of anyone who contravenes the Employment of Foreign Manpower Act, can report the matter via MOM’s eService Report an infringement.