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Construction firm director jailed 6 weeks for collecting kickbacks from foreign workers

SINGAPORE — A 46-year-old construction firm director has been sentenced to six weeks’ jail for forcing six foreign workers to cough up S$3,650 in kickbacks or be cut from their jobs.

SINGAPORE — A 46-year-old construction firm director has been sentenced to six weeks’ jail for forcing six foreign workers to cough up S$3,650 in kickbacks or be cut from their jobs.

Yuan Shungao, a director of Yuan Chun Contractor, threatened to not renew these workers’ work passes if they did not pay him.

Two foreign workers each gave Yuan S$200 monthly between March and July last year. Four others each paid him S$150 monthly between April and July last year.

The case surfaced when some of the affected workers approached the Ministry of Manpower (MOM) for help. Yuan collected a total of S$3,650 in kickbacks from the workers, which was returned to them when MOM intervened.

Yuan was charged with 21 counts under the Employment of Foreign Manpower Act. He was convicted of five counts of collecting monies from foreign workers as a condition for their continued employment with the company. The remaining charges were taken into consideration for sentencing.

He was dealt with last Thursday (Oct 19). Yuan and his company were also banned by the MOM from employing foreign workers.

Yuan could have been jailed for up to two years and/or fined up to S$30,000 on each charge.

Commenting on the case, MOM’s director of Employment Inspectorate in the Foreign Manpower Management Division Kandhavel Periyasamy said “stern action” will be taken against such offenders.

“Workers should come forward to MOM early, so that we can investigate the employer and also provide assistance to the workers,” he added.

The ministry advised that foreign workers who are pressured into giving kickbacks can seek help by calling them or the Migrant Workers’ Centre. Members of the public who know of persons or employers who contravene the Employment of Foreign Manpower Act should also report the matter to the ministry.

CORRECTION: An earlier version of this story reported incorrectly that the ban on employing foreign workers was imposed by a judge. It was the Ministry of Manpower that imposed the ban on Yuan and his company. We apologise for the error.

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