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Man accused of PIC scam handed record jail term for obstructing justice

SINGAPORE — A 35-year-old businessman who allegedly cheated the taxman of more than S$1 million was on Wednesday (Jan 16) sentenced to 40 months’ jail for obstruction of justice — the highest sentence ever meted out for such offences.

Lim Chit Foo instigated at least three employees and a business partner to give false information to the police to cover up his fraudulent applications for grants under the Government’s Productivity and Innovation Credit (PIC) scheme.

Lim Chit Foo instigated at least three employees and a business partner to give false information to the police to cover up his fraudulent applications for grants under the Government’s Productivity and Innovation Credit (PIC) scheme.

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SINGAPORE — A 35-year-old businessman who allegedly cheated the taxman of more than S$1 million was on Wednesday (Jan 16) sentenced to 40 months’ jail for obstruction of justice — the highest sentence ever meted out for such offences.

Lim Chit Foo instigated at least three employees and a business partner — television host Tom Lee Teng — to give false information to the police to cover up his fraudulent applications for grants under the Government’s Productivity and Innovation Credit (PIC) scheme.

One of them went along with his plan.

Lim, also known as Chester, was convicted of four counts of intentionally perverting the course of justice after a 30-day trial.

He has other charges pending — 25 cheating charges, eight counts of possessing forged Accounting and Corporate Regulatory Authority records, and one charge under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.

Pushing for a harsh sentence, Deputy Public Prosecutors Christopher Ong and Stacey Fernandez said Lim is being investigated for “large-scale fraud” involving over 200 entities, multiple individuals and S$13.6 million disbursed by the Inland Revenue Authority of Singapore (Iras) under the PIC scheme.

The PIC scheme, which expired after 2018, granted cash payouts and bonuses to eligible businesses to spur productivity.

Lim sought to obstruct investigations by instigating others to give false information to the authorities, said the DPPs in their written submissions.

During the trial, it was revealed that Lim had instigated Mr Lee, who was in a fashion apparel business with him, to falsely inform the police that he had seen a customer relationship management software being used for a new company they had tried to set up but which did not take off.

The name of their failed company was Micbo Remix Jay.

Mr Lee had recorded an incriminating conversation with Lim on Oct 26, 2016, to protect himself as he had been called up to help in Iras investigations and found that his name had been used to submit PIC applications he was not aware of.

He suspected Lim, as he had provided the accused with his SingPass details to handle some government-related issues. Mr Lee was often overseas for show-business engagements.

A transcript of their conversation was tendered in court as evidence.

Mr Lee, who testified in the trial, said he understood that Lim wanted him to tell the police something that was “not true”, as he had “no idea of the existence of the software”.

Lim also attempted to deflect the focus of Iras’ investigations, which began in October 2016.

The court heard that Lim instigated his associates in his construction and labour-supply businesses to corroborate their accounts to the police about the purported involvement of a Chinese software programmer named Wu Hai Jun that was untrue.

His associates were Ms Stephanie Tan Mui Shan, Mr Maurice Tan Wei Qiang and Mr Wong Kwong Weng. Ms Tan and Mr Tan incorporated a number of companies under their names on Lim’s instruction.

Because she wanted to cover up for her “boss”, Ms Tan provided false information to the Commercial Affairs Department (CAD) on Nov 1, 2016.

She lied that Mr Wu had introduced computer software to her, but retracted the false information in her second statement to the police.

Mr Tan allowed Lim to use his SingPass details and was told during a phone call that “if anybody were to ask, just tell them… it is Wu Hai Jun”.

But Mr Tan did not provide false information to the authorities.

As for Mr Wong, Lim made him director of a company and made 94 PIC applications that Mr Wong was unaware of.

After Iras contacted him, Mr Wong confronted Lim, asking why he had “used (his) NRIC and SingPass to cheat government”. Lim told Mr Wong to “push” the blame to Mr Wu.

The prosecution noted that even during the trial, Lim continued to “cling to this falsehood of Wu Hai Jun’s involvement” in PIC-related matters.

“The accused fabricated a fanciful defence in court, which shows he never intended to surrender information on the truth of his role,” the DPPs said.

For each obstruction of justice charge, Lim could have been jailed for up to seven years and fined.

If convicted of his other charges, Lim may be sentenced to up to 15 years for his possession of forged public records, or fined up to S$500,000 under the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act.

If convicted of cheating, he may be jailed for up to 10 years and fined for each charge.

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