The Ministry of Manpower arrested four people from the construction sector on 2 September 2026 for suspected employment-related offences, and said on Thursday (4 September) that another 21 people are assisting in investigations into alleged “phantom worker” arrangements.
What MOM says happened
The four arrested comprise two company directors and two company staff. MOM is investigating suspected offences under the Employment of Foreign Manpower Act, including false declarations and collection of employment-related kickbacks.
The directors are suspected of making fraudulent Central Provident Fund contributions to locals who were not under their employment, so that foreign worker quotas looked larger than they were. MOM says migrant workers were then brought in against those inflated quotas. The other 21 subjects are assisting for suspected involvement in such arrangements.
Penalties and how to report
Under the EFMA, making false declarations in work pass applications carries a fine of up to S$20,000, imprisonment of up to two years, or both. Convicted entities or individuals can also be barred from employing foreign workers. Abetment of false declaration carries the same fine and jail ceilings. Collection of employment-related kickbacks carries a fine of up to S$30,000, imprisonment of up to two years, or both.
MOM reminded the public not to accept CPF contributions from businesses they do not work for, because that can amount to aiding a false declaration. Tip-offs can go through MOM’s “Report an infringement” eService, with information kept confidential.
MOM said on 4 September 2026 that four construction-sector subjects were arrested on 2 September and 21 others are assisting in the phantom-worker probe.
