subpage banner

Parliamentary Replies

Jobs Credit Scheme (Phantom Workers)

28 May 2009

Date: 28 May 2009

Question No. 8 (by Mr Seah Kian Peng, MP for Marine Parade GRC):

To ask the Minister for Finance whether there is a system in place to ensure that Jobs Credit is not given to companies who are already hiring phantom workers.

Reply by Finance Minister Tharman Shanmugaratnam:

A system has been put in place to ensure that Jobs Credit is not given to companies hiring phantom workers. Jobs Credit payments are withheld from employers who are under investigations or are being prosecuted by the Ministry of Manpower (MOM) for alleged hiring of phantom workers. Jobs Credit will only be paid to these employers if they are cleared of such allegations.

In addition, prior to each payout of the Jobs Credit, employers on the CPF Board’s database will be screened for unusual contribution adjustments or significant increases in CPF contributions. For such employers, the Government will conduct verifications and, if necessary, will withhold payment to these employers until verifications are completed. We will also conduct selective audit checks. Should any abuse be uncovered, employers could be disqualified from subsequent Jobs Credit payments and face legal prosecution.