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April 24, 2008
Kickbacks rampant in the construction industry
I REFER to recent reports on kickbacks to hire foreign workers. Let me relate my experience. I have been in the construction industry for more than 20 years.

I notice that the practice of agents of foreign workers offering the company boss large amounts of money to engage their services is rampant. Just imagine the amounts earned which are not declared to the Inland Revenue Service. This kickback would be even bigger if other agents compete for his business. Many rules have been introduced by the Ministry of Manpower in the past to arrest this problem but the problem persists.

There is also the lucrative business of 'selling' the Man Year Entitlement to agents or sub-contractors. All payments are made in cash, so that there will be no money trail. Many local contractors will tender fiercely for jobs. The reason is clear - if they 'lose' money in the project, they could recoup this loss through the above two methods.

Lee Meng Yew

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