An 80-year-old retiree in Singapore has been receiving payments of $175 into his CPF account despite being retired and not working, according to a report by Shin Min Daily News.
How it was discovered
The retiree’s daughter, Cai Lili, took her father to a social service office in Jurong to apply for long-term assistance.
To their surprise, they stumbled upon a regular inflow of $175 into Mr. Cai’s CPF account each month, in addition to a workfare income supplement of $140.
As a retiree, Mr. Cai should not have been receiving any additional income or workfare supplements.
During an interview, Mr. Cai confessed to sharing his personal details with a close friend of 10 years. Facing financial difficulties and deteriorating health, his friend suggested he could help Mr. Cai acquire additional CPF funds to support his living expenses.
However, the catch was that Mr. Cai had to allow his friend to take a screenshot of his NRIC (National Registration Identity Card).
As months passed, Mr. Cai started receiving $175 of CPF funds regularly. However, it is important to note that receiving CPF without actively working is against the law.
The CPF system is designed to provide financial security for retirement and should not be misused or exploited.
Upon discovering this illicit activity, Cai Lili wasted no time and promptly filed a police report. She also reported her findings to the Ministry of Manpower, which has initiated an investigation into the matter.
The MOM has taken this opportunity to caution the public about the presence of “phantom employees.” These individuals pose a significant threat by violating workplace laws.
The concept of “phantom employees” involves companies hiring foreign labor beyond the limits set by the MOM.
By contributing CPF to Singaporeans or Singapore Permanent Residents (PRs) who do not actually work for the company, businesses can create the appearance of engaging local workers and bypass the restrictions on hiring foreign workers.