SINGAPORE: In a stunning case of corporate deception, Donovan Goh Shen Shu, a 36-year-old director, was sentenced to 22 months in prison for his role in a scheme that defrauded the former SPRING Singapore of S$85,000 (approximately US$63,700) through its Innovation and Capability Voucher (ICV) scheme.

Goh pleaded guilty to multiple counts of cheating and falsifying accounts, with his criminal activities spanning from 2015 to 2016. His fraudulent acts involved misrepresenting the costs associated with IT solutions provided by his companies—IT Works Solutions, IT Works HR Systems, IT Works Accounting Systems, IT Works ERP Systems, and IT Works Inventory Systems—companies he incorporated in 2014 to offer various IT services.

The scam revolved around the ICV scheme, designed to financially support small- and medium-sized enterprises to improve their capabilities. Eligible businesses could claim S$5,000 vouchers to reimburse costs associated with integrating new solutions. However, Goh and his accomplice, Dexter Ng Wing Hong, exploited this system. They encouraged a network of salespersons to inflate the cost of their solutions and offered cashback incentives to lure clients, effectively sharing the fraudulent gains.

For example, one salesperson successfully recruited the owner of a moving company to submit a falsified ICV claim for a non-existent S$5,000 scheduling system purchase. Although the owner was promised a S$1,500 cashback, Goh and his accomplices pocketed the remaining S$3,500. Furthermore, false receipts were fabricated to present a facade of legitimacy for the transactions.

The fraudulent activities came to light when a diligent SPRING employee lodged a police complaint in December 2016, prompting a thorough investigation. During the proceedings, the prosecution highlighted the deliberate and calculated nature of Goh's crimes, arguing that they inflicted significant harm to SPRING Singapore.

Goh's sentence reflects the gravity of his actions, with the law permitting up to 10 years of imprisonment or fines for each count of cheating or falsifying records. As for his accomplice Ng, there has been no public update on any legal actions taken against him.

This case serves as a stark reminder of the vulnerabilities present in corporate funding schemes and the need for stringent oversight mechanisms to protect against fraud. With the merging of SPRING Singapore with International Enterprise Singapore to create Enterprise Singapore in 2018, authorities are likely to intensify their scrutiny to prevent further abuse of such programs.

Could this case set a precedent for tougher measures against corporate fraud in Singapore? Only time will tell as authorities continue to address this growing concern.