SINGAPORE:

In a significant ruling, a 60-year-old man, Alvin Yap, has been sentenced to eight weeks in jail for his role in a scheme designed to defraud the Inland Revenue Authority of Singapore (IRAS) out of more than S$30,000 (approximately US$22,400) under the Jobs Support Scheme (JSS) set up during the COVID-19 pandemic.

Yap admitted guilt to two charges of cheating, while an additional eight charges were considered during the sentencing phase. The JSS was launched by the Singapore government to provide wage subsidies for employers to help them retain their workforce during the unprecedented economic disruptions caused by the pandemic. Under this scheme, the government subsidized between 25% and 75% of the gross monthly wages of each local employee—an initiative aimed at maintaining employment levels across various sectors.

To curb fraudulent activities, IRAS implemented an anti-abuse framework that required employers to conduct self-reviews and submit declarations accompanied by supporting documentation.

Court reports revealed that at the time of the offense, Yap was an executive director at an aquaculture company. He collaborated with Sean Tan Zheng Wee, another corporate executive and director of a biotechnology firm, Insect Feed Technologies (IFT). Tan is currently facing 13 charges related to this scheme, which is still pending in court.

In June 2020, Yap conspired with Tan to deceive IRAS by falsely claiming that 10 employees had worked for IFT in May 2020, which was the criterion for obtaining the JSS benefits. They fabricated wage records consistent with the Central Provident Fund (CPF) contributions. Tan, who devised the scheme, directed Yap to disburse cash to cover these contributions, subsequently demanding that the employees return the wages directly to his personal account after payments were made.

Investigations led by IRAS revealed that the employees received no actual wages, except for their CPF contributions, and the dishonest maneuver was flagged during follow-up employee interviews. It was unearthed that several employees returned funds to Tan’s account or had CPF contributions made before even commencing employment.

The authorities ultimately denied a JSS payout to IFT for October 2020 after discovering this scam. Yap's role in the operation, although pivotal, was characterized as lesser than Tan's, positioning him as mainly the financier for the bogus CPF contributions.

In court, Deputy Public Prosecutor Jordon Li argued for a minimum two-month prison term, emphasizing the need for deterrence to protect national funds. Yap's defense, however, pushed for leniency citing his "passive participation" in the crime and expressed remorse.

In delivering the sentence, District Judge John Ng underscored the importance of maintaining the integrity of the support scheme designed to assist citizens: "We cannot tolerate situations where individuals exploit these measures," he stated, reaffirming the government's objective to help those in genuine need during trying times.

Yap faced a maximum penalty of up to 10 years in prison along with fines for his fraudulent actions. As the legal proceedings with Tan continue, this case serves as a stark reminder of the consequences associated with exploiting financial aid programs.