SATS says its routine internal audit flagged irregularities among contractors, with findings shared with MOM
Singapore's Ministry of Manpower (MOM) is investigating around 45 companies involved in airport operations at Changi Airport over suspected work pass offences, including false declarations and the illegal deployment of foreign workers.
So far, the investigations have identified around 270 workers whose deployment may not have complied with work pass regulations, MOM said in a statement on 2 November. The workers were employed by contractors and sub-contractors of SATS.
According to the ministry, a recent inspection at the airport found Employment Pass (EP) holders deployed to perform baggage handling services.
"Preliminary investigations suggest that the salaries and occupations declared to MOM for these EP holders were false," MOM said.
Other work pass holders were also found doing baggage handling work that differed from their declared occupations.
The suspected offences and infringements fall under the Employment of Foreign Manpower Act 1990 (EFMA).
MOM has directed SATS to strengthen its oversight of the companies it has contracted. This includes verifying that foreign workers are deployed in accordance with their work passes and rectifying any compliance deficiencies.
The ministry has also issued an advisory to other companies involved in SATS' operations, reminding them of their obligations under the EFMA and applicable work pass requirements.
"MOM takes a serious view of work pass offences," the ministry said. "Investigations are ongoing and MOM will take enforcement action if breaches of the EFMA are established."
Internal audit flagged irregularities
In a media statement and a filing to the Singapore Exchange (SGX), SATS said it had identified work pass-related irregularities involving workers employed by some of its contractors during a routine internal audit.
"SATS takes compliance seriously and we require all our contractor companies, including those performing baggage handling services, to comply with applicable laws, regulations and guidelines," the company said.
"Immediate action was taken against contractor companies who did not meet the standards and obligations required under our contracts and were assessed to be non-compliant with applicable laws," SATS added.
According to SATS, it then broadened its review to other contractors and shared the list of contractor companies and affected workers with MOM. The company said it has since been working closely with the ministry and relevant stakeholders in support of the investigations.
The company said it has completed a comprehensive assessment and audit of its contractor workforce in Changi Airport operations. It will take "the necessary actions against any contractor companies found to have breached applicable laws and our contractual obligations."
SATS said it has also enhanced its internal verification controls to ensure contractor workers are deployed according to the terms of their work passes. It added that it is rectifying compliance deficiencies in line with MOM's guidelines.
The company also said the SATS Workers' Union (SATSWU) had raised the importance of robust checks on contractor workers deployed alongside SATS employees. SATS said it had assured the union that the matter was being looked into.
In its SGX filing, SATS said it will update shareholders as and when there are material developments.
Penalties under the EFMA
Under the EFMA, making a false declaration in a work pass application carries a fine of up to S$20,000, imprisonment of up to two years, or both.
Employers who illegally deploy a foreign employee may face a financial penalty of up to S$10,000 and may be barred from hiring work pass holders.
MOM said it will continue to conduct checks to ensure compliance with work pass requirements. It encouraged members of the public to report suspected infringements through its Report an Infringement eService.
