On 1 February, Law and Home Affairs Minister K Shanmugam has defended Nee Soon Town Council’s response to the six-year-long kickback scandal involving 57 migrant workers, stating that the council’s decision to report the case to the Ministry of Manpower (MOM) demonstrated the effectiveness of whistleblower mechanisms.
While acknowledging concerns raised by the public and opposition, he cautioned against politicising the issue.
However, netizens were largely critical of Shanmugam’s defense, questioning systemic oversight failures.
They called for greater transparency, regular audits, and worker interviews to prevent future exploitation. Many also suggested that if the scandal had occurred in an opposition-run ward, it would have been handled far more harshly.
Shanmugam defends response in kickback scandal at Nee Soon TC
Last Saturday, Shanmugam responded to mounting political criticism from opposition leaders Pritam Singh and Red Dot United (RDU) regarding the undetected illegal kickback scheme.
The scandal involved Derrick Ho Chiak Hock, a former operations manager at Lian Cheng Contracting, who collected over S$396,000 in kickbacks from 57 migrant workers between 2014 and 2020.
The abuse was uncovered only in 2020 after an anonymous complaint led to a report to MOM, and Ho was convicted in November 2024, receiving a 24-week sentence.
The Straits Times revisited the case in January 2025, reigniting public outrage, with opposition leaders questioning the lack of oversight that allowed the scheme to go undetected for so long.
Shanmugam defended the Town Council (TC)’s response, explaining that once the complaint was brought to the attention of the MPs, they unanimously agreed to escalate the matter to MOM.
“We told the town council. This is serious; we want it investigated. Send it to MOM and we want to make sure that proper action is taken.”
“If people understand the full context, they will see that this case demonstrates the system working as intended,” Shanmugam said.
“It was the Town Council’s report that allowed the authorities to act quickly, ensuring that the wrongdoer was punished and the affected workers received their full salaries.”
Shanmugam Attributes Kickback Scandal to Individual Misconduct, Rejects Systemic Negligence
Shanmugam also acknowledged the opposition’s concerns but warned against politicising the issue.
“Everyone, including political parties, has the right to ask questions. But making accusations before understanding the full facts is regrettable,” he said.
He reiterated that the kickback scheme was the result of an individual’s misconduct rather than systemic negligence by the TC.
According to Shanmugam, Lian Cheng Contracting Pte Ltd has since been acquired by new management, which has implemented stricter operating procedures.
He also argued against penalising the company beyond the prosecution of Hu, citing the potential impact on innocent employees.
“We need to balance punishment with fairness. Terminating contracts could hurt the company’s current employees, including many Singaporeans who work there. Accountability must be targeted without causing unnecessary harm,” Shanmugam said.
Netizen Criticises Shanmugam’s Justification of Kickback Scandal
In the comment sections of mainstream media platforms like CNA, 8World News, and The Straits Times Facebook page, netizens pointed out that the abuse had persisted undetected for six years, raising concerns about potential systemic oversight failures and the absence of audits or worker interviews to prevent such exploitation.
A netizen criticised Shanmugam for attempting to reframe the six-year-long kickback scandal as proof of an effective whistleblowing system, calling it misleading.
He argued that the prolonged undetected abuse warranted tough questions about oversight failures and accused Shanmugam of lacking contrition while frequently portraying himself as morally righteous.
“The law minister often claims moral righteousness in his statements and harsh treatment of his opponents. The honourable gentleman should display more contrition and apply the same virtuous rigour he proudly wears on his sleeve in ensuring that this never happens again.”
Netizens Call for Transparency in Handling Town Council Lapses
Some netizens argued that the issue was not about the opposition politicising the case but about ensuring transparency and honesty when questioned.
They suggested that if a similar lapse had occurred in an opposition-run GRC, the ruling party would have aggressively criticised and politicised the matter.
Netizens Question Leadership Accountability Over Six Years of Undetected Kickback Scheme
A netizen expressed skepticism over Shanmugam’s claim that the MPs were informed of the issue through the whistleblowing system and “immediately directed” the case for investigation.
The comment read, “The MPs requested the TC to report it”… This statement implies that as soon as they became aware of the issue, they took swift action! Why not acknowledge that they promptly shifted the responsibility onto others, while portraying themselves as “innocent and blameless”? Can it be said that the leaders of the TC (MPs and managers) were negligent for failing to detect the kickback scheme over six years? Do MPs and ministers bear no accountability? They are quick to claim credit for successes, but when things go wrong, they turn into masters of deflection, much like practicing Tai Chi!”
Shanmugam’s Defence Mocked for ‘Discovering’ Scandals “Just in Time to Take Credit”
Some netizens raised serious concerns, scrutinising the management of PAP MPs in Nee Soon TC.
They expressed disbelief that exploitation could go undetected for six years and questioned whether a deeper systemic issue was at play.
Additional concerns were raised regarding the lack of audits and regular worker interviews to identify such abuses earlier, with many questioning why it took so long for the issue to be uncovered.
Notably, Marcus Neo, a boxing coach, mocked Shanmugam’s defence, sarcastically commenting that it’s remarkable how politicians always seem to “discover” scandals just in time to take credit for fixing them, wondering if only their clairvoyance worked in real-time.
Calls for Independent Audit and Full Investigation into Town Council’s Oversight Failures
Some suggested that an independent audit is the only appropriate course of action, with no exceptions.
A comment criticised the claim of credit for reporting the wrongdoings, stating that if the TC failed to address the issue, a full investigation into its operations and staff is warranted.
Concerns also have been raised over Lian Cheng Contracting’s continued involvement in public contracts due to its past violations.
In 2009, the company and its director were fined for multiple Employment Act breaches, including failure to provide annual leave and unauthorised salary deductions.
Notably, there are also questions regarding the inconsistent information in Shanmugam’s defense.
The ST reported that it was an anonymous complaint from a member of the public about migrant worker cleaners in their estate giving money to their manager, which prompted the MOM investigation in 2020.
“Who exactly notified the Ministry of Manpower? Was it the MPs or the public?” a comment on 8World News read.
