'It turned out to be illegal!' Retiree, 80, unknowingly becomes 'phantom worker' with $175 credited into CPF monthly

He was told "many people were doing it" and allowed a friend to utilise his personal details. In return, he received $175 credited into his Central Provident Fund (CPF) account every month.

It was only several months later that the 80-year-old retiree found out that he had inadvertently become a 'phantom worker', a term referring to locals who are not in fact working for companies who make these contributions. 

"It turned out to be illegal!" he exclaimed.

Cai, a former bus driver, told Shin Min Daily News: "All these years, I've depended on my CPF monies and temporary relief from the government to survive."

He'd suffered from health issues including adrenal cancer and heart failure, undergoing an operation in 2007 before retiring in 2009.

"Then one day, an old friend I've known for over 10 years told me that I could loan my details for a sum of money every month to pay my utility bills," he added, sharing that the friend had stated "many people were doing it".

"So I let him take photos of my identity card and from last November, I received $175 into my CPF account every month."

However, Cai's details were in fact used in a ruse which allow companies to bump up their foreign employee quota through employing these local "phantom workers", reported Shin Min Daily News.

Cai claimed that he didn't know what he did is illegal.

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His daughter Lili (transliteration), 49, told Shin Min Daily News that the contributions to his CPF account was only discovered when she brought her father to the Social Service Office on June 20 to apply for financial assistance.

Cai had also received a subsidy of $140 from the Workfare Income Supplement.

"Actually his funds were depleted as early as two years ago. It was only during the application for financial relief that I realised he'd loaned his personal details to others," said Lili, who has since informed the relevant authorities as well as the police.

According to Shin Min Daily News, police have confirmed that a report has been lodged. In its reply to Shin Min, the Ministry of Manpower stated that it is investigating the case.

Lili told the Chinese evening daily that her father's heart is only functioning at 15 per cent and that the matter had affected him greatly.

She hoped that publicising the matter would alert the public and stop such fraudulent activities.

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Lili shared that she confronted Cai's friend who took his details. He claimed that he was only helping another friend, named Daniel.

When she spoke to him, Daniel's tone was agitated and unfriendly, said Lili. He maintained that what he did isn't breaking the law and refused to divulge the name of the company or the boss.

When contacted by Shin Min, however, Daniel reportedly stated that he's not the owner of the beauty salon which had "employed" Cai, indicating that the arrangement had given Cai "part-time work" while also allowing the salon to hire foreigners.

Daniel also said that he would be terminating the CPF contributions as well as Cai's employment following Lili's complaint before hanging up the phone.

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candicecai@asiaone.com