HR ministry lodges police report against employer in quota fraud scandal

The Human Resources Ministry has lodged a police report against one employer implicated in the migrant quota fraud exposed by Malaysiakini last November.

Human Resources Minister Steven Sim said the investigation won’t be confined to fraud and commercial crimes, leaving the police to determine the range of offences committed.

“The ministry has filed a police report requesting an investigation into the ID holder (quota applicant) by the police.

“So far, we have identified one employer and we will leave it to them (police) to take necessary action,” said Sim.

Declining to disclose the identity of the implicated employer, Sim acknowledged the possibility that the investigation might extend to Human Resources Ministry staff.

“If there is a crime, it takes both sides, so I am sure the investigation will involve the internal processes as well,” he said.

Sim added that the ministry would carry out its own investigation into the quota fraud scandal.

Earlier probe found no deception

Malaysiakini uncovered a syndicate that exploited the government’s migrant quota approval system, facilitating the entry of thousands of workers into the service sector.

The companies involved made money by either selling the quotas to other companies or agents or by selling or renting out the workers.

The scam has landed hundreds of migrant workers - who were duped into thinking they had jobs waiting for them in Malaysia - in dire straits, while at least two migrants brought in by the syndicate have died.

The Commercial Crime Investigations Department (CCID) confirmed with Malaysiakini earlier this month that they are actively pursuing an investigation into the alleged mastermind behind the fraud.

Yet, the CCID found no evidence of deception against the workers, closing investigations into police reports filed by workers who claimed they were cheated by companies that brought them into the country.

Reviewing bilateral agreements 

Sim was speaking to reporters at a joint press conference with Home Minister Saifuddin Nasution Ismail after their first joint committee meeting on foreign workers management for 2024.

Saifuddin said the government will reassess its bilateral agreements on labour migration with all 15 sending countries.

“There is a need to review these agreements as we found that there is a need to enhance the clauses related to fees, costs, health, and welfare of migrant workers in the country.

“We will revisit the agreements after the cabinet approves it,” he said. 

The Memoranda of Understanding (MoU) Malaysia has with source countries is dynamic, leaving room for constant improvements.

However, Saifuddin could not confirm if the MoUs would be made public.

“We will see, what are the criteria and conditions,” he said. 

While there has been no discussion to lift the freeze on migrant quota applications, Saifuddin said the cabinet paper from the two ministries will also recommend the commencement of a recalibration programme to repatriate undocumented migrant workers.

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