Date Published: 21 May 2007
Errant training providers and companies suspended
1. The Singapore Workforce Development Agency (WDA) takes a firm stand against companies and training providers that misuse the Skills Development Fund (SDF)1. Under the SDF system, companies can apply for subsidies for the training of their employees. This is the commonly known employer-based scheme to encourage companies to upgrade the skills of their employees. There are many other schemes that are worker-based and provide subsidies directly to individuals, including jobseekers and informal workers.
2. WDA carries out rigorous audits to ensure that companies and training providers adhere to the rules and regulations governing the SDF. In the audits conducted in FY2006, WDA discovered that 50 companies and training providers had contravened the rules of the SDF. 15 of them had committed minor infringements, such as the submission of inaccurate information when making their claims, and another 35 committed more serious contraventions including abuse of the SDF subsidies.
3. The most common form of abuse of the SDF was that of misleading WDA into disbursing SDF subsidies for the training of workers who were not employees of the companies, and whom the companies had no intention of employing. Another example would be that of deluding WDA into paying out a higher amount of SDF subsidies for training courses even though the course fees were reduced as a result of the discounts that training providers offered companies. This invariably caused WDA to disburse more subsidy than necessary. These dishonest acts not only contravened the SDF rules and regulations, but also ran counter to the spirit and intent of SDF.
4. WDA takes a serious view of such violations and appropriate action, such as suspension and/or disqualification from SDF funding, will be taken against organisations that infringe the rules of the SDF. As a result of the FY2006 audits, 6 training providers were suspended for periods ranging from 2 months to 12 months, another 16 companies suspended for periods ranging from 2 months to 6 months, and 28 organisations were issued with warning letters.
5. In serious cases where training providers and companies are accused of fraud, they will be referred to the Commercial Affairs Department, and legal action may be taken against them. This was the case of the former Institute of Rwo-Shur Health International (Rwo-Shur). The sole proprietor of Rwo-Shur, Mr Aw Kian Kok, who was convicted of abusing the SDF subsidies by forging documents, received a sentence of three years and nine months’ imprisonment. He has also been disqualified indefinitely from all funding or schemes administered by WDA, as well as those within WDA’s purview. Rwo-Shur’s National Skills Recognition System (NSRS) status for Approved Training Centre and Approved Assessment Centre was also revoked.
Background
6. WDA administers the SDF, which provides grants to encourage employers to send their employees for training so as to upgrade the employees’ skills. In FY2006, a total of $85 million was disbursed to companies and training providers as training grants for 362,200 training places.
7. Companies and training providers that apply to WDA for SDF grants must fulfil the terms and conditions stipulated in the application before funds are disbursed to them. WDA has also put in place an audit system to check the claims submitted by employers and training providers. The Audit and Enforcement Team at WDA is responsible for auditing the claims for the SDF grants. The audit system is further augmented by the information and feedback WDA receives from the public about organisations suspected of abusing the SDF.
8. For more information on SDF grants, please go to: http://www.sdf.gov.sg.
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1 SDF subsidies, which work on the principle of cost-sharing between WDA and companies, are given to employers for them to send their employees for training to upgrade their skills to perform their jobs better or for them to be skilled so as to take on higher level work.
