Cases of Renovation Contractors Failing to Carry Out Works after Collecting Deposits
Ministry of Home AffairsSpeakers
Summary
This question concerns Mr Murali Pillai’s inquiry regarding renovation contractors taking deposits without intent to work, the total value involved, and police actions to recover funds. Minister for Home Affairs K Shanmugam stated that 100 cases were investigated between 2019 and 2021 with a 72% prosecution rate, while 2022 cases remain under investigation. He highlighted the challenge of proving fraudulent intent over genuine business distress and revealed that the Ministry is studying potential law amendments to make establishing fraud easier. Minister for Home Affairs K Shanmugam also noted that while offenders face cheating charges under the Penal Code, asset recovery is difficult, making prevention through accreditation essential. Homeowners are advised to engage contractors accredited under the joint accreditation between the Consumer Association of Singapore and Singapore Renovation Contractors to ensure a good track record.
Transcript
39 Mr Murali Pillai asked the Minister for Home Affairs (a) since January 2022, whether there is an increase in criminal cases involving renovation contractors taking deposits for renovation works without any intent to carry out such works; (b) what is the aggregate subject matter value for these reported cases between January 2022 to date; (c) what steps have been taken by the Singapore Police Force (SPF) to deal with this problem; and (d) in particular, how much monies have SPF recovered from the perpetrators for the corresponding period.
Mr K Shanmugam: Renovation fraud generally involves renovation contractors inducing victims to make payment for promised renovation works, which are either partially completed, or not carried out at all. In most of these cases, the contractors become uncontactable after collecting payment, or provide excuses to explain why they were unable to complete the promised works.
Contractors who deceive victims into placing deposits for renovation works without any intent to carry out such works can be charged for cheating offences under section 420 of the Penal Code.
Between 2019 and 2021, Police investigated 100 cases involving errant renovation contractors. So far, 72% of these cases have been prosecuted in Court. For cases that occurred this year, we are unable to provide details at this juncture, as investigations are ongoing.
In some cases there could be genuine business distress, and the contractor may not have been able to do the work. Further, where the economic situation changes suddenly, for example during the COVID-19 pandemic, some contractors might find themselves unable to fulfill their contracts. In each case the question is whether there was fraudulent intent.
Some other cases may involve fraudulent intent, but it may be very difficult to prove that in Court. I have asked my Ministry to study if there is scope to amend the law to make it easier to establish fraud in such cases.
Recovery of monies can also be difficult. The culprit may no longer have the money. Then, while he could go to jail, his customers may not get the money.
Homeowners who intend to carry out renovation works can consider engaging contractors with a good track record, such as those accredited under the joint accreditation between the Consumer Association of Singapore and Singapore Renovation Contractors.