Legislation to Detect and Act Against Fraud in Renovation Disputes
Ministry of Home AffairsSpeakers
Summary
This question concerns whether laws should be amended to simplify establishing fraud in renovation disputes, as raised by Ms Carrie Tan and Ms He Ting Ru. Minister for Home Affairs K Shanmugam stated that after a study, the government found no amendments necessary as current Penal Code provisions for cheating are sufficient for prosecution. The Minister explained that many cases involve business distress rather than fraud, making civil remedies like the Small Claims Tribunal more appropriate. Consequently, the government has increased Small Claims Tribunal limits to $20,000 and encourages using contractors accredited by the Consumers Association of Singapore.
Transcript
33 Ms Carrie Tan asked the Minister for Home Affairs (a) whether he can provide an update on the Ministry's study on whether there is scope to amend the law to make it easier to establish fraud in renovation disputes; and (b) what is the outcome of the study.
34 Ms He Ting Ru asked the Minister for Home Affairs whether the Ministry can provide an update on the plans to introduce legislation making it easier to establish whether renovation fraud has occurred.
Mr K Shanmugam: The Ministry has studied the question of the legal position on establishing fraud in renovation disputes and whether any amendments are needed.
Today, renovation fraud can be prosecuted as cheating offences under section 420 of the Penal Code. The Attorney-General Chambers' (AGC's) assessment is that there is no need to amend the law further. The Prosecution is able to secure convictions against fraudulent renovation contractors using evidence, such as financial records and digital evidence, uncovered during investigations.
AGC's and the Police's observation is that many cases of non-fulfilment of contracts are not the result of fraud, but rather, business distress. The right course is in civil remedies, which have been made easier to access over the years. For example, in 2019, the Government raised the ceiling for claims that can be brought in the Small Claims Tribunal to $20,000 (or $30,000, if all parties consent).
Home owners intending to carry out renovation works should also consider engaging contractors accredited by the Consumers Association of Singapore (CASE), which have consumer-friendly policies including dispute resolution facilitated by CASE.