Couple admit to cheating Spring Singapore of $50,000

A couple face jail terms after conspiring to cheat Spring Singapore of $50,000 in grant money by submitting fraudulent claims for Innovation and Capability Vouchers (ICVs).

On Tuesday (23 May), Soh Hua Xiang, 30, pleaded guilty to 21 counts of cheating while I Shu Hui, 29, pleaded guilty to 20 counts of the same crime. Soh had 180 additional charges taken into consideration, while Shu Hui had another 176 charges taken into consideration.

Working in tandem

As a former business capabilities manager with Spring Singapore, Soh had been in charge of the ICV scheme from 2011 to 2015. He had left the statutory board by the time of the crimes were committed, while Shu Hui worked there as a finance manager in charge of preparing the ICV disbursements.

Under the ICV scheme, Spring Singapore grants small and medium-sized enterprises (SMEs) $5,000 vouchers to encourage them to develop their capabilities in various areas.

Using the names and Unique Entity Numbers of sole proprietors listed in the Accounting and Corporate Regulatory Authority’s database, the couple submitted multiple fraudulent applications for the vouchers from August to October 2015. The submissions were made under the guise of obtaining funds for Point-of-Sale (POS) systems.

To identify businesses whose names he could use for the applications, Soh would walk around the heartlands and target small businesses, such as mini-marts, provision shops and bicycle shops, for which POS voucher applications would appear more suitable.

With Shu Hui’s help, Soh would submit the applications to Spring Singapore – a process that included the use of fake e-mail addresses, forged quotations and Giro forms, as well as a bank account that he shared with a friend.

In total, Soh submitted claims on behalf of 40 SMEs, while his girlfriend submitted 39. Shu Hui also approved 10 Giro disbursements of the ICV grants and also processed the disbursements for her superiors’ approval.

Acting ‘out of spite… not out of greed’

According to the prosecution, Soh wanted to use the money to buy a house for his sister. However, Soh had told Shu Hui that the money they obtained would be used to buy a condominium for the couple.

In mitigation, the couple’s lawyer Che Wei Chin said that the offences were a “foolhardy mistake which (the two) committed in a moment of folly”. He added that Soh also wanted to highlight the loopholes within the ICV application system.

“Soh was motivated by frustration as he could not convince his supervisor of the loopholes in his four years (working at) Spring Singapore.

“He was trying to prove the point that an intelligent individual could take advantage of the loopholes. The tipping point was when he witnessed the continual exploitation (of the system) by parties,” said Che.

Che alleged that Soh had arranged a meeting with the director of the ICV scheme to confess his actions but the meeting did not occur. “The act was done out of spite, anger and frustration, but not out of greed,” said Che.

As for Shu Hui, she had gone along with the plan due to her relationship with Soh, said the lawyer, who added that Soh had intended to make full restitution of the money to Spring Singapore.

The defence counsel asked for between eight and 10 months’ jail for Soh and between six and nine months’ jail for Shu Hui.

However, the prosecution, represented by Deputy Public Prosecutor Magdalene Huang, disagreed that the crimes had been committed in a moment of folly. She argued that the couple’s actions had been “premeditated” and the deception “deliberate” as they had occured over many months.

Soh had taken advantage of his knowledge of the ICV system, while Shu Hui had betrayed the trust of Spring Singapore, said DPP Huang.

The prosecution asked for 18 months’ jail for Soh and 15 months’ jail for Shu Hui. The couple will be back in court on 6 June for sentencing.

For cheating, Soh and Shu Hui could each be jailed up to 10 years and fined.

Other Singapore stories:

Woman pleads guilty to assaulting taxi driver along Bishan Road

Second legal challenge to Elected Presidency scheme mounted: Reports

Tuas Checkpoint death: Victim skidded after hitting other motorcycle