Man jailed for creating company to cheat RSAF of more than $600,000 in contracts
A man who cheated the Republic of Singapore Air Force (RSAF) of more than $600,000 in contracts with a former airforce engineer was jailed for one year and two months on Monday (17 September).
Jeevan Arumugam, a former condominium manager, originally claimed trial but later pleaded guilty to five counts of cheating. Another 62 counts of a similar nature were taken into consideration for sentencing.
Jeevan was in cahoots with ex-RSAF engineer Rajkumar Padmanathan, 49, who was jailed 25 months and six weeks in July on charges of corruption, cheating, and of breaching the Official Secrets Act.
As Rajkumar worked as a Bay-In-Charge, his job scope included raising requests for repair or maintenance works which required independent contractors to tender for works. He would receive quotations from contractors and recommend those he chose. After the contractor completed the works, they would be paid by the Ministry of Defence.
Together, the two registered a company that bid for RSAF repair and maintenance works using Rajkumar’s position in the RSAF to their advantage.
Rajkumar approached Jeevan with the idea in late 2010. They settled on Jeevan helming the company with Rajkumar assisting him on technical matters. The plan was for Rajkumar to eventually leave the RSAF and join Jeevan in the company.
The two incorporated Eagle Flight Aviation Services (EFAS) on 22 January 2011 with Jeevan registered as its sole director and shareholder to hide Rajkumar’s involvement. Any profit made by EFAS would be shared equally between the duo.
Rajkumar used his knowledge in the tender process to help Jeevan in preparing quotations. He also gave Jeevan contacts of suppliers. Using his position, Rajkumar recommended EFAS to be awarded the works and concealed his interest in the company.
Between April 2011 and June 2012, EFAS was awarded 67 jobs worth $632,528 and paid for their work.
In court, Jeevan’s lawyer T M Sinnadurai said that his client was a victim of circumstances and that his trust was abused by Rajkumar, who was his childhood friend of almost 30 years.
Jeevan, who is married with two teenage children, was in financial straits and Rajkumar “exploited” his situation by drawing him into the scheme, said the lawyer.
“He fully trusted his friend and now he is paying the price,” said Sinnadurai, who sought 10 months’ jail for his client.
Addressing the court, Jeevan said he was “blinded by immense financial difficulties” when Rajkumar approached him. He blamed his actions on a “pure lapse of judgement” and apologised to the Government and the court.
However, Deputy Public Prosecutor (DPP) Magdalene Huang disagreed that Jeevan’s actions were due to a lack of judgement.
Referring to the large number of offences, the DPP said that Jeevan knowingly agreed to the scheme and had set his mind to it. She asked for a 15-month jail sentence for Jeevan.
Jeevan could have been jailed up to 10 years for each cheating offence.
