- Ramu Palani Velu, a Singapore permanent resident and director of seven companies, was declared bankrupt on August 13 after 407 migrant workers lodged claims for unpaid wages.
- The bankruptcy order followed months of complaints involving workers from the companies, with signs of financial difficulties emerging before a large group sought assistance from the authorities.
- A total of 407 workers, including Indian nationals, have lodged claims for unpaid wages, with some allegedly not receiving their salaries for more than two months.
- Signs of trouble emerged in 2025 when five workers from KPA Engineering separately approached the Tripartite Alliance for Dispute Management over unpaid wages.
- The cases were resolved within a week, with the workers receiving payment from their employer, according to Manpower Minister Dr Tan See Leng.
- However, in May and June, four other KPA Engineering workers filed claims for unpaid salaries.
- By June 22, more than 100 workers sought help at the Ministry of Manpower (MOM) office in Bendemeer.
- MOM was already aware of salary claims involving KPA Engineering employees affected by a dormitory eviction notice issued on June 8.
- Ramu returned to Singapore on June 26 and assisted MOM with its investigations.
- Records from the Ministry of Law's Insolvency Office show that Ramu applied for bankruptcy on July 9.
Ramu Palani Velu, a Singapore permanent resident and director of seven local companies, was declared bankrupt on August 13, 2026, following claims from 407 migrant workers for unpaid wages, with some workers alleging they had not been paid for over two months.1
The bankruptcy order came after months of complaints from workers, with signs of financial difficulties surfacing as early as 2025. Five workers from KPA Engineering had approached the Tripartite Alliance for Dispute Management (TADM) regarding unpaid wages, and while their cases were resolved quickly, further claims emerged in May and June 2026.26
On June 22, more than 100 workers sought assistance at the Ministry of Manpower (MOM) office, prompting the ministry to investigate. Ramu returned to Singapore on June 26 to assist with the inquiries. He had applied for bankruptcy on July 9, according to records from the Ministry of Law's Insolvency Office.7910
Employers failing to pay salaries face fines ranging from S$3,000 to S$15,000 per charge and potential imprisonment of up to six months. The total unpaid wages owed to the claimants remains undisclosed as investigations continue.
“If there is non-payment across multiple companies, the director can be subject to penalties for all cases,” said Manpower Minister Dr. Tan See Leng, emphasizing that MOM will examine who exercises effective control over employment and payment decisions.
“The bankruptcy order follows months of complaints, with some workers unpaid for over two months. MOM had been monitoring salary risks and, after investigations, may impose fines of S$3,000 to S$15,000 per charge and up to six months' imprisonment.”
kmsnews.org
