Two firms cleared of charge of withholding wages


  • Nation
  • Thursday, 17 Feb 2005

BY SIM LEOI LEOI

PUTRAJAYA: Two local companies, accused of withholding their illegal foreign workers’ pay, are off the hook. 

Investigations by the Labour Department found that the companies had paid the wages to the subcontractors.  

However, the subcontractors had either run off with the money or failed to trace the workers involved to pay them. 

Human Resources Minister Datuk Dr Fong Chan Onn said that in the case of construction firm Sri Mega Jaya Sdn Bhd, the subcontractor himself was an illegal foreign worker. 

“He has since run off with the money after failing to pay the 90 Indonesian workers under him about RM500,000 in wages. 

“In the case of Infinity Dynamic Sdn Bhd from Seremban, the construction firm has paid out RM90,000 in wages to its subcontractor but the latter could not trace the Indonesian workers. 

“As far as the ministry is concerned, these two companies are off the hook as it is the responsibility of the subcontractors to pay their workers,” he said after the weekly Cabinet meeting here yesterday. 

The ministry, he said, had explained its findings to the Indonesian embassy, which had earlier promised to submit the names of the companies to the Government for action.  

The Indonesian Government had wanted to take Malaysian employers to court for failure to pay the wages of these illegal foreign workers. 

The embassy, he added, had so far only named Sri Mega Jaya to the ministry for action although it had alleged there were 11 such firms. 

Dr Fong said it was important to resolve the matter, as he did not want any more “misunderstanding” to arise between Malaysia and Indonesia.  

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