SINGAPORE — As of the first week of May, the Government has recovered S$250 million from the more than S$370 million it had incorrectly disbursed in payouts under the Jobs Support Scheme.

It has secured commitments for the return of another S$83 million from larger firms that are in the process of returning this sum.

Mr Gerald Giam, Workers’ Party (WP) Member of Parliament (MP) for Aljunied Group Representation Constituency (GRC), on Monday (May 10) had asked Trade and Industry Minister Chan Chun Sing on the status of the claw-back for the disbursed sums and whether companies that have already used the money will be able to pay back in instalments.

He also wanted to know if actions will be taken against them for refusal to return the payouts.

Mr Chan said in a written parliamentary reply that businesses facing cashflow difficulties may approach the authorities for assistance and instalment payment arrangements will be available for businesses that need them.

Last month, the Government said that it had erroneously credited more than S$370 million in payouts under the scheme as well as wrongfully granted S$1.2 million in foreign worker levy waivers and rebates to firms.  

This was after an administrative error led to the miscalculation of reopening dates for businesses following the partial lockdown period last April and May.

As a result, about 5,400 companies received extra money under the Jobs Support Scheme in their bank accounts last October, and another 360 companies had excess levy waivers and rebates granted to them last June and July.

Ms He Ting Ru, WP MP for Sengkang GRC, asked what were the median and mean sums that were mistakenly paid out to the firms and the steps that will be taken to get the money back from firms that cannot afford to repay the amounts.

She also asked whether the Ministry of Trade and Industry (MTI) will continue to press for the return of payouts from companies that would be insolvent if payments were made, as well as how many firms that got the payouts have since been wound up.

Mr Chan replied that the median and mean amounts overpaid were S$3,300 and S$69,000 respectively.

The Inland Revenue Authority of Singapore (Iras) will first offset the excess amount against the businesses’ future payouts under the scheme.

“They will then be informed of any outstanding excess amount to be returned after their final payout… Based on our records, no firms who received the erroneous payments have been wound up to date,” Mr Chan said.

Separately, Non-Constituency Member of Parliament Hazel Poa asked Mr Chan for the reasons that had resulted in the wrongful payouts.

Mr Chan reiterated in his written reply that the incorrect payouts were due to “errors in the tagging of business reopening dates for some businesses”.

“As the processes for the resumption of business activities had to be implemented at short notice, MTI used existing systems and manual processes to grant approvals for businesses to reopen.

“Unfortunately, in so doing, mistakes were made with the reopening dates, (thus affecting) the Jobs Support Scheme payouts."