Immigration uncovers illegal outsourcing

IPOH: The Immigration Department has uncovered a new business approach being used by several employment agencies in Perak.

Instead of sourcing, supplying and managing foreign workers directly for their clients, some employment agencies here have appointed a local company to outsource and manage these workers on their behalf.

With this method, the agencies are not only able to lower their administrative costs, but also receive parts of the profits gained by the outsourcing company.

Yesterday, after checking the premises of an outsourcing company in Lahat Baru near here, the Immigration officials were shocked to find that there was more to the practice.

The raiding team, headed by the department's enforcement director, Datuk Ishak Mohamad, discovered that the foreign workers supplied by the company were illegals issued with Myanmar refugee cards.

"We found the cards issued by an outfit known as Burma Refugees Organisation (BRO). Malaysia does not accept refugee card as a valid travel document to enter this country."

"Therefore, workers supplied by the outsourcing company to the employment agencies' clients are illegals," he said here yesterday, adding that 99 passports belonging to Myanmar and Bangladesh nationals were also seized from the premises.

He said the outsourcing company, HRO Management, and the employment agencies were involved in an unlawful venture. The law, he said, prohibited employment agencies from delegating their business tasks to other companies who were not authorised to source, supply and manage foreign workers.

Ishak said based on initial investigation, there were at least five agencies which had agreements with HRO to outsource foreign workers for their clients.

He said HRO, a registered company run by a 55-year-old businessman, and the employment agencies could be charged in court for conducting illegal business while employers may face the music for harbouring illegals at their workplace.

He also said the department would investigate BRO, which is based in Puchong, Selangor, for issuing the illegal refugee cards, adding that the licences of the employment agencies involved would be suspended.

The raiding team also arrested three Myanmars at the premises, one of whom carried a refugee card issued by BRO.

The other two, employed as office boys by the outsourcing company, were arrested because their work passes stated that their employment was based in Kuala Lumpur and not in Ipoh.