HI-TEK VEGETABLE FARMS PTE LTD (Bankruptcy)

Mr Cheo Chai Chen asked the Minister for Labour whether his Ministry is aware that a company named Hi-Tek Vegetable Farms Pte Ltd, of which the Economic Development Board is one of the shareholders, has been declared bankrupt and that it is still owing a few employees their salaries and, if so, whether his Ministry has taken any action to assist these employees.

The Minister for Labour (Dr Lee Boon Yang): Mr Speaker, Sir, in 1991, eight ex-employees of the company Hi-Tek Vegetable Farms approached my Ministry for assistance to claim salary arrears against the company. As the company was in financial difficulties and was unable to make any payment, the case was referred for hearing at the Labour Court of my Ministry. The Labour Court ordered the company to pay a total of about $33,000 to the eight employees. Unfortunately, the company failed to comply with the order. We then advised and subsequently helped the workers to enforce the Labour Court Order against the company in the Subordinate Courts by way of a Writ of Seizure and Sale.

Before the Writ of Seizure and Sale could be executed, the Subordinate Courts advised the claimants that the company had been placed under receivership by a secured creditor. Hence, the workers' claims for arrears of wages had to be taken up with the Receiver. Since this involved making claims against the Receiver, my Ministry requested the Legal Aid Bureau to provide legal assistance to the affected workers. The Legal Aid Bureau has since assigned the case to a legal firm for follow-up action on behalf of the workers.

We were informed that the company has been placed under liquidation on 3rd June 1994. That being the case, the workers' claim will be dealt with by the liquidator of the company in accordance with the priority spelt out under the Companies Act.