Jollibean Fined $68K For Unpaid Staff CPF Contributions, Rep Says Fine ‘Won’t Help’
"We have to juggle between [paying] the court and [paying] the staff, so I hope the court will be lenient in sentencing," said Jollibean representative Shahrul Nazrin. The company owes $212,295 in CPF arrears.
Soy milk company Jollibean Foods was fined $68,000 by a court on Wednesday (Sept 24) for owing Central Provident Fund (CPF) contributions to its employees.
The total amount of CPF arrears owed is $212,295, the court heard.
Jollibean representative Shahrul Nazrin pleaded guilty on behalf of the company to 34 charges under the CPF Act.
The company failed to pay CPF contributions to at least 16 employees between late 2024 and early 2025.
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Jollibean's outlet at Lavender MRT Station was repossessed by SMRT Trains on Jun 30, according to a notice seen on its door.
Photo: CNA/Koh Wan Ting
Negotiations for buyover failed
At a previous hearing, a final adjournment was granted for the payment of arrears which then stood at $199,301.
At the time, Mr Shahrul said the company was in the final lap of negotiation for a buyover of the company. Once the takeover was completed, funds would come in and the arrears could be settled, he said.
On Wednesday, he updated the court: "Our current situation is - we had an investor willing to buy over the brand. But apparently, there're some journalists in this courtroom that reported the case, that made the investor back out."
He said that "as much as I'd like to look forward to settling this with CPF", the company was in talks with someone else to take over. He said it will be "concluded next month".
He said the previous judge told him it was the last adjournment so the only thing he could do now was to plead guilty and settle the arrears with CPF after.
Jollibean representative Shahrul Nazrin leaves the State Courts on Sept 24, 2025.
Photo: CNA/Syamil Sapari
Pleas for leniency
The CPF prosecutor told the court that to date, no payments have been received.
The judge confirmed with Mr Shahrul that he was aware that both previous adjournments he was given were marked as "final", and he agreed.
The prosecutor said Jollibean was previously fined $1,200 in November 1998 for a similar offence.
She said the minimum fine is $2,000 per charge, and the maximum $10,000. She left the sentence to the court.
Mr Shahrul asked if it was possible for the previous conviction not to be taken against them, saying "this company was only taken over by us two years ago so we are not aware at all".
However, the prosecution said previous convictions are accounted for by law.
In mitigation, Mr Shahrul appealed to the court to be lenient, saying the company is going through financial difficulties.
"Imposing a $68,000 fine on us won't help”
"Our number one priority is to settle the CPF and settle outstanding staff salary with all our previous employees," he said.
"Imposing a $68,000 fine on us won't help. We have to juggle between [paying] the court and [paying] the staff, so I hope the court will be lenient in sentencing."
On top of the fine, the judge issued a certificate of liability for the $212,295 in CPF arrears owed.
Mr Shahrul said he could not make payment on Wednesday and asked for a month's time.
The judge ordered the full sum of $68,000 to be paid by Oct 22.
Source: CNA/ll(rj)
The original version of this story first appeared in CNA.
For more CNA Lifestyle stories, visit https://www.channelnewsasia.com/.
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