KATHMANDU, May 30: The manpower sector is engaged in fraudulent activities, deceiving many young individuals aspiring for foreign employment. When manpower (recruitment) companies start defrauding people by employing agents, there is a situation where complaints are filed against the agents and nothing is done against the companies.
Due to this tendency, when the victims go to the Department of Foreign Employment (DoFE) to file a complaint that they have been cheated, they file the complaint not against the manpower company, but against the agent. According to the data of the DoFE, the incidents of fraud are increasing, with complaints being
As of mid-March of the current fiscal year 2023-24, as many as 5,881 complaints have been filed. Out of that, only 752 complaints have been filed against manpower companies while 5,129 have been filed against the agents or middlemen.
In the DoFE, victims file more complaints against agents than against manpower. A victim who has reached the DoFE claims that money has been deposited in the name of an agent.
"I learned about the manpower agency through an agent," says the victim. "I don't even know where the agency is located or what it does." Without ever visiting the manpower agency, agents entice individuals with promises of employment opportunities in different countries. "We have come to lodge a complaint against the agent," the victim added.
According to the Foreign Employment Act of 2064 BS, manpower entrepreneurs are not authorized to hire agents. In the past, manpower entrepreneurs hired agents to send workers abroad. Many victims, who have been working under the shadow of such manpower companies by placing agents ahead, come crying and complaining in the DoFE.
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Therefore, a new twist has emerged in the fraudulent activities of manpower companies. By offering commissions, manpower companies have turned agents into intermediaries who attract clients. According to statistics of the DoFE, there are more complaints in the names of agents than those against manpower companies regarding foreign employment-related scams.
Hundreds of victims visit the DoFE daily, claiming to have been defrauded in the name of being sent abroad for foreign employment. Agents assisted by manpower companies are working with the intention of defrauding many young people.
All the victims reach the DoFE to file complaints against the agents. When the agents start getting caught, they claim that the manpower companies instructed them to do so, and they come to the DoFE to file complaints, presenting themselves as victims, according to DoFE officials.
Many victims do not even know which manpower company is sending them abroad or why they are giving money to individuals. As a result, victims end up filing complaints against agents instead of the manpower companies. This has led to an increase in complaints against agents, rather than against the manpower companies, according to DoFE officials.
Many agents themselves have been going to the People Forum for Human Rights (People Forum), which provides free legal assistance at the DoFE, to file complaints claiming they have been cheated.
An agent shared with the People Forum staff, "In my search for work, I also approached a manpower company myself. I had no idea that the manpower company sends Nepali youths abroad. After starting work with the manpower company, my responsibility was to assure the youths who were eager to go abroad that there are good facilities in various countries”
The agent mentioned to the People Forum about the nature of the work assigned by the manpower companies, stating, "Initially, the management of manpower companies say that their bank account is not working. They tell us ‘you will be the one collecting all the necessary documents and cash from those young individuals aspiring to go abroad’. If someone looking to go abroad refuses to hand over the money in cash, instruct them to deposit it into your bank account. Then, withdraw that money and bring it to the office. We will then proceed with the process for that individual to go abroad."
The practice of deception through manpower has been prevalent for a long time. The DoFE's statistics show incidents of fraud through manpower companies. However, incidents of fraud through agents and individuals are on the rise. In the fiscal year 2022/23 alone, there were 4,464 reported cases, with 1,428 victims defrauded by manpower entrepreneurs and 3,036 victims of fraud by agents. Compensation claims totaling around Rs 556.1 million were filed for these fraud cases.
Looking at the statistics of the DoFE for the last five years, incidents of fraud in foreign employment have been increasing every year. According to the department's data, in the fiscal year 2021/22, a total of 1,742 cases related to fraud in foreign employment were registered nationwide. This indicates an increase in incidents of fraud in foreign employment compared to previous fiscal years.
According to the Foreign Employment Act of 2064 BS, any individual or organization operating foreign employment business without obtaining the required permit faces legal action if found deceiving others by falsely assuring them of overseas employment opportunities and enticing them with the intention of fraudulently obtaining money.
If someone is found guilty of unlawfully taking money or sending someone abroad, the person responsible for such actions will be fined up to fifty percent of the amount taken and imprisoned for a term ranging from three to seven years, along with bearing the expenses incurred for the person's travel abroad, ranging from Rs 300,000 to Rs 500,000, as per the legal provisions enforced for the past three to seven years.
According to Dandu Raj Ghimire, Director General of DoFE, incidents of individual fraud are increasing when manpower appoint agents and brokers.
“There is a legal process that manpower companies cannot take payments directly,” he said. “In such cases, brokers act as intermediaries between agents and the youth who aspire to go abroad. Youths make the payment to the agents and the manpower companies take the money from the agents. By doing so, the manpower companies will not be at risk as the victims come to the DoFE with complaints against the agents,” Ghimire added.
Ghimire stated, "We have to evaluate the available evidence within the legal framework. The manpower companies are not implicated in the evidence presented by the victims. Without sufficient evidence, we haven't been able to hold the manpower companies accountable."
