Employee Took a Supplier Kickback? Secret Commission in Singapore, CPIB and Recovering the Bribe

Short answer: An employee who corruptly accepts a supplier kickback, and the supplier who pays it, both commit offences under section 6 of the Prevention of Corruption Act 1960, punishable by a fine of up to S$100,000, 5 years’ jail, or both. Report it to CPIB. Separately, section 14 lets the company recover the bribe from either party.

A secret commission in Singapore is any payment, gift or favour that a supplier gives to your employee, without your knowledge, to win or keep your business. Business owners usually discover it late: a purchasing manager who always favours one vendor, invoices that creep upwards, or a tip-off from a losing bidder. This guide explains what the law makes an offence, how to report to the Corrupt Practices Investigation Bureau (CPIB), how to run an internal review without damaging the case, how the company can recover the money, and which controls stop it happening again. If you are still deciding whether a dispute is a criminal matter at all, start with our guide on police report or civil claim.

Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.

What is a secret commission or kickback in Singapore?

A secret commission is a benefit given to someone who acts for a business (an employee, director, agent or consultant) to influence how they deal with that business’s affairs, without the business knowing. In Singapore law it is a form of corruption, not merely a breach of company policy.

The PCA defines “gratification” very widely: money, gifts, loans, fees, rewards and commissions, but also any office, employment or contract, the release of a debt, and any other service, favour or advantage, including a mere offer or promise. In practice a kickback may be a percentage rebate on every invoice approved, a free holiday, a job for a relative, or inflated invoices where the supplier passes part of the excess back to the employee. The company is the victim: it pays more, receives less, or loses a better supplier.

What does the Prevention of Corruption Act say about employees and suppliers?

Section 6 makes it an offence for an agent to corruptly accept or obtain a gratification for doing or not doing something in relation to the principal’s affairs, and for anyone to corruptly give or offer one. The employee and the supplier are both exposed.

The word “corruptly” matters. Prosecutors must show a corrupt element, and a properly declared and approved gift may not be corrupt at all. That is why a written gift policy, discussed below, is so useful: it separates permitted hospitality from secret payments.

On the civil side, a company sues under the Rules of Court 2021. A money claim is started by an originating claim under Order 6, and urgent asset protection, such as an injunction to freeze money, falls under Order 13 (injunctions, search orders and other interim relief before trial). Court proceedings are conducted by a Singapore Advocate and Solicitor, not by the company secretary or accountant.

Who can report a secret commission, and when should the company act?

Anyone can report suspected corruption to CPIB, and the company should usually do so as soon as it has a reasonable suspicion, not after it has finished its own investigation. CPIB has statutory powers of arrest, search and investigation that a private company does not.

CPIB’s reporting channels are:

• the online e-Report for corrupt conduct, which CPIB says takes 5 to 10 minutes to complete;
• the Duty Officer, on 1800-376-0000 locally or +65 6376-0000 from overseas;
• email to [email protected]; or
• a letter or visit to CPIB at 2 Lengkok Bahru, Singapore 159047.

CPIB asks reporters to explain where, when and how the corrupt act happened, who was involved and in what roles, and what bribe was given for what favour. Under section 36 of the PCA, the identity of an informer is protected in court proceedings, except where the court finds the informer deliberately made a false statement.

The civil claim has its own clock. A claim to recover a sum recoverable under written law, such as a section 14 claim, generally must be brought within 6 years of the cause of action under section 6(1)(d) of the Limitation Act 1959, and different rules can apply where fraud was concealed. Ask a lawyer to confirm the deadline for your facts early, because CPIB investigations can take a long time.

How should a company handle a suspected kickback employee in Singapore, step by step?

Secure the evidence quietly, report to CPIB, and only then deal with the employee and the supplier. The order matters, because tipping off the people involved can lead to deleted messages, coordinated stories and money moved out of reach.

1. Limit the circle to those who need to know, such as one director and the finance head. Do not confront the employee or the supplier.
2. Preserve evidence: copy purchase orders, quotations, invoices, approvals, payment records and vendor master file changes, and suspend automatic deletion of the employee’s mailbox. Do not “tidy” any record.
3. Do not interrogate or set traps. Leave interviews and covert evidence gathering to CPIB.
4. Report to CPIB with a factual summary and a list of the documents you hold, and keep a copy.
5. Agree timing with the CPIB officer before visible steps such as suspending the employee or terminating the supplier.
6. Instruct solicitors on civil recovery, including whether urgent interim relief is needed to stop assets being moved.
7. Take employment action through a proper inquiry, and minute the board’s decisions.
8. Fix the control gap and review other contracts the employee handled.

If the employee also processed supplier bank details, check for related payment fraud. Our guide to invoice fraud and changed supplier bank details explains the warning signs.

What documents does the company need?

The same core bundle supports the CPIB report, the civil claim and the disciplinary inquiry, so it is worth assembling once and carefully.

Handle personal data in these records only for the investigation. Our article on whistleblowing covers confidential reporting channels.

How long does it take and what does it cost?

There is no fixed timetable. The criminal and civil tracks run separately, and the company controls only the civil one. The table below sets out the main stages and the factors that drive cost, with the court tiers taken from the Singapore Courts.

Assumptions: one employee and one supplier, records in Singapore, no cross-border enforcement. Overseas assets, several defendants or a contested trial add time and cost, so ask your solicitor for a written fee estimate before filing.

Can the company recover the bribe and sue the supplier?

Yes. Section 14 lets the principal recover the amount or money value of the gratification as a civil debt, either from the employee who received it or from the person who gave it. A conviction or acquittal does not bar the civil claim.

This gives the company useful choices:

• Sue the party who can pay. A supplier with a business and assets in Singapore is often a better target than an employee who has spent the money.
• Claim more than the bribe. Section 14(2) preserves any other right the company has to recover money or property from its agent. Your solicitor may also consider claims for breach of contract, breach of the duty of fidelity, or the loss caused by overpriced contracts.
• Do not count on the criminal penalty. The section 13 penalty ordered against a convicted acceptor is recoverable as a fine and goes to the State. It does not compensate the company.

If the person who took the kickback is a director rather than an employee, directors’ duties also apply. See our guide to court remedies for breach of fiduciary duty. To speak to a lawyer about the strength of a recovery claim, gather the documents in the table above first.

What employment action can the company take?

For employees covered by the Employment Act 1968, section 14(1) allows an employer, after due inquiry, to dismiss without notice for misconduct inconsistent with the employee’s express or implied conditions of service. Taking a secret commission from a supplier will usually fall into this category, but the inquiry must still be done properly.

• Suspension during the inquiry: section 14(8) allows suspension for up to one week, or longer if the Commissioner approves on the employer’s application, and the employer must pay at least half the employee’s salary during the suspension.
• If the inquiry finds no misconduct, section 14(9) requires the employer to restore the salary withheld immediately.
• Instead of dismissal, the employer may down-grade the employee or suspend them without pay for up to one week.
• An employee who believes the dismissal was without just cause may bring a claim for reinstatement or compensation. Our guide to Employment Claims Tribunals and TADM explains that process.

Coordinate the timing with CPIB. A disciplinary letter that sets out every piece of evidence can alert the supplier before investigators act. If the employee holds a work pass, cancellation obligations follow; our sister site Singapore Employment Agency covers work pass cancellation.

What does the company secretary prepare and what does the solicitor file?

The company secretary and the corporate service provider (CSP) look after the corporate records and filings. Everything filed in court, and all legal advice, is handled by a Singapore Advocate and Solicitor.

After the matter ends, the company should keep the full file, record any recovery in its accounts and report to the board on the control changes made. Where an implicated director leaves, the change of officers must be lodged with ACRA through Bizfile.

What controls stop secret commissions in the first place?

Most kickbacks depend on one person controlling both supplier selection and approval of invoices. Breaking that link, and making gifts visible, removes most of the opportunity.

• Gift policy: a value limit, a register of every supplier gift, and approval above the limit. Our article on corporate gifts and GST covers the tax side.
• Annual conflict-of-interest declarations, including interests held through family members.
• Vendor due diligence: check the supplier’s ACRA profile, directors and shareholders for links to staff.
• Segregation of duties: whoever chooses a supplier should not approve its invoices or change its bank details.
• Competitive quotations above a threshold, with reasons recorded when the cheapest bid loses.

CPIB publishes PACT, a practical anti-corruption guide for businesses, with a framework suitable for small companies. Larger groups may also consider SS ISO 37001, the anti-bribery management systems standard referred to on CPIB’s site. Our free tools can help with related compliance tasks.

Common mistakes

• Confronting the employee before reporting, giving everyone time to align their stories.
• Dismissing without a due inquiry, inviting a wrongful dismissal claim.
• Agreeing to a quiet repayment in exchange for silence, without legal advice.
• Forgetting the supplier, who is exposed under section 6(b) and section 14.
• Assuming the criminal court will return the money.

Frequently asked questions

Is a small gift from a supplier a crime?

Not automatically. The offence requires the gratification to be given or received corruptly, as an inducement or reward in relation to the principal’s affairs. A modest, openly declared gift permitted by the company’s policy is very different from a secret payment. A clear gift register removes most of the doubt.

Does the company have to wait for a conviction before suing?

No. Section 14(1) states that no conviction or acquittal bars proceedings to recover the amount of the gratification. In practice, solicitors often consider the progress of the CPIB investigation when deciding when to file.

Can we report to CPIB anonymously?

CPIB says informers may choose to remain anonymous, and section 36 of the PCA protects an informer’s identity in court proceedings. A company report will normally be made openly by a director or authorised officer, because CPIB will need documents from the company.

What if the kickback was paid overseas?

Section 37 makes the Act apply to Singapore citizens outside Singapore as well as within it, and section 29 covers abetting acts outside Singapore done for a principal residing in Singapore. Recovery from overseas parties is harder, so take legal advice early.

Last reviewed: 28 October 2026. The Editorial Team, Raffles Corporate Services.