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KATHMANDU: It has been found that recruitment companies collected nearly Rs 5 billion from youths, promising them job opportunities in South Korea.
Recruitment companies collected recruitment fees from the youths after the government brought a work procedure that authorized recruitment agents to send workers to South Korea under the E-7 visa. The work procedure was introduced by the former Minister for Labor, Employment and Social Security, Sharat Singh Bhandari. It opened the doors for recruitment companies to send workers to South Korea like in other countries.
However, the new Labor Minister, DP Aryal, scrapped this work procedure. This means recruitment companies will have to return the money collected from youths.
South Korea has so far been sourcing workers from Nepal under the Employment Permit System – a government-to-government mechanism.
According to the Ministry of Labor, Employment and Social Security, recruitment agencies have raised around Rs 4.9 billion from over 4,000 youths. A high-ranking official of the ministry told Himal Press that recruitment companies have raised around Rs 1.7 million per youth.
Now that the E-7 Visa Work Procedure has been scrapped, youths have started visiting recruitment companies to get their money back.
Minister Aryal also said he had received information that companies raised as much as Rs 1.7 million from each youth after the ministry enforced the E-7 Visa Work Procedure. “Not only for South Korea, we have received information that money has been raised from youths by promising them job opportunities in countries like Israel and the Seychelles,” Aryal said. “We are studying the matter.”
According to Aryal, recruitment companies managed to get work demand for 15,000 workers for Israel and the Seychelles endorsed by the related agency.
Aryal has sought written responses from the Director General and other officials after it was found that the Department of Foreign Employment even gave pre-approval for such demand letters.
Govinda Rijal, the spokesperson for the ministry, said recruitment companies will have to return the money collected from youths. “If youths file complaints with us with proof, the government will refund the youths by deducting the money from deposits furnished by recruitment companies,” Rijal added.
Recruitment companies are required to furnish deposits of Rs 20-50 million to acquire licenses.