Stringent vetting procedures are in place to guard against attempts to defraud or abuse the Protection of Wages on Insolvency Fund, Permanent Secretary for Economic Development & Labour said.

Responding to today's Commercial Crime Bureau's arrest of a company director and 10 people, all suspected of conspiracy to defraud the fund, Matthew Cheung stressed that every measure will be taken to prevent people from providing false information.

The Labour Department will vet applications and refer suspected frauds and fund abuse to the relevant authorities for investigation.

Mr Cheung pointed out that the department, Commercial Crime Bureau, Official Receiver's Office and Legal Aid Department have set up a special task force to clamp down on suspected fraud and fund abuse.

The team investigates possible frauds, misfeasance and theft by directors or workers.

He cautioned that the maximum penalty for providing false information in applying to the fund is a $50,000 fine and three months' imprisonment.