According to Bloomberg, Singapore Post Limited (SingPost) has fired its CEO Vincent Phang and several senior managers due to accusations of misconduct in its international e-commerce logistics business.
What does the company say?
The Bloomberg report added that the Temasek Holdings-backed company said in a statement on Sunday that it launched an investigation after receiving a whistleblower report.
The report accuses some employees of manually changing data to avoid penalties specified in a contract with one of the company’s major customers. The report was also submitted to government regulators, according to SingPost.
As part of an internal review, SingPost fired three managers involved in the irregularities and lodged police reports against them. Additionally, CEO Phang, Chief Financial Officer Vincent Yik and international business unit head Li Yu were fired after the company determined they were “grossly negligent” in handling the issue and made “material misrepresentations” to the audit committee, as cited by Bloomberg , regarding these accusations.
To ensure business continuity, SingPost announced plans to appoint a new CEO and appointed its Australian operations chief financial officer Isaac Mah to succeed Yik. The Bloomberg report adds that chairman Simon Israel will oversee senior management during this period.
The company also confirmed it would pay settlements to unnamed customers involved in the case. According to Bloomberg, SingPost assured stakeholders that the settlement will not have a material impact on its net tangible assets, earnings per share or financial performance for the current year.
In a separate statement, Phang and Yik challenged the dismissal, saying it had “no basis and was procedurally unfair.” Both men have denied accusations of gross negligence and vowed to “vigorously oppose” their dismissal.
This development highlights the ongoing challenges in corporate governance as SingPost works to restore trust and integrity in its operations. Further updates are expected as the situation develops.
(With inputs from Bloomberg)