Singapore Post Ltd. (SingPost) has dismissed its CEO, Vincent Phang, along with several senior executives, following allegations of misconduct in its international e-commerce logistics operations, as pera report by Bloomberg.
What did the company say?
In a statement issued on Sunday, the Temasek Holdings-backed company said it launched investigations after receiving a whistleblower report, the Bloomberg report added.
The report accused certain employees of manually altering data to avoid penalties outlined in a contract with one of the company’s key clients. The report was also submitted to a government regulator, according to SingPost.
As part of its internal review, SingPost dismissed three managers involved in the violations and filed a police report against them. Additionally, CEO Phang, Chief Financial Officer Vincent Yik, and Li Yu, the head of its international business unit, were terminated after the company determined they were “grossly negligent” in handling the issue and had made “serious misrepresentations” to the audit committee regarding the allegations, as quoted by Bloomberg.
To ensure business continuity, SingPost announced plans to appoint a new CEO and named Isaac Mah, the CFO of its Australian business, as Yik’s replacement. In the interim, Chairman Simon Israel will oversee senior management, the Bloomberg report added.
The company also confirmed it would pay a settlement to the unidentified customer involved. SingPost assured stakeholders that the settlement would not materially impact its net tangible assets, earnings per share, or financial results for the current year, as per Bloomberg report.
In a separate statement, Phang and Yik contested their termination, calling it “without merits, and procedurally unfair.” Both rejected claims of gross negligence and vowed to “vigorously contest” their dismissal.
This development underscores ongoing challenges in corporate governance, as SingPost works to restore trust and integrity within its operations. Further updates are expected as the situation unfolds.
(With inputs from Bloomberg)
