corporate

Singapore Post fires group CEO, CFO over handling of whistleblower report

SINGAPORE: Singapore Post (SingPost) has terminated its group chief executive officer, group chief financial officer, and the chief executive of the company's international business unit following an internal investigation that found they had mishandled whistleblower allegations of misconduct involving company employees.

The allegations concerned several staff members in the company's international e-commerce logistics parcels business.

The company said group CEO Vincent Phang, CFO Vincent Yik and the chief executive of the company's international business unit, Li Yu, were dismissed after an external law firm's review of the trios' conduct in the investigation of the whistleblower report was found to have been "grossly negligent".

They were terminated with immediate effect on Dec 21, the Straits Times reported.  

The company said, the trio omitted to consider material facts that compromised their decision-making and/or failed to perform their duties responsibly and reliably.

The board of SingPost said it has "lost confidence and trust" in the judgment of the three, and in their ability to perform their duties towards promoting and protecting the interests of the company.

Phang and Yik have each, through their solicitors, indicated that they will vigorously contest the termination of their employment, both on merit and on the grounds of procedural unfairness.

Phang and Yik joined the company in 2021, while Li joined in 2022.

The company said it planned to announce a new CEO in due course. Isaac Mah, the current CFO of its Australian business, FMH Group, will be appointed as the new group CFO.

SingPost board chairman Simon Israel will provide enhanced guidance to, and exercise closer oversight of the senior management team.

 An acting CEO will be appointed to lead the international business unit, pending a board review of the unit.

SingPost received a whistle-blowing report relating to its non-regulated international e-commerce logistics parcels business earlier in 2024.

Investigations into the report found that three managers in the company's international business unit had "committed serious breaches of the company's code of conduct".

They made manual updates on "one of its largest" customers' deliveries that were not in accordance with the company's standard processes.

The employment of the three individuals has been terminated, and a police report filed against them.

SingPost assured that postal services in Singapore will remain unaffected, as each of its business units has its own leadership team and will continue to operate as normal.

Meanwhile, SingPost has informed its customers about the whistleblower report and the subsequent findings.

A settlement has been reached, under which, among other terms, the company will pay a sum instead of penalties.

SignPost said its business with the customer has not been materially affected – with its contract with the customer renewed following the settlement.

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