SingPost fires CEO, CFO & another senior executive over handling of whistleblower’s report

Singapore Post (SingPost) has fired three of its senior management staff.

The trio (pictured above) are group chief executive (CEO) Vincent Phang, group chief financial officer (CFO) Vincent Yik, and the chief executive of the company’s international business unit (IBU) Li Yu.

This was after they were found to be "grossly negligent" in the handling of internal investigations over a whistleblower’s report that it received earlier in 2024, Business Times and CNA reported.

Whistleblowing report also sent to authorities

SingPost said in an SGX filing on Sunday, Dec. 22 that it commenced investigations after a whistleblowing report was filed earlier in 2024.

The report pertained to the group's non-regulated international e-commerce logistics parcel business.

A whistleblowing report on the same matter was sent to the Infocomm Media Development Authority of Singapore (IMDA), SingPost also revealed.

Terminated with immediate effect

Disciplinary proceedings against the trio concluded at the close of business on Friday, Dec. 20.

Their employment was terminated with immediate effect on Dec. 21, 2024.

SingPost has also made a police report against the three managers in the IBU who were directly involved in the matter.

What the three managers allegedly did

The trio, who had been sacked, allegedly performed or approved manual updates of the “delivery failure” status code for parcels SingPost had agreed to deliver by its international business unit.

These manual entries were allegedly done with the intention of avoiding contractual penalties under the agreement, as they were without basis or supporting documentation.

This contract was with one of SingPost's largest customers, it was reported.

What SingPost said

SingPost said external professional advisers were engaged to review and assess the matter independently of management during internal investigations.

This was so as the audit committee had “no assurance concerning management’s representations and handling of the internal investigations”.

An external law firm was later engaged to review management’s conduct.

SingPost found that the group CEO, group CFO and the CEO of the IBU were “grossly negligent” in the handling of the internal investigations.

Phang, Yik and Li were found to have not considered material facts that compromised their decision-making, and/or failed to perform their duties responsibly and reliably.

They were found to have accorded undue weight to the misrepresentations by representatives from IBU.

They did so without any independent substantiation or evidence, and had in turn made various serious misrepresentations to the audit committee, SingPost said.

The serious misrepresentations also effectively undermined SingPost’s group internal audit unit, which manages and investigates whistleblowing incidents, the company said.

The board said it has “lost confidence and trust” in the judgment of the three, as a result.

Contract with customer renewed

The whistleblowing report and the findings have been provided to the customer, SingPost said, and it would pay a settlement sum in lieu of the penalties, among other measures.

SingPost added that it does not expect the settlement to have a material impact on its net tangible assets or earnings per share for the current financial year.

Its business with the customer will go on as the contract has since been renewed following the settlement.

Duo will contest the decision

Phang was also been asked to resign as a director of SingPost and all its related companies.

Phang and Yik have indicated that they will "vigorously contest" their termination, SingPost said.

They said in a statement late on Saturday night, as reported by BT: “We disagree with and are disappointed at the decision of the board to terminate us from our roles at the company after years of dedicated and committed service.”

SingPost said it will announce the appointment of its new group CEO “in due course”.

Board chairman Simon Israel will provide increased guidance to and exercise greater oversight of the senior management leadership team.

Top photos via SingPost