SingPost met service quality standards last 4 years, recent issues a matter of corporate governance: Govt

Domestic postal services were not affected by recent issues surrounding SingPost, said Senior Minister of State for Digital Development and Information Tan Kiat How in parliament on Jan. 7.

Nevertheless, the Infocomm Media Development Authority (IMDA) has issued SingPost an advisory to uphold proper corporate governance and processes as they were concerned about the simultaneous dismissals of three executives.

Tan was responding to questions from Members of Parliament (MPs) about the whistleblowing report and how it would affect Singapore's ongoing review of postal services.

Incident did not affect domestic postal services

Tan noted that the report concerned the alleged falsification of e-commerce shipment data for one of SingPost's customers.

However, Tan pointed out that the Infocomm Media Development Authority (IMDA) had assessed that the incident was confined to international transshipment and overseas parcel delivery and did not affect regulated domestic postal services.

SingPost's board has also assured the government that postal service operations, including those for legal notices and court orders, have not been affected, Tan said.

SingPost issued advisory by IMDA

Tan deemed it as a matter of "corporate governance" that SingPost's board is dealing with but noted that IMDA will continue to keep a close watch to uphold public interest given SingPost's status as a public postal licensee (PPL).

"We expect SingPost to meet its obligations for its regulated postal businesses. This includes ensuring that domestic letter delivery meets IMDA's Quality of Service or QoS standards," Tan said.

Tan disclosed that SingPost's performance is independently audited, and over the last four years, it has performed within the QoS standards.

Nevertheless, Tan said the government was "concerned" given the simultaneous dismissals of senior executives in a firm providing essential postal services.

"Hence, IMDA has issued SingPost an advisory to uphold proper corporate governance and processes given its PPL status".

Will govt review SingPost's management?

On whether the incident will affect the ongoing postal service review in Singapore, Tan said it would.

He said IMDA will continue to work closely with the CEO of SingPost's Singapore business unit, who remains in the role.

"Our postal services have to transform to remain sustainable and accessible while safeguarding the interests of the public and postal workers," Tan added.

MP Louis Chua asked Tan if the government would consider conducting its own review of SingPost as a firm to ensure that it is managed adequately.

Chua also noted that the dismissed executives have disputed the claims made in the whistleblowing report.

Tan declined to discuss this matter further, saying there might be litigation between the parties.

As for the topic of reviewing SingPost's management, Tan stressed that for IMDA as a regulator, its primary concern is to ensure that domestic postal services continue and are not affected and noted that SingPost had taken some steps to ensure this.

For example, SingPost's chairman has promised to provide closer guidance to management, an experienced executive has replaced SingPost's chief financial officer (CFO), and SingPost has appointed a new chief operating officer (COO) to oversee domestic operations, Tan said.

"So these are steps that SingPost has taken, and IMDA, as a regulator, will continue to monitor this situation closely", Tan said.

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