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SingPost sacks three senior executives, including group CEO, over mishandling of whistleblower's report
Former group CEO Mr Vincent Phang and group CFO Mr Vincent Yik will "vigorously contest" their termination, said SingPost.
From left: Singpost senior executives Vincent Phang, Vincent Yik and Li Yu. (Photos: Singpost website)
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22 Dec 2024 10:11PM(Updated: 22 Dec 2024 11:36PM)
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SINGAPORE: Singapore Post has fired three of its senior executives after a probe into a whistleblower’s report found "grossly negligent" behaviour in their handling of internal investigations.
As part of disciplinary proceedings, SingPost terminated the employment of its group chief executive officer Mr Vincent Phang, group chief financial officer Mr Vincent Yik and chief executive of the company’s international business unit Mr Li Yu.
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SingPost said in an SGX filing on Sunday (Dec 22) that it commenced investigations after a whistleblowing report was filed earlier this year about the group's non-regulated international e-commerce logistics parcel business.
The report alleged that there were manual entries of certain delivery status codes by SingPost's international business unit. These were for international transhipment parcels which the company had agreed to deliver under an agreement with one of its largest customers.
These manual entries were allegedly done without basis or supporting documentation and with the intention of avoiding contractual penalties under the agreement.
Following an investigation, disciplinary proceedings were brought against three managers who were directly involved in the matter. It was found they had committed serious breaches of the company's code of conduct, SingPost said.
The managers were found to have performed or approved manual "delivery failure" status codes for parcels, even though no delivery attempt had been made and without supporting documents.
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They have been sacked and a police report made against them, it added.
"FAILED TO PERFORM THEIR DUTIES"
A whistleblowing report on the same matter was also sent to the Infocomm Media Development Authority of Singapore, said SingPost.External professional advisers were engaged to review and assess the matter independently of management.
SingPost said that the three senior executives were found to be "grossly negligent" in relation to their handling of internal investigations into the whistleblowing reports and renewal of the related agreement.
They also had "omitted to consider material facts that compromised their decision-making and/or failed to perform their duties responsibly and reliably".
In particular relation to the handling of the whistleblowing reports, SingPost said it was found that Mr Phang, Mr Yik and Mr Li had "accorded undue weight" to the misrepresentations by representatives from the international business unit operations.
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They did so without any independent substantiation or evidence, and had in turn made various serious misrepresentations to the audit committee, said SingPost.
Given the seriousness of these lapses and findings, SingPost said its board lost confidence and trust in the judgment of the three senior executives and in their ability to perform their duties towards promoting and protecting the interests of the company.
Disciplinary proceedings against Mr Phang, Mr Yik and Mr Li concluded at the close of business on Friday. Their employment was terminated with immediate effect on Saturday. Mr Phang was also asked to resign as a director of SingPost and all its related companies in accordance with his contractual obligations.
Mr Phang and Mr Yik have indicated that they will "vigorously contest" their termination, both on merits and on the grounds of procedural unfairness, said SingPost.
Mr Phang first joined SingPost in 2019 as the CEO for postal services and Singapore, which comprises post, parcel and logistics. He was appointed group CEO of SingPost in September 2021.
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According to his profile on SingPost's website, the group expanded into Australia under his leadership and developed its cross-border eCommerce logistics business globally.
He previously held senior leadership roles at ST Logistics and Toll and is deputy chairman of the Workplace Safety and Health Council.
Prior to joining SingPost in December 2021, Mr Yik was CFO at OUE Lippo Healthcare. His profile on the SingPost website shows he also previously held various key executive roles including at Far East Orchard and Australia Properties of Far East Organization, Sydney, as well as the Singapore branch of Australia & New Zealand Banking Group.
Mr Li was appointed CEO of SingPost's international business unit in September 2022. He previously oversaw global logistics and distribution for Asia-Pacific at the United Parcel Service and has worked in North America and Shanghai.
LEADERSHIP SUCCESSION
SingPost said it will announce the appointment of the group CEO in due course.ADVERTISEMENT
The current CFO of its Australian business, Mr Isaac Mah, will be appointed new group CFO.
In the interim, board chairman Mr Simon Israel will "provide increased guidance to and exercise greater oversight of the senior management leadership team in the company".
Postal services will not be affected, SingPost added.
An acting CEO will be appointed to lead the international business unit pending a board review. No appointment of a new chief executive is being proposed at this stage, said SingPost.
"The board recognises the importance of maintaining business continuity despite the events which have occurred following the whistleblowing reports, and the need to minimise the impact on its customers, employees, operations and assets," it said.
The company added that it believes that the "robust business continuity policies" and procedures which have been implemented, as well as the leadership succession plans, will serve to address the effects of any disruption which may be caused by such events.
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SingPost also said that it has informed the relevant customer about the whistleblowing reports and investigation findings. They have agreed on a settlement sum in lieu of penalties.
The settlement is not expected to have a material impact on SingPost’s net tangible assets or earnings per share for the current financial year, said the company.
It also noted that its business with the customer "has not been materially affected" and their contract was renewed following the settlement.
