23-12-2024 (SINGAPORE) Singapore Post Limited (SingPost) has dismissed three top executives following a probe into alleged misconduct in its international e-commerce logistics operations.
The postal service provider terminated the employment of Group Chief Executive Officer Vincent Phang, Group Chief Financial Officer Vincent Yik, and Chief Executive of International Business Unit Li Yu with immediate effect on Saturday. The dismissals came after investigations revealed “grossly negligent” conduct in their handling of internal investigations.
The market response was swift and severe, with SingPost shares plummeting more than 8% to 51 cents when trading commenced on Monday, marking a sharp decline from Friday’s closing price of 56 cents.
The controversy stems from a whistleblower report concerning the company’s international e-commerce logistics parcel business. The report exposed unauthorised manual entries of delivery status codes by the international business unit for transhipment parcels, allegedly made to circumvent contractual penalties under an agreement with a major customer.
Three managers directly involved in the scandal were found to have breached the company’s code of conduct by inputting or authorising fraudulent “delivery failure” codes without attempting deliveries or maintaining proper documentation. These individuals have been dismissed, and law enforcement has been notified.
The investigation, which included independent review by external professional advisers, revealed that the three senior executives had demonstrated serious lapses in judgment. They were found to have placed excessive trust in misrepresentations from the international business unit without seeking independent verification, subsequently providing misleading information to the audit committee.
In response to their dismissal, Mr Phang and Mr Yik have announced their intention to contest the decision, citing both merit-based objections and procedural unfairness. In a joint statement, they maintained their innocence, asserting they had “acted in the best interests of the company” and adhered to “the highest standards of leadership and management.”
To ensure business continuity, SingPost has appointed Isaac Mah, the current CFO of its Australian operations, as the new Group CFO. Board Chairman Simon Israel will provide enhanced oversight of the senior management team while the search for a new Group CEO proceeds. The company has also indicated plans to appoint an acting CEO for the international business unit pending further review.
SingPost has assured stakeholders that postal services will continue uninterrupted and that the company has reached a settlement agreement with the affected customer. The settlement is not expected to materially impact the company’s financial performance for the current fiscal year.
The scandal marks a significant turning point for SingPost, which has been expanding its global presence, particularly in Australia, under Mr Phang’s leadership since his appointment as Group CEO in September 2021.
