SINGAPORE: Singapore Post (SingPost) has announced it will not publish the findings of an internal investigation into whistleblowing allegations, according to a filing with the Singapore Exchange (SGX) late on Sunday, 29 December.
The announcement comes after the company terminated the employment of Group Chief Executive Officer Vincent Phang, Group Chief Financial Officer Vincent Yik, and Chief Executive of the international business unit Li Yu on 22 December.
The three senior executives were dismissed for gross negligence in their handling of whistleblowing allegations.
In addition to the senior executives, three managers directly involved in the issue were also sacked following the internal investigation.
A police report has been lodged against the managers.
The Allegations and Investigation
Earlier this year, a whistleblower filed a report alleging irregular practices in SingPost’s international e-commerce logistics operations.
Specifically, the report highlighted that manual entries were made to certain delivery status codes for international transhipment parcels.
These entries were allegedly made without proper documentation or justification, and with the intent to avoid contractual penalties under an agreement with one of the company’s largest customers.
The internal investigation revealed that three managers had engaged in serious misconduct.
They were found to have performed or approved false “delivery failure” status codes for parcels that had not been subject to any delivery attempt.
SingPost determined that these actions breached the company’s code of conduct, leading to their dismissal and a police report.
Mr Phang, Mr Yik, and Mr Li were found to have given undue weight to misrepresentations made by representatives from the international business unit. This gross negligence during the internal investigations led to their termination.
Confidentiality of Findings
In response to a query from the Securities Investors Association Singapore (SIAS) about whether the company would publish the findings of its investigation, SingPost referred to its announcements on 22 December and late Sunday night.
The company clarified that the settlement with the affected customer had no material financial impact on the group. It further noted that the details of the previous and renewed contracts with the customer, as well as the terms of the settlement, remain confidential.
“The company will make further announcements as and when there are material developments,” SingPost stated.
Measures Taken and Future Steps
SingPost assured stakeholders that the issue was isolated to the specific contract and the practices of the three dismissed managers. The improper manual data entries ceased after the audit committee instructed the management to halt such practices.
To prevent similar occurrences in the future, corrective actions have been implemented to address operational gaps. As part of its internal audit plan, the company’s audit committee and independent internal auditors will review the effectiveness of these measures.
SingPost’s board expressed confidence in the adequacy of the group’s internal controls and risk management systems, while acknowledging that no system could fully prevent deliberate misconduct or fraud.
Impact on Business Operations
The retail investor watchdog SIAS also questioned whether the sacking of the three senior executives would affect SingPost’s sale of its Australian subsidiary, Freight Management Holdings (FMH).
SingPost responded that the sale process remains on track and is not expected to be impacted by the recent dismissals.
The company announced in early December its plan to sell FMH to private equity firm Pacific Equity Partners for A$775.9 million (US$504.1 million).
The sale is expected to generate a gain of S$312.1 million and is subject to shareholders’ approval at an extraordinary general meeting scheduled for February 2025.
“The board is working closely with the management team to ensure the successful completion of the proposed divestment,” SingPost said.
