Introduction

In a dramatic turn of events, two senior executives recently fired by Singapore Post (SingPost) have publicly stated that they were not fully informed about the situation surrounding a whistleblower's report when they were asked to provide their perspectives.

Vincent Phang, the former group CEO, and Vincent Yik, the former group chief financial officer, assert that they will challenge the company's decision to terminate their employment, arguing that their dismissals were 'without merits' and were the result of an unfair process.

Background

Their termination follows a whistleblower complaint received in January, leading to internal investigations into alleged misconduct within the company’s international business unit. SingPost accused Phang and Yik, alongside former international business unit CEO Li Yu, of making 'false assertions' during the inquiry, particularly regarding falsified parcel shipment data.

A board review took place during meetings on March 11 and April 3, where management's statements appeared to contradict the findings from the Group Internal Audit (GIA). Consequently, the audit committee sought legal counsel and forensic expertise to ensure an unbiased examination.

Executives' Response

In a statement made on December 31, Phang and Yik explained that they provided their input on the investigations based on the information available to them at that time. 'Full facts came to light only after the external forensic team's investigations established the causative correlation on April 27, 2024,' they noted.

Company's Stance

SingPost's chairman, Simon Israel, emphasized that the decision to terminate the senior executives was a 'carefully considered' one, undertaken with legal guidance and enhanced scrutiny through external counsel.

What Went Wrong?

The scandal erupted when a whistleblower reported that there was a practice within the international business unit of manipulating delivery failure data for various parcels designated for one of SingPost's largest customers. It was alleged that these inaccurately coded entries were made to evade contractual penalties, leading to severe implications for the integrity of the company’s operations.

In the wake of these revelations, three employees linked to the misconduct were terminated in June, and police reports were lodged against them.

Corporate Governance Implications

SingPost's board instructed management to adequately inform the affected customer, resulting in a settlement agreement. As the investigation progressed, it became evident that the executives' conduct during the preliminary inquiries was also under scrutiny.

SingPost pointed out that the executives allegedly claimed there was no data manipulation and insisted that the practices followed industry standards, which the customer was purportedly aware of. However, Phang and Yik argue that a significant portion of the questioned shipments were connected to challenging locations, including conflict zones, complicating the situation further.

Conclusion

As this evolving story continues to unfold, it raises critical questions about corporate governance and accountability within SingPost, highlighting the need for transparency in how similar issues are handled in the future. The implications of these events extend beyond the company, potentially impacting trust in the larger logistics industry amidst increasing scrutiny on ethical practices.