Singapore Post CEO and Top Executives Ousted Amid Allegations of Misconduct

Singapore Post Ltd. (SingPost) has dismissed its Chief Executive Officer (CEO), Vincent Phang, along with several senior executives, following allegations of misconduct in its international e-commerce logistics operations.

According to a statement issued on Sunday, SingPost launched investigations after receiving a whistleblower report, which accused certain employees of manually altering data to avoid penalties outlined in a contract with one of the company's key clients. The report was also submitted to a government regulator.

The dismissed executives, including Phang, Chief Financial Officer Vincent Yik, and Li Yu, the head of its international business unit, were deemed "grossly negligent" in handling the issue and had made "serious misrepresentations" to the audit committee regarding the allegations. As part of its internal review, SingPost also filed a police report against the three managers involved in the violations.

To ensure business continuity, SingPost announced plans to appoint a new CEO and named Isaac Mah, the CFO of its Australian business, as Yik's replacement. In the interim, Chairman Simon Israel will oversee senior management.

The company has confirmed it would pay a settlement to the unidentified customer involved in the allegations. SingPost assured stakeholders that the settlement would not materially impact its net tangible assets, earnings per share, or financial results for the current year.

Phang and Yik have contested their termination, calling it "without merits, and procedurally unfair." Both rejected claims of gross negligence and vowed to "vigorously contest" their dismissal.

The ouster of Phang and other top executives underscores ongoing challenges in corporate governance, as SingPost works to restore trust and integrity within its operations. Further updates are expected as the situation unfolds.