Singapore Post names new CFO in executive overhaul after whistleblower report (updated)

Singapore Post

31/12/2024 08:52

* 
      Isaac Mah appointed as Singapore Post's new group finance
chief
    

        * 
      Three senior executives, including CFO and CEO, dismissed
for
mishandling of whistleblower report on misconduct
    

        * 
      CFO and CEO to 'vigorously contest' termination 
    

  
 (Adds official response from Phang and Yik released on Dec. 31)
       Dec 30 (Reuters) - Singapore Post  SPOS.SI  has
appointed the CFO of its Australia business as group finance
chief, the company said on Sunday, a week after dismissing its
CFO and two senior executives for mishandling a whistleblower
report.
    Isaac Mah, who joined Singapore Post in 2019, most recently
oversaw the sale of the company's Australia business to private
equity firm Pacific Equity Partners.
    The Temasek-backed company has said it will name a new group
CEO in due course.
    Singapore Post fired group CFO Vincent Yik last week, along
with CEO Vincent Phang and its international business unit chief
Li Yu, after they were found to be "negligent" in handling a
whistleblower report.
    The alleged misconduct reported by the whistleblower related
to several employees who worked in the company's international
e-commerce logistics parcels business.
    Shares of Singapore Post have dropped 5.4% since the company
announced the dismissals last week.
    Temasek  TEM.UL  is the largest shareholder of Singapore
Post with a 21.75% stake in the company, followed by Alibaba
Investment with a 11.21% stake, LSEG data showed. 
    Phang and Yik have indicated they will "vigorously contest"
the termination of their employment.
    They said in a joint statement on Tuesday that after the
whistleblowing report was submitted, Singapore Post management
did not take part in the investigation as set down in the
company's whistleblowing policy.  
    The duo were asked for their views on the incident on March
11 and April 3 and responded accordingly based on the facts
provided to them at that time.
        But they only became aware of the full facts on April 27
following investigations by the external forensics team, they
added. 
        "A significant majority of the shipments in question
were linked to destinations where there were known issues - such
as conflict zones (for example Israel). 
    "It was therefore important to establish the financial
impact prior to communicating with the customer as well as
determining any wrong doing by junior staff members." 
        Phang and Yik added that the management was briefed on
the external forensic team's "conclusive" findings. The duo then
agreed with and followed the instructions of the board. 
        "A settlement with the customer was then concluded that
did not have a material financial impact," they said, adding
that details of their full responses were submitted to the board
on Nov. 22.
    Phang and Yik's statement did not disclose the identity of
the customer.
   

 (Reporting by Aaditya Govind Rao in Bengaluru and Yantoultra
Ngui in Singapore; Editing by Savio D'Souza and Nicholas Yong)
 ((Aaditya.GovindRao@thomsonreuters.com;))