Urgent Call for Independent Inquiry

The Securities Investors Association (Singapore) (Sias) has urgently called for an independent professional inquiry into the shocking dismissal of three senior executives at Singapore Post (SingPost). This demand arises from deep concerns among shareholders who are eager to understand the full circumstances surrounding the firings.

Details of the Dismissals

The abrupt terminations, which involved SingPost's group CEO Vincent Phang, group CFO Vincent Yik, and the CEO of the international business unit Li Yu, were announced on December 21 following an investigation triggered by a whistle-blower report. The allegations in the report claim that delivery status codes for parcels meant for an international e-commerce client were adjusted to show "delivery failure" despite no delivery attempts being made. This manipulation allegedly aimed to evade penalties associated with service failures.

Concerns from Sias

In a statement on January 2, David Gerald, president and CEO of Sias, expressed the need for clarity, stating, “The sudden dismissal of these three executives, coupled with their strong refutation of the claims, raises crucial questions that shareholders and investors cannot ignore.” He emphasized that the immediate terminations suggest serious breaches of conduct, warranting thorough investigation.

Stock Market Reaction

SingPost's stock saw a decline from 56 cents to 50 cents within a day of the news breaking, before rebounding slightly to 54 cents by January 2. As shareholders grapple with the implications of these firings, Gerald pointed out discrepancies between public statements made by SingPost and those by the executives themselves, adding to the controversy.

Questioning the Board's Competence

Gerald also questioned whether SingPost’s board is fit to conduct an investigation “given the apparent severity of the claims” and expressed doubts about the internal audit team's independence and competence. He called for transparency regarding the consultants and forensic specialists involved in the internal review process.

Impact on Operations and Shareholder Value

Highlighting the potential impact on SingPost's ongoing operations, Gerald raised concerns about leadership vacuums created by these firings, especially during crucial periods like the strategic sale of SingPost's Australia freight business. He further noted that ongoing litigation may impose significant legal costs on the company, possibly compromising shareholder value and investor confidence.

Call for Assurance in Corporate Governance

In a market-sensitive context, he stated, “Retail investors, who represent a sizeable portion of our shareholder base, deserve assurance that corporate governance processes are not just rigorous but also transparent.”

Need for Comprehensive Inquiry

Mr. Gerald's remarks underscored the urgent need for a comprehensive inquiry to address the multitude of issues stemming from this episode. He concluded, “Only an independent investigation can restore trust in SingPost’s governance, ensuring that not only is justice done, but it is seen to be done.”

Broader Themes of Corporate Accountability

The unfolding situation at SingPost highlights broader themes of corporate accountability and the critical role of transparent governance structures in protecting shareholder interests. As the company's future direction remains uncertain, all eyes are on how SingPost will respond to these mounting pressures.