On December 22, Singapore Post announced it terminated three individuals including the CEO and two senior executives following an internal investigation that determined the company mishandled allegations about employees’ misconduct in business operations.

According to Reuters, a whistleblower came forward with complaints about several workers in the company’s international e-commerce logistics parcels business. The whistleblowing report alleged that three employees had approved or updated a “delivery failure” code for parcels, when no delivery was completed,  to avoid contractual penalties from one of Singapore Post’s largest customers.

Singapore Post determined that CEO Vincent Phang, the chief of the company’s international business unit Li Yu, and Chief Financial Officer Vincent Yik were “negligent” in handling this case. The company also found they misrepresented what happened when brought before an audit committee.

At this time, Chair Simon Israel will oversee Singapore Post’s senior management. The company plans to announce a new CEO “in due course.”

The Wall Street Journal says Singapore Post will pay an undisclosed settlement to the customer. And the Financial Times the scandal could not have come at a worse time for the company given the ever-stiffening competition the company has faced from global delivery providers like DHL, UPS, and FedEx, and also from tech-enabled start-up providers offering same-day delivery at lower prices. “All of that means trust and a reputation for reliability are emerging as critical differentiators for logistics companies in the competitive market.” The company filed a statement with the stock exchange on December 22.

Phang and Yik have denied any wrongdoing, stating they will “vigorously contest” their terminations, “both on merits and on the grounds of procedural unfairness.”

Singapore Post encourages whistleblowing and urges staff to raise any concerns about the business and staff. The company is committed to its strict policies, according to its Code of Conduct, noted online.

In the wake of this news, the company’s shares suffered the largest drop in more than four years.

If you have any information concerning misconduct or would like to learn more about what it means to be a whistleblower , please do not hesitate to contact us.  We will connect you with an experienced member of the Constantine Cannon Whistleblower Team for a free and confidential consult.

Read Singapore Post Terminated Three Executives Over Mishandling Whistleblower’s Allegations at constantinecannon.com