SingPost terminates senior executives following probe into whistleblower claims

Singapore Post Limited (SingPost) has terminated three of its senior executives following a whistleblower’s report that exposed significant misconduct in the handling of the company’s international e-commerce logistics operations.

The group CEO, Mr Vincent Phang; group CFO, Mr Vincent Yik; and the CEO of the International Business Unit (IBU), Mr Li Yu, were dismissed after disciplinary investigations revealed serious lapses.

According to SingPost’s filing with the Singapore Exchange (SGX) on 22 December 2024, the whistleblowing report, submitted earlier this year, accused the international business unit of falsifying delivery failure (DF) status codes for international transhipment parcels.

These manual entries, lacking documentation or justification, were allegedly made to evade contractual penalties tied to service delivery standards.

Internal and external investigations

An internal review led by the Group Internal Audit team, under the oversight of the Audit Committee, was launched promptly after the whistleblower’s report.

SingPost also engaged external legal counsel and forensic experts to assess the allegations independently. The findings confirmed that three managers from the IBU had breached the company’s code of conduct by improperly recording delivery status updates.

The company subsequently terminated the managers involved and filed a police report against them. It also notified the Infocomm Media Development Authority of Singapore (IMDA) about the findings.

Following the conclusion of this probe, attention turned to the senior leadership’s oversight of the internal investigations and their renewal of a major agreement tied to the whistleblower’s claims.

Lapses in senior management

Disciplinary proceedings found that Mr Phang, Mr Yik, and Mr Li demonstrated “gross negligence” by failing to investigate or substantiate claims from the IBU’s representatives before presenting these to the Audit Committee.

SingPost stated that the executives “accorded undue weight to misrepresentations” and omitted critical facts, compromising decision-making and breaching their duties of care.

As a result, the board expressed a loss of confidence in their ability to uphold the interests of the company and concluded their employment on 21 December 2024. Mr Phang has also been asked to resign from all directorial positions associated with SingPost.

Leadership changes and continuity

To maintain operational stability, SingPost announced interim leadership measures. Chairman of the board, Mr Simon Israel, will oversee senior management until a new group CEO is appointed.

Mr Isaac Mah, CFO of SingPost’s Australian subsidiary, has been named the incoming group CFO, subject to regulatory approvals. An acting CEO will lead the International Business Unit during the transition.

SingPost reassured stakeholders that postal services in Singapore and other operations would continue unaffected. The company emphasised the implementation of robust business continuity measures to minimise disruption for customers, employees, and partners.

Settlement with a key customer

The whistleblower’s allegations also triggered a review of SingPost’s agreements with one of its largest customers. A settlement was reached in lieu of penalties for the falsified delivery status updates. SingPost stated that the settlement is unlikely to materially impact its net tangible assets or earnings per share.

Executives contest terminations

Both Mr Phang and Mr Yik, through their legal representatives, have indicated plans to contest their dismissals, citing procedural unfairness.

Mr Phang, who joined SingPost in 2019 and rose to group CEO in 2021, played a key role in expanding the company’s cross-border e-commerce logistics globally. His tenure, however, will now be remembered for this corporate governance crisis.

SingPost reaffirmed its commitment to transparency and governance, stating that the disciplinary actions reflect the company’s rigorous approach to accountability. Further announcements will be made as the leadership transition progresses.