SingPost issue is corporate governance matter; IMDA keeping close watch on postal services: Govt

The Singapore Post issue is one that concerns corporate governance, and the board is dealing with it, said Senior Minister of State for Digital Development and Information Tan Kiat How in Parliament on Jan 7.

He added that the incident was confined to international transshipment parcel delivery overseas, and did not affect regulated domestic postal services.

He was answering questions from MPs on SingPost firing three of its executives in December 2024, following a whistle-blowing report and internal investigations.

The report concerned the alleged falsification of e-commerce shipment data for a SingPost customer.

Group chief executive Vincent Phang, group chief financial officer Vincent Yik, and CEO of the company’s international business unit Li Yu were fired on Dec 21 after SingPost concluded investigations into the whistle-blower’s report.

Workers’ Party MP Louis Chua (Sengkang GRC) asked if the Government would be conducting further reviews of SingPost to identify any non-compliance matters, while People’s Action Party (PAP) MP Saktiandi Supaat (Bishan-Toa Payoh GRC) asked if the Ministry of Digital Development and Information was aware of any manual manipulation of delivery status codes for parcel deliveries in Singapore.

“SingPost’s board has assured the Government that postal service operations are not affected,” Mr Tan said.

“Nonetheless, the Infocomm Media Development Authority (IMDA) will continue to keep a close watch to uphold the public’s interests.”

He added that as the public postal licensee, the Government expects SingPost to meet its obligations for its regulated postal businesses.

“These include ensuring that domestic letter delivery meets IMDA’s Quality of Service standards. SingPost’s Quality of Service performance is independently audited and the results are published on IMDA’s website. Over the last four years, SingPost has performed within (these) standards,” he said.

He noted that postal services for legal notices and court orders are also not affected.  

But Mr Tan said IMDA was concerned about the simultaneous dismissals of senior executives in a company providing essential postal services.

“Hence, IMDA had issued SingPost an advisory to uphold proper corporate governance and processes,” he said.

He noted that a postal sector review is ongoing and has not been affected by the whistle-blowing report or the dismissals.

“IMDA will continue to work closely with the chief executive of SingPost’s Singapore business unit, who remains in the role. Our postal services have to transform to remain sustainable and accessible, while safeguarding the interests of the public and postal workers,” Mr Tan said.

The PAP’s Dr Tan Wu Meng (Jurong GRC) asked if there was any concern that what happened in the international part of the business might spill over to the domestic part.

Mr Tan reiterated that the whistle-blowing incident did not affect domestic letter delivery, but added that IMDA is concerned about the findings of the incident and the dismissals.

“(We) are monitoring the situation closely to ensure that domestic postal services remain unaffected, especially during this period when the new group CEO has yet to be appointed.”

Mr Chua also asked if the Government would consider conducting its own review of SingPost, given that the dismissed executives have disputed the claims the company has made against them.

All three executives have contested the termination of their employment, which they said was unfair and without merit.

The Securities Investors Association (Singapore), or Sias, also called for an independent, professional inquiry, after noting discrepancies between what SingPost said in its exchange filings and what two of the dismissed executives said in their statements to the media.

Mr Tan said: “I wouldn’t talk more about it, because there might be litigation action between the parties. But from IMDA as a regulator, our primary concern is to make sure that the domestic services continue and are not affected.”

In a media statement on Jan 7, SingPost’s former group CEO, Mr Phang, and former CFO, Mr Yik, said that if there is an inquiry like the one called for by Sias, they are prepared not to pursue litigation options.

“The primary objective for us is to establish the full facts of the case and re-establish our standing and careers rather than to pursue damages,” they said.

“In this regard, we are also prepared for our full responses to the company on the issue, which address all the allegations, to be released to ensure that all relevant facts are made known.”

In Parliament, Mr Tan noted that an advisory note has been sent to the SingPost board and that the company is taking this issue seriously.

“The chairman has indicated he will step up to provide closer guidance to management. The Singapore business unit CEO, who directly oversees domestic postal services, remains in the role, and the group CFO has been replaced by an experienced executive,” he said.

“SingPost has also newly created a group chief operating officer role and a person has been appointed to oversee the domestic operations. So these are steps that SingPost has taken, and IMDA as a regulator will continue to monitor this situation closely,” Mr Tan added.

SingPost on Jan 2 said it had appointed Ms Neo Su Yin as chief operating officer. It also appointed Mr Isaac Mah, a former finance head of Australian operations, as group CFO.

Source: Straits Times © SPH Media Limited. Permission required for reproduction.

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