Singapore Post Appoints New CFO Amid Executive Overhaul Following Whistleblower Report

Singapore Post (SingPost) has appointed Isaac Mah as its new Group Chief Financial Officer (CFO), following an internal investigation that led to the termination of three senior executives, including the former CFO Vincent Yik. The investigation was triggered by a whistleblower report alleging improper manual entries of delivery status codes by employees in the international e-commerce logistics unit (SP IBU Ops) to avoid contractual penalties.



Mah, who has been serving as the CFO of SingPost's Australian business, FMH Group, since 2019, will assume the role of interim group CFO. His appointment comes as SingPost undergoes a strategic review and divestment of non-core businesses, including the sale of its Australian assets to private equity firm Pacific Equity Partners for A$1.02 billion ($638.21 million).



The internal investigation revealed serious breaches of the company's code of conduct, leading to the termination of Group CEO Vincent Phang, CFO Vincent Yik, and CEO of the international business unit Li Yu. The executives were found to have been "grossly negligent" in handling the whistleblower report and the subsequent investigation, misrepresenting key information to the audit committee, and failing to consider critical facts that affected their decision-making.

“The investigation revealed serious breaches of the company’s code of conduct. The Board has lost confidence and trust in the judgment of GCEO, GCFO and CEOIBU, and in their ability to perform their duties towards promoting and protecting the interests of the Company.”

SingPost has also announced that it will pay a settlement to the affected customer, whose details the firm did not disclose. The settlement will not have a material impact on the company's net tangible assets, earnings per share, or the current financial year.

“The company plans on announcing a new CEO in due course, and will appoint Isaac Mah, currently CFO of its Australian business, to replace Yik.”

Mah's appointment as the new CFO is expected to help restore investor confidence in SingPost's financial management. His proven track record in the Australian business, successful sale of the Australian assets, and internal promotion indicate his capability to manage financial aspects of the business and make strategic decisions.

“Isaac Mah’s appointment will ensure business operations continue as usual, and we are confident that his experience and capabilities will be invaluable in maintaining the company’s financial health and stability during this time.”

The appointment of Mah as the interim group CFO provides continuity and stability to the company's financial operations, which is particularly important given the recent terminations and the need for a smooth transition in leadership. His familiarity with the group's operations, financial structures, and business dynamics will enable him to quickly grasp the complexities of the situation and make informed decisions.

“Isaac Mah’s experience in the Australian business, particularly his role as CFO of FMH Group, SingPost’s Australian business, contributes to his ability to address the previous issues in several ways. His familiarity with the group’s operations, financial structures, and business dynamics will enable him to quickly grasp the complexities of the situation and make informed decisions.”

In the meantime, SingPost's board chairman Simon Israel will oversee the senior management of the company in the interim. The company plans to announce a new CEO in due course, as it continues to focus on its strategic initiatives, including the divestment of non-core businesses and the transformation of its Singapore postal business to provide a pathway for future growth.

“The Board’s response sets out the two phases of the investigation, the first focusing on the e-commerce shipment data falsification which was identified through two whistleblowing reports, and the second on the senior executives’ conduct in handling the whistleblowing matter. The account details the due process followed throughout the disciplinary proceedings, ensuring that the affected executives were given the opportunity to be heard, before the Board’s decision.”

The recent events at SingPost highlight the importance of a robust whistleblowing process within the governance framework, ensuring employees feel protected when coming forward and assured that their allegations will be addressed impartially and effectively. The termination of the senior management was a carefully considered decision by the Board, based on established facts and supported by legal advice, including a second independent opinion from Senior Counsel of another law firm. This decision reflects the Board's unwavering commitment to governance principles, prioritizing what is right, even when it is more challenging in the short term, in the best interests of the Company.

“This incident underscores the importance of a robust whistleblowing process within the governance framework. It ensures employees feel protected when coming forward, and assured that their allegations will be addressed impartially and effectively.”

As SingPost moves forward, investors can expect the company to maintain its focus on strategic initiatives, including the divestment of non-core businesses and the transformation of its Singapore postal business. With the appointment of Isaac Mah as the interim group CFO and the ongoing search for a new CEO, SingPost is well-positioned to navigate the challenges ahead and continue its growth trajectory.

“Singapore Post is well-positioned to navigate the challenges ahead and continue its growth trajectory, with the appointment of Isaac Mah as the interim group CFO and the ongoing search for a new CEO.”