SingPost scandal: why it should have delivered disclosures sooner

When Singapore Post (SingPost) said on the evening of December 22, 2024, that it had sacked three top executives for mishandling internal investigations sparked by whistleblowing reports, I wondered if the story would get a proper airing over the Christmas and New Year period.

Three weeks on, the matter is still making headlines.

Photo credit: SingPost

One reason for the sustained interest in what happened is that the company operates a key public service with many stakeholders – the government not least among them.

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Tan Kiat How, senior minister of state for digital development and information, said in parliament last week that the government was monitoring the situation closely and that SingPost had been issued an advisory to uphold proper governance and processes.

Another reason the company is still being closely watched is that a major value-unlocking program is underway. Turmoil within its top management ranks could put plans to monetize hundreds of millions of dollars of assets at risk or create a buying opportunity for investors.

Over a 12-month period leading up to December 22, SingPost shares chalked up a total return of 20.4%. This was in sharp contrast to its 10-year total return of minus 62.5%.

Maybank said in a report last week that SingPost shareholders could receive as much as S$0.86 (US$0.63) per share from various asset divestments. The research house has a target price of S$0.77 (US$0.56) for the stock.

SingPost closed on January 14, 2025, at S$0.54 (US$0.39).

Perhaps the main reason the company is still under the spotlight is that it has simply failed to maintain control of the narrative surrounding the whistleblowing reports, and the disclosures it has made are now being second-guessed by market watchers.

In particular, SingPost did not seem prepared for the blowback from the three senior staff it fired – CEO Vincent Phang, CFO Vincent Yik, and international business unit CEO Li Yu.

The three of them have made statements about the company’s internal investigations that seem at odds with its own version of events.

On January 2, Singapore’s Securities Investors Association (Sias) issued a statement that pointed out some of these discrepancies and called for an independent professional inquiry.

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