Investing.com-- Singapore Post shares plunged on Monday after the company terminated its chief executive officer and two other executives with immediate effect following an internal investigation.
The company, on Sunday, dismissed Group CEO Phang Heng Wee, Chief Financial Officer Yik Yen Shan, and CEO of its international e-commerce logistics unit Li Yu, after an investigation found that they mishandled a whistleblower report alleging misconduct by company employees.
Shares of the company fell more than 8% to S$0.505, their lowest level since mid-November.
Earlier this year, the company received a whistleblowing report alleging improper manual entries of delivery status codes by its international e-commerce logistics unit (SP IBU Ops) to avoid contractual penalties.
After an investigation, the company initiated disciplinary proceedings against the aforementioned three executives.
These proceedings concluded on December 20, revealing gross negligence in their handling of internal investigations into whistleblowing reports and the renewal of a related agreement, as well as failure to consider critical facts, compromising their decision-making, the postal services provider said in a statement.
It was found that the three executives relied heavily on unsubstantiated claims by SP IBU Ops representatives and misrepresented key information to the audit committee, which oversees internal controls, compliance, and risk management. These actions highlighted significant lapses in their responsibilities and reliability, the company said.
"Given the seriousness of these lapses and findings, 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," Singapore Post said in a statement.
The company terminated the three executives and said it would announce the appointment of the new CEO in due course.