Australia’s largest superannuation funds are facing scrutiny over their investments in WiseTech Global following emerging allegations against founding chief executive Richard White.
Some of Wisetech’s largest shareholders including AustralianSuper (2.78%), the Future Fund (0.54%), REST and Sun Super, are reportedly evaluating their positions due to ethical concerns.
The superannuation funds, known for their commitment to responsible investing, may now want to reconsider their holdings in the company since White's personal life has come under the spotlight. White is involved in ongoing legal proceedings in the Federal Court regarding allegations of inappropriate behaviour in former relationships.
In response, WiseTech’s board issued a statement acknowledging the allegations and confirming that an internal review is underway.
“The board is currently reviewing the full range of matters raised in today’s media reports and is actively seeking further information and taking external advice,” WiseTech disclosed to the ASX.
The growing concerns have resulted in a significant market reaction. Shares in WiseTech fell 11.2% to A$108.73 in early Monday trading, marking a two-month low, as short sellers capitalised on the turmoil, representing 7% to 11% of the stock’s trading last week.
As speculation mounts, market observers are questioning whether White should take a leave of absence or potentially step down to mitigate further damage to the company's reputation and share price.