Lessons from the Latest SingPost Saga

3 days before Christmas 2024, SingPost announced the immediate sacking of 3 of its top executives. They did not go quietly, announcing that they would contest their terminations. As the story unfolds, useful lessons can already be drawn.

The importance of robust whistleblowing policies and processes.

We do not know much about SingPost’s internal complaints processes, but signs suggest they could have been clearer and more robust.

The entire saga might have been avoided if there were clear investigation protocols and boundaries. Instead, internal investigators were at odds with top management.

Further, one whistleblower’s report was made to the IMDA. Potential whistleblowers cannot be prevented from contacting the authorities, but if they have confidence in internal processes, the authorities might not be their first port of call.

Key decision makers must be able to identify relevant and accurate information.

In times of crisis, a certain level of “noise” is to be expected. Key decision makers must be able to identify relevant and accurate information amidst the noise.

The 3 executives allegedly made false statements to the SingPost Board which contradicted internal investigation findings. In response, the Board engaged external investigators, instead of relying on the internal findings.

However, SingPost also alleges that the internal findings “contained clear evidence substantiating the allegations”, whereas the 3 executives’ statements were “without any independent evidence or substantiation.”

This begs the question why SingPost’s Board did not question and ultimately disregard the alleged false statements, but thought it appropriate to expend further time and money engaging external investigators.

Summary dismissal attracts scrutiny and may not be the only option.

Summary sacking of top management is unusual. Even when CEOs commit grave errors of judgment, they are usually not fired but invited to resign or terminated with notice. Such exits are less contentious and carry less risk of scrutiny.

Sometimes, summary dismissal is warranted or even unavoidable, e.g. where sexual abuse or fraud is involved. Summary dismissal sends a clear signal that such behaviour is not tolerated.

Summary dismissals must be carefully planned for defensibility both in court and in the public arena. When SingPost announced the sackings on 22 December 2024, shareholders seem to have thought information was lacking, and SingPost’s share price plummeted. Further information was disclosed only in response to intense scrutiny.

Organisations opting for summary dismissal must plan for the day after, or risk losing control of the narrative.

CNA article here: SingPost sackings: A timeline of what we know so far

Written by Gordon Lim, Associate Director

#Law #CorporateGovernance #Employment #Disputes #Investigations #whistleblowing