Is The Worst Over For Singapore Post Limited?

In recent times, the  investors, board members and employees of Singapore Post Limited (SGX: S08) might not have been the most carefree bunch. However, after a lengthy special audit report, which was delayed, to investigate on a corporate governance concern over one of its acquisition, it seems that clouds are finally clearing up.

PricewaterhouseCoopers (PwC) and Drew & Napier has concluded the investigation this week, stating that there has been “no deliberate intention to conceal” SingPost director Keith Tay’s association in the acquired company. The report also suggested that the failure to make proper disclosure about the deal was a simple oversight due to the “carelessness” of an employee.

The corporate governance issue has surfaced after the resignation of its then-Chief executive officer, Wolfgang Baier, back in December 2015.

So far, troubles seemed to be coming in threes for SingPost. After the resignation of its CEO and the disclosure lapse of the company, leading to a special audit of its process. And just in recent months, its long-term Chairman, Mr. Lim Ho Kee, decided to step down as chairman on 10th May 2016; citing family commitments.

Moreover, SingPost might be without a Chairman when 10th of May arrive in a week time, given that the chairman-designate, Professor Low Teck Seng, has rejected the appointment, citing that the position would “demand more time and focus” than he has to offer.

Although the special report has cleared the company and the board of any wrongdoing, the reputation of Singapore Post might already been damaged. On top of that, the company seems to be in limbo, with a CEO and without a chairman.

Foolish Summary

There seemed to be so much uncertainty surrounding the company at the moment. Can the company move on after the special audit report? Would investors be satisfied with the result? Who would be the new CEO of the company? And would the direction of the company be the same as before or the new CEO would refocus the company toward a new goal? These are questions that can only time can answer.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim does not owns any shares in any companies mentioned above.