SINGAPORE (Dec 24): Singapore Post is launching investigations into corporate governance issues in response to articles carried in Wednesday’s edition of The Business Times..

The Business Times had reported on Wednesday in an article titled “SingPost made ‘administrative oversight’” that the postal and e-commerce group said on Tuesday that it had not properly disclosed a board director’s interest in a 2014 acquisition that the group had agreed to pay up to £7 million ($14.8 million) for.

SingPost said that the director, Keith Tay Ah Kee, actually had an interest in the FS Mackenzie deal at the time it was done, although he had abstained from voting on the deal.

The Business Times also carried in Wednesday’s publication a commentary, titled “More questions about corporate governance at SingPost”, by SingPost shareholder Mak Yuen Teen highlighting that Tay is the non-executive chairman and a shareholder of Stirling Coleman Capital Ltd (SCCL). SCCL was the arranger of the transaction.

SingPost, in a Singapore Exchange filing on Wednesday, said: “In view of the seriousness of the issues raised in these (BT) articles, Mr Keith Tay Ah Kee has requested the Chairman of the Board for Special Auditors to be appointed immediately to investigate these issues thoroughly and to report directly to the Board and the Audit Committee.

“Mr Tay has also requested that such report be made available for inspection by the Singapore Exchange, the Info-communications Development Authority of Singapore and other regulators, and that appropriate disclosure should also be made to shareholders and other stakeholders.”

SingPost also said that Tay, a director of the company, has “stressed that he will recuse himself completely from this matter during the investigation and that he will render all assistance and cooperation to the special auditors if and when required”.

Meanwhile, SingTel, SingPost's single biggest shareholder with a 23% stake, said it expects SingPost to take decisive action to ensure that shareholder interest is being protected.

As at 11.11am, SingPost shares are down 1.2% at $1.64 with 4 million shares traded. In comparison, the Straits Times Index is up 0.6%.