IBTimes UK

A joint special audit into the corporate governance processes at SingPost has revealed potential inaccuracies in standard practices involving acquisitions and disclose of conflicts of interest.

The findings have opened the path to possible regulatory action, the Business Times reported.

In December SingPost had revealed that it had failed to adequately disclose independent director Keith Tay's interest in a 2013 acquisition. Following this SingPost commissioned a corporate governance review jointly conducted by PricewaterhouseCoopers and Drew & Napier.

While the Monetary Authority of Singapore (MAS) did not specifically say if it will probe potential breaches by SingPost or Tay, it said it will take "appropriate action against any individual or entity that flouts any legislation under MAS' purview."

Singapore Exchange also said disciplinary action will be taken if any breaches of the listing rules are found.

Meanwhile, SingPost said it "accepted all the recommendations and will incorporate further recommendations that are forthcoming from our ongoing corporate governance review."

In early April, SingPost said chairman Lim Ho Kee was stepping down, setting off speculation about a series of changes at the postal carrier.

Lim's resignation had come in the midst of controversy about the quality of corporate governance at the company.

The investigation by the joint special auditors found that director Tay had possibly violated section 156(1) of the Companies Act as he did not declare his interest in a 2013 acquisition of Famous Holdings.

IBTimes UK