Ex-SPH CEO Ng Yat Chung accused of distancing himself from exaggerated circulation numbers scandal

Former Singapore Press Holdings (SPH) CEO Ng Yat Chung faces allegations of attempting to distance himself from the circulation inflation scandal that has recently come to light. This controversy erupted shortly after SPH filed a police report regarding potential offenses uncovered during internal investigations.

As part of an island-wide operation conducted from June 19 to 23, the police have been cooperating with SPH’s audit and risk committee, which has been probing inflated circulation figures. An unredacted version of the 14-page report has been submitted to the police, while a redacted version is available on SPH’s website, revealing a troubling level of misconduct within the organization.

Key Findings from the Report
The report covers the period from September 2020 to March 2022 and implicates several departments within SPH. It uncovered a systematic scheme involving the misappropriation of funds and manipulation of circulation numbers to enhance revenue. A notable discovery is the misuse of a charity fund, initially intended for purchasing newspapers for donation, which has been exploited since 2013 to artificially inflate circulation figures.

The report indicates that when schools reduced their required subscriptions, some individuals instructed the circulation team to maintain pre-reduced printing numbers, further utilizing the charity fund to offset revenue shortfalls. Even when schools requested the removal of print copies, the circulation department continued producing them, only to later dispose of the excess.

Barter Deals and Reporting Discrepancies
The audit also highlighted questionable barter deals with external entities. One deal raised concerns due to a lack of genuine transactional activity, while another arrangement involved SPH continuing to report circulation figures for a deal that had ceased operations. The discrepancies in reporting were further compounded by issues related to digital distribution and double-counting of digital copies sold to agencies.

Ng Yat Chung’s Response
The report has reignited scrutiny on Ng Yat Chung, who resigned in May after SPH was delisted from the Singapore Exchange. While he expressed regret over the misconduct in the circulation department, he emphasized that neither the board nor senior management were aware of the issues during his tenure.

Critics, including senior lawyer Stefanie Yuen Thio and socio-political commentator Andrew Loh, have suggested that Ng’s response reflects a deliberate effort to distance himself from the scandal. Loh pointed out that the audit report mentioned involvement from a senior management member, raising questions about Ng’s leadership during this troubling period.

Ng’s prior role was as Group President and CEO of Neptune Orient Lines, which faced criticism for its performance under his management before its eventual sale to CMA. As the scrutiny surrounding the circulation scandal continues, the implications for Ng and SPH remain significant.