Zilingo fires CEO after probe into complaints of financial irregularities

E-commerce platform Zilingo has terminated its chief executive Ankiti Bose, also the co-founder of the firm, following an investigation into complaints of serious financial irregularities.

In a statement yesterday, the Singapore-based firm said it decided to terminate Ms Bose's employment "with cause" and it reserves the right to pursue appropriate legal action.

The start-up, which counts Sequoia Capital India, Singapore investment company Temasek and the Economic Development Board's investment arm EDBI among its investors, had suspended Ms Bose on March 31.

Zilingo said Ms Bose brought "certain harassment-related issues pertaining to past time periods" to the attention of the firm's board on April 11. These issues did not include any harassment complaints against investors or their nominees, it added, noting that a top consulting firm had been engaged to look into the claims.

"The investigation has concluded that the company took appropriate action and followed due process to address these complaints that were brought to its notice, contrary to media reports that have suggested that the suspension and investigation into Ankiti Bose were aimed at suppressing the said harassment claims," said Zilingo.

Ms Bose, in a statement posted on her LinkedIn account and other social media profiles yesterday, said she had been informed that she was terminated on grounds of "insubordination".

This was after she had been suspended based on an anonymous whistle-blower complaint, she said.

"I was suspended on the basis that the company had instructed investigators to investigate the complaint. I have neither seen the reports nor been given sufficient time to produce any documents requested by them," said Ms Bose.

She said she has been receiving "a constant barrage of online threats" to her life and her family.

Ms Bose added that she will be speaking on record shortly with more details about the conflicts of interest in the manner the process was run and other matters that she said are being used to defame her.

In its statement, Zilingo said: "The company is deeply pained and disappointed to see the manner in which the board, investors and employees have been constantly attacked through ostensibly leaked and fake information, along with what unfortunately appears to be paid and defamatory social media campaigns throughout the investigation period."

This has caused irreparable damage to the start-up, board, staff and backers, it added.

The company noted that following the recall of loans by debt holders, an independent financial adviser was appointed and is in the midst of assessing options for the business. More information will be provided in due course, it said.

Ms Bose had earlier been suspended from her duties while the start-up's accounting practices were investigated. Regulatory checks show that Zilingo's last financial statement was filed in 2019. Ms Bose has disputed claims of wrongdoing.

National University of Singapore Business School's Professor Mak Yuen Teen noted how start-ups here and elsewhere have faced corporate governance issues such as financial irregularities and conflict of interest.

Start-ups need to ensure that they have at least the basic corporate governance in place, such as having accounts audited by a respectable audit firm on a timely basis, he said.

Singapore Institute of Directors vice-chairman Adrian Chan, who also serves on the Enterprise Board of Singapore Management University's Institute of Innovation and Entrepreneurship, said: "Paying heed to corporate governance makes good business sense and should not be viewed as a burden. And if boards fail to recognise this early on, they may find themselves paying a higher price later on."