Founder of big tech group ‘cleared’ by external review
The co-founder of an Australian tech giant has been cleared of three recent allegations of misuse of company funds, according to the findings of an external review team.
The disclosure follows more than 12 months of scandals and boardroom chaos at WiseTech Global linked to allegations against billionaire Richard White, who is now the logistics platform’s executive chairman and chief innovation officer.
The three outstanding issues concerned allegations of close personal relationships with three individuals who were, at the time, employees, suppliers or contractors of WiseTech.
The cases centered on allegations of misuse of company funds related to international and domestic travel and the financing of a person’s lifestyle, including rental property and plastic surgery.
The consultants concluded that “allegations of improper use of Company funds by Mr. White” in relation to one person were “not supported by the evidence” and made the same finding for the second person.
The review was established in October last year, when WiseTech appointed Herbert Smith Freehills and Seyfarth Shaw to examine allegations highlighted in media reports.
In March, outside advisers presented findings in Mr. White’s favor on five counts that effectively cleared him of allegations of misconduct, before turning their attention to the remaining allegations.
But Mr White may not be out of the woods yet due to an ongoing investigation by the corporate regulator, the Australian Securities and Investments Commission and the Australian Federal Police, which was launched two months ago.
Mr White is under investigation, along with three of his employees, over allegations related to the sale of company shares during the ban period.
Anger surrounding the allegations has eroded more than 50 per cent of ASX-listed WiseTech’s share price over the past 12 months.
But on Friday, the stock rose nearly four percent in early trading to $70.60 per share.
WiseTech’s board signaled it was satisfied that the external review had done its job and identified all “relevant matters.”
“The company has strong governance regulations, including ‘safe to talk’ and reporting platforms that allow matters to be reported through third-party providers,” it said in a statement.
WiseTech, which has a market capitalization of $23 billion, was founded in 1994 when Mr White and co-founder Maree Isaacs began writing code for Australian freight forwarders.
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