No repercussions for WiseTech billionaire who misled the board

The directors of embattled tech group WiseTech have confirmed that company founder and executive chairman Richard White misled the board about his personal relationships – which have thrown the $28 billion group into turmoil – but his job remains secure.

White’s fellow directors updated the sharemarket on Wednesday about the internal reviews of White’s conduct by Herbert Smith Freehills, Seyfarth Shaw and McGrath Nicol, which provided forensic accounting services.

WiseTech Global founder Richard White and former employee Caroline Heidemann.

The report found that White had made “inaccurate and incomplete disclosures” about one of his relationships and labelled the representations he had made to the board and the review “misleading about personal matters concerning the end of the relationship”.

White effectively controls WiseTech with a 38 per cent stake in the company.

Industry super fund HESTA, an investor in WiseTech, welcomed the clarity provided by the board review update and called it a necessary first step for enhanced disclosure.

“In the past few weeks, we have met directly with senior leaders at WiseTech to discuss our leadership and governance concerns,” HESTA chief executive Debby Blakey said on Wednesday.

But HESTA has also made it clear that further change is needed.

“Following this meeting, we wrote to the company to confirm the three key steps we believe are needed to restore investor confidence. Along with the substantial release of the board-commissioned reviews, these are appointing a board whose majority is genuinely independent and a new lead independent director and clarity on an orderly leadership transition,” Blakey said.

In February, the logistic giant’s four independent directors, including chair Richard Dammery, announced that they were quitting due to “intractable differences in the board and differing views around the ongoing role” of White.

The boardroom exodus followed further revelations by The Sydney Morning Herald, The Age and The Australian Financial Review about the tumultuous relationship between White and his wife, Zena Nasser, and the control she is alleged to exert over his business affairs.

White, 71, has been fending off damning allegations of inappropriate behaviour for months. One woman dubbed him the “LinkedIn Lecher” due to his alleged propensity to approach women via the network to offer business advice in return for sex. White has denied the claims.

A joint investigation by the Sydney Morning Herald, The Age and The Australian Financial Review recently revealed that Caroline Heidemann, a Brazilian woman on a temporary visa, has alleged in court documents that White provided her with financial support and assistance with a visa application in return for an ongoing sexual relationship.

White has denied her claim, saying he and Heidemann “were in a consensual personal relationship” and that he was providing financial support to her.

The ASX announcement on Wednesday said law firm Seyfarth was conducting further investigations into three matters, including two confidential complaints it flagged in February.

WiseTech is also the subject of a preliminary inquiry by the corporate regulator following the recent turmoil.

This includes White’s $200 million share sell-off during a trading blackout and the WiseTech board’s initial failure to release Seyfarth’s independent report into the multiple allegations of inappropriate conduct by White.

The company’s current board, comprising long-term associates of White who have made life-changing fortunes from the WiseTech business, criticised White on Wednesday over the findings in the review but did not indicate there would be any repercussions other than tightening the group’s codes of conduct.

“The Board Sub-Committee (comprising Mike Gregg, Charles Gibbon and Maree Isaacs) has indicated to Mr White that a number of the matters are serious in nature and that such conduct is not acceptable and must not be repeated,” the WiseTech statement said.

WiseTech founder Richard White.Credit: Oscar Colman

The company added that a shareholder survey supported the board’s view that White was too important to face any significant repercussions for his actions, which triggered two downgrades for WiseTech over the last six months.

“Mr White accepts the findings of the Board Review and has committed to, and is supportive of, a new and more stringent Code of Conduct in respect of such matters.”

The company also included a response from White to the review.

“He is deeply grateful to be given an opportunity to lead the Company as Executive Chair. He is committed to contributing to the success of the Company he co-founded.”

WiseTech shares dropped Wednesday afternoon to a new-year low of $83.04. The stock is down more than 35 per cent over the last six months due to the allegations against White.

At its annual meeting last November, White apologised for the impact of the media storm as an ongoing board review cleared him of alleged misconduct, including an accusation of bullying.

The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.