WiseTech founder Richard White ‘misled’ board on personal relationships, review reveals

An independent review into the actions of WiseTech’s controversial founder Richard White has revealed he made incomplete and, at times, misleading disclosures about personal relationships.

But the board has decided to take no further action, despite admitting three separate matters are yet to be investigated.

The review, initiated on February 26 and conducted by law firm Seyfarth Shaw, investigated Mr White’s disclosure about personal relationships with employees and suppliers, third-party business dealings and allegations of unlawful discrimination and gender pay inequality.

Mr White was forced to resign from his executive role in October last year over allegations he unduly used his influence to gain sexual favours, paid for a multimillion-dollar house for an employee he had been in a relationship with, and awarded a lucrative contract to a then-lover.

A previous review, conducted by Herbert Smith Freehills and Seyfarth Shaw and tabled in November, had cleared Mr White of any wrongdoing.

Last month, a board coup saw Mr White reinstated as executive chair and prompted the resignation of four independent directors.

The latest review, released to the market on Wednesday, found Mr White “made inaccurate and incomplete disclosures concerning the nature and duration of his relationship” with one employee; “was not fully transparent and candid”, and “misleading about personal matters concerning the ending of the relationship” during a board review.

Regarding his relationship with a woman who was a supplier to WiseTech, Mr White “made incomplete disclosures concerning the nature and duration of his relationship”.

“The commercial relationship was entered into where there were undisclosed conflicts of interest between the interests of WTC and the private interests of Mr White,” the review found.

During the review, one of the complainants elected not to come forward, with the law firm determining allegations remuneration and working unreasonable hours were unsubstantiated.

In releasing the findings, the board - led by non-independent director Mike Gregg - “acknowledges the legitimate governance concerns raised in the board review findings,” but will take no action against Mr White.

“The board sub-committee 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 release said.

Mr White will continue in his role as executive chair, with the board noting “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”.

“Mr White understands the importance of his role in creating and influencing the culture of the business, and the seriousness of his actions,” it said.

Investors were unmoved by the finding, with shares rising 0.3 per cent in morning trade to $84.93.

In the months since the revelations about Mr White appeared in the media, shares in WiseTech have fallen 35 per cent, compared to the ASX tech index which is up 2.6 per cent.