Billionaire Sex Scandal Shakes Australian Business Sector as WiseTech Global Loses $7 Billion

A scandal involving Australian tech billionaire Richard White has led to a loss of over A$7 billion (approximately $4.6 billion) in market value for his company, WiseTech Global Ltd. Reports have emerged that White paid millions to a former partner to settle allegations of inappropriate behavior.

This latest controversy adds to a growing list of corporate scandals in Australia, where companies are facing scrutiny over ethical standards and governance. White, who is the co-founder, CEO, and largest shareholder of WiseTech, is now under investigation as the company's board conducts a review of the allegations against him.

The situation escalated further when it was reported that a former director accused White of intimidation and bullying. Additionally, it was revealed that he had a long-term relationship with an employee, for which he gifted her a A$7 million waterfront house in Melbourne without disclosing the transaction to the board.

A spokesperson for White's legal team stated they had no immediate comment on these new allegations. However, this is not the only scandal affecting Australian businesses. Other major companies, including leading supermarkets, banks, and media firms, have also faced accusations of misconduct recently.

In another high-profile case, Chris Ellison, founder of Mineral Resources Ltd., is under investigation for undeclared payments that helped him avoid taxes. Since the scandal broke, nearly A$2 billion has been wiped off the miner's market value.

Experts suggest that the corporate culture in Australia is experiencing a crisis, especially in industries dominated by a few powerful companies. With only 27 million people in the country, there is a limited pool of independent directors, making it difficult to hold companies accountable.

Regulatory bodies also face challenges, including a lack of resources and ineffective penalties for misconduct. For instance, the Star Entertainment Group was recently fined A$15 million for breaching its license, a sum considered too low given its revenue.

In a recent report, Nine Entertainment Co. revealed systemic abuses of power, bullying, and discrimination within its ranks. Many companies seem to lack adequate internal governance to prevent issues from escalating into public scandals.

At WiseTech, shareholders, including Australia’s sovereign wealth fund and the largest pension fund, are feeling the impact of the allegations against White. As WiseTech's stock continues to fall, experts warn that these patterns of behavior could have long-term consequences for corporate governance in Australia.

White has stated that he is concerned about the allegations and has complied with company policies regarding personal relationships in the workplace. He recently reached an out-of-court settlement with another former partner who accused him of expecting sexual favors in exchange for business investment.