Belgium’s leading postal service, Bpost, which is majority-owned by the Belgian Government, unlawfully dismissed its CEO in 2022 after he reported the misuse of public funds within the company.
A labour court in Brussels has now ruled that Jean Muls, the former CEO of Bpost Belgium, was entitled to just over €200,000 in compensation — equivalent to 17 weeks of pay — for what it described as an “unreasonable dismissal”.
Muls claimed he was removed from his position after acting as a whistleblower, revealing illegal, secret agreements with a competitor designed to distort the market.
The national contract for the distribution of newspapers and magazines in Belgium has long been controversial, widely seen as a covert subsidy for both Bpost and the media sector.
It has been plagued by allegations of fraud and mismanagement.
In 2022, a government contract worth €170 million was reportedly manipulated and an internal audit concluded that Bpost had entered into an unlawful arrangement with a rival firm.
The auditors found internal emails from top executives discussing the deal, which was referred to internally as “Project Cleopatra”.
Kathleen Van Beveren, chief executive of E-logistics Eurasia at Belgian postal giant Bpost and a member of its executive committee, is stepping down from her role amid accusations of fraud and foul play inside the company. https://t.co/ZXbRl8PH5f
— Brussels Signal (@brusselssignal) August 9, 2023
Several senior figures at Bpost were subsequently dismissed, including Muls, who contested his dismissal in court.
He argued he had first been made aware of the subsidy manipulation in January 2022 and promptly informed the board of directors. He was dismissed nine months later, receiving a severance package of €620,000.
According to Muls, the company dismissed him in an effort to silence him. Bpost, though, argued that his sacking was due to poor job performance, citing inadequate leadership, weak communication with trade unions and strained relations with fellow executives.
On April 18, the court sided with Muls on the case, stating: “The real reason for Mr Muls’ dismissal are the steps he took as a whistleblower and his role in uncovering the fraud with the newspaper distribution contract.
“The dismissal appears, without any doubt, to be a manoeuvre to silence him, as the only person in the entire organisation who exposed the fraud involving the newspaper contract. In doing so, he attempted to bring to light one of the worst cases of fraud involving public funds that a state-owned company has ever faced.”
Despite the ruling, the court declined to grant Muls an additional bonus and rejected his claim for a further €310,000 in damages. His separate complaint against the CEO of Bpost Group (International) Chris Peeters was also dismissed.
A spokesperson for Bpost told Brussels Signal on April 23, it did not want to comment on the case. It was unclear if the company would appeal the decision.
Belgian unions fear 4,500 jobs at Belgian Post Group could be at risk if the Government awards the national distribution contract for newspapers and magazines to its competitors. https://t.co/pj8Fzsqbaz
— Brussels Signal (@brusselssignal) November 28, 2023
