Tag Archives: Wirecard

German Members of Parliament to summon Merkel over the Wirecard scandal | News | DW | Instant News


On Wednesday, German lawmakers said they planned to question Chancellor Angela Merkel and Deputy Chancellor and Finance Minister Olaf Scholz about the Wirecard scandal.

Wirecard filed for protection from creditors through bankruptcy proceedings in June 2020 after admitting that € 1.9 billion that should have been deposited in a trust account in the Philippines may not have existed. The once rising digital payments giant was also found to have billions in debt. The company is suspected of having faked balance sheets for years.

Free Democratic (FDP) finance expert Florian Toncar told DW that Merkel “lobbied to support Wirecard with the Chinese president” during a 2019 trip to China.

“At that time, the chancellor should not have lobbied on behalf of the company, but prosecutors and police should have come in and searched the company premises,” he said.

Merkel will be called to testify on April 23, a day after Scholz, the candidate the center-left Social Democratic Party (SPD) hopes will replace Merkel’s Christian Democrats after this year’s national elections.

Toncar also told DW that Scholz’s ministry failed to prevent the scandal.

“Most of the political responsibility lies with the Ministry of Finance, the Ministry of Olaf Scholz,” said Toncar, a lawyer specializing in international finance and a member of the parliamentary inquiry investigating Wirecard’s bankruptcy.

‘Irresponsible culture’

Parliamentary committee members were formed to investigate the widely publicized claims of adultery find great failure on the part of German authorities and politicians.

On Wednesday, German lawmaker Toncar told reporters that the financial authorities and political leaders had “strong and reasonable indications. criminal behavior on Wirecard … and not just from newspapers. “

He denounced the “culture of irresponsibility” in Germany, saying it was primarily focused on “who has jurisdiction and who doesn’t have jurisdiction.”

“By the way, our impression is the worse the higher your hierarchy,” he said.

Such scams ‘need a network’

Leftist party lawmaker Fabio de Masi accused government officials of cooperating to allow the “fraud”.

“No one person can commit fraud like that, it takes a network,” said de Masi. Among other things, he criticized the “very ongoing commitment of the German government” to Wirecard in China even after serious accusations were exposed.

A nine-member investigative committee was formed in early October at the request of parliamentary opposition groups from the Left, Green and the FDP. Authorities are also examining the fugitive of Wirecard’s former chief of operations, Jan Marsalek, who has reportedly been an informant to Austrian intelligence agency BVT.

Interpol issued a red notice for Marsalek in 2020 for charges of “ breach of Germany’s obligations for securities acts and acts of securities trading, criminal breaches of trust (and) very serious cases of fraud. ”

lc / dj (AFP, AP)

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Wirecard scandal: Germany will replace chief financial supervisor | News | DW | Instant News


Felix Hufeld, head of the German financial controller BaFin, was replaced as the impact of the Wirecard scandal continues to grow.

Minister of Finance Olaf Scholz announced the move on Friday, saying it was part of an effort to overhaul the agency.

“The Wirecard scandal reveals that Germany’s financial regulator needs reorganization to fulfill its supervisory role more effectively,” said a ministry statement.

Scholz thanked Hufeld for his years of service, adding that the personnel reshuffle was a “new beginning” for regulators.

The ministry statement did not identify Hufeld’s successor.

The news came after BaFin announced one of its own employees is suspected of insider trading connected to the Wirecard collapse.

Regulator under attack

Digital payments company Wirecard was a rising star in the fintech sector before becoming one of Germany’s biggest fraud scandals.

In June last year, the company acknowledged that € 1.9 billion ($ 2.1 billion) of assets had not been discovered. The company filed for bankruptcy just days after the announcement.

Initial investigations suggest that the company may have been cooking its books since 2015.

BaFin is under immense pressure over the scandal, with regulators accused of poor oversight and missing warning signs that have allowed accounting fraud to continue for years.

A parliamentary committee has been tasked with finding out who knows what and when. Chancellor Angela Merkel and Minister of Finance Scholz will be criticized by lawmakers as part of the investigation.

rs / sms (AFP, dpa, Reuters)

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German Prosecutors Investigate Ernst & Young’s Role in Wirecard Collapse | Instant News


German prosecutors are examining Ernst & Young’s role in the humiliated collapse of payments operator Wirecard AG, increasing pressure on auditing firms.

Munich prosecutors said they were evaluating a report by the state’s accounting watchdog about the company’s collapse this summer. The supervisor, known as Apas, conducted an investigation into the work of the audit firm’s local affiliate, EY GmbH, after Wirecard admitted that more than $ 2 billion in cash it said was held in bank accounts in his name did not exist.

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Wirecard Probe Criticizes German Financial Supervisory | Instant News


Europe’s top market watchdog said it found a series of problems with German regulatory oversight and handling of Wirecard AG, a fintech darling that collapsed amid allegations of fraud.

The European Securities and Markets Authority said in a report Tuesday that BaFin, Germany’s market and financial watchdog, may lack independence from the German government and with proper internal controls. It points to the key staff trading Wirecard stock, including during the period while investigating the company.

ESMA …

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Germany asks Russia to help find former Wirecard executive | Instant News


German authorities have asked Russian officials whether Jan Marsalek, a former executive of Wirecard AG who runs operations for humiliated fintech companies, has entered Russia and asked them to follow up on Interpol’s notice issued for his arrest.

The request, made on July 22, and “red notifications” issued through the Interpol multilateral police organization was disclosed in a written response given by the German government to lawmakers on Wednesday and reviewed by The Wall Street Journal. MPs are investigating the impact of Wirecard, …

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