Finally! Wirecard admits that there statements on the third-party acquiring business were wrong!
The case of Wirecard seems to develop into an unstoppable downward spiral. It all started with some first intransparency issues were raised in 2008 by Schutzgemeinschaft der Kapitalanleger e.V.: SdK ,
After a special audit done by Ernst & Young by the end of 2009, all doubts about accounting issues of Wirecard became eliminated by EY, as they issued a clean report.
The so-called Zatarra Report issued in Feb 2016 (read the first report here) by Matthew Earl (@Twitter), Fraser Perring (@Twitter) and his partners again raised material issues about the evident involvement of Wirecard in illegal business activities.
Although the Zatarra Report reflects a desastrous picture of how Wirecard is doing its business and what they are actually doing – neither BAFIN nor Wirecard´s auditor took action against Wirecard. Bafin even took action against the people having established and published the report.
Only Financial Times remained on the case and started digging. With the help of whistleblowers FT did a tremendous job (KUDOS to Dan Mccrum) and published reports about the “House of Wirecard series”. Wirecard sued against Financial Times and threatened all the acting parties (also the Zatarra publishers).
After many denials, the company finally admitted on 22 June 2020 in a press release that €1.9 billion cash included in the financial statements of the company are not in existence.Austrian CEO Markus Braun and his long-time partner and board colleague Jan Marsalek have resigned. The remaining management and their consultants seem to struggle to clean up the past:
In a new press release, the company has now conceded that the third-party business has been incorrectly accounted for in recent years:
The Management Board further assesses that previous descriptions of the so called Third Party Acquiring business by the company are not correct. The Company continues to examine, whether, in which manner and to what extent such business has actually been conducted for the benefit of the company.
The share price has already lost more than 85% by Monday 22 June 2020 and is currently hovering around €14, which still seems excessive in view of the dramatic events and an insolvency scenario.
The public prosecutor’s office in Munich is investigating. A bail amounting to € 5 mio was asked for Markus Braun, so he could leave the jail.