"Prevailing likelihood" that Wirecard missing cash does not exist

Published by Ross Hindle on June 22nd 2020, 9:09am

The latest development in one of the greatest financial mysteries of our time, the Wirecard scandal, is an announcement that the missing money simply may not exist.

The funds, worth around 1.9 billion euros, account for roughly 25 per cent of the company's total capital.

Following a "dead end" in the investigation at the end of last week, the company's CEO, Markus Braun, has now quit. The money can apparently be traced to the Philippines, but the trail ends there.

A few days after his resignation, the Bangko Sentral ng Pilipinas, the Philippines' central bank, announced that there was no sign of the money.

A statement issued today saw the company admit that "on the basis of further examination... there is a prevailing likelihood that the bank trust account balances... do not exist".

Wirecard has also formally pulled its financial records for 2019 and Q1 2020.

It is now discussing a bailout with a number of different banks, but how successful this measure will be remains to be seen.

It is also considering major internal restructuring as well as closing or selling certain arms of the Wirecard business.

The company's value reached around 24 billion euros just two years ago, when it joined the Dax 30, the German blue-chip share index, but has now dropped to just three billion after a major crash.

Founded in 1999, Wirecard has provided electronic payments services, risk management operations and the issuing of both physical and virtual cards for around 20 years.

After acquiring Citi Prepaid Services and rebranding it as Wirecard North America in 2017, the company moved heavily into ecommerce and focused on the electronic sides of its operations.

Accounting irregularities in some of its Asian operations were supposedly discovered by the Financial Times last year, at which point the company said money was set aside with Asian banks for "risk management".

KPMG discovered these irregularities were not sufficiently documented at the end of April, however, and investigations have been ongoing over the past two months.

The company's share price then fell by over 70 per cent in the space of just 48 hours.

Share this article


Leaders of Great Britain

About Leaders of Great Britain

Leaders of Great Britain hosts a series of engaging events featuring prominent figures from the worlds of politics, sports, business, and entertainment. Our goal is for every attendee to leave these gatherings with profound leadership insights that transcend boundaries. Learn More.


Related Features


Authored By

Ross Hindle
Content Director
June 22nd 2020, 9:09am

Follow Us

Follow @LeadersGBNI on Twitter for more live updates

Share this article


Popular Features

FEATURES | Published May 1st 2024, 5:10 pm

Chris Goodison: The Architect of Safety and Success

FEATURES | Published May 1st 2024, 11:11 am

Stephen Davis: A Story of Growth and Adaptation in Education

FEATURES | Published May 1st 2024, 8:07 am

Ayo Disu: The Entrepreneurial Journey to Octillion Capital

FEATURES | Published April 30th 2024, 5:07 pm

Ben Wright: A Journey from Gardening to Care Provision

FEATURES | Published April 30th 2024, 12:12 pm

Edel Gillespie: Shaping Futures at Leagrave Primary School

© Copyright 2024, Leaders of Great Britain.