Wirecard: Scandal-hit company claims missing €1.9bn might not exist

Wirecard: Scandal-hit firm says missing €1.9bn may not exist

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Scandal-hit payments agency Wirecard has claimed the €1.9bn (£1.7bn) lacking from its accounts simply just could not exist.

Wirecard’s main executive quit on Friday as the lookup for the missing cash strike a lifeless conclude in the Philippines.

On Sunday the central financial institution of Philippines explained none of the dollars seems to have entered the country’s money system.

The German company also explained it was withdrawing its economic outcomes for 2019 and the first quarter of 2020.

“The Management Board of Wirecard assesses on the foundation of further more examination that there is a prevailing chance that the lender have faith in account balances in the sum of 1.9 billion EUR do not exist,” the company stated in a statement on Monday.

The lacking money accounts for all-around a quarter of its total harmony sheet.

  • Wirecard manager quits amid hunt for lacking €1.9bn

The firm stated it was continuing to discuss a fiscal lifeline with banking companies, together with a recent arrangement that is because of to expire at the end of this thirty day period.

It said it was also looking at several possible designs to preserve the company, together with cost cuts, the restructuring of its functions, and selling or shutting parts of the enterprise.

The scandal emerged right after a collection of articles in the Fiscal Moments previous yr focusing on alleged accounting irregularities in Wirecard’s Asian operations.

The lacking funds was meant to be held in accounts at two Asian banking companies and had been established aside for “chance management”, the company said.

The exit of Wirecard’s chief executive Markus Braun on Friday came following auditor EY refused to signal off its 2019 accounts more than the missing funds.

Wirecard joined Germany’s blue-chip Dax 30 share index two yrs ago. At the time, it was valued at €24bn, but its shares have crashed in recent days offering it a inventory sector valuation of a lot less than €3bn.

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About the author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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