Wirecard collapse an 'unparallelled scandal'

BERLIN: The dramatic collapse of payments provider Wirecard is an"unparallelled scandal", Germany's finance minister said Thursday , after the group filed for insolvency as it admitted that 1.9 billion euros missing from its accounts likely did not exist.

"There are clear indications that this was an elaborate and sophisticated fraud involving multiple parties around the world in different institutions with a deliberate aim of deception," EY said.The damning assessment came hours after Wirecard filed for administration. Once held up as an example of an innovative, nimble company outsmarting lumbering banking giants at their own game, Wirecard's fall from grace began in January 2019 when questions emerged about accounting irregularities in its Asian division.

The final nail in the coffin came last Thursday when auditors Ernst & Young said they were unable to find 1.9 billion euros of cash in the company's accounts.The sum was held to cover risks in trading supposedly carried out by third parties on Wirecard's behalf and was meant to be sitting in trustee accounts at two Philippine banks.

Source: News Formal (newsformal.com)

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