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Wirecard: Financial Times raises new accounting fraud allegations

0.12.2019, 05:28 am

The Financial Times has raised new charges against payment service provider Wirecard. This time it’s about an alleged brightening of the 2017 balance sheet. Wirecard denies that.

The dispute between the Financial Times and Wirecard over allegations of alleged irregularities in the balance goes into the next round. For the balance sheet 2017, according to the current allegations of the British business newspaper , the German payment service provider is said to have added funds parked on fiduciary accounts to the cash reserves. Trust accounts are used to process credit card payments from customers and merchants. Wirecard has rejected the allegations.

Cash flow from Wirecard in focus

The Financial Times sees evidence for their allegations, including in the high cash flow of the Dax Group. This grew in 2018 to 750 million. For 2014 there were still 129 million euros to book. Firms that can show a high cash flow are regarded as solid by investors. At this point, the British journalists intervene: The cash holdings have helped Wirecard to calm the stockbrokers in view of the numerous allegations and to support the stock price.

In addition, according to the Financial Times, Wirecard, despite the high net cash position of 2.1 billion euros a little later added new debt in the amount of 1.4 billion euros. Apparently, the journalists apparently also felt that the Wirecard Bank is increasingly seeking deposits from private customers. The daughter Boon offers customers from the beginning of January 0.75 percent interest on current account – this is unusual in view of the current low interest rate. Other banks, with the help of negative interest rates, are currently trying to fend off fresh customer deposits so as not to have to pay for the negative interest rates for parked money demanded by the ECB.

Wirecard has rejected the allegations. All cash positions have been accounted for in accordance with the accounting standard IFRS, quotes boerse.ard.de a spokeswoman for the company. Wirecard wants to have the accumulated allegations by the auditing firm KPMG under the microscope.

Wirecard share under pressure since the end of January

It was not until mid-October that the Wirecard share fell to a six-month low of $ 107.80 on allegations by the Financial Times that the group was doing sales and profits in Dubai and Ireland. Recently, the stock had recovered a bit. On Monday it went because of the renewed allegations by up to five percent to 109.40 euros downhill. At the beginning of the year, before the series of critical reports from the Financial Times , the stock was around 160 euros.

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